What Is The Role Of Negotiation In Supply Chain Management

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Purchasing and material management have evolved over the years and there are many roles we play as supply chain managers. One of your roles as a supply chain managers be the ability to negotiate. Accounting to Monzcka (p. 480) “we define negotiation as a process of formal communication, either face-to-face or via electronic means, where two or more people, groups or organizations come together to seek mutual agreement about an issue or issues”. Negotiation is a skill that takes some time to develop because it consists of five phases you must master to be successful, it does not develop overnight. It’s a talent many in this profession seek the power of negotiation is a high sort after skill nowadays many organizations. These Organizations seek …show more content…
586) “ethics are the set of moral principles or values guiding our behavior”. As a supply chain manager you are guided code that can affect your organization with other organizations if used inappropriately. You will be fair, honest and unbiased in your relationship with other organizations. The risk of unethical behavior can be tempting but as a supply chain manager you must subdue your passion for the sake of your organization. This means no personal buying, accepting suppliers favors, sharp practices, financial conflicts of interest, personal conflicts of interest or reciprocity. Some organizations will use any advantage they for a contract but think of the consequences of your action before making a …show more content…
Many companies are updated business inside out by add the latest in electronics. Electronics now have an enormous impact on the supply chain because it allows them to be more effective and efficient. This new evolution of electronics include items like the E-SCM system, the E-supply chain, and improvements to the ERP system to name a few. These new system are allowing companies to do business and monitor inventory with the push of a button. According to Monczka (p. 728) Progressive supply managers should always be looking five years ahead to identify future trends such as clouds computing and evaluate how it will affect their specific situation. This electronic evolution is helping many aspiring companies take their first step in becoming top industry providers.

One tool supply chain managers have at the disposal is the ability to conduct performance measurement and evaluations. Per Monczka (p.735) “a purchasing and supply chain performance evaluation system represents a formal systematic approach to monitor and evaluate purchasing performance. As, a supply chain manager it 's your job to do a thorough evaluation to support your organization goals. You want to make sure things are working effectively and efficiently and not raising any red flags. Also, you can us benchmarking to help you in your

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