Supply Chain Management Review

Robert A. Rudzki

Negotiations Management – II
April 1, 2008

If you adhere to a genuine, rigorous strategic sourcing process, and a negotiations management process that is equally rigorous - and integrated with your sourcing methodology - you’ve probably noticed one thing: there is a lot of information to be organized and evaluated before you commence the negotiations phase.

In the absence of data and information, it can be easy to conclude that we should “go with our gut” in negotiations. Deluged with data and information, from an effective sourcing process, it can often be equally tempting to “go with your gut” in negotiations. Don’t. Instead, create a negotiations strategy worksheet.

A negotiations strategy worksheet includes the elements shown in the Figure. Organizing such key information in an easy-to-review fashion, all on one page, can help to speed the evaluation and consideration of strategy options, and facilitate the crafting of relevant messages to your suppliers.

I’ve seen worksheets of this nature created in Word, in Excel, and in Powerpoint (the latter is what we share with our clients). They are equally effective. The key is finding a way to organize and display the key points that drive negotiations planning and messaging.

Posted by Robert A. Rudzki on April 1, 2008 | Comments (0)