Merchandising Chapter 9

best practices of supplier relationships

-transparency

-meetings

-communications

-setting expectations

-joint business plans

common interactions of supplier relationships

-category advisor relationships

-proprietary information

-supplier meetings

-correspondence

-clear expectations

vendor agreements of supplier relationships

-collect vs. pre-paid

-ecommerce

-payment terms and allowances

-confidentiality

types of funding of a supplier relationships

-on invoice / COGS

-off invoice / COOPS

-trade funds

red behavior

-manipulative

-aggressive

-selfish

blue behavior

-win win

-cooperation

-trusting

-relational

purple behavior

-trade

-open

-determination to solve problems

negotiation

a process by which two or more people resolve an issue or arrive at a better outcome through compromise

distributive negotiation

a competitive strategy where parties aim to divide a fixed amount of a resource, like a single-issue negotiation over price, resulting in a win-lose outcome

integrative negotiation

a collaborative strategy where parties work together to find a mutually beneficial, "win-win" solution that satisfies everyone's needs and interests

5 steps of negotiation process

-prepare

-exchange information

-clarify

-bargain and problem solve

-conclude and implement

best alternative to a negotiated agreement (BATNA)

best backup plan if your first option fails

zone of possible agreement (ZOPA)

the bargaining range in a negotiation where two parties can find common ground and reach a mutually acceptable deal

negotiating long term partnerships

-trust

-win win

-bundling

-contracts

-supplier roles