Revision as of 19:11, 12 July 2022
The activities associated with preparation, dialogue and reaching an agreement for the purpose of purchasing products or services. This includes understanding the product or service to purchase, knowing the seller, understanding bargaining positions of parties involved, fact finding meetings, internal reviews, bargaining meetings and debriefings.
General objectives of negotiation include:
- Agree on specifications of product or service - what
- Agree on a fair price for product or service - how much
- Agree on delivery terms and conditions - when, where
- Agree on delivery performance - quality, on-time performance
Additional objectives of negotiation may include agreement on information exchange, inspection processes, flexibility.
Notes
Negotiation is sometimes confused with haggling or price cutting (win-lose). Whereas some situations require such approaches, the Negotiate process is intended to cover negotiations from the widest possible interpretation -- including approaches such as win-win, collaborative and alliance related negotiations.
Orders Damage Free Ratio
Orders Defect Free Ratio
Orders On-time Ratio
Orders In-full Ratio
Error-free Documentation Ratio
Sourcing Cycle Time
Cost of Goods Sold
Distribution Costs
Days of Inventory
Days Payables Outstanding
Intake Sustainability Ratio
t:BSC
t:Two-Stage Tendering
Hierarchy
| ID | Name | Level | x | | S0 | Strategic Sourcing | 2 | S0 |
| S006 | Negotiate | 3 | S006 |
Workflow
Negotiate Strategic Sourcing 5200600 3 {{{keywords}}} {{{description}}}