Which of the following is the FIRST step in developing a negotiation plan?
A.
Engage with the internal customer and other internal stakeholders to identify their needs and wants, as well as educate them as to how supply management can add value in the negotiation process
B.
Engage in an analysis of the organization's risk tolerance, and review the key suppliers' capabilities, financials and legal and regulatory compliance, as well as the risks of supply chain disruption
C.
Review the organization's logistics category strategy by analyzing anticipated spend, how the renewal will affect purchasing leverage with other suppliers, and the current characteristics of the supply market
D.
Identify the most advantageous payment terms for the renewal through an analysis of buyer and seller cash flow considerations, early payment discount opportunities and potential third-party financing options
The first step in developing a negotiation plan is to engage with the internal customer and other internal stakeholders to identify their needs and wants, as well as educate them on how supply management can add value in the negotiation process. Understanding internal requirements and gaining alignment with stakeholders is crucial before analyzing risks (Option B), reviewing logistics strategies (Option C), or identifying payment terms (Option D). This step ensures that the negotiation strategy is aligned with organizational objectives and stakeholder expectations.
References:
Negotiation and Dispute Resolution in Supply Chain Management by Victor P. Olorunniwo
Procurement and Supply Chain Management by Kenneth Lysons and Brian Farrington
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