Posting 17

NEGOTIATION

Purchasing process for advanced versus basic logistics services. Further some specific observations are presented from the procurement of advanced third-party logistics services, with respect to service definitions, provider’s evaluations and contracts. The purchasing process of logistics services will in the future need to be more differentiated due to current business trends. Hence companies must analyse how these new procurement situations will impact on their purchasing processes in order to understand what new resources, routines and competence they need to have in order to purchase logistics services in an effective way.

PROBLEMS

Many negotiators end up with deals that don’t deliver the value they promise. Something like half of all mergers, joint ventures, and strategic alliances fail to deliver value; two out of three outsourcing deals end up having to be renegotiated; and about 85 percent of companies we surveyed think they fail to realize all the anticipated value from their supply contracts. But we don’t start from the premise that all those negotiators are unskilled. There are plenty of smart and experienced negotiators out there. Why do so many of them get it so wrong? So many deals fail to get done simply because the parties lack negotiating experience.

SOLUTION

So to solve negotiation problem, both parties must be smart and experienced. Understanding with another person, so that both of you are satisfied with the results. Go through negotiation training at least yearly. Unless you've been just as diligent at improve your procurement negotiation skills, your chances of getting the best deals. Other is always be careful when make a deal. Must make a good relationship with supplier. Must understanding and friendly with the supplier to avoid from mistake or lack or wrong information gathering. Because when we make a good negotiation we will get a best price and best quality for the product. Because all company want cut cost from the product but get a best quality.