Establish Relation Between

Negotiation, Sourcing & Supply Chain

Management

PRESENTATION
Sourcing Negotiation And Techniques

Course Code: BUS 4103

:Prepared By:
Ashik Ahmed Sourav
ID: 161-021-0-135
Batch: 162, KMT-1
 Presentation Outline

Supply Chain
Negotiation Sourcing Managemen
t
 What Is a Negotiation?

A negotiation is a strategic
discussion that resolves an issue
in a way that both parties find
acceptable. In a negotiation,
each party tries to persuade the
other to agree with his or her
point of view. By negotiating, all
involved parties try to avoid
arguing but agree to reach
some form of compromise.
 What is Sourcing?

Sourcing is a critical activity

used at both tactical and
strategic levels. It is concerned
with what needs to be
purchased, why, when and
where. The concept is created
to help supply chain managers
and practitioners to improve,
develop and implement
strategic sourcing strategies
What is supply Chain Management?

A supply chain is a network

between a company and its
suppliers to produce and
distribute a specific product to
the final buyer. This network
includes different activities,
people, entities, information, and
resources. The supply chain also
represents the steps it takes to
get the product or service from
its original state to the customer.
Relationship between Sourcing and supply
chain management

 Better economies of scale can be achieved if orders within a firm are aggregated.
 If you want to reduce the purchasing cost, your procurement transactions should
be more efficient.
 Design collaboration can result in products that are easier to manufacture and
distribute, resulting in lower overall costs.
 If you coordinate with suppliers, then your forecasting and planning efficiency
will increase for goods.
 While making contracts with suppliers, the result should be such a way of sharing
the risk. The result is very excellent. It brings profits for both the supplier and the
buyer.
 If any Firm use auctions the can significantly reduce the purchase price due to
competition between vendors.
Relationship Between Negotiation and Supply
Chain

We know that supply chain is a flow of goods and services by

transform raw materials into final products and  negotiation is a
strategic discussion that resolves an issue in a way that both parties
find acceptable. 

Some materials are needed to make a product. So the products of

the company are taken from some parties. All those raw materials are
priced to reduce costs by negotiation. So that the manufacturing
costs are low.
Any Questions???
Have a Nice Day