Supply Chain Management

Supply Chain management
Learning Journals

Week 5: Negotiation
Week 6: Supplier relationships
Week 7: Supplier Development

Gracia Vidal Rubiols
Erasmus Spain
Supply Chain Management

Supply Chain management
Week 5: Negotiation

Summary
Negotiation is a economic term that involves the way of making agreements between companies, the pint of negotiating is to find a deal which benefit all the parties.
The negotiator is the person who discuss the terms of the contract, who tries to get the better for its company and who have the legal power to sign the contract. Inside this term we find different types of negotiation, this differentiation is based in the way tha the negotiator try to get its objectives:
The deal minded negotiator is defined mainly for the low involvement that he have with the other parties, a consequence of this is that the stakeholder use to be out of the negotiation. He try to spend the less time that he can in closing up the agreement and he worries much more in quantity of deals and the size than in the quality or relevance of the deal. Operations that don’t need connection after the agreement like purchasing or selling are the strengths of this kind of negotiators
The implementation-minded negotiator is a collaborative negotiator, he tries to imply all the parties and making well connections after the sign of the deal, he spend much more time in closing up a contract and the focus his efforts in the impact of the agreement. A implement-minded negotiator usually goes through this different steps: Start with the end mind, help the other parties, treat alignment as shared responsibility, send one message and manage negotiation as a business process.
“negotiation is not a document, is the value produced when parties have done what they agreed to do”...