Project Materials

THE ROLE OF NEGOTIATION SKILLS IN PURCHASING AND CONTRACT MANAGEMENT

Chapter one

Introduction

This study analyses the effective methods that successful procurement contract managers employ during the negotiation and contracting process. It is critical to recognise these practices since modern governments, particularly state and local governments, are increasingly contracting out social services. However, hurdles to contracting for procurement services remain (Thedore, 2014).

The complexity of the global supply chain have complicated the process of developing authoritative terms and conditions. These difficulties have also contributed to the delays encountered in obtaining consent and endorsements from all parties involved in contracts.

Time weight from internal clients is another test for acquisition and contracting professionals in developing the most appropriate terms and conditions.

As a procurement and contracting professional, you should be able to overcome these challenges and create the most appropriate terms and conditions that will benefit both the purchasing organisation and the provider. The skill of exchange has overtaken the speciality of arrangement (Savolainen 2010).

This section offers the research’s introduction component, which includes the background history of negotiations and purchase contract management, the problem statement, research objectives, and research questions. The chapter also discusses the study’s significance, scope, and overall structure.

1.2 Background of the study.

Negotiation is not a new phenomenon in human history; it has existed since the beginning of human life. Negotiation is an integral part of everyday life.

Everyone negotiates on a daily basis. Most businesses today recognise the value of developing core skills in the areas critical to their strategies.

Negotiation is one of the fields in which organisations require significant competencies. Negotiation skills are essential for productive relationships between managers and subordinates, between departments, between organisations and their suppliers, service providers, contractors, customers, unions, consultants, and in a variety of other settings. Kong, Dirks.

& Ferrin (2014).

Negotiation was previously overlooked as one of the major components that might improve successful purchasing contract management; negotiations were not conducted professionally, and no precise procedures were followed during negotiations.

Negotiation has long been recognised as one of the most important components in improving purchasing contract management among suppliers, contractors, and service providers.

The bargaining process has become an increasingly important aspect of acquisition as companies seek to reduce their consumption while increasing their purchasing power.

This indicates getting experts must arrange substantially improved rates with suppliers while maintaining or expanding quality and administration. (Fulmer and Gelfand, 2012