Ray Soles, the Vice President of Supply Chain Management at Sabor Inc. He has the task of making sure Sabor Inc. has enough supply of Marconil to keep up with demand. Recently, Ray’s three suppliers have all advised there is a possible supply shortage of Marconil, and without a form, long term contract Sabor’s suppliers cannot guarantee the raw material will be available. Needless to say, Ray has a few decisions to make but there are few things he must keep in mind. If long term contracts must be signed, at what price with this affect his procurement flexibility and what strategies are available to Ray for ensuring his demand of marconil? If Ray must sign long term contracts, what criteria must he establish to do so? With or without signing
Ans: The key contract issues Metrovox will need to consider with their supplier are as below:
The contract was to govern the business relationship, and the terms were expected to be adhered to by both parties. According to the contract, the supplier was supposed to supply me with the products during the time of agreement without failure unless under unavoidable circumstances. Any condition that prevented delivery of products on the dates scheduled, the supplier was expected to provide a reason for the delay and if possible give the estimated time of delivery. The prices of the products were expected to be fixed, and no additional charges or price adjustments were to be made without my consent and that is after negotiations between the two of us. Also, the products were supposed to be delivered in exact quantities, location, and on time.
The manager at the national chain store has sent a demand letter to Sam for the 1,000 units that he verbally promised. Therefore, an evaluation of the agreement, the consideration, the contractual capacity, and the legal object will be made to determine whether a valid contract exists.
The term contract usually identifies many type of thing like the delivery, quantity and product or service quality. In some cases the terms can give the agencies the right to do type of things for better prices or better quality. About the problem the company can get if we didn’t put the right term and condition, like the services quality condition has to be in some level of quality to be used for long time and save some money if we buy a low quality product or services.
There were three primary changes that I would make if given the opportunity to redo this negotiation. First, I would more immediately suggest that a contingent contract be used to address the quality of product vs. long-term contract debate. In hindsight, it could have been very efficient to propose an agreement that allowed for Rawmat’s longer term deal while also recognizing Myti-Pet’s desire for higher quality. By not initially considering a contingency contract, our group fell into the trap discussed in Bazerman and Gillespie (1999). We simply did not allow ourselves to consider a contingency contract, and when the idea was first proposed we initially felt uncomfortable with the concept. In hindsight, this reaction was highly unproductive.
The Reawakening, by Primo Levi, is a sequel to his first novel, Survival in Auschwitz. It is a deeply powerful memoir of his liberation from the most brutal concentration camps of them all, Auschwitz. Published in 1946, the story of Primo Levi’s pursuit for freedom has inspired many people around the world. Levi’s quest back home to Italy was a grueling mission, from ruthless acts of the Nazi regime, the traumatic effects of imprisonment in Auschwitz and the near death experience of hunger and illness. The Holocaust brought a cloud of darkness filled with pain and despair. Very few victims of the Holocaust survived and those who did found it extremely hard to cope with the traumatic memories that the Holocaust instilled in them. Those who
Second, always make sure there is an alternative source. As I mentioned before, this is much easier with single source procurement (but not sole source), since other similar suppliers could be able to supply similar products with more or less that same quality as the previous suppliers.
b) Another alternative should be using the negotiation method in order to develop a “win-win” situation. A negotiating party would have to be applied, “When a long period of time is required to produce the items purchased” (p 375). In these circumstances, suitable economic price adjustment clauses must be negotiated. Opportunities for various improvements may develop, such as the new manufacturing methods, new packaging possibilities, substitute materials, new plant layouts, and new tools. Negotiation permits an examination and evaluation of all these potential improvements. Competitive bidding does not. The advantage would be assurance of a long-term business with the Company along with reasonable profit for the supplier and reasonable cost for the buyer.
• Making a right negotiation strategy based on Lewicki, Hiam, and Olander’s analysis model. From their model, I think I should deploy a competitive negotiation strategy in this case. This is a win-lose strategy. My purpose is to win at all cost. I should spend time to prepare the negotiation as much as possible. I have no much concern about future state of relationship with seller.
Rapheal was also a famous painter, the youngest one in the three greatest artists in the renaissance , on behalf of the Renaissance artists when the art career reach the peak. Rafael created a lot of paintings depicting the Saint Mary, indicating Rafael’s quiet characteristics. He enjoyed the greatest honor by Rome Pope in the Vatican court, and Da Vince and Michelangelo are described as heroes with Rapheal for centuries. In appearance, Rafael was a poet without doubt and without bitterness, a painter, and he had a remarkable talent. He seems to be able to visualize the artistic ideals of the Renaissance Neo - Platon.He is gentle and has created a large number of Madonna images. His works embody peacefully and perfect and quiet order.
In planning for my negotiation, I reviewed the Supplier Payoff Matrix for each of the issues to be resolved. The issues which were likely to offer least resistance were the Electronic Integration and the Inventory. The next issues that were likely to have some pushback were the Quality and lot size. We kept to the last the more contentious issues that included price, volume flexibility, development fees and contract term.
The best way to achieve the long-term goal is to control customer expectation. Span could focus on the short-term goal and successfully negotiate the current contract by giving in on all concessions. But if it does that, over time there will be a drop in the perceived service quality and C-S ' high expectations will result in a widening service gap. Span needs to enforce some of the contract. If it doesn 't stand firm on a few of the important issues, C-S ' expectations and perceptions of service quality will be drastically inaccurate. The next contract will be very difficult to enforce. C-S will get the indication it can demand whatever it wants and Span will concede.
The value of being prepared cannot be overstated when it comes to negotiations. Failure to understand one 's best alternative to a negotiated agreement (BATNA) options is one example of poor planning that can leave a party at the mercy of another. Such is the case of the Pacific Oil Company (POC) case study where POC and Reliant Corporation worked together to negotiate a business contract for the supply and purchase of a vinyl chloride monomer (VCM) product. The negotiation process did not go as planned, and the following will explain the case overview, provide insight to the various negotiation styles and tactics utilized in the negotiation process, and explore the anticipated outcome of the contract negotiations.
(Lewicki, 2010, p. 585) Fontaine and Gaudin did not prepared to negotiate the full contract. They did not anticipate nor prepare to resolve additional issues. Due to their inexperience, Fontaine and Gaudin were not the correct pairing to conduct the renegotiation, as well, they did not have decision making authority. They had to contact senior level management in order to reach a final agreement. This delay extended the negotiation timeline. Adding to the already stressful situation, the prospect of losing Reliant as a consistent client prosed a potential major issue, especially relating to supply as it would be difficult to identify another client to fill the former demand level. Also, Pacific senior leaders delayed their decision to expand into PVC products, over a year. This delay created uncertainty with the forecast for VCM and derivate products, which had a negative marketing impact for one of the top essential products. Also, contributing to the list of weaknesses, Fontaine’s definition of a successful negotiation differed from the corporate office, in that, he linked a successful negotiation outcome to keeping Reliant as a client by extending the current terms of the contract, solely. However, just as important, Fontaine neglected to take into account all the other potential issues or points of
In contemporary music, composers will use bridges to change the tone of a song. When the song needs to change, they will include a small section that stands out from the rest of the piece so it can bring a smooth transition to the rest of the song. Similarly, Claudio Monteverdi became that bridge between the Renaissance and the coming Baroque Period. The world was so focused on humanism and darkness throughout the Renaissance, but Monteverdi was born on the edge of darkness, and helped show the path into light. Claudio Monteverdi exemplified the shift in worldview from the Renaissance to the Baroque Period through his music.