Supplier Evaluation

Supplier Evaluation by Buyer

• Procurement
• Quality
• Logistics
• Technology
Supplier Evaluation - Factors
• Environment and Safety
• Current performance
• System to sustain performance
• Future requirements
• Cooperations, service and support
Negotiation
 Negotiation
The process whereby two or more parties
decide what each will give and take in an
exchange between them.

• This definition of negotiation highlights:

■ its interpersonal nature
■ the interdependence of the parties
■ its allocation of resources.
 Negotiation
A formal negotiation is:

An occasion where one or more representatives of

two or more parties interact in an explicit attempt to
reach a jointly acceptable position on one or more
divisive issues about which they would like to agree.
 Approaches to Negotiation
Approaches to negotiation may be classified as
adversarial or collaborative:
■ adversarial negotiation – also termed distributive or win–lose negotiation – is
an approach in which the focus is on ‘positions’ staked out by the participants,
the assumption being that every time one party wins, the other loses, so, as a
result, the other party is regarded as an adversary
■ collaborative negotiation – also called integrative or win–win negotiation – is
an approach in which the assumption is that, by means of creative problem-
solving, one or both parties can gain without the other having to lose and, as
the other party is regarded as a collaborator rather than an adversary, the
participants may be more willing to share concerns, ideas and expectations
than would otherwise be the case.