Negotiation Strategy Analysis: Vendor Negotiations
Most businesses incorporate strong negotiation skills, especially within the purchasing department. A company must be able to negotiate with vendors to ensure they receive the best price available on items both used and consumed by the business; this also includes hardware and software considerations. Regardless of the industry, building vendor relationships are necessary. The writer will look at vendor negotiations from two different perspectives with one common goal; negotiate the best contract for all parties. The writer will then compare and contrast the different negotiation strategies as they apply to the oil and gas industry. Vendor Negotiation Process
The first article is about Mark Carbrey; Chief Information Officer (CIO) for a Massachusetts-based automotive service organization. His negotiation strategies allow up and coming team members to gain valuable experience with the negotiation process (Overby, 2010). He teaches his team to treat the vendors like a partner. He also teaches them to sort out what is important for the business, and to fact check with contacts that have similar contracts to ensure a fair market price from the vendor. Carbrey also stresses the importance of acquiring the support from the board of directors down (Overby, 2010). The second article takes a slightly different approach to vendor negotiations than the first article. Joe Auer, Founder, and president of International Computer Negotiations (ICN), has over 35 years experience helping technology users do better and safer deals with vendors (ICN, 2011). Auer believes that attitude toward contract negotiation is one of the most important issues the negotiator faces. Auer's article is a bulleted list of the "best practices" a negotiator should adhere to during the negotiation process. He uses the analogy of a pilot with 20 years experience still uses a checklist before take-off. So too should a...
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