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

Examine the nature of people-organisation relationship, QUESTION 1 Crit...

QUESTION 1 Critically examine the nature of people-organisation relationship. Why is it important to distinguish between the ‘intent' and the ‘implementation' of management dec

Scope of materials handling, Scope of Materials Handling Materials han...

Scope of Materials Handling Materials handling is spread over to many different industries and fields of engineering. The followings table gives its broad application.

Definitions - information centres and databases, INFORMATION CENTRES  AND ...

INFORMATION CENTRES  AND DATABASES:   A, organisation selects, acquires, stores, organises a--retrieves specific documents to meet users' requirements, (ii) announces, abstr

Six-sigma speciality, S ix-Sigma Speciality Six Sigma can be used for ...

S ix-Sigma Speciality Six Sigma can be used for both operational and strategic management. It is regarded as a new quality management strategy that has the ability to replace

Sample and sampling, Sample and Sampling  The  sample represents  the popu...

Sample and Sampling  The  sample represents  the population of  those critical characteristics you  plan to  study. In other words,  if the  sample  is representative of  th'e pop

Cooperative and centralised cataloguing, Cooperative and Centralised Catalo...

Cooperative and Centralised Cataloguing   There are many similarities in objectives and purposes of cooperative and centralised cataloguing, however, there are many differences

Community relations in reference to public relations, Community relations i...

Community relations in reference to public relations refer to a organization, company, or other entity's relationship with their community. Community relations involve cultivati

Car management system, Car Management System: You have been approached...

Car Management System: You have been approached by a Used Car Dealership who wishes to introduce an IT system to support their business. You are required to implement a protot

Pamphlets - binding policy for libraries, Pamphlets-binding policy for libr...

Pamphlets-binding policy for libraries: Pamphlets are paper covered materials of  fewer than fifty pages. Most libraries collect pamphlets and if these materials are to be use

Stack maintenance , STACK MAINTENANCE: We have explained That mainten...

STACK MAINTENANCE: We have explained That maintenance work implies the organisation of stack rooms, arrangements of books on shelve in stack rooms and conservation. In thi

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