New England Supply Chain Conference & Exhibition

APICS - The Association for Operations Management North Shore Chapter 20 and Boston Chapter 10    --   The Council of Supply Chain Management Professionals (CSCMP) New England Roundtable    --    The Northeast Supply Management Group, A Special Interest Group of ISM®

2008 Program Author Index Presentation Index
New England Supply Chain Conference & Exhibition

2008 New England Supply Chain Conference and Exhibit - Robert Stahl Presentation

Intermediate Negotiation Session: Principled Supplier Negotiations - How to Earn Supplier Partnerships
Robert A. Stahl, CPIM

The purpose of this talk is to present and explain an alternative to the traditional practice of Positioned Negotiation. This alternative is known as Principled Negotiation and is an essential part of creating supplier partnerships that can be sustained.

Traditional practice looks upon suppliers as adversaries who we must keep competitive through hard positioned negotiations. A typical attitude would be, "I'll tell you what I want, and it's up to you to provide it." Thanks to the work of Roger Fisher, there has evolved an alternative known as principled negotiation.  This practice allows both buyer and supplier to look upon each other as problem solvers, with common interests, rather than as adversaries.

Principled Negotiation  is a structure that helps decide issues on their merits rather than on a long and drawn-out haggling process about what each side will and will not do. It is an alternative to traditional give & take trade-offs. Principled Negotiation separates the people from the problem, focuses on common interests, invents options for mutual gain, and insists on using objective criteria where settlement cannot be reached easily.

In a partnership, the relationship must be maintained even when differences occur, because in any relationship, disagreements will happen.  When this does occur, Principled Negotiation provides for maintaining the relationship through the exercise of a BATNA (Best Alternative To a Negotiated Agreement). This allows for further constructive mutual gain at another time on another subject. That is, the partnership can be sustained, even when disagreement happens.

This talk will give the attendee a perspective of the changes in thinking required to work more productively with suppliers, and the techniques of how to begin.

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