Procurement Cards - ANS-payment method whereby internal customers are empowered to deal directly
with suppliers using a credit card
supply positioning matrix - ANS-illustrates the supply continuum and the potential procurement
strategies for each quadrant
,quadrant I - supply positioning matrix - ANS-goods and services with a low degree of risk and a low
expenditure relative to total procurement spend
quadrant II - supply positioning matrix - ANS-goods and services with a low degree of risk and a high
expenditure relative to total procurement spend
quadrant III - supply positioning matrix - ANS-goods and services with a high degree of risk and a low
expenditure relative to total procurement spend
quadrant IV - supply positioning matrix - ANS-goods and services with a high degree of risk and a high
expenditure relative to total procurement spend
Four principles of negotiation - ANS-1. separate people from the problem
2. create a variety of options before deciding which to pursue
3. focus on interests, not positions
4. use objective criteria
people elements to negotiation - ANS-differences of perception, emotions, communications
differences of perception - ANS-it is crucial for both sides to understand the other's viewpoint
emotions - ANS-negotiation can be a frustrating process
communications - ANS-negotiators may not be speaking to each other, but may simply be grandstanding
for their respective constituencies
establish a BATNA - ANS-The Best Alternative To a Negotiated Agreement
stonewalling - ANS-this occurs when one side has no intention of reaching an agreement unless there is
an irresistible offer.
,good samaritan - ANS-the other side is using this technique when it acts as if it is doing you a favor or
making a great sacrifice with its offer in order to put you off guard and persuade you to accept it
opposition negotiation tactics - ANS-stonewalling, good samaritan, take it or leave it, splitting the
difference, nickel and dime, good/bad cop, pity me, piece-by-piece, total package, refusal to negotiate,
status, escalating demands, divide and conquer, defense, win/win
take it or leave it - ANS-when the other side has made its final offer and says it will no longer negotiate
splitting the difference - ANS-this involves offering to cut the dollar difference in half, thus avoiding the
discussion of the details of the deal
nickel and dime - ANS-the other side wants to negotiate each and every point
good/bad cop - ANS-this tactic is used to elicit feelings of sympathy and understanding in order to get
concessions
pity me - ANS-this tactic is designed to rely on the sense of fair play and make it hard to walk away
piece-by-piece - ANS-this tactic is used to negotiate each item of a contract
total package - ANS-this tactic is used when an offer is acceptable, but one or two major elements still
need to be negotiated.
refusal to negotiate - ANS-in this tactic the other side wants a concession even to talk
status - ANS-sometimes the party you are negotiating with is perceived to have a higher status, such as
when the president of a company personally negotiates with a buyer.
escalating demands - ANS-extreme demands may be made to persuade you to lower your expectations
for a final agreement.
, divide and conquer - ANS-this is used to persuade various members of the team to accept the
opposition's position
defense - ANS-this tactic tries to keep the other side on the defensive
negotiation tactics - ANS-win/win, spiraling agreements, changing of position, gathering information,
making the cake bigger
win/win - ANS-the goal of principled negotiation is that the interests of both parties are satisfied
spiraling agreements - ANS-begin by reaching a minimum agreement even though it is not related to the
objectives and build, bit by bit, on this first agreement
changing of position - ANS-formulate the proposals in a different way, without changing the final result
gathering information - ANS-ask for information from the other party to clarify their position
making the cake bigger - ANS-offer alternatives that may be agreeable to the other party, without
changing the terms
four activities of a price analysis - ANS-1. review the competitive prices offered
2. compare with catalog or published price data
3. compare with historical prices
4. obtain data from other jurisdictions that have procured the same product or service
mediation - ANS-a voluntary, flexible technique used to resolve disputes
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