Negotiation Strategy Form
The Negotiation Strategy Form is a 9 page document, with instructions on tailoring the document and a document revision record. The document then sets out the Negotiation Strategy form, which includes spaces for a company to fill in their details. The form also includes headings such as scope of work, objectives, negotiation strategy, alternative strategy, negotiation schedule and approvals. Each heading has a description of what should be included. The document then includes a negotiation plan which is in a table format.
A formal Negotiation Strategy is required for all High Value / High Risk sourcing activities where a company will negotiate with one or more Tenderers after receiving their submissions (commonly referred to as ‘post-tender negotiation’).
The purpose of this Negotiation Strategy Form is to outline the key items to be negotiated, the strategy for approaching each item, assessing the risks and to ensure the appropriate authorisations are obtained to negotiate on behalf of your company.
Promitheia recommends engaging your internal (or external) Legal Department prior to conducting negotiations with potential suppliers. Further, at least one person with the appropriate authority to negotiate on behalf of your organisation should be present at the negotiation, as well as the Sourcing Representative who will lead the negotiations.