NEGOTIATION SKILLS AS A TOOL FOR ENHANCING TIMELY DELIVERY OF MATERIAL
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NEGOTIATION SKILLS AS A TOOL FOR ENHANCING TIMELY DELIVERY OF MATERIAL
Chapter One:
Introduction
1.1 Background of the Study
This project effort is termed. Negotiation skills can be used to improve the timely delivery of materials. It is unavoidable for any organisation, large or little, private or public, to purchase materials for production or consumption.
Such material can be raw materials, finished goods, or equipment, all of which can cost a company a lot of money. Negotiation is necessary to obtain the proper supplies at the right time and location.
In these studies, the emphasis will be on highlighting the many negotiation tactics accessible in the sector of purchase and supply. The strategies will significantly improve material procurement at a low cost and in the shortest amount of time possible after receiving the order. Negotiation is essential when purchasing materials or services in order to ensure timely delivery.
Negotiation is one of the most important, intriguing, and hard aspects of supply chain management. In industry and most levels of government, the phrase “negotiation” is frequently mistaken with “haggling” and “price chiselling.”
Negotiation is frequently perceived in government to be a sinister method of bypassing competitive bidding and secretly giving huge contracts to preferred suppliers.
Negotiation is widely defined by Webster’s dictionary as “Conferring, discussing, or bargaining to reach agreement in a business transaction”.
Negotiation, according to Herb Cohen, is a persuasive process in which people eventually strive to achieve a joint conclusion on subjects of common concern despite initial disagreement.
Thus, a negotiation always requires both common interests and conflicting issues. Clearly, there is no motivation to reach an agreement if there is no common ground. To be truly effective in purchasing, negotiation must be used in its fullest sense as part of the decision-making process.
In this context, negotiation refers to the process of planning, examining, and analysing used by a buyer and a seller to obtain an acceptable agreement or compromise that includes all aspects of the commercial deal, not just price.
Negotiation is not the same as a ballgame or a battle. In these activities, only one side can win while the other must lose. Most effective commercial negotiations result in both parties winning, a practice known as “win-win negotiation.”
However, the “winnings” are rarely evenly shared, and one side always wins more than the other. This is how it should be in business. Superior business skills deserve superior rewards.
Negotiations are increasingly being done by Skype. Functional teams must be properly coordinated in order to work as a cohesive unit.
1.2 Statement of the Problems
The country’s economic position is currently transforming, particularly with the implementation of new procurement policies and operations in all ministries and commercial organisations.
With the introduction of this policy, all government ministries and private organisations must have a procurement section or department in charge of negotiating and awarding contracts on the organization’s behalf.
By doing so, the organisation must employ highly qualified professionals with suitable skills and experience to assist the organisation in reducing costs, maximising the value of every naira invested, and improving material delivery time.
Negotiation is a key duty; most organisations have time delivery issues as a result of the lengthy negotiation process and the long time it takes for material orders to arrive.
1.3 PURPOSE OF STUDY
This project is required as a prerequisite for the award of a Higher National Diploma (HND) from Kaduna Polytechnic’s purchasing and supply department. In addition, the researcher is expected to fulfil the following objectives:
i. Identify the various negotiation abilities in an organisation and their contribution to improving material delivery time.
ii. Determine the resources needed to support negotiation planning and implementation.
iii. To emphasise the benefits of effective negotiation abilities to the organisation.
iv. Provide pertinent recommendations on how NOCACO may enhance its bargaining skills.
1.4 Significance of the Study
This research study is required as part of the Higher National Diploma (HND) degree in the purchasing and supply department at Kaduna Polytechnic’s College of Business and Management Studies.
However, the study benefits the researcher by extending his understanding of the topic matter, which is negotiation abilities. The study will aid Kaduna Polytechnic students by providing a secondary source of data for any subject or topic linked to this study. The study will also aid organisations, particularly NOCACO, which serves as the case study.
1.5 Scope of the Study
The paper discusses negotiation skills as a method for improving timely material delivery at NOCACO in Kaduna. The research makes use of some of the organization’s departments, including management, accounting, production, marketing, and procurement.
This study is limited to the above-mentioned departments inside the organisation. This is due to the time frame set by the purchasing and supply department to complete the project.
1.6 RESEARCH QUESTIONS.
The following questions will be asked to achieve the given objectives:
i. To what extent does the ability to negotiate improve material delivery time?
ii. What resources do you need to assist negotiation planning and execution in your organisation?
iii. What are the advantages of having effective negotiating abilities when ordering materials?
iv. How can you strengthen your negotiation abilities to ensure timely delivery of materials?
1.7 HISTORICAL BACKGROUND OF NOCACA
NOCACA (Northern Cables Processing and Manufacturing CO) was founded in June 1978, and production began in July 1980, with the goal of supplying car companies with locally manufactured cables harmess and satisfying the Nigerian market with all types of electric cables and wires.
Because of its technological nature, the company’s equity shares are distributed as follows: 40% to Nigeria stockholders and 60% to the international partner listed in Schedule III of the Enterprise Promotion Degree.
Mallam D.H. ABDU chairs the Board of Directors, while Mr. E.H. SCHNARE serves as Managing Director. The company grew from 26 employees in 1980 to over 240 today.
Today, NOCACO is recognised as the leading cable maker in the northern region of the country, producing in compliance with national and international standards and customer specifications.
NOCACO offers around 300 different types of cable, including regular wire cable, conduct cable, and insulated aluminium services cable. Aluminium overhead lines, both bare and steel, cords, drops, and wires for telecommunications purposes.
In terms of quality, NOCACO prioritises product quality by designing and producing high-quality products in accordance with internal and international standards such as the Nigeria Industries Standard (NIS), British Standard (BS), and German Industrial Standard (VDE).
And to unique customer requirements. NOCACO conducted thorough quality control tests on its goods at every stage of the manufacturing process rather than just during the final inspection to ensure that its high standards are maintained throughout the conductor cable’s length.
However, as proof of high quality, NOCACO has received an ACIS gold medal for PVC insulated (non-annealed) single and multi-core cable, as well as aluminium overhead line.
NOCACO’s ability to produce very high quality cables that meet national and international standards at a cost that represents value at all times has culminated in the ability to be the first cable manufacturers in the northern part to design, install
and implement a quality system that has been certified according to the requirements of international organisation standardisation, otherwise known as 180 9001 2000. This is a quality system that aims to achieve total quality.
Finally, NOCACO was the first cable manufacturing in the north, centred in the heart of the northern state of Nigeria, Kaduna.
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