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

Housing start, Housing Star t This is the beginning of the cons...

Housing Star t This is the beginning of the construction of a new housing unit. Housing starts are used as an indicator of economic development, since if there is raisi

Human resource development , HUMAN RESOURCE DEVELOPMENT  OBJECTIVES ...

HUMAN RESOURCE DEVELOPMENT  OBJECTIVES Human resources constitute the most important of all resources of any organization. Attention to managing and modulating this resource

Developing a project management culture, Developing a Project Management Cu...

Developing a Project Management Culture Moving the organisation to embrace a "project management culture" takes time and patience. The initial step an organisation can take is

Binding section in library building in library management, Binding section ...

Binding section in library building in library management This section is generally located in the basement or some other obscure area. Machinery, material and equipment for m

Caselet, whom do you think rajender will eat with? Why?

whom do you think rajender will eat with? Why?

Explain how cryptography works, a) Differentiate between encryption and dec...

a) Differentiate between encryption and decryption. b) Explain how cryptography works. c) List down three examples of symmetric key algorithms and two examples of asymmetric

Location site -preliminary considerations -library building, Location Site ...

Location Site -Preliminary Considerations of Library building-library managment Location is  important for homogeneous  services, site  selection and choice of community,  reg

HEALTH INFORMATION MANAGEMENT, WHAT IS A RECORD FORMAT THAT DIVIDES THE RE...

WHAT IS A RECORD FORMAT THAT DIVIDES THE RECORD INTO SECTIONS?

Size of library building-library management, Size of library building in li...

Size of library building in library management  The size of the library building is determined by the number of clientele it is going tocater to (many subscription and public

Education and research , Education and Research   i)  Students need inf...

Education and Research   i)  Students need information relating to their academic pursuits.  ii)  Teachers need information for imparting education students to their student

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