Purchasing Policy

Confidentiality
Most of the transactions related to purchasing are of a confidential nature—especially regarding our suppliers and our competitors. It is unethical as well as damaging to Gerawan Farming’s competitive position to allow company-proprietary information about one supplier’s quotation to pass to another supplier.

Buyer Solicitation
Each supplier will be given the same specifications for items being quoted. Gerawan Farming intends to purchase from the supplier that offers the best price-quality ratio. Gerawan Farming will assume that prices quoted by suppliers are their lowest prices. We will not at any time reveal or give any indication to suppliers the prices being quoted or paid. We reserve the right to keep confidential the identity of other quoting suppliers or of the supplier selected. We will explain as clearly and fully as possible to suppliers the reason for our rejection of their bids.

If, for whatever reason, one supplier is permitted to re-quote, the competing suppliers will be given the same opportunity. However, suppliers should not misunderstand this re-quoting opportunity as an indication that their first quotation was unacceptable or that we are soliciting for a re-quote. In any case, unsolicited re-quoting by suppliers, if allowed, will be kept to a minimum. A re-quote will be solicited by Gerawan Farming only if specifications have changed or if the effective date of the quotation has expired. All quotations will be assumed effective for 30 days unless otherwise specified.

Supplier Visitation
Purchases may not be made from suppliers during a supplier’s unannounced or unscheduled visit. Every visit must be prearranged for a specific date and time. If a supplier arrives without prearrangement, no purchases can be made from that supplier at that time. It is the responsibility of authorized Gerawan Farming purchasers to tell supplier representatives that visits must be prearranged. Repeated unsolicited or unscheduled supplier visits must be considered an additional expense in a supplier’s product or service.

Common questions and statements made by suppliers when submitting price quotes
“How does that price look to you?”
“Am I competitive?”
“Is my price in the ball park?”
“Who else is quoting?”

Our answer: To maintain fairness it is the policy of Gerawan Farming that no indication be given to a supplier of what their price is compared to their competitor’s. We also reserve the right to keep confidential the identity of other quoting suppliers.

“If my price is too high, just tell me where it has to be to get the order.”
“There’s still some room left in that price. If it’s too high, just let me know.”

Our response: Gerawan Farming assumes that the price quoted by a supplier is their absolute lowest price. We will not at any time reveal or give any indication of competitors’ prices.

Common questions by suppliers after they have lost or received an order
“How much lower was my price than the next guy?”
“How far off was my price?”
“Of the companies quoting, where did my price rank?”
“Was my price at least in the ball park?”
“Who got the order?”

Our answer: To maintain fairness to all suppliers, it is the policy of Gerawan Farming that no indication be given to a supplier of what their price is compared to their competitor’s. We also reserve the right to keep confidential the identity of other quoting suppliers or of the supplier selected.