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Negotiations
One of the most important activities performed by the supply managers is to negotiate agreements or contracts with the suppliers. Although supply management is definitely not the single group in the organisation that negotiates, negotiation is a fundamental part of every sourcing process.
Negotiation is the best way to employ the supply management strategies and plans that a business unit develops.
Material inputs account for more than 60% of sale value for any project. Hence, cost saving at this stage will contribute to direct profit for the company.
Triangle Talk is the simple negotiation tool, which can help the negotiator to begin the initial preparation for a forthcoming negotiation.
The figure shows the set of steps followed in Triangle Talk:
Figure : Steps in Triangle Talk
Let us now discuss these steps in detail:
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