1. ES438- Supply Chain Management Negotiation
Idris Tayeb

2. Negotiation in the Market Mini Case- Study:
Q) How important is contract negotiation in this market and how is it approached?
Business
Negotiation in the Market
Mini Case- Study:
The American Embassy, Nbi.
Approaches by the business.
Styles of negotiation
Conclusion

3. Sellers of hardware products
tools, fittings, locks, paints, adhesives, etc.
Sole ownership
Location - Nairobi, Kenya
Mainly Wholesalers
Local Competition
Avg. monthly sales -9.5million KES ≈ 68,000 GBP
Focus on building relations
Supply Chain:
ChinaU.A.EPHGScustomers

5. Negotiation in the market
Negotiation - the process of deciding what to give and take.
Retail customers
Bargaining /Haggling
One-off purchases
Wholesale and Contract customers
Building personal relationships
Gaining trust
Source of advertising

6. Mini Case-Study: American Embassy
High value client
Contributes ≈30% of sales revenue
Large spending budget
Frequently make bulk orders for multiple projects
Expect good quality products and efficient service at all times.
Operate using RFQ’s
Blank Purchase Agreements (BPA)

7. Approach by PHGS Establish themselves in the system. Show respect
Accept orders at relatively low or cost-to-cost price and deliver them promptly.
Show respect
Give them exactly what they want when they want it.
Actively build relations with the people involved in the supply chain.
Slowly build a reputation by supplying what they want.
Obtain a BPA with the Embassy.
Post-negotiation strategy
Draw up the documents
Regularly ensure that the client is happy

8. Negotiation Style Matrix

9. Conclusion
Negotiation style with wholesale customers is different to retail customers
It is a long term process revolving around building relationships
Focus on building relations on both sides of supply chain.
Keep right of matrix
good strategy for growing businesses
long-term benefits

10. Questions

11. References 03