Negotiations , Other Management

Assignment Help:

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:  

1773_Quote.png

Figure : Steps in Triangle Talk 

Let us now discuss these steps in detail: 

  1. Step 1:  Triangle Talk is a tool used to determine and formalise the negotiators precise goals and objectives for the forthcoming negotiation. By being precise with ones expectation and noting down the points, the  negotiators remain fixed on their predetermined priorities during the negotiation. Writing down the points to be negotiated allows the negotiator to refer back to them during the course of the negotiation. If the negotiators are clear about their priority, they are more likely to achieve it in the final agreement.  
  2. Step 2:  In this step, the needs of the negotiators counterpart is determined. It is difficult to conclude without understanding the needs of the other party. The needs or wants of the other party, their underlying interests have to be determined in advance. However, the negotiator cannot automatically assume that the other party thinks in the same way that they do. The negotiators are free to raise open-ended probing questions to confirm if their preliminary analysis of the other party is right. In addition, the negotiator should develop a strategy and associated tactics that will satisfy the needs of the other party. This allows us to step into step 3 of the Triangle Talk. 
  3. Step 3:  In this step, the negotiators own requirements are analysed along with the requirements of the other party. In this way, the proposals and counterproposals can be offered. They take both sets of requirements into account and are framed in such a way that the other party agree to the negotiators? demands. The decisions of the negotiator and the other party should remain flexible and reasonable so that both can work on the similar agreement, while acknowledging the other party?s concerns. The negotiators can bring about this by negotiating about those needs first, while framing their proposals. At times, negotiation becomes a lengthy and cumbersome process. Hence, it requires tactful and careful planning.

Related Discussions:- Negotiations

Need for technical processing - library management, Need for Technical Proc...

Need for Technical Processing: The need for technical processing has been  brought about by a number of reasons/factors. They are:  1) Accelerated  growth of information  r

Loss of books - stock verification , Loss of Books - STOCK VERIFICATION  ...

Loss of Books - STOCK VERIFICATION  Loss of Books Loss of books is inevitable in  open  access libraries  wherein the users have the freedom to browse through books, though a

Types of sampling, TYPES OF SAMPLING: Sampling plans can be  grouped u...

TYPES OF SAMPLING: Sampling plans can be  grouped under two categories-probability  sampling and non-probability sampling. Probability sampling uses a technique by which the r

Forcast demand, A firm uses simple exponential smoothing with à=0.1 to forc...

A firm uses simple exponential smoothing with à=0.1 to forcast demand.the forecast for first week of february was 500units whereas actual demand turned out to be 450units....1.for

Explain steps involved in decision making, Question 1: (a) Decision mak...

Question 1: (a) Decision making is the essence of management, and every decision starts with a problem. (i) What is a decision? (ii) What is a problem? (b) Decision m

Main features of the new public management, Question 1: Elaborate on th...

Question 1: Elaborate on the weaknesses of the Traditional Model of Public Administration. Question 2: Define the term "Administrative Reform". Why is it so critical i

Interval measurement - levels of measurement, Interval Measurement: It  i...

Interval Measurement: It  is a  scale based on equal units of measurement indicating how much of  a given attribute is present  in the subject. It exhibits equal differences  ia

Importance of pre-production planning, Question 1 (a) What do you mean...

Question 1 (a) What do you meant by the 'Language of Television'? (b) List the audiovisual components you would use to explian a video sequence and describe how each compo

State and explain the capital asset pricing model, Question 1: (i) S...

Question 1: (i) State and explain the Capital Asset Pricing Model (CAPM). (ii) Discuss the resiliency of the model when the assumptions under which the CAPM is deri

Acquisition sources and allocating funds, Acquisition Sources: As ment...

Acquisition Sources: As mentioned earlier, supply is another basic factor. Supply means availability of periodicals / serials for acquisition. Information regarding supply can

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd