What are the approaches of negotiations to achieve procurement objectives?
The approaches of negotiations to achieve procurement objectives is best accomplished by organizing one's presentation and speaking confidently and precisely with a loud and clear voice.
Purchasing Negotiation 3 Requirements for Success in Supplier Negotiations Purchasing Negotiation is part art part science. In this article you will learn what it takes to become a successful Procurement Negotiator, since you will know the most important factor before negotiating, who to negotiate with and the approach to take when negotiating with suppliers. But before that a quick answer to: What is Purchasing Negotiation?
You can have a good academic discussion as to what is purchasing & procurement negotiation, but in a simple language it is the process where corporate buyers & sellers discuss/negotiate terms of a contract before concluding a deal & starting the contract management process. This is both an analytical & psychological process. This analytical & psychological process is seen in the 3 requirements: The first 2 are analytical and the last one is psychological. I. The Most Important Factor in Purchasing & Procurement Negotiation – Preparation! If you have been led to believe that you must be the smartest man on planet Earth to be a successful negotiator, it is not so. Apart from having good skills as a negotiator, the most important factor is to Prepare. When negotiating on behalf of your company, you must first of all know what you are talking about. Some of the things you will be talking about are, Suppliers Price & Cost, Supplier Delivery Times & Costs, Supplier Service Response time. And so on. Now ask yourself this question: If you do not have good information about these items, how are you going to negotiate? Well, you can’t negotiate until & unless you have answers to these questions. So again when it comes to purchasing negotiations you will win before you...
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