For all procurement executives that oversee vendor relationships, see if this scenario seems familiar: A long-time vendor visits your facility and, unsolicited, offers a contract extension along with attractive incentives; e.g., prebates, rebates, pricing discounts, etc. To date, you’ve enjoyed a good relationship with this partner with no plans to break the contract at expiration, so this provides an opportunity to look like a hero to your facility, bringing in an unexpected windfall to fund other priorities. What could be the downside?
