Difference between revisions of "S006"

Revision as of 17:04, 8 December 2021

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 Discuss Contract Custom Solution