Reference no: EM133665102
Mini-Simulation: Collaborative Candy Supply Chain Negotiation
Background:
The Manufacturer has decided to introduce a new candy that is soft on the inside and hard on the outside, packaged with innovative material. The candy is expected to be a flagship product, and negotiations are underway to form a collaborative supply chain with potential suppliers, a logistics provider, and a quality assurance consultant.
Parties:
Manufacturer (M):
Produces the innovative candy.
Seeks cost-effective and reliable suppliers for raw materials.
Requires a logistics provider for transportation and distribution.
Needs a quality assurance consultant to ensure product excellence.
Logistics Provider:
Responsible for transporting raw materials to the Manufacturer.
Manages the distribution of finished candies to retailers.
Quality Assurance Consultant:
Ensures that the candy meets quality standards and regulatory requirements.
Conducts audits and provides recommendations for continuous improvement.
Phases:
1. Prenegotiation: Understanding Needs and Priorities
M identifies key candy requirements, volume projections, and sustainability goals.
Suppliers A and B clarify their capacities and flexibility.
Logistics Provider reviews transportation options.
Quality Assurance Consultant identifies regulatory requirements.
2. Introduction: Establishing a Collaborative Atmosphere
All parties exchange introductions, emphasizing commitment to a long-term partnership.
Overview of each party's role and importance in the candy's supply chain.
3. Information Sharing: Building Comprehensive Understanding
All parties share detailed information based on prenegotiation discussions.
Clarity on raw materials, packaging innovations, transportation options, and quality control.
4. Problem Solving: Collaboratively Addressing Challenges
All parties discuss potential challenges in candy production, packaging, transportation, and quality control.
Explore innovative solutions for optimizing the supply chain.
5. Closing/Agreement: Reaching Consensus on Key Terms
All parties negotiate pricing, volume commitments, payment terms, transportation, packaging costs, and quality control procedures.
Consensus on sustainability goals and commitments.
6. Contract Drafting: Formalizing the Negotiated Terms
Legal representatives from each party collaborate on drafting the comprehensive supply chain agreement.
Ensure accurate reflection of all negotiated terms, conditions, and obligations.
7. Follow-Up: Monitoring Implementation and Addressing Issues
Regular meetings scheduled to track candy production and distribution.
Address challenges or adjustments needed in the supply chain agreement.
Maintain open communication channels for ongoing collaboration and improvement.
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