SCM 303 Lecture Notes - Lecture 21: Nonverbal Communication
9 Dec 2016
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The process of working out a mutually beneficial agreement between buyer and supplier. Usually the final step in the supplier selection process. Target win-win vs. win-lose: does not mean that both parties leave the negotiation equally well-off, both the supplier and supply manager leave the negotiation better off than they would have been without the agreement. 3 steps: preparation, face-to-face negotiation (win-win, debriefing. Negotiation plan - a preparation tool in which the supply manager outlines all the contract terms that need to be negotiated with the supplier. Possess an understanding of the item or service needed. Analyze the relative bargaining position of both parties: understand the details. Know the seller and their underlying interest. What are your objectives: best case (establish upper ranges, target, worst case (establish lower ranges, no deal/walk-away. Alternatives to reduce total cost: delivery, terms & conditions. Fob: warranty, service, spare parts, volume flexibility. Individual conflict resolution styles: emotions, non-verbal communication. Economics: game theory, video: https://www. youtube. com/watch?v=t9lo2fgxwhw (5:44)
