SKA negotiation SKA is a newly established NGO with an aim of changing lives of the poor and needy in Uganda. As a way to achieving its goal, various goods and services have to be procured. Ben the new Procurement Manager has been tasked to identify and negotiate with potential suppliers and service providers to ensure procurement of quality, reliable and affordable services and goods. Among the items required are; office furniture and equipment, food, clothes, laptops and IT services. Ben’s responsibility is to coordinate and manage teams within SKA to ensure effective agreements are arrived at. However, disagreements within teams are increasing with majority of the members blaming BEN for taking over their roles, his over dominance personality and failing to consider the needs of other. Allan with whom they are supposed to coordinate the activities is always criticizing whatever step is being taken without giving solutions on how certain things should be done. Other organizational members are confused as to what items they should prioritize all slowing down the procurement activities given the fixed budget BEN presents. A team in charge of research has found out that the supply market is full of items SKA intends to buy due to technological advances in the market, many suppliers who have been hit by the financial crisis and eager to make a sale and the cheaper costs of some of the required materials. Ben believes that the many donors of SKA who are willing to invest hugely gives SKA a leverage over its suppliers coupled with it being the first of a kind organization in the area buying bigger volumes of the supplier’s items. Discussion with the supplier of personalized equipment seem futile as initial positions on price and delivery times are maintained. The supplier selectively listens and insists on its position with considering and understanding the offers made by BEN and Team. One of the negotiating member blames the lead negotiator for failing to read the body language of the supplier’s team as they seemed uninterested in the deal. The supplier says that during his previous arrangement with BEN, the organization he represented convinced him to accept their terms taking advantage of supplier being new in the market that increased the supplier’s cost of performing the agreement. However this is the only available supplier within the area and deadline has been set as to when the negotiation should be complete for other activities to kick off. The alternative available for SKA is to source for international suppliers which process seems lengthy and requires SKA negotiating team to gather relevant information pertaining to Price if better deals are to be arrived at. Required: Qn.2 Advise BEN and the team on how it would gather accurate price information from the suppliers of the various goods it ends to procure. Examine FOUR potential risks that SKA would be exposed to as a result of the negotiation with its suppliers. Is there anything that can be done by SKA to minimize the occurrence and impact of the above-identified risks? Discuss FOUR of them
SKA negotiation
SKA is a newly established NGO with an aim of changing lives of the poor and needy in Uganda. As a way to achieving its goal, various goods and services have to be procured. Ben the new Procurement Manager has been tasked to identify and negotiate with potential suppliers and service providers to ensure procurement of quality, reliable and affordable services and goods. Among the items required are; office furniture and equipment, food, clothes, laptops and IT services.
Ben’s responsibility is to coordinate and manage teams within SKA to ensure effective agreements are arrived at. However, disagreements within teams are increasing with majority of the members blaming BEN for taking over their roles, his over dominance personality and failing to consider the needs of other. Allan with whom they are supposed to coordinate the activities is always criticizing whatever step is being taken without giving solutions on how certain things should be done. Other organizational members are confused as to what items they should prioritize all slowing down the procurement activities given the fixed budget BEN presents.
A team in charge of research has found out that the supply market is full of items SKA intends to buy due to technological advances in the market, many suppliers who have been hit by the financial crisis and eager to make a sale and the cheaper costs of some of the required materials. Ben believes that the many donors of SKA who are willing to invest hugely gives SKA a leverage over its suppliers coupled with it being the first of a kind organization in the area buying bigger volumes of the supplier’s items.
Discussion with the supplier of personalized equipment seem futile as initial positions on price and delivery times are maintained. The supplier selectively listens and insists on its position with considering and understanding the offers made by BEN and Team. One of the negotiating member blames the lead negotiator for failing to read the body language of the supplier’s team as they seemed uninterested in the deal. The supplier says that during his previous arrangement with BEN, the organization he represented convinced him to accept their terms taking advantage of supplier being new in the market that increased the supplier’s cost of performing the agreement. However this is the only available supplier within the area and deadline has been set as to when the negotiation should be complete for other activities to kick off. The alternative available for SKA is to source for international suppliers which process seems lengthy and requires SKA negotiating team to gather relevant information pertaining to Price if better deals are to be arrived at.
Required:
Qn.2
- Advise BEN and the team on how it would gather accurate price information from the suppliers of the various goods it ends to procure.
- Examine FOUR potential risks that SKA would be exposed to as a result of the negotiation with its suppliers.
- Is there anything that can be done by SKA to minimize the occurrence and impact of the above-identified risks? Discuss FOUR of them.
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