Negotiation within the purchasing functionLorena Quidiello is Coordinator of the Business Management Unit and the International Master MBA in Business Administration and Management at Bureau Veritas University Center .
There are many definitions that can be associated with the word “negotiate”, although that is not the purpose of this article that I have decided to write. In it I want to approach what negotiation really means within the Purchasing Function of an organization , and within this context, I want to develop in this case the “collaborative negotiations” , which are those that allow reaching the best possible agreement or solution for all parties .
If such a negotiation is carried out, it is clear that the relationship will be based on a “win-win” position, and not on a competitive negotiation based on “win-lose” , which is characteristic in this case of a purchase that is going to be made only once.
Let us continue to apply this term of collaborative negotiation linkedin data to the purchasing function, which in this case I have chosen as the main topic of the article. In business terms, the purchasing function means acquiring a certain good, raw material, or service from a supplier, guaranteeing a fair price, the supply of the required quantities at the right time and in the best possible quality conditions, and, where appropriate, guarantees and adequate technical and after-sales service .
In this sense, those responsible for this operation must be able to communicate to the other party what advantages would be obtained if the agreement is closed. In the case of collaborative negotiations, all parties must benefit from the negotiation .
And what are some of the most basic principles that would help achieve good results ? Below I list those that I consider most relevant:
Start the negotiation with high expectations and objectives .
Have other options or alternatives that benefit both parties , in case the first proposal is not accepted. The existence of alternatives always makes it easier to reach an agreement. Therefore, you have to be flexible.
Use objective and reasonable criteria and separate the what from the who . The object of the negotiation is the fundamental factor, not the people themselves.
After the agreement, a new value must be generated that did not exist initially.
Focus on basically satisfying the needs and interests that are the object of the negotiation . Establishing good communication is essential to meet the interests of all parties.
Knowing the true scope and needs of the opposing party.
Knowing how to manage the information that is exchanged at all times, and mainly the time available , with the aim of not increasing costs. Efficient negotiations are those that are carried out quickly.