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NEGOCIATION, MOU(MEMORANDUMS OF UNDERSTANDING) Document, signed by the…
NEGOCIATION
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NEGOTIATING FOR SUCESS
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In supply chain, negotiating involves:
- Cost of items
- Arrival time
- Quality standards
If is not possible for your firm to be flexible in one area, compromise in another detail
COMMON MISTAKES
- Ideal negotiation: win-win
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- Negotiating against yourself
- No hearing all demands before beginning to compromise
IMPORTANT
- Good guy, Bad guy ( "Poli bueno, poli malo")
- The Devil is in the Details: ("Cuidado con la letra pequeña")
- Changes are profit in escrow: ("Cuidado, contratos bajos para luegos aumentar el coste")
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PHASES OF NEGOTIATION
PHASE 3
MEETING
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Ask open-ended questions (Why, How, What is your opposition?)
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PHASE 5
ARGUMENTATION
Intense, takes up a lot of time.
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PHASE 6
CLOSING
2 DIFFERENT TYPES:
- Basic uncertainty of any negotiation.
- Ending the negotiation before the counterpart asks us for more concessions.
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MOU(MEMORANDUMS OF UNDERSTANDING) Document, signed by the participants, wich reports on the progress of the negotiations. It has no legal effects.