2012
New England Supply Chain Conference & Exhibition

Three Dimensional Negotiations: Balancing Internal and External Forces
Richard G. Weissman, C.P.M., Director of Corporate Education & The Center for Leadership, Endicott College

The question remains of the importance of negotiation in a relationship based environment. Even if the buyer/seller relationship is strong, there is room for negotiation as an ongoing process. A solid relationship with a single or sole source supplier needs to be properly framed, documented, and controlled during the early stages of the relationship. Then, continued negotiation revolves around process, cost, and performance. Key negotiation frameworks in the early stages of a relationship will allow for greater negotiation strength as the business relationship evolves.

Negotiation is not an activity reserved for suppliers. Progressive supply managers will negotiate internally, to continually test and review the issues and factors that resulted in selecting the supplier, and establishing the relationship in the first place. These selection criteria may change and evolve over time, and the supply management organization must continually test the relationship for relevance. Supply management professionals also need to be aware of negotiation techniques that may be used against them by suppliers that advocate strong relationships, but use them to restrict competition and increase dependency. Enter into your relationships wisely.