Role Of The Supplier For Hi Tech Batteries

1689 WordsOct 9, 20157 Pages
I was assigned the role of the Supplier for Hi-tech batteries, a regular supplier of batteries in the Supplier Negotiation exercise with Kevin Rhudy who was in the role of the Buyer for Auditory Technologies, Inc. (ATI), a medical device firm. This was my first exposure to an Integrative negotiation and it was an insightful and eye opening experience at applying some of the concepts and principles from our assigned readings, ideas that we had explored in class and actually undertaking a negotiation based on practicality of a business situation. In my professional life, we are not usually negotiating with numbers and prices but with issues relating to the individual health. Kevin and I discussed our preferences for each of the options…show more content…
Both our approaches were directed towards addressing the issues with a collaborative spirit for the greatest benefit to both sides. We agreed that both sides wanted to establish a long term a relationship with each other and were willing to give genuine consideration to each other’s particular needs and interests. This experience has enabled me to reflect on my personal approach towards negotiation, as well as analyze my strengths and potential areas for improvement as a negotiator. 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. Both partners were mutually agreeable on the Electronic Integration and the Inventory issues. We both agreed to have 100% Electronic Integration and have a 3 week inventory to minimize costs to both sides. The next issue that was brought up was the quality and the concerns were raised about the 1000/1000000 i.e. 1/1000 failures. We agreed that this needed to be addressed to a level of 100ppm so that the
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