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ESSAY: Sourcing Negotiation

The parties to a sourcing negotiation can discuss many issues besides price. Select five non-price issues over which a buyer and seller can reach agreement, and explain why each issue might be important to the buyer or seller.

ASNWER

Sourcing Negotiation

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Negotiation helps in the delivery of the right products, getting into legal contracts and also becoming well conversant with different sales’ conditions. This process involves parties with differing ideas or policies on a product or service (Talluri, 2002). The two have to engage in a discussion that will make them be on the same page and therefore get into a deal or transaction. The five non-price issues that a buyer and seller can engage in include technological factor, contract volume, service quality, schedules of delivery and technical support.

The technological support is important to both the buyer and the seller. The technology, in this case, will help in ensuring that the goods or services that the two are handling are well monitored and that the orders made are fulfilled in time (Mintu-Wimsatt & Gassenheimer, 2000). The buyer will benefit from having the goods delivered faster, while the seller will gain from the satisfaction of the buyer.

Contract volumes are also important in this case, as they will determine the period that the two parties will engage in transactions (O’Brien, 2016). The buyer will be aware of the goods to expect while the seller will be aware of the amount to get in the end.

With service quality, the seller gains a positive brand image after providing the buyer with what they need. The satisfaction of the buyer will make him or her refer the seller to other buyers.

The schedule for delivering goods and services should be reasonable. This will benefit the buyer, especially if what they need is urgent (Gates, 2016). The technical support is also something to negotiate. The supplier and the buyer need to agree on after-sale services as well as the logistics involved when delivering goods and services….

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