3. Page 3
In this Issue:
2 Using Collaboration In Negotiation: 3 Steps
3 Negotiation, Ethics, & You
4 Negotiating After "No"
5 SPONSOR ADVERTORIAL: Critical Alert! Is Your Fleet Supply Chain Management on Track?
6 A View From the Field: Implementing a Supplier Quality Manual to Execute Supply Strategies
7 A 21-Point Negotiation Checklist
8 Use Negotiation Skills To Elevate Purchasing
SPSM® Certification Question of the Month
9 Price and Commodity Indices
10 Procurement Vacancies
11 Certification and Training Spotlight
12 Beyond the tips…. Is your negotiation recipe missing an ingredient?
The Future of Negotiation: Texting?
Negotiation, Ethics, & You
How Do You Persuade Your Suppliers?
If you are like most purchasers, you are under pressure The Cheap Date - Despite the fact that he is
to generate lots of cost savings. Unfortunately, the engaged in a negotiation situation with the
pressure to boost the bottom line compels some less supplier, The Cheap Date will accept meals,
skilled purchasers to cross the ethical line. They use entertainment, and/or
questionable techniques. gifts at the supplier's
expense. Even if such
There are five common ethics-related profiles of
acceptance does not
purchasing negotiators. Which describes you?
actually influence The
The Liar - The Liar will tell any number of lies to a Cheap Date's decision-
supplier to persuade that supplier to improve its making, it creates the
terms. An example of a lie would be telling a perception within The
supplier that another supplier has a price that is Cheap D a t e ' s Are you employing an ethical negotiation strategy?
10% lower when such a statement isn't true. organization that he is
UNETHICAL! being "bought." UNETHICAL!
The Exaggerator - The Exaggerator might not tell an The Professional - The Professional considers
outright lie, but her words and behavior may be ethics when negotiating. She knows the
designed to trick a supplier into thinking that a characteristics of the other four profiles and
larger quantity or longer term contract is to be consciously avoids that type of behavior. And she
expected. The Exaggerator's intent is to get a better does a great job of negotiating, too!
price and not follow through with implied quantity
There are so many effective ethical negotiation
or term commitments. UNETHICAL!
techniques available. You should never have to resort
The Open Book - The Open Book will give a supplier to the practices of The Liar, The Exaggerator, The Open
information about competitors' proposals in order Book, or The Cheap Date to get the results you want.
to persuade a supplier to offer a better deal. Of
course, the competing suppliers expect their “Negotiation, Ethics, & You” by Charles Dominick, SPSM, SPSM2 was
proposals to be kept confidential. UNETHICAL! originally published in Edition 72 of PurchTips.
April 2011 Volume 1, Issue 1
4. Page 4
Negotiating After "No"
How Do You Respond When Your Supplier Says No?
One of the strongest negotiation techniques your supplier supplier's upstream costs.
can use is to simply say "no." Your ability to distinguish a
real "no" from a "no" used as a negotiation technique is Paint A Picture - Sometimes suppliers need help
vitally important. These tips will help you move past the understanding the implications of not reaching
first few no's and negotiate a better deal. agreement. Explain the importance of your business to
their bottom line. Describe what their business might
Shift Focus - Try to shift focus onto another item of value if look like 2 or 3 years out if they lose this deal or if the
you're at an impasse on a particular negotiation point. relationship is damaged. Ask how this future state
Negotiate a longer warranty period. Ask for some free would affect their personal performance review,
products or accessories. Gain agreement on firm pricing career or compensation.
for a longer period of
time, a downward price Change Players - Insisting on the involvement of a
protection clause, better higher-level supplier representative in the negotiation
lead-times, or seek might seem elementary, but many negotiators mess
greater discounts on this one up. The trick is to find the highest level
related (or unrelated) executive who would experience the greatest pain at
goods or services. the loss of your business. Aim too high and your pleas
Don’t let a supplier’s “no” spell the end a deal. may not be treated as high priorities. Done correctly,
Do The Math - Set emotions aside and walk your supplier your contact will help you fight within the supplier's
through the business problem you both face. Develop a organization.
"should cost" model to determine if there is room for
additional cost compression. Benchmark the offer you've
received against published industry data from consultants, “Negotiating After „No‟” by Charles Dominick, SPSM, SPSM2 was
trade organizations, etc. Offer to analyze and help reduce originally published in Edition 175 of PurchTips.
As you probably already know, negotiation is a necessary skill for success in purchasing. As a matter of fact your peers
have rated it as the most important skill during an annual purchasing survey in each of the last five years. Unfortunately,
many procurement professionals feel that their past negotiation experience will serve them well today. Guess what?
Much has changed and supplier-friendly win-win negotiation is the new standard. You have less preparation time than
ever. You may even get lured into using the convenient, but often ineffective, method of negotiating by email. If it seems
like you’re at a disadvantage, you are!
But you can quickly get the modern procurement negotiation strategies and skills you need to get the best deals in
today’s environment. Next Level Purchasing's highly personal and interactive online course “Powerful Negotiation For
Successful Buying” will teach you the latest and greatest procurement negotiation strategies so that even the most savvy
sellers will give you the best deals possible.
And better yet, Next Level Purchasing Association members can receive an additional 10% discount if they enroll by April
30, 2011. Use the code NLPA411 during checkout. Don’t miss out, sharpen your negotiation skills today!
Learn more about Powerful Negotiation for Successful Buying at: http://www.nextlevelpurchasing.com/powernegotiation
April 2011 Volume 1, Issue 1
5. Page 5
SPONSOR ADVERTORIAL
Critical Alert!
Is Your Fleet Supply Chain Management on Track?
Supply chain management ‐‐ it’s a complex topic of the highest criticality. The overarching goals are to minimize
order‐to‐delivery time and drive out costs. Achieving these benefits is possible through value-added, innovative
solutions that measurably improve both fleet asset utilization and total cost of fleet ownership.
So what are these solutions? Today, they rely upon leading‐edge technology and partnerships to order, track and
deploy fleet vehicles along the supply chain. A partner with technology and industry expertise can work with and for
you to effectively keep the entire process on track.
Efficient and Effective Specifications
Supply chain management provides control of the entire vehicle acquisition process. The first step is
standardizing and streamlining the fleet using efficient fleet specification techniques and resources. Skillful
interface with manufacturers and upfitters results in control, centralization and leveraged spend.
Competitive Bidding
To extract the maximum cost savings from the supply chain process, you should meticulously bid out each step
in the process. While this may seem a daunting task, it is the most effective way to achieve supply chain
efficiencies and make the most advantageous sourcing decisions. Through leveraging different suppliers and
processes, it is possible maintain tighter control of the supply chain while determining more accurate
timeframes for delivery.
Strategic Tracking
After specifications and bidding, the asset begins to move through the supply chain. At this point you need to
ensure all tracking mechanisms for that asset are in place. The best methods for tracking along the supply
chain are those that proactively monitor the status of all vehicle orders and clearly interpret the flow of
information as it relates to your business needs. Organizations may want to employ a complete data integration
methodology and weekly status calls with manufacturers and upfitters to proactively anticipate disruptions – and
reduce their impact to a minimum.
While the resources and time required to effectively manage a dynamic and far‐reaching supply chain may seem
daunting, the right partner can help transform it into a strategic business asset. Through partnership you are better
equipped to leverage successful innovations, best practice solutions and system advancements to ensure your
supply chain is tailored to your specific business needs.
Author – Paul Azores, ARI director, strategic consulting, helps customize innovative solutions that
streamline complex fleet operations, lower the cost of fleet ownership and create long-term value for
clients. ARI, the fastest growing vehicle fleet management company in North America, operates offices
throughout the US, Canada, Mexico, Puerto Rico and Europe.
www.arifleet.com
Sidebar Case Study: 2010 PepsiCo Piston Cup
ARI was recognized as a 2010 PepsiCo Piston Cup recipient by the Frito Lay Fleet Team. Frito Lay
cited three areas of exceptional performance that led to the ARI achievement of this award. First, the
ARI team assisted Frito Lay with the successful deployment of over 1,200 Sprinter Route Trucks to the 16 Frito Lay Regions within
the first quarter of 2009. Second, ARI helped Frito Lay meet year‐end financial objectives by providing timely invoicing and financial
reporting. Finally, PepsiCo termed ARI’s signature customer service “unparalleled” and praised ARI as a “truly valuable business
partner.”
April 2011 Volume 1, Issue 1
6. Page 6
A View From the Field
Implementing a Supplier Quality Manual to Execute Supply Strategies
Tim Reis, SPSM
Purchasing professionals expend a great deal of time of quality, discuss in detail what the
formulating strategies to meet corporate cost reduction and purchaser will require of the supplier
new product development goals. And why not? Cost savings when executing the contract. These
and new product development are what brings value to our sections must be very detailed and
organization and purchasings’ visibility to executive unambiguous to eliminate surprises
management. Making use of a well written Supplier Quality which can place your cost reduction
Manual (SQM) is the next step to executing your supply strategies in jeopardy. It is a good
strategy. practice to reiterate your policy
regarding pricing guarantees, delivery requirements,
Now that you have proven your strategy by obtaining the minimum order quantities (MOQ) and any other details
product or service that meets your cost reduction goals, it’s needed to execute your strategy. Additionally, the cost of
time to implement a supplier quality manual to sustain your quality is an essential element to your SQM. The supplier
accomplishment. The supplier quality manual, or SQM, is a needs to know the consequences of poor performance.
proactive document designed to eliminate post-contract Include in the cost of quality section your corporate debit
surprises and events that have the effect of reducing, policy for shipping nonconforming material.
delaying, or in some cases, eliminating hard won cost
savings. Lastly, the supplier needs to take ownership in the SQM
and how it is executed. To accomplish supplier
There are no “one size fits all” SQM formats, however all ownership, include a supplier sign off page that makes
SQMs share the same basic elements that make them the SQM a part of the purchase order.
effective. SQMs typically begin with an introductory statement
communicating the corporate mission, informing the supplier “A View From the Field” is a feature written entirely by SPSM-Certified
of the corporation’s values and ethics. The next few purchasing professionals. If you are SPSM-Certified and would like to contribute
statements convey to the supplier the general requirements to this column, please send an original 300-400 word educational article on
that describe the quality management systems, management procurement to
responsibility, resource management and product realization. avff@nextlevelpurchasing.com
with a business headshot.
The last two sections, transaction requirements and the cost
Upcoming Next Level Purchasing Association Member Events:
Members-only Webinar
Purchasing & Supply Management Salaries in 2011
April 26, 2011, at 11:30AM Eastern US Time
How is your purchasing salary impacted by:
Years of experience
Education/Certification
Your organization’s size and industry
Where you live
In this 45-minute webinar, Charles Dominick, SPSM, SPSM2 will cover all this and more.
To register for this free event, login to the association and navigate to the “Webinars” tab. There you’ll find a registration
link, be sure to enter a valid email address as attendance details will be sent to you by email. Registrations may be limited.
April 2011 Volume 1, Issue 1
7. Page 7
A 21-Point Negotiation Checklist
Can A Negotiation Checklist Improve Your Results?
As we teach in our online course "Powerful Negotiation For Successful Buying," preparing for a negotiation is
critical for success. Though not intended as a substitute for learning how to prepare or actually preparing,
this checklist can guide your preparation for great results.
Identify the primary supplier to negotiate with.
Identify your second-best option in case you cannot reach agreement with your primary supplier.
Determine the format (i.e., face-to-face, phone) and location of your negotiation sessions.
Invite the primary supplier to negotiate and learn who the supplier's principal negotiator is.
Ensure/insist that the supplier assigns a negotiator with decision-making authority.
Assess your leverage over the supplier.
Determine your overall negotiation strategy (e.g., hardball, collaborative).
Identify all the terms that you will negotiate.
Set targets and least acceptable alternatives for each term.
Determine your negotiation tactics (e.g., threatening to use another supplier, emphasizing the
benefits to the supplier of doing business with you).
Decide what to concede if necessary to reach agreement.
Develop a timeline for the negotiation process.
Identify the risks to achieving your terms, timeline, and other goals and plan to mitigate those
risks.
Develop and share internally a communications plan stating who must be updated on negotiation
progress and what information they must keep confidential.
Review notes from previous negotiations, courses, etc. for tips for success.
Anticipate your supplier's reaction to each tactic.
Create an agenda for the negotiation and practice.
Start the negotiation confidently.
Document agreements made and share with the supplier throughout the negotiation process to
ensure that no misunderstandings later derail a negotiation in which you have invested much
time.
Self-assess after each negotiation session and adjust strategy and tactics if necessary.
At the end of the negotiation, help the supplier feel positive about the new relationship rather
than feeling like it lost the negotiation.
“A 21-Point Negotiation Checklist” by Charles Dominick, SPSM, SPSM2 was originally published in Edition 204 of PurchTips.
April 2011 Volume 1, Issue 1
8. Page 8
Use Negotiation Skills To Elevate Purchasing
Are Your Purchasing Negotiation Skills Underutilized?
Many purchasing professionals find themselves in "seals the deal" with an internal customer and the
situations where their internal customers (e.g., purchasing department is involved only at the end, the
Engineering) cut deals with suppliers and don't involve the supplier is certain of getting the deal and will not bow to
purchasing department until the moment a purchase any pricing pressure that the purchasing department tries
order needs to be created. This is a bad practice. to apply.
Many companies recognize the consequences of not Salespeople are trained - and many are great - at
having early purchasing involvement and have policies manipulating even the smartest professionals who have
requiring the purchasing department to be given an their guard down because they don't negotiate every day.
opportunity to participate in all supplier conversations for These salespeople know what questions to ask that seem
purchases expected to exceed a certain value. If you want harmless but actually get the information that they need
to convince your management to implement such a policy, to entrench themselves in buying plans and maximize
start by touting your negotiation skills as follows: their margins at the expense of the buying organization.
As a purchasing professional, you are an experienced By having a skilled purchasing professional present at all
negotiator. You negotiate frequently, maybe daily. supplier meetings about major purchases, it can help the
organization counter these tactics and prevent the
Negotiation may not be part of your internal customers' supplier from getting that sense of certainty that results in
job description. By deliberately keeping you out of a high prices. But negotiation isn't the only skill that
negotiation, your internal customer is failing to utilize a purchasing professionals bring to the table.
resource that can financially benefit the organization.
Suppliers' flexibility with their pricing is dependent on their “Use Negotiation Skills To Elevate Purchasing” by Charles Dominick, SPSM,
perceived certainty of getting the deal. When a supplier SPSM2 was originally published in Edition 224 of PurchTips.
SPSM® Certification Question of the Month
Question: What are the benefits of earning the SPSM ® Certification?
Answer: Next Level Purchasing realizes that employers and purchasing professionals alike want more than just a
purchasing management certification to show for their investment. That's why the SPSM ® Certification is designed to
produce measurable benefits to both employers and purchasing professionals alike.
Purchasing professionals who have earned the SPSM® Certification report that they have reaped these benefits:
Getting better jobs ● Getting more respect
Getting excellent performance evaluations ● Getting large pay increases
Employers who enroll their purchasing employees in the Senior Professional in Supply Management ® Program can be
assured that their purchasing staff will be able to:
Save more money
Do a better and more efficient job of supporting operations
Minimize and manage risk
Function more independently, freeing up management to focus on more strategic work
9. Page 9
Price and Commodity Indices
Producers Price Index
The Producers Price Index (PPI) measures the change in the
wholesale selling prices that producers charge for goods and
services. It is typical for producers to offset rising prices by
passing on the higher costs to consumers in the form of
higher retail prices, therefore the PPI is often an early
indicator of inflation. Inflation is a decline in the purchasing
power of a currency, for example the USD, where each dollar
buys fewer goods and services than it could previously.
Interpreting the PPI: When the PPI rises, this signals an
increase in inflationary pressures. When the PPI falls, this
signals a decline of prices and may suggest an economic
slowdown.
Consumer Price Index
The Consumer Price Index (CPI) is used as a measure of
inflation. To calculate the CPI, first a fixed “basket of goods”
is determined and a baseline of prices is calculated. Then
changes in price are calculated for each item, averaged and
weighted according to the importance of the item
Interpreting the CPI:A higher CPI indicates that the total price
of the basket has increased and it now costs more to buy
that same basket of goods (inflation). A lower CPI indicates
that the total price has declined and now it costs less to buy
that same basket of goods (deflation).
Each month we’ll include an updated graph of the PPI and
CPI as well as the PPI graph of an individual commodity.
Send your request for which commodities you would like to
see featured in this section to:
commodityppi@nextlevelpurchasing.com.
To learn more about these and other indices, we recommend
reviewing the “Inflation & Prices” section of the Bureau of
Labor Statistics (US) website at: www.bls.gov, or by
researching indices calculated in your specific country.
10. Page 10
Procurement Vacancies
To learn more about these and other vacant positions, visit: http://www.nextlevelpurchasing.com/jobs1
Job Title: Vice President, Procurement Company: Flying Food Group
Salary: Withheld Location: Chicago, Illinois, USA
Job Responsibilities:
Support unit purchasing managers with food cost, vendor contracts and product supply chain.
Ensure unit audits are conducted in coordination with Regional General Managers and/or Finance.
Update Corporate Procurement policies and procedures as needed.
When contracts are due to end, conduct RFP process to a minimum of three (3) vendors.
Continually source for additional national contracts.
Expand food buy programs and increase discount income for both the airline and FFS segments.
Establish controls to address favorable and unfavorable purchasing variances.
Lead teams of unit purchasing managers and the assignment of commodity categories.
Support all ingredient sourcing and related special projects.
Qualifications:
Minimum of a B.A./B.S. degree or an equivalent combination of education and experience
SPSM® Certification a plus
8 or more years in food purchasing related position
Demonstrated experience with key purchasing strategies and implementations
To apply: Send resume via email to: cjekiel@flyingfood.com
Job Title: Senior Supply Chain Manager Company: CDC– Cameroon
Salary: $120,000 Location: Limbe, Cameroon
Implement procurement strategy and policies.
Forecast procurement needs. Create and implement KPI's. Maintain procurement files.
Continually develop expertise to support growth for new projects.
Monitor macro trends in supplier and contract base and implement plans to react.
Build and develop relationships with key suppliers and customers.
Lead the procurement group in all phases.
Identify and develop training opportunities.
Order materials and services as per negotiated and appropriately approved.
Prepare purchase requisitions, approve and issues purchase orders in accordance with company policy and
negotiated terms and conditions.
Track Purchasing activity and measurements.
Training purchasing Clerks and Salesmen in the department.
Discuss defective or unacceptable new goods or services with users, vendors and others to determine cause of
problem and take corrective and preventative action.
Ensure supplier compliance with site and company requirements for safety.
Manage vendor relationships and assist in building effective partnerships.
Qualified candidates should be holders of a bachelor in management, business administration or any related field,
SPSM® Certification a plus.
To apply: Send resume via email to: pbisong@rocketmail.com
April 2011 Volume 1, Issue 1
11. Page 11
Job Title: Senior Contracting Agent Company: Amtrak
Salary: $63,000 - $80,000 Location: Philadelphia, Pennsylvania, USA
This position is accountable for the life cycle of business needs of the organization & requires experience with various
complex service & material commodities, as well as procurement policy and procedures. Manages all activities related
to a commodity or service, from intent to purchase through delivery. Negotiates complex contracts involving variable
costs and non-standard Terms & Conditions. Maintains the highest code of ethics and conduct. 20% travel required.
SPSM® Certification a plus!
To apply: Send resume via email to: necjobs@amtrak.com
Certification and Training
Spotlight
Dedicated Member of the Month– March 2011
Congratulations to Inna Nirenburg, SPSM! Inna, a purchasing professionals from Pittsburgh, Pennsylvania, USA, completed all six
Senior Professional in Supply Management® Program classes and passed the SPSM Certification Exam during the month of
February and was selected as March’s Dedicated Member of the Month!
2011 Recipients of the SPSM Certification
January February (March continued)
Esan A.—Nigeria Albernachie A.— West Indies Angie C.- California, USA
Sheila A.—Washington, USA Jyothi B.—India Charlene C.– North Carolina, USA
Catherine C.— North Carolina, USA Renee D.– California, USA McCabe C.—Utah, USA
Christine C.—Illinois, USA Terri D.—Ohio, USA Milos D.—Slovakia
Jason C.—Illinois, USA Christopher J.—Illinois, USA Nikolay D.—Austria
Angela D.—Ohio, USA Jana K.– Ohio, USA Kamil F.—Slovakia
Sandra D.—Illinois, USA Kimberly M.—Wyoming, USA Lubomir F.—Slovakia
Anil G.—India Bryan M.—Missouri, USA Kenya G.—North Carolina, USA
Jaikumar G.—India Sheila O.—Indiana, USA Michael G.– Germany
Peggy G.—Virginia, USA Terri P.—West Virginia, USA Supratik G.— India
Preeti J.—India Julio R.—Alaska, USA Kenneth H.—Florida, USA
Kurt K.—Colorado, USA Stephen R.— Ontario, Canada Teresa L.—Arkansas, USA
G.S. L.—India Adewale S.—Nigeria Ingrid L.– Slovakia
Divya M.—United Arab Emirates Kausar S.—India Jamie L.– Illinois, USA
David N.—Arkansas, USA Melanie S.—Ohio, USA Kimberly M.– Ohio, USA
Heather N.—Missouri, USA VBTSM S.—India Rajesh M.—India
Richard N.—Minnesota, USA Matthew T.—Arizona, USA Inna N.—Pennsylvania, USA
Jonathan O.—Illinois, USA Niculae V.—Romania Ana O.—Belgium
Cristi P. - Romania James W.—Michigan, USA Kathleen O.—Illinois, USA
Jayashree R.—United Arab Emirates Debra R.—California, USA
Rajeev S.—United Arab Emirates March Henrik S.—Denmark
Timothy S.—California, USA Chris A.– Florida, USA Carrie W.—Indiana, USA
Margaret T.—Illinois, USA Darlene B.—Arizona, USA Josh W.—New York, USA
Qiong W.—Washington, USA Lubos B.—Slovakia Layne W.—Tennessee, USA
Sarah Z.—California, USA
April 2011 Volume 1, Issue 1
12. Page 12
Beyond the tips…. Is your negotiation recipe missing an ingredient?
After reading this month’s edition of Leading-Edge Supply When you demonstrate how important to your company that an
Management, you're probably wondering what this "important issue actually is, you'll often be surprised at the creativity that the
ingredient" is. And I won't keep you in suspense. supplier generates at some point in coming up with a solution
that satisfies you.
The important ingredient often missing from purchasing
professionals' negotiation recipes is persistence. Just because a Suppliers get tired of saying "no." Your persistence can gently
supplier refuses a negotiation request of yours doesn't mean that nudge them to figure out something positive to respond with
you should give up. instead of that dreaded two-letter word...
Keep trying. Be the proverbial "broken record." Good luck!
~ Charles Dominick, SPSM, SPSM2
The Future of Negotiation: Texting?
From Charles’ Purchasing Certification Blog
As communication methods have changed throughout history, But when you need a simple response quickly (or want to create
negotiation has followed. Prior to the industrial revolution, people that illusion in order to gain pressured concessions from your
would negotiate face-to-face when bartering, exchanging suppliers), texting might fit the bill in some limited situations.
negotiated quantities of corn for negotiated quantities of musket Now, texting among teens has its own vocabulary and acronyms,
balls. like "ur" (for "your," "you're," or "you are"), "l8r" (for "later"), and, of
course, the old standby from the email days "lol" (for "laughing out
Then, of course, the telephone allowed negotiators in different loud"). So, do we need a similar vocabulary for procurement
locations to bargain. Finally, in the past 10-15 years, email became negotiations? I don't know, but just to be safe I'll start one here (&
a popular - but sometimes ineffective - medium in which to u can feel free 2 add ur own):
exchange offers (our online class "Powerful Negotiation For 2HI - "Too High," an expression that the supplier's price is too
Successful Buying" teaches when negotiating by email is smart and high, sent in reply to a supplier's text inquiring about the
when it is the most foolish thing a procurement professional can competitiveness of their offer
do). Of course, eSourcing technologies allow for all sorts of online
negotiation activities. BAFO - "Best and Final Offer," as in "send ur BAFO"
DL - "Deal," an expression that you've accepted the supplier's
So what's next? Stroll through any mall and you're likely to bump offer
into (literally) a few teens walking while staring intently at their cell
phones as their thumbs flail away on the keypad in the process of LTAS - "Leaning Towards Another Supplier," sent in reply to a
texting (also called "txting" or "sending text messages"). These are supplier's text asking about the status of your decision on
future representatives of our suppliers. proposals, meant to compel the supplier to submit a revised,
more attractive proposal
Is texting the future method of negotiating? Some of you are SYP - "Sharpen Your Pencil," synonymous with "submit an offer
probably saying "I hope not." But the reality is that texting is likely more appealing to me"
to creep into the mainstream negotiation process to some degree
soon. Naturally, ethics that apply to traditional negotiation will need to
apply to negotiation-by-txt as well. With the aforementioned high
If you are feeling yourself getting mad, it might be time to read probability of misunderstanding, you want to be careful to not
"Who Moved My Cheese?" again. insult the supplier or behave inappropriately. For example, I would
never use "LOL" with a supplier as doing so may insult the supplier
Now, don't get me wrong. I am not advocating that you go out and and make the supplier terminate the negotiation. Also, be very
conduct all of your negotiations by text message from this point careful when using the "F" character, as doing so may indicate the
forward. After all, texting has many disadvantages from a use of a profanity, as in "Send ur bid ASAFP." My thumbs always
negotiation standpoint, such as: inadvertently add unintended letters to messages, so proofread to
You give the other party time to think through their response ensure that you didn't add that vulgar "F."
You cannot communicate tone-of-voice through texting While some parts of this post are slightly written in jest, I do feel
Texting (at least when I do it) is often rife with errors that texting will rear its head into more and more procurement
negotiations in the near future. Therefore, it is imperative to be
The amount of space you have in a text isn't enough for prepared.
discussing any substantial issues
You cannot watch for body language clues from the other Never fight change when the writing is on the wall.
party
There is a higher probability of misunderstanding
And so on...
April 2011 Volume 1, Issue 1
