1999 Purchasing Today Article Index
Term selected: Negotiation
A valuable reference tool, the Article Index is a comprehensive list of articles that have appeared in Inside Supply Management® (formerly Purchasing Today® and NAPM Insights®) magazine. Articles are organized by subject for easy locating and study.
Negotiation is a meeting of different mindsets — different groups with their own needs, requirements, expectations, and beliefs.
Building a relationship when negotiating involves understanding and discussing what the other party wants to achieve.
Who's there but your sales organization counterpart displaying the latest initiatives.
You're preparing to enter into negotiations. Your supplier has provided some costing details and the numbers look legitimate at first glance. But your end cost is still too high. As you reflect on the supplier's detailed quotation, do you understand the section dealing with overheads or fixed expenses? Traditional cost accounting methods advocate assigning these costs as a percentage of direct materials or direct labor. So, depending on the allocation method your supplier uses, you may wind up subsidizing an operation or process that has no direct tie-in to your particular purchase. You can, however, make your supplier rethink this allocation.