Establish and Conduct Business Relationships - Desklib

This article discusses how to establish and conduct business relationships with suppliers for your organization. It covers topics such as selecting suppliers, key performance indicators, researching alternative suppliers, negotiating with suppliers, and managing supplier relationships. The article also includes a sample negotiation and contract agreement with suppliers. Subject: Business Management, Course Code: BMGT101, College/University: Not mentioned.

Establish and Conduct
Business Relationships

PART A
The list of suppliers which has been selected along with a description of the products or services they currently
provides
 Supplier 1: Bobs Bakery Shop
Product and services offered: Products associated with bakery that is burger buns, breads, and others.
 Supplier 2: Haverick Meats
Products and services offered: The Company provides items likes lamb ribs, chicken, meat, pre-cooked meat, steak
and may others.
 Supplier 3: Ponti Exotic Fruit and Vegetables
Products and services offered: The Company offers items like cucumber, onion, tomato, carrot and other vegetables
as per the requirement.
The list of key performance indicators or specifications that are needed for the supply of each product or service from
each supplier
 From Supplier 1: Bobs Bakery shop: The items that we gets from Bobs Bakery Shop are;
30 burger buns
10 breads
 From Supplier 2: Haverick Meats: The items that we gets from Haverick meats are;
Pork belly
5kg of chicken breast
Lamb ribs total for 2 packets of 5kg each
3 packets of rump steak that is of 300gms each
Chicken thigh of 5kg
 From Supplier 3: Ponti Exotic fruit and vegetables: The items that we gets from Ponti Exotic fruit and
vegetables are;
Complete box of a carrot
Stuffs such as mango, capsicum, corn and many others
3kg onion and 2 packets of cucumber along with a spring onion
Research alternative suppliers for each supplier you have listed in Question 1, and obtain an alternative quote for
each supplier you currently use, based on the key performance indicators/specifications you have identified in
Question 2
In respect to the meats it is Tanta meats. According to the company I am required to visit the website of Tanta
meats and analyzed that it has a decent look. We could buy a high quality products from them at cheaper prices
along with a healthy food items. They on the other hand provides delivery in a time less than three days which is
highly good.

Other than this I have also analyzed for Simon George and sons vegetables in market from whom I can have
required vegetables for my use. The vegetable vendor Simon George and sons is known as the premier producer
and wholesaler within the market who regularly offers the high quality vegetables and fruits in market. This can
also be easily found to place orders of vegetables as one can install their application of shop and can place order
successfully with user friendly manual.
The other was in search of a bread that is the Harrys bread was found to be the best for me and provides good
quality flawless services and the first supplier to the business was Bobs bakery. Both the stores usually offers
their services with common time and even the quality is also being highly identical of each.
Once you have received the 3 quotes, compare these with the existing supplier provisions and attach a summary
which outlines the advantages and disadvantages for:
 Quality
 Prices
 Payment conditions
 Service provisions
 Reliability
 Specific needs of your organisations (quantities, $ terms, purchasing power etc.)
Haverick
Meat
Tanta
meats
Ponti
Exotic
Fruit and
Vegetables
Simon
George
and sons
Bobs
Bakery
Harrys
Bakery
Price They offers
meat at
decent
prices such
as for 5kg
chicken
they
chargers
only 44
bucks
which is
reasonable.
On the
other hand
when it is
about to
Tanta meats
offers its
items at
affordable
prices but is
more costly
in
comparison
to the
Haverick
meat that is
they
chargers 47
bucks for
5kg chicken
which is
The Ponti
Exotic
fruits and
vegetables
is cheaper
than that of
Simon
George and
son’s
vegetables
that is
nearly
about a less
of 2
dollars.
They
Simon
George and
sons
vegetable
offers higer
prices for
the
suppliers in
comparison
to the Ponti
Exotic fruit
and
vegetables
suppliers.
That is they
charges 2
The items
from Bobs
bakery is
cheaper as
compared
to Harry’s
bakers in
about 50
cents.
The Harrys
bakery
offers items
at 50 cent
higher
prices than
that of
Bobs
bakery.

other items
such as
lamb, steak
and others
are also
affordable.
more than
Haverick.
charges 40
dollars in
total for all
vegetables.
dollars
higher than
them.
Payment
condition
The
condition of
making
payment to
this vendor
is weekly.
To Tanta
meats the
payment is
to be done
every
fortnight.
The Ponti
Exotic
fruits and
vegetables
receives
payment on
weekly
basis but
via through
bank.
The
payment is
to be made
on weekly
basis
through
cash.
The
payment is
made on
spot the
moment of
purchase of
items
through
cash.
The
payment is
made on
spot the
moment of
purchase of
items
through
cash.
Provision
of service
The vendor
provides
high quality
services as
they
generally
delivers the
order
within same
day.
The Tanta
meat
suppliers its
items with
good
quality of
services but
takes one
and half
day to
deliver the
items.
The items
are being
delivered in
just one
day by the
vendor.
The items
are being
delivered in
just one
day by the
vendor.
They
generally
takes only
5 hours to
deliver the
order.
They takes
2 hours
more than
of Bobs
bakery to
deliver the
item that is
delivers in
7 hours.
Reliability It is
convenient
and we can
buy meat
from this
vendor as
they are
highly
It is
convenient
and we can
buy meat
from this
vendor as
they are
highly
The vendor
is
trustworthy
to place
order for
vegetables.
The vendor
is
trustworthy
to place
order for
vegetables.
The
supplier
Bobs
bakery is
trustworthy
to buy buns
or breads
from them.
The
supplier
vendor is
trustworthy
to buy buns
or breads
from them.

trustworthy. trustworthy.
Specific
needs
Quality They offers
good
quality of
food and
meats.
They offers
good
quality of
food and
meats.
They offers
decent
quality
vegetables
Offers
good
quality of
vegetables.
They offers
small size
bread and
the quality
of the same
is also not
up to the
mark.
They offers
good
quality of
bread as
well as
larger then
of Bobs
bakery.
Based on your comparison, write a recommendation for whether one or several new supplier(s) should be considered
to replace any of the existing ones. Which aspects will need to be negotiated specifically where one or several
new suppliers are considered, or re-negotiated where existing suppliers are preferred
Based on to my analysis, I will recommend to place orders from supplier 1 that is Bobs bakery though it might
not be effective to have bread from them as its size is small but we could negotiate with them & can raise the price.
But this requires for a good quality bread and buns that cannot be compromised with quality or if not adjusted then
we would find another supplier for such items. Likewise, for the rest of the goods such as chicken, meats &
vegetables these are good from Haverick meat and Ponti Exotic fruits and vegetables as compare to their similar
firms & are highly trustworthy to place orders from these suppliers. Though, there is a chance of negotiating on
chicken if provided with possibility but then also the charged prices are good.
How are the relationships with existing suppliers managed in your organisation? What does this entail in terms of
communication, monitoring and provisions to overcome supply or service issues? What are your
recommendations based on existing provisions in place (or where these do not or only partially exist)?
The suppliers are the partners of company & this partnership must be laid upon not only on the basis of
monetary transactions, but also should be upon the mutual trust as well as loyalty. We aims at making our suppliers
feels like that they are the part of our firm. We use to inform them related to our processes, like a launch of new
products or promotion & listens to their views or concerns. We at our business does not wants to lose any of our
suppliers; I could do that through making timely payment so that they can be satisfied with our partnership and
believes that I am their reliable customer and they can safely conduct their business with me. If I could not make
their payment on agreed date, then I would be responsible for informing the suppliers for their payment as soon as
possible on the expected date when I can be able to make payments.
Where actual negotiation will take place as a result of the aspects you have identified in Question
5, you will be observed conducting these negotiations for Part B of this assessment project
The actual negotiation for the items would take place in the regions of Brisbane.

PART B
You will be observed conducting negations with existing or potential new suppliers as identified in Question 5
of Part A of this assessment. The suppliers may be actual, where organisational policies and procedures
permit, or simulated, with colleagues or students as agreed to with your trainer. You are required to
record all details discussed during the negotiation talks and use these as the basis to draw up a contract
for each supplier in Part C of this assessment. Provide the following details for at least 2 different
negotiations (Negotiation 1 and 2) you will undertake:
Negotiation 1
Real Negotiation[ ] Simulated Negotiation √
Details of the suppliers Fruits & Vegetables from Australia
Represented by: Mandy
Region Brisbane
Date of negotiation 24/03/2021
Nature of negotiation Pricing as well as the quality
Other details We both parties are negotiating for 8 per cent off on the total of the net invoice for
timely payment of amount.
The supplier promises to supply good quality as well as high freshness within his
offerings.
Negotiation 2
Real Negotiation[ ] Simulated Negotiation √
Details of the supplier The Meating
Represented by: Mandy
Region Brisbane
Date of negotiation 24/03/2021
Nature of negotiation In respect to the pricing of products
Other details We both the parties are negotiating for 5 per cent off from the total of monthly
invoice that is made after purchases for up to 80 kg per month.
PART C
Present the outcomes from each negotiation to your supervisor/manager or trainer and discuss the viability of each
term negotiated according to your notes. Enter the outcomes for each contractual detail you have negotiated in
the table below and indicate the changes required (if any) and/or the approval to proceed with the agreements
Supplier 1 Approved Not Recommended Change

Approved
Contract detail 1: Pricing 🗸 No change
Contract detail 2: Quality 🗸 No change
Name of the supervisor: Mandy
Signatures of the Supervisor: Mandy Date:
27/03/2021
Supplier 2 Approved Not
Approved
Recommended Change
Contract detail 1: Pricing 🗸
Name of the supervisor: Mandy
Signatures of the Supervisor:
Mandy Date: 27/03/2021
Based on the feedback from your supervisor or trainer, contact the supplier and negotiate the final changes if
required. Record the negotiated changes in the table and obtain final approval from your supervisor or trainer
Supplier 1 Outcome Approved Not approved
Details negotiated
Date of discount and payment
Discount of 8
percent and a
payment within 30
days
🗸
Quality and the Freshness The suppliers
promises to
offer higher
quality items
for fresh
vegetables
🗸
Supplier 2 Outcome
Details negotiated
Date of discount and payment Discount of 5 per
cent and time of
15 days to make
the payments.
Yes
Contact each supplier by email and confirm the agreements made. Advise each party that you will finalise the formal
agreements for signing of all parties
a) Fruits and vegetables from Australia
Dear Supplier,

Based on to the negotiation we have made I am sending an agreement related to the below mentioned
aspects:
1. Discount for 8 percent
2. Fresh Vegetables
3. Timely payment within a period of 30 days from delivery
Regards
Mandy
b) The Meating
Dear Supplier,
Based on to the negotiation we have made I am sending an agreement related to the below mentioned aspects:
1. Discount of 5 percent
2. Payment within a period of 15 days from the date of delivery
Regards
Mandy
Draw up the contract agreements based on your final negotiated outcomes. Each contract must contains the following
details:
Contract Agreement with every supplier
Supplier 1: For Fruits and Vegetables from Australia. Ph: 0123456789
Conditions of a Supply:
 Discount for 8 percent
 Fresh Vegetables
 Timely payment within a period of 30 days from delivery
Terms of payment:
8 percent of the total amount of the net invoice for timely payment either debit card or credit card or through direct
deposit of cash.
Specifications of the items and services that needs to be supplied (scope of items)
 Coss Lettuce
 Mix Salad
 Spinach
The Warranty period for goods that are defective
The vegetable should be nearly about 70 per cent fresh for the period of 48 hours that is 2 days.
Extend or limit of the liability (damage risk or loss)
The liability or risk of a product is concerned with fruit as well as the vegetables marketing is of
consumer that is related with injuries caused by the harmful items such as poor quality of food or those
which are contaminated in nature to produce. Any occurrence related with the liability or a risk of
product might have a very lower probability of presence but might lead to a huge economic losses.

Intellectual property
The Trademarks & the copyright for Fruits and Vegetables from Australia. The Trademark is attained with
the assistance of Intellectual Property Australia act.
Confidentiality
The Privacy Act year 1988 (Privacy Act) is a law in Australia that is prepared to regulate the handling of
private information for the individuals. The information of customers must not be shared with any of the third party.
Insurance
The insurance agencies could help firm with compulsory as well as voluntary insurance requirements. Within the
insurance cover one can adapt to suit for fruit & vegetable growing farm. Fruits & Vegetables from the Australia‘s
farm that includes insurance which allows you to adapt an insurance plan which suits to the horticultural operations.
Resolution of a Dispute
The resolution of Dispute within the Horticulture Code process includes the below mentioned steps:
 The complainant should inform the other party in written related to the dispute & state:
 What the matter of dispute
 The action they thought would be resolving the dispute
 Their desired result
 The parties should then make a try to resolve such dispute.
 In case the parties could resolve such raised dispute in a time period of three weeks from the date then the
complainant must informs the other party for the dispute, either that party can ask for the mediation adviser to
appoint a mediator for them.
 Once a mediator is being appointed, the mediator has a right to decide how, where & when they would carry
out the process of mediation.
 Once the dispute has been settled down for mediation, all the parties should attend the mediation & tries to
resolve such dispute.

Termination and exclusion clauses
Generally, The Unfair Contract Terms Act year 1977 ("UCTA") does not involves insurance contracts;
 That are related to the formation, transfer & termination of the intellectual property rights, those
contracts which are related to the creation, dissolution and the constitution of a business or with the
rights & obligations of its associated members.
 Contracts related to the creation or transfer of securities or rights in securities.
 Contracts related to the creation, transfer or termination of an interest in land.
 Some marine or shipping contracts and the employment contracts.
Supplier 2: The Meating Ph: 0987654321
Conditions of the Supply
Discount of 5 per cent
Payment needs to be made within a period of 15 days from the date of delivery.
Temperature:
Ranges from 1-5 based on to the state & temperature of the meat following process of food safety, maximum of 3 C
& 5 C.
Time of delivery:
Ranges from 1-5 the delivery time, maximum in a period of 24 hours.
Price:
Ranges from 1-5 the price based on to the quality of meat, Pork 13$ per Kg, Chicken that is 8$ per kg, & the fish for
11$ per kg.
Terms of Payment:
5 percent off the whole total of net invoice for timely payment either by debit card, credit card or via direct deposit of
cash.
Specifications of the items and services that needs to be supplied (scope of items)
 Coss Lettuce
 Mix Salad
 Spinach
The Warranty period for goods that are defective
The vegetable should be nearly about 70 per cent fresh for the period of 48 hours that is 2 days.
Extend or limit of the liability (damage risk or loss)
The liability or risk of a product is concerned with fruit as well as the vegetables marketing is of
consumer that is related with injuries caused by the harmful items such as poor quality of food or those
which are contaminated in nature to produce. Any occurrence related with the liability or a risk of
product might have a very lower probability of presence but might lead to a huge economic losses.
Intellectual property

The Trademarks & the copyright for Fruits and Vegetables from Australia. The Trademark is attained with
the assistance of Intellectual Property Australia act.
Confidentiality
The Privacy Act year 1988 (Privacy Act) is a law in Australia that is prepared to regulate the handling of
private information for the individuals. The information of customers must not be shared with any of the third party.
Insurance
The insurance agencies could help firm with compulsory as well as voluntary insurance requirements. Within the
insurance cover one can adapt to suit for fruit & vegetable growing farm. Fruits & Vegetables from the Australia‘s
farm that includes insurance which allows you to adapt an insurance plan which suits to the horticultural operations.
Resolution of a Dispute
The resolution of Dispute within the Horticulture Code process includes the below mentioned steps:
 The complainant should inform the other party in written related to the dispute & state:
 What the matter of dispute
 The action they thought would be resolving the dispute
 Their desired result
 The parties should then make a try to resolve such dispute.
 In case the parties could resolve such raised dispute in a time period of three weeks from the date then the
complainant must informs the other party for the dispute, either that party can ask for the mediation adviser to
appoint a mediator for them.
 Once a mediator is being appointed, the mediator has a right to decide how, where & when they would carry
out the process of mediation.
 Once the dispute has been settled down for mediation, all the parties should attend the mediation & tries to
resolve such dispute.
Termination and exclusion clauses
Generally, The Unfair Contract Terms Act year 1977 ("UCTA") does not involves insurance contracts;
 That are related to the formation, transfer & termination of the intellectual property rights, those
contracts which are related to the creation, dissolution and the constitution of a business or with the
rights & obligations of its associated members.
 Contracts related to the creation or transfer of securities or rights in securities.
 Contracts related to the creation, transfer or termination of an interest in land.
 Some marine or shipping contracts and the employment contracts.

transfer or termination of an interest in land; certain marine/shipping contracts; or employment
contracts. There are, however, certain savings for consumers under marine/shipping contracts,
and for employees under employment contracts.