NEGOTIATION SKILLS AS A TOOL FOR ENHANCING TIMELY DELIVERY OF MATERIAL (A CASE STUDY OF NOCACO)

NEGOTIATION SKILLS AS A TOOL FOR ENHANCING TIMELY DELIVERY OF MATERIAL (A CASE STUDY OF NOCACO)

Chapter One

Introduction

This project effort is titled Negotiation skills as method for enhancing timely delivery of material. It is inevitable for every organization whether big or little, private or public to buy resources for production or for consumption.

Such material can be raw material, completed items or equipment which may cost an organisation a tremendous amount of money.

In order to achieve the proper materials at the right time of delivery and for the right place, discussion should take place. In these research endeavour, focus will be laid on stressing out the numerous negotiation tactics available in the sector of purchase and supply.

The procedures will enormously enhance the procurement of material at a very economic cost and shortest feasible period of getting the order of materials. Negotiation is highly significant in the course of buying materials or services because of boosting timely delivery of materials.

1.1 Background of the Study

Negotiation is one of the crucial as well as the most exciting and demanding as part of supply management. In industry and at most level of government, the phrase “Negotiation” commonly, generates confusion mistaken with “Haggling” and price chiseling”.

In government negotiating is frequently per ieved to be a malicious way of evading competitive bidding and of granting huge contracts surreptatiously to forward vendors. Webster’s dictionary define negotiation generally as “Conferring, discussing or bargaining to reach agreement in 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 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 recruit highly qualified personnel with relevant skills and experience to assist the organisation in reducing costs, maximising the value of every naira spent, and improving material delivery time.

Negotiation is a critical task; most organisations face 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 The 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 intended to achieve the following objectives:

i. Identify diverse negotiation skills within an organisation and their contribution to improving material supply timeliness.

ii. Determine the resources required to facilitate negotiation planning and implementation.

iii. To emphasise the benefits of effective negotiation abilities to the organisation.

iv. Make relevant recommendations for how NOCACO can improve its negotiation skills.

1.4 Significance of the Study

This research study is required as part of the Higher National Diploma (HND) award in the purchasing and supply department at Kaduna Polytechnic’s College of Business and Management Studies.

However, the study benefits the researcher by broadening his knowledge of the subject matter, which is negotiation skills. 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 Study

The research conducted examines the negotiation skills as strategy for promoting timely delivery of material in NOCACO, Kaduna. The research makes use of some selected departments in the firm which includes management, accounting, production, marketing and procurement.

This research is limited to the above listed departments solely in the organization. This is because of the stipulated time by the purchasing and supply department to accomplish the project.

1.6 Research Question

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 does your organisation need to assist negotiation planning and execution?

iii. What are the benefits of effective bargaining skills on materials order?

iv. How can you strengthen bargaining abilities to enhance timely delivery of materials?

1.7 Historical Background of Nocaco

NOCACA (Northern Cables Processing and manufacturing CO) was founded in June, 1978 production commenced in July 1980, with the purpose of supplying vehicles plants with locally made cables harmess and to fulfil the Nigerian market with all sorts 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. Below are the diagrams of Nacaco.

1.8 Definition of Terms

Negotiation is a formal communication process between two or more people to reach an agreement on an issue or issues, whether in person or online.

Purchasing: This term refers to the process of buying in markets. However, in a broader sense, it refers to a professional buyer purchasing goods and services from industries, commerce, and corporations.

Buyer: A person who buys products at a specific price without considering technicalities. He is no longer considered a purchaser in the true sense.

Specification: A detailed explanation of how an item should be designed or constructed, including an examination of its performance and any pertinent qualities.

Delivery refers to meeting client needs by providing products or services at the appropriate time and location.

Price is the exchange value for commodities and services.

Value refers to the monetary or other exchange value of an item.

Bargaining is a conversation between two sides to reach a compromise. This will result in an agreement to buy, sell, or exchange.

Persuasion occurs when one party believes they have the upper hand and uses their knowledge to influence the other party’s decision.

Capital equipment refers to fixed assets that are not intended for resale and are used for production or company operations.

Lead-time refers to the period between placing an order and its arrival.

Skills: Skills is a skill and capacity earned through purposeful, methodical and prolonged effort to smoothly and adaptively carryout complex tasks to job responsibilities including concepts or job functions.

Tool: can be described as any item that can be utilised to attain a given aim, especially if the item is not consumed in the process. Informally tool can also be describe as a procedure or process having a certain objective.

Enhancing: Enhancing can be described as to intensify or raise quality, value, power etc to improve augment.

Material refers to the raw materials used to create something. Material may include raw and processed materials, components, parts assemblies, and sub-assemblies.

Timely means appropriate, handy, judicious, opportune, prompt, propitious, punctual, seasonable, and well-timed.