NEGOTIATION/PURHCASING

STRATEGY

PRESENT

BY
TEMIDAYO OLOWOYEYE
(MCIPS,AMCIPS UK,MNIM)
1
NEGOTIATION STRATEGY
The process of formal communication is
Negotiation ,either face to face or via
electronics means. To or move people
together to seek mutual agreement.
Viewing Negotiation as a value clearing
activities.

2
NEGOTIATION FRAME WORK
1. IDENTIFY OR ANTICIPATED PURCHASE
REQUIREMENT:
 Prepare purchase requisition
 Update Inventory goals
 Establish re-order point system
 Import new product development
 Plan for new facilities

3
DETERMINEDIF NEGOTIATION IS
REQUIRES
 Is bid process inadequate?
 Are many none price issues involve?
 Is contract key?
 Are complex technical requirements involve?
 Does contract involves capital intensive plant and
requirement?
 Does contract involve a partnership?
 Will supplier perform a value added activities
 Will there be long lend timer?
 Will there be high risk and uncertainty?
4
PLAN FOR NEGOTIATION
Identify participant
Develop objective
Analyze strength and weaknesses
Recognize counterpart needs
Identify facts and issues
Establish positions
Develop strategies and tactics
Brief personnel
Practice the Negotiation
5
CONDUCT THE NEGOTIATION
Prefer fact finding
Recess or caucus as necessary
Work to narrow differences
Manage time pressures
 Maintains informal atmosphere
Summarize progress periodically
Employ tactics
Keep relationship positive

6
EXECUTIVE AGREEMENT
Provide performance feedback
Bold on the success of the negotiation.

Thank You