Post Tender Negotiation Plan Commodity

1
Post Tender Negotiation Plan Commodity

• Suppliers
• Date

2
Post Tender Negotiation Plan Commodity
Supplier Date
The Objective

• xx
• xx
• xx
• xx

Specific Goals

• Target decision-maker
• Confirm who will be attending from the supplier
  side and determine who will be the decision maker

• Relationship background
• Collate internal intelligence on the
  organisations previous dealings with this
  person and assess the type of relationship he/she
  holds with the organisation

• High expectations (Most Desirable Outcome MDO)
• Refer to the components of your objective
  statement and determine your highest expectation
  from the supplier i.e. what do you expect them to
  offer against each objective

• Supplier High Expectation (MDO)
• Collate internal intelligence on the
  organisations previous dealings with this
  person and assess the type of relationship he/she
  holds with the organisation

3
Post Tender Negotiation Plan Commodity
Supplier Date
Interests

• Procuring Organisation
• What are your ultimate interests?, Determine
  which areas you need to ensure and are not
  prepared to compromise and vice versa e.g. No
  compromise on delivery or quality to secure
  pricing.

• Supplier
• What are the suppliers interests? Refer to the
  external and internal data collated above and
  determine what the suppliers interests might be
  e.g. To maintain price but offer other non-price
  incentives or to amend payment terms

4
Post Tender Negotiation Plan Commodity
Supplier Date

• Leverage Favours
• Me
• Them
• About Even
• (Who has the most to lose from a no deal)

Strategies / Leverage

• Least Acceptable Agreement (LAA)
• The Least Acceptable Agreement (LAA) is the
  buyers bottom line. Barring the emergence of a
  better option, settling for anything less than
  this is not a viable business proposition. This
  is the minimum the buyer can agree to without
  sacrificing our impairing interests. The buyer
  should never agree to any solution less than the
  LAA without very careful consideration of the
  BATNA

• Supplier LAA
• xxx
• xxx

• Best Alternative to a Negotiated Agreement
  (BATNA)
• The Best Alternative to a Negotiated Agreement
  (BATNA) is the buyers contingency plan if the
  supplier is not willing to agree, at a minimum,
  to the LAA. What are the alternatives in the
  event of a deadlock or unsuccessful agreement

• Supplier BATNA
• xxx
• xxx

• Can I improve this?
• Steps to improve alternatives

Can I effect their alternatives of make their
status quo worse?
5
Post Tender Negotiation Plan Commodity
Supplier Date
Possible Proposals (Tradable Variables)

• Develop a list of give and takes or tradable
  variables, build on shared interests, bridge
  conflicting interests.
• xx
• xx
• xx

Authoritative Standards and Norms
Mine
Theirs
Counter Argument

• Xx
• Xx
• xx

• Xx
• Xx
• xx

• Xx
• Xx
• xx

Third Party Moves

• Can I use a third party As Leverage, As an
  Excuse, As an Audience, As a Coalition partner
• xx
• xx

6
Post Tender Negotiation Plan Commodity
Supplier Date
Situation and Strategy Analysis
As you see it
As they see it

• Transaction
• Relationship
• Balanced Concerns
• Tacit Coordination

• Transaction
• Relationship
• Balanced Concerns
• Tacit Coordination

Style Adjustments
Their Expected Strategy

• My basic style is ________________, so I need to
  be more ___________ in this situation

• Competitive
• Problem Solving
• Compromise
• Avoiding
• Accommodating

Overall Positioning Theme

• Develop an overall positioning statement for the
  negotiation e.g. This is an opportunity for
  Supplier A to win the business. The requested
  pricing has been offered by other suppliers, so
  we believe it to be possible.