Last look and comfort

My three-part blog item on ferroalloy buying and selling triggered calls not comments – no one wanted to go on the record. The consensus was that all the ferroalloy suppliers were pre qualified before the RFQ was even sent. The buyers weren’t interested in companies they never heard of. “What good of even sending a RFQ if they can’t deliver,” one participant said. “Whatever price they quote is irrelevant.”

They all agreed that ‘last look’ was most important. In most cases the ‘last look’ is granted to the incumbent. “Unless the supplier really screws up, it’s the incumbent’s contract to lose,” one insider said. “You can’t underestimate comfort and familiarity. If the incumbent is in the ballpark, he will definitely get the last look.”

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