Help In Taking Decision On Purchase Order

Dear Seniors,

A very goodmorning to all and a great day ahead.

Here I am in a dilema for taking a strong decision. Below is my situation

last week our company had a requirement of a software to a particular employee.

I collected a number of good quotes from the vendors and finalized the order from a particular vendor after getting confirmation from management.

Also I send to the vendor a confirmed purchase order . The vendor now says that the amount mentioned was changed on last night and the new price would be Rs 300/- extra.

My question is , Is it possible to change the price in the finalysed quote by the vendor. If it is acceptable is that good to talk with my management regrading new price?

Can I argue with the vendor for getting the product with the earlier mentioned price?

What would be the good decision on this.

I have no problem in communicating this to management but I should have a strong point to argue.

What would be your attitude on this type of issues.

I know that this is not the function of HR. I believe HR can do something on this part.

Expecting your valuable inputs

Regards

Soja Oliver
Dev Web Services(I) Pvt Ltd

If any clause in the quotation of the vendor like price will change at any time before releasing the purchase order, you have no choice otherwise you may fight with the vendor to supply the item as per the agreed price.

[QUOTE=ramesh5;949409]If any clause in the quotation of the vendor like price will change at any time before releasing the purchase order, you have no choice otherwise you may fight with the vendor to supply the item as per the agreed price. Alteratively you may also check whether this vendor follows the same principle. If yes you may discuss this issue with your superiors and identify other vendor.

Typically the quotes I have seen have a validity date. This quote is valid through xxx date. Regardless, if you have sent the PO along with the quote, you can and should fight it. Else you can threaten to cancell the order and go with another vendor. That's what I would do in your place.
--Som G

Dear Soja,
If they haven't mentioned anything about the price change in the final quote as well as didnt specify the validity date of that quote then by all means you can argue with them. Try to bring your immediate supervisor into role. If there is so change in the situation then bring it to the notice of the management and with their nod threaten the vendor that you will cancel his order. If he agrees well and good or else look for another vendor

Well all business transactions are based on fair business practices and business ethics.
• Prices of certain items are very volatile and they keep changing every hour. But in that case vendor needs to mention validity period in the quotation. Some vendors also mention a clause in quotation that, buyer need to reconfirm certain important clauses and price before placing final Purchase Order.
• In any case, vendor has a choice of not accepting any purchase order for valid reason or for frivolous reason possibly at the cost of loosing credibility and reputation.
• In this case buyer can put pressure on vendor to honor his quoted price or else lose this order as well as future business.
• Buyer has choice of going to next best quote.
Thanks & Regards

Dear soja,
As per your point you have already got the rate and finalized it. so there is no matter of price change in night and all. you have a very strong point in your hand. if you have written document of final purchase order for the same price you can claim on it.
Thanking you
Gopal Kumar Gupta.

Soja...
The situation has not changed for long.... "Customer is still King...!".... hehehe
Put your foot down and ask him the price you want it at and what had he agreed initially...
Else Try out some other vendors and check their prices...
Unless this current vendor is 'exceptionally reasonable' in his quotes... you could inform your management about the same... and let them take a call.. if its fine to pay that additional Rs 300..
Regards...Lionel

It all depends on the terms and conditions of the offer. If your vender had inserted specific condition like rate prevailing at the time of supply only will apply or subject to change by the manufacturer etc. Then such price changes can legally take place. The purchase order will be treated as legally concluded only when your vender accepts the same unconditionally. You can, however, discuss the matter with you vender but the outcome will depend on your negotiation skills. In this case, since your supplier did not accept the Order, you have an option to go for alternate sourcing

Dear All,
Thanks for your inputs
I talked with the vendor and they agreed to deliver the products for the settled price.
Everything ended in harmony.
They would be delivering the products on Monday.
I gain some confidence since I could solve the problem by myself without sending to top management.
The citehr experienced community is big factor
I would be coming again with a new issue