Vendor Negotiations
Once the initial ERP software vendor decision is made, Panorama works with the project team to negotiate the best business arrangement for the client, including procuring the chosen vendor’s software at the lowest possible cost. As part of this task, Panorama creates a Vendor Negotiation Tactics Worksheet, which outlines the terms of the vendor’s proposed offering compared to the terms that should be requested from the vendor. Worksheet segments include:
- Software licenses
- Annual maintenance
- Implementation services
- Payment schedule
- Contract terms
Panorama advises the client team on how to leverage competing short-list vendor proposals to negotiate a favorable arrangement with the preferred software vendor. Panorama coaches the client vendor negotiation team throughout the negotiation process, which typically lasts one to two weeks.
Based on the results of the analysis up until this point in the project, this negotiation exercise is conducted in parallel with either one or two of the vendor finalists. This task is an extremely high value-add activity that typically pays for our project consulting fees multiple times over.
