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Negotiation As A Cost Reduction Technique In Material Procurement At Nigerian Bottling Company Plc Kaduna Plant
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1.5 Research Questions
i. What are the techniques for negotiation?
ii.
What are the strategies for effective negotiation and how can
negotiation enhance purchasing activity to function effectively as
purchasing in the organization?
iii. What is the rate or extent of materials availability in the organization under study?
iv.
How can coordination and management of supplier ensure or enhance cost
reduction in material procurement, and how does negotiation team help
the business in actualizing it cost reduction objectives.
v. How can constant flows of material negotiated avoid interruption at the point of production?
1.6 Definition of Terms
Negotiation:
this is the process of planning, receiving, and analysing used by the
buyer and the seller, to reach an acceptable agreement or compromise is
an aspect of business transactions of payment and so on.
Purchasing:
This is used as a process of buying in the market, but in a broader
sense, it is a professional term used when buying goods and services by
organisations, companies, industries, commerce and corporation by a
professional buyer.
Procurement: Is where large quantity of goods and
services are exchanged for money with the aim of reselling them to
industrial or ultimate consumer markets. Examples of these markets are
distributors, wholesalers, retailers and associations.
Bargaining: Is an agreement to buy, sell or exchange made after discussions in order to arrived at compromise
Specification:
a specification is a details description of item, its dimension,
analysis, performance or other relevant characteristics in sufficient
details to ensure that it will be suitable in all respect for the
purpose it is intended or wanted.
Buyer: a buyer is a person who buys
goods at a particular price without the technicalities involved being
taken into consideration. He is not regarded as a purchaser in real
sense.
Purchaser: is anyone from the professional to the top
executive or any departmental member with the tag ‘Purchasing Manager’
that select suppliers and also have the responsibility for implementing
the policies of the organization related to the acquisition of material,
services, and production equipments or assets.
Competitive Bidding: is calling for bids and evaluating the bids to arrive at the best price.
Tactics: is expedient means of achieving an objective.
Service: it could be after sales services, delivery dates, sellers meeting, and providing information on materials availability.
Confrontation: is a situation where both sides refuse to bulge, which often result to surrender or no deal.
Persuasion: is a situation where one party knows best and will therefore subtly impulse his will on the other.
Dimension:
this implies not only quoting the sizes of the various parts of
articles, but also indicating the amount of tolerance which may be
permitted in the sizes.
Material: Is an element of production that is used to produce a product.
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