The Role Of Negotiation Skills In Purchasing And Contract Management

Project and Seminar Material for Purchasing and Supply PS

Abstract

A research cannot be carried out if there is no missing link or lacunars or it there is no question unanswered. Negotiation skills has been seriously dealt with in this research work to know it role on purchasing and contracts management to some unanswered question as to give answer.

Chapter one familiarized us with the meaning of Negotiation skills, statement of problem, objective of the study, important of the study, limitations and constraints, Historical background of (Fan Milk Nigeria Plc, Ibadan), organization structure of Fan milk Nigeria Plc, Ibadan, research question etc.

We can see in chapter two the series of literature we reviewed to know what the past authors have said about Negotiation skills. The theories under Negotiation skill were also reviewed.

Chapter three and chapter four dealt with research methodology and data presentation and analysis respectively. Questionnaire was used to collect the primary data and researcher employed the use of table and simple percentage for the use of presentation and analysis. The hypothesis stated in chapter one was also put to test.

The summary of our findings, recommendation and conclusion were done in chapter five (5).

Chapter One

1.0 Introduction

1.1 Background Of The Study

Negotiation is a fact of life. Everyone negotiates something every day. Negotiation is a method by which people settle differences. Negotiation is one of the instruments employed by the buyer organization in order to reach a fair and reasonable price through sound discussion. Negotiation forms a substantial part of most purchasing officer or agent’s needs to be able to analyse and interpret information and be aware of danger involved in any wrong decisions by the parties involved.

It is also important to recognise that the main task of the purchasing manager in fulfilling and carrying out his operation of maintaining suppliers is negotiation. The purchasing manager is a specialist in satisfying the needs of the company by seeking suitable sources of supply and negotiating to secure the best terms and services possible. Negotiation involves two or more parties with the aim of reaching an agreement of their term dissemination. Whenever it is required or reconcile two or more differing opinions in order to initiate the action or continue in mutually agreed condition. It is very vital that all buying and selling transactions leave both parties satisfied and hence acceptance on any of the parties.

1.1 Statement Of Problems

Negotiation is very important between buyers and sellers. This is because it improves buyer-seller relation.
Unfortunately, negotiation is not effectively employed in some organizations.

What are the causes of lack of skilled negotiation personnel?
How can the negotiation situation of both the buyer and the seller affect the relative strength of both parties?
Why is time pressure a problem faced in the course of negotiation?
What are the unpredictable behaviours of the buyer which the supplier cannot satisfy, that later result into problem between both parties?

1.2 Objective Of The Study

The aims of this research work are to:

Examine the roles of negotiation skills in purchasing and contract management of an organization.
Identify factors critical to successful bargaining.
Determine how to obtain a fair and reasonable price.
See how relevant negotiation network is to the buyer and the supplier as a whole.
Determine how organizations can strategically select the best supplier that will help in linking them to target market
Examine how quality specification can be obtained or achieved.

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