MIM 524 Global Sourcing Class Eight

Agenda -Negotiation game -Sustainability Lecture -Group A Final presentations -Group B Commodity Studies are due -No Current Events -Closing Remarks

Assignments Buyers 2 people from Team 1 Team 2 Team 4 Team 6 Sellers 2 People from Team 1 Team 3 Team 5 Team 7

Instructions (Total 30 Min) Prep Time: 15 min Get together in Assigned Groups Determine who will report out for the team Read the case hand out Determine the existing situation Determine which strategies you might use to close this deal? Negotiation Time: 15 min Be prepared to report out to class

Final Thoughts Be prepared – plan ahead Don’t be afraid to walk away from a negotiation You can negotiate anything… Don’t get in a time pressure situation ALWAYS maintain integrity and ethics It is never over….

Assigned Reading Sustainability Purchasing Initiative: A Study Assessing Interest in a Sustainability Purchasing Network to Grow Sustainability Purchasing in the Region Prepared by C. Easton & Associates

Sustainability purchasing defined as…. Source: Easton, Reeve & Strandberg “selecting goods and services which promote a healthier community and environment by considering the cost as well as the environment and social impacts of products and services through all stages of their lifecycle; from product/service development and manufacturing through product/service use and ultimately to the disposal of whatever remains of the product/service at the end of its useful life”

Typical Buyer Practices Source: Easton, Reeves and Strandberg Buying eco-labeled products and services with 3 rd party certification Buying according to internally generated standards where external certifications may not be available or sufficiently customized – Ex: Supplier Code of Conduct Using Total Cost of Ownership based on internal evaluation of a products cost over it’s entire lifecycle

Barriers Identified Source: Easton, Reeve and Strandberg Lack of technical know how Lack of organizational commitment and resources Cultural and attitudinal barriers, including misinformation Pricing and product quality issues Lack of sustainability options and awareness of options Lack of credible standards NAFTA limits on buying local Burden on suppliers to address sustainability requirements Difficulty delivering stead supply Competing demands on suppliers

Final Presentations Group A

Parting Words/Questions