Supply Chain Negotiations

This is critical to the successful outcome of negotiation and it exists if there is a potential agreement that would benefit both sides more than their alternative options do.

• BATNA

• Red Sheet Methodology

• WIN/win illusion

• ZOPA

Having this increases the negotiating power and determines the course of action if an

agreement is not reached within a certain timeframe. Anyone approaching for a negotiation deal should have this as your best alternatives or back up plans.

• ZOPA

• BATNA

• Knowing ‘what’ to do

• Knowing ‘how’ to do it

BATNA stands for _____?

• Better Alternative to a Negotiated Agreement

• Best Alternative to a Negotiated Acceptance

• Best Alternative to a Negotiated Agreement

• Best Alternative to a Negotiation Agreement

If Fred wants to buy a used car for $5,000 or less, and Mary wants to sell one and will not go below for $5,500, do they have a ZOPA?

• Yes, there is.

• None.

If Fred wants to buy a used car for $5,500 or less, and Mary wants to sell one and will not go below for $5,000, do they have a ZOPA?

• Yes, there is.

• None.

Which of the following is NOT a definition of Red Sheet Methodology?

• A negotiation planning tool that provides the structure and process for effective negotiation.

• A tool containing the entire end-to-end stages of negotiation planning and execution in a poster form designed to promote collaboration.

• It contains a full 10-step approach which represents the proven process that allows procurement professionals to plan, execute and review their negotiations.

• A process that has been proven to work well and is used the world over, by many large corporations.

Negotiation as a series of steps is a crucial mindset for negotiators. This step-by-step concept is so important that the entire Red Sheet methodology has been structured within a STEP framework.

STEP stands for _____?

• Situation, Target, Event Plan and Pre-Event

• Situation, Timeline, Event Plan and Post-Event

• Stakeholders, Target, Event Plan and Post-Event

• Situation, Target, Event Plan and Post-Event

• Situation, Target, Evaluation and Pre-Event

This step considers planning the things we can do to be in control of the event as much as we are able including considering room layout (where we can) and what we will do at the start of the meeting.

• Situation

• Target

• Event Plan

• Post Event

This step lays the groundwork for our negotiation planning. It helps to establish the context for this negotiation; identify those who need to be involved and consulted; determine any cultural differences or factors we need to attend to; and consider the personality match of our team to the negotiation in question, as well as everything we know about the other party’s anticipated team line-up.

• Situation

• Target

• Event Plan

• Post Event

This step includes reviewing how the negotiation went, to capture the key learnings and share knowledge with others internally. Doing this well requires those involved to make a conscious effort to review each negotiation once complete.

• Situation

• Target

• Event Plan

• Post Event