Critical Thinking and Objectives of a Negotiation

Critical Thinking

 

Negotiation is one of the most important as well as one of the most interesting and challenging aspects of supply management.

 

Webster’s dictionary defines negotiation broadly as ‘conferring, discussing, or bargaining to reach agreement in business transactions.”  Increasingly, negotiations are conducted by cross-functional negotiating team. 

 

Accordingly we will use the term “negotiator” to refer to an individual supply management professional and also to a cross-functional negotiating team.

 

 

Objectives of Negotiation

 

To obtain the quality specified

To obtain a fair and reasonable price

To get the supplier to perform the contract on time

 

Additionally, the following objectives frequently must be met:

 

To exert some control over the manner in which the contract is performed.

To persuade the supplier to give maximum cooperation to the purchasing company.

To develop a sound and continuing relationship with competent suppliers.

To create a long-term relationship with a highly qualified supplier.