Logistics & Supply Chain Operations

Silvano Barbosa de Lima MBA
SCL1001 – Negotiations & Contracts – Assignment
1. Why is negotiation such a vital part of the purchasing process?
2. The parties to a sourcing negotiation can discuss many issues besides price. Select five non-price
matters over which a buyer and seller can reach an agreement and explain why each case might
be necessary to the buyer or seller.
3. Contrast a win-win negotiator with a win-lose negotiator.
4. What are likely to be the essential power sources in a buyer-seller negotiation?
5. Will electronic purchasing through the Internet increase or decrease the need for negotiation
between buyers and sellers? Why?
6. What information should a buyer gather about a supplier before entering a negotiation?
7. Why are concessions important during a sourcing negotiation? How do the parties to a
negotiation demonstrate their willingness to compromise?
8. Discuss the concept of BATNA and explain how a negotiator can effectively use it to plan a
negotiation.
9. Explain how and when the negotiator can effectively use e-negotiation techniques.
10. Give examples of tactics practiced by a buyer or seller that might be considered unethical.
Answer:
• 1. Negotiation in purchasing process is very important, as it initiates the communication
between purchasing buyer and the supplier. Negotiation is important part of purchasing
process as it enables the companies to reduce their expenditure. Negotiations are
commonly used to decide the most reasonable price and payment terms as well as
delivery and production times.
• 2.
• 3.Win-Win Negotiation is Integrative or Collaborative bargaining that engage in open
information sharing, Understands each other’s needs and wants whereas Win-lose
Negotiation is competitive or distributive bargaining, Practice strict use of power by one
party over another