Elements and Performance Criteria
- Plan and prepare for strategic procurement negotiations
- Seek input and advice from key stakeholders and identify the procurement and negotiating context.
- Gather information on suppliers and develop a best alternative to negotiating an agreement.
- Determine objectives, targets and bottom line position for negotiations.
- Determine composition of negotiating team and limits on negotiators’ authority.
- Determine negotiation process, timeframes and strategies to suit complexity of procurement and supplier characteristics.
- Develop a negotiation plan or directive that identifies negotiation roles of team members, lead negotiator, negotiating styles, tactics and limits of authority to suit the procurement activity.
- Seek authorisation of negotiation plan.
- Undertake strategic procurement negotiations
- Open negotiations, identify supplier tactics, and identify mutually compatible interests.
- Negotiate concessions to terms and conditions on minor and major issues to improve overall value for money of the procurement.
- Implement concessions such that agreements remain consistent with original intentions and with procurement, organisational objectives and probity requirements.
- Use appropriate tactics to break negotiation deadlocks and continue negotiations according to negotiation plan.
- Conduct negotiations and make an offer.
- Finalise strategic procurement negotiations
- Finalise negotiations and agreements according to procurement guidelines.
- Keep communication channels open and seek additional support, arguments and supporting evidence where agreement is not possible immediately.
- Terminate negotiations and pursue the best alternative, where agreement is not possible in a way that preserves the relationship with the supplier for possible future business and deters the possibility of legal liability.
- Consider where agreements may have wider implications for procurement and the organisation, and carry out necessary consultation.
- Document details and outcomes of negotiations.
- Plan and prepare for strategic procurement negotiations
- Seek input and advice from key stakeholders and identify the procurement and negotiating context.
- Gather information on suppliers and develop a best alternative to negotiating an agreement.
- Determine objectives, targets and bottom line position for negotiations.
- Determine composition of negotiating team and limits on negotiators’ authority.
- Determine negotiation process, timeframes and strategies to suit complexity of procurement and supplier characteristics.
- Develop a negotiation plan or directive that identifies negotiation roles of team members, lead negotiator, negotiating styles, tactics and limits of authority to suit the procurement activity.
- Seek authorisation of negotiation plan.
- Undertake strategic procurement negotiations
- Open negotiations, identify supplier tactics, and identify mutually compatible interests.
- Negotiate concessions to terms and conditions on minor and major issues to improve overall value for money of the procurement.
- Implement concessions such that agreements remain consistent with original intentions and with procurement, organisational objectives and probity requirements.
- Use appropriate tactics to break negotiation deadlocks and continue negotiations according to negotiation plan.
- Conduct negotiations and make an offer.
- Finalise strategic procurement negotiations
- Finalise negotiations and agreements according to procurement guidelines.
- Keep communication channels open and seek additional support, arguments and supporting evidence where agreement is not possible immediately.
- Terminate negotiations and pursue the best alternative, where agreement is not possible in a way that preserves the relationship with the supplier for possible future business and deters the possibility of legal liability.
- Consider where agreements may have wider implications for procurement and the organisation, and carry out necessary consultation.
- Document details and outcomes of negotiations.