31.7 C
Tuesday, January 18, 2022
HomeProcurementTechniques for Effective Procurement Negotiation

Techniques for Effective Procurement Negotiation

Negotiations play a crucial role in our lifestyle. It is often applied in many aspects of the lifestyle from price negotiating in an open market, salary negotiation in an interview, closing a possible sales deal to even a company acquisition. The techniques of negotiations are the key to success. Strong interpersonal and communication skills are vital to achieving the required results.

Within the increasingly competitive market, the success of a business depends on good negotiation. However, poor negotiation can potentially cause harm to the company by losing its key customers or suppliers. As such, successful business negotiation could also be a core leadership and management skills.

Preparing for Negotiation

A negotiating situation exists once someone is in any communication or problem-solving situation with others which might compute to their advantage. Their overriding aim in any negotiation is to grasp the objectives that both parties have set. There are other aims, like getting an honest deal and improving their relationship with the other side. Always keep this aim firmly in sights and do not stop until it has been achieved.

Preparation is responsible for the success of the negotiations. The more prepared the negotiators are before the meeting, the more likely it is that the outcome of the meeting will be acceptable to all parties involved.

During preparation, they should gather information about the other party’s offer and use it to refine their own. There are two most important things to do during preparation: First, possess as much information as possible about the upcoming negotiations. Second, be fully prepared for any situation throughout the entire process. Obtain as much information by choosing good inquiries to ask that are well thought out. Remember that the power usually goes to the person who has the best information.

The full content is only visible to SIPMM members

Already a member? Please Login to continue reading.

Lene Chuah Lay Boon, DPSM
Lene Chuah Lay Boon has substantive years of experience in the specialized field of procurement for civil engineering and specifically in the Construction Industry. She is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). Lene completed the Diploma in Procurement and Supply Management (DPSM) on March 2021 at SIPMM Institute.

Most Read