Manpreet kaur

EN5041

SITXMGT002 Establish and conduct business relationships

Assessment 2

PART A

Your Tasks

Select 3 suppliers of goods and services relevant to your area of work (e.g. Food and Beverage, Cookery,
Events, Tourism, Administration or similar) who currently supply your organisation (for example meat, fruit
and vegetables, stationery, cleaning services, laundry services, beverages, insurance etc.)

1. List the suppliers you have selected and describe the products or services they currently provide you with

Supplier 1: B & B Total Supply

Products or services provided: All cleaning agents, chemicals for kitchen, housekeeping department

Supplier 2: JBS Australia

Products or services provided: All meat product excluding chicken

Supplier 3: Australian liquor suppliers

Products or services provided: All alcohol products including champagnes, beer, wines.

2. List the key performance indicators/specifications that are required for the supply of each product or service
from each supplier.

B & B Total Supply

Price 4/5
Varieties Offered 5/5
Reliable 5/5
Lead Time 5/5
Inventory Cost 5/5
Buffer Stock 4/5
Market Value 5/5
 JBS Australia
Quality 5/5
Price 5/5
Lead Time 4/5
Inventory Cost 5/5
Buffer Stock 4/5
Reliable 5/5

Australian liquor suppliers

Price 5/5
Brands Offered 5/5
Lead Time 5/5
Inventory Cost 5/5
Buffer Stock 4/5
Quality Value 5/5

3. 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.

4. 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.)
5. 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.

B & B Total Supply Rapid Clean

Price 4/5 5/5
Varieties Offered 5/5 4/5
Reliable 5/5 5/5
Lead Time 5/5 3/5
Inventory Cost 5/5 4/5
Buffer Stock 4/5 4/5
Market Value 5/5 4/5
- Both suppliers reached our standard quality, service and customer satisfaction.
- B&B Total Supply is quoting for the best quality products for the hotel industry.
- B&B Total Supply is bidding for the cheapest rate in the market as compared to the competitors.
- The B & B total supply is ensuring just in time delivery as per the daily requirement of the hotel.
- The options for payment include credit card, cheque, and cash on delivery.

JBS Australia Australian meat company

Quality 5/5 4/5
Price 5/5 3/5
Lead Time 4/5 3/5
Inventory Cost 5/5 5/5
Buffer Stock 4/5 5/5
Reliable 5/5 4/5
- The JBS is serving at the highest quality standard meeting all the requirements and
guidelines of the hotel.
- The options for payment include credit card, cheque, and cash on delivery.
- Overall, JBS Australia is more suitable than Australian meat company.
- Need to talk with JBS Australia about Buffer stock.
 Australian liquor suppliers Rivercity wholesale liquor
Price 5/5 4/5
Brands Offered 5/5 5/5
Lead Time 5/5 4/5
Inventory Cost 5/5 4/5
Buffer Stock 4/5 4/5
Quality Value 5/5 5/5
- Our policy is quality, service and customer satisfaction.
- Australian liquor supplier is standing for the best liquor wholesale supplier in Australia as
compared to the Rivercity wholesale liquor.
- The Australian liquor supplier is serving the variety of liquors for the never-ending needs
of the customers
- Price is also more reasonable than alternative supplier.
- The options for payment include credit card, cheque, and cash on delivery.

6. 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 following tips will help you to maintain good relationships.

o Talk to your suppliers regularly

o Pay your suppliers accounts promptly
o Communicate with a supplier before the due date for payment, should you foresee a delay in paying an
account.
o Build good relations with your current supplier’s representatives
o Be fair but firm with industry sales representatives- They can easily take up a lot of your time
o Avoid rush orders wherever possible- they can cause significant stress in your business and put a stain
on the relationship with your suppliers.
o Monitor the financial position of your suppliers- talk with industry colleagues and competitors about the
general financial stability of those businesses that supply goods and services to you.
o Address any issues of concern in relationships with your suppliers as they arise.
 o Refer damage or faulty goods to the suppliers promptly, with supporting documentation.
o Be prepared to review and renegotiate the terms of trade with your suppliers from time-to-time.

7. 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.

Or

Where your organisation’s policies and procedures prevent you from negotiating or re-negotiating, you will
be observed conducting negotiations in a simulated environment in Part B of this assessment project, based
on the factors you have identified in Question 5.
- Actual negotiation will take place at Enhance college of technology.
Part B – Conducting Negotiations

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

Supplier details B & B Total Supply
Location 24 Pendlebury Rd, Cardiff NSW 2285
Date 22-02-2019
Nature of negotiation Price contract
Details  Lowest Cost Ownership.
 Reasonable price.
 Terms of payment.
 Discounts on hefty purchases.
Negotiation 2

Real Negotiation Simulated Negotiation

Supplier details B & B Total Supply
Location 24 Pendlebury Rd, Cardiff NSW 2285
Date 22-02-2019
Nature of negotiation Warranty contract
Details  Longer warranty term.
 Minimized infant mortality.
 On-site returns.
 Transparent breach of contract.
Part C – Making formal agreements

1. 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.

B &B Total supply

Nature of negotiation - Price Approved Not Approved

1. The supplier is ready to reduce the operational cost of the delivered product.
2. The supplier would be bidding with the modified prices on the day of the contract.
3. Twenty-five percent of the contract price would be approved after the six months of the use of the
delivered products.
4. The supplier would be giving a twenty percent discount on every fifth order of the stock.

2. 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

B &B Total supply

Nature of negotiation - Warranty Approved Not Approved

1. The supplier has extended the warranty terms by 180 days for the first order of the stock.
2. The supplier is agreed on the terms of check and accept, to reduce the defective rate of the product.
3. The supplier would be bearing the shipping cost for the defective returns of the product. Apart from this
supplier would be giving the facility of on-site return for the defective and unacceptable products.
4. This would be the principled negotiation demanding for the clarity and transparency in the contract.
3. 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.
To

B&B supply

Subject- confirmation of agreement made

Dear supplier,

Thanks for coming to discuss about the supply of product, I really appreciated the negotiation that we did it
yesterday and much appreciate that you give us a good offer.

We ratify the agreement will be in placed as soon as possible.

Regard

Thanks

Enhance college of technology

4. Draw up the contract agreements based on your final negotiated outcomes. Each contract must contain the
following details:

You are encouraged to identify legal requirements based on your own research or legal advice. The following
websites provide basic information thereto:
https://www.smallbusiness.wa.gov.au/business-topics/money-tax-and-legal/legal-matters/business-
contracts/#verbal

https://www.business.qld.gov.au/business/starting/starting-a-business/working-business-advisers/types-
business-advisers

 Names of contracting parties including trading names and ABN/ACN, as well as their contact details

 supply conditions, including volume, price, discounts, ordering periods, take or pay and delivery times
 payment terms
 specifications of goods or services supplied (scope of goods)
 warranty periods for defective goods or services
 limited liability (risk of loss or damage)
 intellectual property
  confidentiality
 insurance
 dispute resolution
 termination and exclusion clauses
 signature provisions

AGREEMENT
This agreement is made this 28th day of Feb 20xx

BETWEEN

SOFITEL Sydney Darling Harbour B & B Total Supply

24 Pendlebury Rd, Cardiff NSW 2285

ABN ABN
xxxxxxxxxxxxx xxxxxxxxxxxxxxxx

IT IS HEREBY AGREED THAT

Intention
 Both parties intend to create legal relations.
 Both parties intend to abide by the contract.
 Both parties understand and intend that the agreement be enforced by law.
Agreement
SOFITEL Sydney Darling Harbour orders all chemicals and cleaning items to the B & B Total Supply.

Offer
B & B Total Supply is responsible to supply all items for cleaning on time.to SOFITEL Sydney Darling Harbour

 Hand towels-2400 sheets

 Hand towel dispenser
 Roll hand towel
 3M Nomad carpet matting
 3M Safety Walk Cushion Mat
 Deodorizer and air freshener
 Chemicals for kitchen
 Cleaning agents
 General purpose floor cleaners
 Washroom cleaners

These items must be delivered without damages on the date request by the hotel.

1. SOFITEL Sydney Darling Harbour should place the order at least 7days before delivery time.
2. The supplier shall use its best endeavours to supply Goods in accordance with the hotel’s order

Terms
1. This agreement commences on the commencement date.
2. Once the contract is completed, the hotel cannot change their order product and quantity.
3. In case of necessity to change the terms of the contract due to unavoidable circumstances,
consultation between the parties.

Conditions
The requirements for the contract to be fulfilled are as follows.

SOFITEL Sydney Darling Harbour can only be offered at discounted prices when the hotel orders more than 900
items in total. Payment must be made on the date requested the supplier.

The supplier would be giving a twenty percent discount on every fifth order of the stock. The supplier must
delivery on the date the hotel desires. This delivery is free.
Warranties
The standard warranty offered on B & B Total Supply products is 180 days.

The warranty period is applied from the date and delivery completion.

Termination clause
Either party may terminate this Agreement on 30 days written notice.

This agreement may be terminated if either or both parties do not faithfully fulfil the contract or violate the
content.

Default clauses
Each party shall have the right to terminate this AGREEMENT by written notice to the other PARTY for a material
failure to comply with the terms of this AGREEMENT by the other party, provided such failure to comply is not
corrected by the failing party within after written notice of any failure to make timely payment of royalties or
any other amount, when due hereunder, or within after receipt of written notice of any other failure from the
non-failing party.

Indemnity clauses
The Supplier indemnifies and releases SOFITEL Sydney Darling Harbour against any claims, loss, damage, cost
(including legal costs), expense or liability arising out of:

(a) any breach of any warranty or obligation under this Agreement;

(b) any wilful or negligent act or omission of the Supplier or any of its officers, employees or, agents in relation
to the performance of its obligations under this Agreement; and

(c) any breach of any third party's rights, including in respect of any claim that the Product infringe, or their
importation infringes the patent, copyright, design right, trade mark or other intellectual property rights of any
other person anywhere in the world,

Except, to the extent caused or contributed to by any negligent act or omission of the hotel, its officers,
employees and agents.
Taxes
Buyer will be responsible for filing all required sales and use tax returns in connection with the transfer of
property. Buyer will also pay all required sales and use taxes and any other transfer costs and expenses that
arise as a result of the transfer of the property. Seller will pay all personal property taxes associated with
ownership of the property and accrued for the period ending on the effective date and buyer will pay all such
personal property taxes that accrue thereafter.

Delivery
Buyer will be entitled to take possession of the property on the 27 day of Feb, 2019. If delivery is to be made at a
date after the effective date, it is Seller’s duty to ensure the property is delivered in the same condition as when
last inspected by Buyer.

Inspection
Inspection will be made by the Purchaser at the time and place of delivery.

Claims
The Purchaser's failure to give notice of any claim within 10 days from the date of delivery will constitute an
unqualified acceptance of the Goods and a waiver by the Purchaser of all claims with respect to the Goods.

Cancellation

The Seller reserves the right to cancel this Agreement:

a. if the Purchaser fails to pay for any shipment when due;

b. in the event of the purchaser’s insolvency or bankruptcy; or

c. if the Seller deems that its prospect of payment is impaired.

Notices
Any notice to be given or document to be delivered to either the Seller or Purchaser pursuant to this Agreement
will be sufficient if delivered personally or sent by prepaid registered mail to the address specified below. Any
written notice or delivery of documents will have been given, made and received on the day of delivery if
delivered personally, or on the third (3rd) consecutive business day next following the date of mailing if sent by
prepaid registered mail.
Supplier acceptance
The above prices/specifications and conditions of work are hereby accepted by

Greg, authorised representative/owner of SOFITEL Sydney Darling Harbour

This agreement shall become effective from 1/3/20xx

NAME SIGNATURE
……………….

DATE

28th Feb 20xx

Agent acceptance
The above prices/specifications and conditions of work are hereby accepted by

……….., authorised representative/owner of B & B Total Supply

This agreement shall become effective from 1/3/xxxx

NAME SIGNATURE

………………

DATE

28th Feb 20xx