Actions

S006

Negotiate

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. t:Two-Stage Tendering

Hierarchy

IDNameLevelx
S0Strategic Sourcing2S0
S006Negotiate3S006

Workflow

FromInput(s)
Process
Output(s)To
wf_processwf_arrow
C104Negotiations
S004Potential Supplier
S005Potential Supplier
S006
wf_arrowwf_process
NegotiationsC104
Accepted OfferS007
Negotiate Strategic Sourcing 200600 3 {{{keywords}}} {{{description}}}