Supplier Relationships and Negotiations Essay Example

Supplier Relationships and Negotiations Paper Good relationships with suppliers are essential for running successful businesses. Managing supplier relationships can be a challenging and resource intensive operation. It would also require time and energy to be invested. Hence, it is important that the management identifies priorities in this area and focus their attention there. Segmenting the vendor base is one practical way of accomplishing this task. That is, instead of treating all vendors in equal footing, giving preferential treatment to key vendors is the right way to go. This is especially valid when the business enterprise is fairly large. The management needs to assess supplier relationships in terms of their complexity and criticality and then prioritize. In order to ascertain how complex the relationship with a particular supplier is, the following factors should be considered: â€Å"1.Number of individual relationships (contracts) your organization has with the vendor. 2. Variety of information products licensed from the vendor. 3. Degree of fragmentation of the vendor group, i.e., to what extent does the group act as autonomous units?† (Brevig, 2008, p.28) Criticality, on the other hand, is the negative consequences that the company would suffer if a particular vendor was not available. Hence, it is fairly obvious that depending on complexity and criticality of any supplier relationship management efforts toward maintain a healthy relationship should be decided. For example, We will write a custom essay sample on Supplier Relationships and Negotiations specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Supplier Relationships and Negotiations specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Supplier Relationships and Negotiations specifically for you FOR ONLY $16.38 $13.9/page Hire Writer â€Å"If the vendor relationship is uncomplicated and noncritical, you should probably use an opportunistic approach focusing on managing costs. Dealing with such vendors at arm’s length is adequate and the least resource-intensive. For vendor relationships of medium complexity and criticality, a collaborative approach is more appropriate.† (Brevig, 2008, p.28) Strategic relationships are another option that can be pursued for those suppliers who are deemed extremely important for the short-term and long-term operations of the company. It takes a lot of time, effort and energy to build strategic relationships. It also requires the involvement of top management from both parties to ensure its success. One of the key objectives of strategic management is to leverage the total potential with one solid relationship instead of many. Another aim would be to fully avail of the expertise offered by the supplier. (Bendixen, et.al, 2007, p.3) Skilful negotiation is another feature of supplier relationships. Negotiation is usually considered an art then a systematic method. Negotiation is defined as the amicable reaching of agreement among all involved parties. Successful negotiation depends on three important factors. The first is the compelling drive to succeed. Second is the strong comprehension of fundamental concepts; and third is good fortune. In essence, success or failure in negotiation is more dependent on â€Å"actions, inaction, habits, idiosyncrasies, blinders, insights and clever strategic movements of the individual involved, more than the terms of the agreement or other formal elements of the proposed transaction.† (Hanselmann, 2001, p.60) There are three different types of negotiation. These are: â€Å"The first is internal, which primarily involves managers and employees focusing on work and employee issues, such as job roles, pay, goals, priorities, tasks, productivity and deadlines. The second type of negotiation is external. This type of negotiation occurs between an organization and an external party, such as a customer, a suppler or your insurance carrier. All of us in the credit profession are involved in external negotiation on a daily basis. Some examples of external negotiation are bid proposals, delivery schedules, quality, deadlines, financing and the approval to supply our customers on a credit basis. The third type of negotiation is legal, which involves an organization abiding by the legal requirements of the various governing agencies.† (Hanselmann, 2001, p.60) Works Cited Bendixen, Mike, Russell Abratt, and Preston Jones. â€Å"Ethics and Social Responsibility in Supplier-customer Relationships.† Journal of Applied Management and Entrepreneurship 12.1 (2007): 3+. Brevig, Armand. â€Å"Getting Value from Vendor Relationships.† Searcher Oct. 2008: 28+. Hanselmann, Jacob J. â€Å"Success in Negotiation.† Business Credit Sept. 2001: 60+. Good relationships with suppliers are essential for running successful businesses. Managing supplier relationships can be a challenging and resource intensive operation. It would also require time and energy to be invested. Hence, it is important that the management identifies priorities in this area and focus their attention there. Segmenting the vendor base is one practical way of accomplishing this task. That is, instead of treating all vendors in equal footing, giving preferential treatment to key vendors is the right way to go. This is especially valid when the business enterprise is fairly large. The management needs to assess supplier relationships in terms of their complexity and criticality and then prioritize. In order to ascertain how complex the relationship with a particular supplier is, the following factors should be considered: â€Å"1.Number of individual relationships (contracts) your organization has with the vendor. 2. Variety of information .

Free sample - What is your motivation for pursuing an MBA. translation missing

What is your motivation for pursuing an MBA. What is your motivation for pursuing an MBAWhat is your motivation for pursuing an MBA now and how will UCLA Anderson help you to achieve your goals? Today’s world is a business arena and most of the people hold a keen desire to have a successful business. Yet without professional knowledge one can’t run a successful business. Entrepreneurs as well as corporate executives and managers require professional soundness and expertise to conduct any business successfully. For that a sound academic background is a must which can not come without a professional degree. MBA degree gives an edge over others who don’t have it. It provides ample opportunities to learn ins and outs of business and global corporate practices. Everybody wants to pursue a brighter career path and I think an MBA degree is a prerequisite for building a good business career. From the early stage of my life, I aspire to start a business of my own. Becoming my own boss is my only dream. This is a fact that business can be started with trial and error mode but profitability can not be assured like this. To be successful profound knowledge and practical experience is a must which only an MBA program can offer.   This degree gives an added advantage in all the phases of life. Learning from this formal education builds confidence and enable the person to take challenge and critical decision at the right time. MBA degree holders always get preference in the business environment and are treated as stars. Thus, pursuing an MBA before starting my career is a necessity. UCLA Anderson is one of the best management schools all over the world. Students get renowned faculty with enriched labs, libraries and other academic facilities. The MBA curriculum of UCLA Anderson is quite unique and focuses on the individual preferences and choices. Students are nurtured in a way that enables them to cope with work challenges and competitive business world. The world class environment and highly skilled educators and researchers of this institute helps to expose the hidden talent of the students. Throughout the MBA program, students are groomed with practical assignments, case studies and term papers which help them learn managerial techniques. This grooms their decision making abilities by enhancing their understanding about various issues. Those renowned faculties share their own practical experiences in the field of finance, marketing, management, human resource management, accounting, operation research, organization behavior from which students get benefited. The program is designed to enhance the quality and skills which helps the students to become the future head of any organization. The leadership skill of the MBA students of UCLA Anderson is evident from the fact that many top corporate managers and executives have this degree from this institute. MBA students become so adept about the business that they can withstand any challenging situation. An MBA graduate is expected to be the master of any business activity and it is only possible with a sound academic background and practical knowledge. I believe the MBA program of UCLA Anderson help students to become the masters in the business field. Its curriculum is said to be the best which not only equip students with theoretical knowledge but also the practical stuff which is of great importance while dealing with any challenging situations. UCLA Anderson produces future business leaders, highly profound government officials and organization heads that are capable of making right decision at the right time. The MBA graduates enjoy being a part of a community of 36000 worldwide alumni networks. The interaction among the faculties and students is so good that all become a family which gives rise to a knowledgeable and learned community. Even after the completion of the program UCLA Anderson graduates are seen in various reunions and get together programs. It is the practicality and reliability of UCLA Anderson MBA program which makes it my dream to be a part of this renowned family by enrolling myself in the program. The World class education of UCLA Anderson and the academic environment will surely help me develop my managerial skills. I can apply those skills and education in the operating area when I will engage myself in the business. Graduates of this program established themselves in various fields and working in different multinational organizations countrywide and abroad. The higher demand of UCLA Anderson MBA program in the job market inspires me to undertake the course in this institute. Since the course is customized to the needs and choices of the students, it will help me explore my capability and talents. I believe I will materialize my dream of becoming a future organization head if UCLA Anderson becomes my mentor.