Contract negotiations with a supplier is the point at which a business should begin building a positive relationship for the long term. The negotiation process is about much more than price. It is about developing a collaborative association to create value for the supplier and buyer. - By Lena Haram

The supplier has been selected, and now it is time to negotiate the contract terms. The process is often approached as a negotiation over price when it should concern much more, including establishing a positive working relationship from the start. Price is just one factor, and focusing mostly on that one factor ignores the opportunities to develop the foundation of supplier performance that leads to successful supplier relationship management (SRM) and greatest value generation.