PROCUREMENT STRATEGY
tactics and communications . He says buyers must also allocate time to prepare , analyse and plan in order to generate improved outcomes .
“ Fundamental activities include mapping out the key issues and discussion points ; using data and insights to understand buyer and supplier positions and personalities ; determining suitable negotiation targets and opening positions ; developing a specific negotiation plan with structured interactions ; planning the different roles and subject matter experts needed as part of the efforts ; and documenting the final agreements on each of the issues .”
Jayaram further elaborates on the fundamentals of negotiations : Communication : “ It is crucial to focus on body language and listen carefully prior to speaking in the negotiation process ,” Jayaram advises . Other actions include “ anchoring ” and “ framing ” the discussion , going first when it is time to make an offer
or proposal , asking both clarifying and open-ended questions on the primary points of contention , and summarising the key outcomes at the end of the negotiation . Relationship Focus : Prior to the negotiations , Jayaram suggests , “ there should be a careful examination of the type of relationship to be established and maintained .” In an interest-based negotiation , emphasis should be placed on maintaining trust and decorum during interactions to arrive at mutually beneficial outcomes for both parties involved . Interests : To ensure a collaborative and creative negotiation process , Jayaram emphasises the importance of clear alignment on the goals and desired outcomes of both parties . She advises posing clarifying “ why ” questions related to the counterparty ’ s interests during the negotiation . Options : Exploring and sharing possible deals that provide value to both parties
52 August 2023