View Full Version : We Win, You Win Agreements
05-15-2009, 12:54 AM
I have been instructed by my management to negotiate a "we win, you win agreement". I hate reinventing the wheel. I'm looking for a template of a we win you win agreement for engineered equipment. Can anyone help?
05-22-2009, 04:29 PM
May I suggest it is a process issue. If (all) the parties are "willing" to negotiate in "good faith" AND the relationship is important to all the parties then the opportunities for success, i.e. win/win, are enhanced. But at the end of the day, the question is...what is the alternative to a negotiated agreement? And, one could envision various scenarios as a buyer/seller in answer to this question (too many to list here). But that is the real test, in my opinion, to a successful negotiation. Accordingly, what is the alternative? What is their BATNA, Best Alternative To Negotiated Agreement? If the alternative is their BATNA, no agreement will (generally) be negotiated.
Consequently, one needs to provided the requisite environment for negotiation while focusing on alternatives. And, Baseball Arbitration, or final offer arbitration, is "the" answer or template--it "drives" the parties to negotiate since they will (normally) not like the alternative, i.e. the other person's offer! In sole source situations it is a "must!"
I've published an article on the topic which is on my website...and I've spoken to several ISM affiliates too. Call if you want to discuss.
12-10-2009, 05:27 PM
Win/Win strategies and agreements are not new in any sense of the word. Supply Management professionals are asked more and more to "work with their suppliers" to create these types of agreements. I would suggest to assess how you do business with these suppliers currently. Is management requesting you drive this type of agreement because they are trying to develop strategic relationships with some suppliers for an upcoming project? Ask management why they have decided on this objective, then you can move forward with how you tackle the task. It may be as simple as you and the supplier sitting down and discussing the suppliers cost structure and providing assistance where required to lower their costs, therefore, lowering yours.
Beating the supplier into submission over costs is not the best strategy in the current economic environment - it certainly lends itself to increased risk where the supplier (who may be critical to your company) is concerned.
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