Procurement deals require an important marriage of the business and legal teams (if not others as well). Questions such as the following are important to consider:
- Is this a short-term engagement that has many possible vendors or a more strategic or long-term relationship important to the company’s business?
- What is the possible effect on the company if the vendor does not perform, and can the vendor be easily replaced?
- What price protections or costs can be leveraged?
Answers to these questions will often be related to the following four issues: