http://tcummins.wordpress.com/2008/05/08/negotiation-practices-in-the-commodity-world/ Managing Relationships in the Global Networked Economy Fri, 04 Jul 2008 03:38:41 +0000 http://wordpress.org/?v=MU http://tcummins.wordpress.com/2008/05/08/negotiation-practices-in-the-commodity-world/#comment-365 tcummins Tue, 20 May 2008 14:24:53 +0000 http://tcummins.wordpress.com/?p=49#comment-365 A recent White Paper offers some useful tips to manufacturers on ways to raise - or protect - margins in the face of the unrelenting pressure on prices. http://cdcsoftwareinc.com/mk/get/ROSS-WP-MARGIN-PROTECTION-FB-SDCHAIN-EDM-MAY2008 A recent White Paper offers some useful tips to manufacturers on ways to raise - or protect - margins in the face of the unrelenting pressure on prices. http://cdcsoftwareinc.com/mk/get/ROSS-WP-MARGIN-PROTECTION-FB-SDCHAIN-EDM-MAY2008

]]> http://tcummins.wordpress.com/2008/05/08/negotiation-practices-in-the-commodity-world/#comment-349 Mark David Mon, 12 May 2008 08:26:21 +0000 http://tcummins.wordpress.com/?p=49#comment-349 There are many issues connected with how UK supermarkets behave in negotiations. The essence seems to be a short term view that aggressive, borderline unethical behaviour will deliver the right results. This ignores (a) how such an attitude spills over into, or is indicative of, other forms of corporate behaviour, as seen in the Office of Fair Trading investigations into supermarket price fixing, (b) what happens when market dynamics shift with production shortages, as we have been starting to see, for instance with cereals, and (c) the effect on the supermarkets' customer relationships - it is interesting to note that the UK supermarket with the best customer relationships has an ethical approach as a fundamental business principle. There are many issues connected with how UK supermarkets behave in negotiations. The essence seems to be a short term view that aggressive, borderline unethical behaviour will deliver the right results. This ignores (a) how such an attitude spills over into, or is indicative of, other forms of corporate behaviour, as seen in the Office of Fair Trading investigations into supermarket price fixing, (b) what happens when market dynamics shift with production shortages, as we have been starting to see, for instance with cereals, and (c) the effect on the supermarkets’ customer relationships - it is interesting to note that the UK supermarket with the best customer relationships has an ethical approach as a fundamental business principle.

]]> http://tcummins.wordpress.com/2008/05/08/negotiation-practices-in-the-commodity-world/#comment-347 Ajmal Khan Fri, 09 May 2008 04:58:33 +0000 http://tcummins.wordpress.com/?p=49#comment-347 The facts outlined in the article seem almost absurd. The sad part is that they are all reality. Reminds me of all the good practices highlighted by business books about suppliers being business partners. I guess the supermarket buyers mentioned in the article never had those lessons. On a serious note, relationship and partnership building are the cornerstones of supplier-buyer interactions. You may threaten and coax a supplier, and he / she may yield to all your whims, but the moment better customer is in sight,the supplier would have no qualms about dumping you. The article speaks about cost cutting as an absolute requisite for supermarkets.I would suggest that better management of the supply chain in collaboration with the suppliers can be much more cost efficient compared to negotiations to chip off the prices of supplies and compromising the service levels and committment of a supplier. The facts outlined in the article seem almost absurd. The sad part is that they are all reality. Reminds me of all the good practices highlighted by business books about suppliers being business partners. I guess the supermarket buyers mentioned in the article never had those lessons. On a serious note, relationship and partnership building are the cornerstones of supplier-buyer interactions. You may threaten and coax a supplier, and he / she may yield to all your whims, but the moment better customer is in sight,the supplier would have no qualms about dumping you.
The article speaks about cost cutting as an absolute requisite for supermarkets.I would suggest that better management of the supply chain in collaboration with the suppliers can be much more cost efficient compared to negotiations to chip off the prices of supplies and compromising the service levels and committment of a supplier.

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