The importance of commercial negotiation in relation to the sourcing process and of managing conflict with suppliers and other stakeholders

Negotiate with suppliers and other stakeholders to promote effective procurement in the different stages of a sourcing process, taking steps to overcome conflict and other challenges

The types of approaches that can be pursued in commercial negotiation, such as:

• Collaborative (win/win)
• Distributive (win/lose)
• Pragmatic
• Principled styles of negotiation

Evaluate the range of approaches that can be used in commercial negotiations and use them when appropriate

The stages of a commercial negotiation, including planning and preparation, opening, testing, proposing, bargaining and agreeing

Create plans and conduct clearly defined stages for commercial negotiations taking account of the need to be flexible in practice

Creating objectives, strategies and goals for a commercial negotiation

Work with stakeholders to develop clear objectives, strategies and goals for a commercial negotiation

The sources of power in commercial negotiations

Analyse the sources of power in commercial negotiations and promote the organisation's objectives to achieve effective procurement and supply goals

Creating the right environment for a commercial negotiation, including the choice of location, surroundings and timings, and conducting negotiations using video conferencing and collaboration tools

Create the right environment for a commercial negotiation, using face-to-face communications, video conferencing and other collaboration and communication tools

Behavioural aspects of negotiation, including effective listening, the use of persuasion methods and the use of tactics and influence

Demonstrate effective behaviours while conducting commercial negotiations that will help to generate positive outcomes for the organisation

The use of emotional intelligence in commercial negotiations

Appreciate the different aspects of emotional intelligence that can be applied to improve performance and outcomes sought in commercial negotiations and create development plans to improve key skills

The sources of added value to organisations that can be achieved through effective negotiation, by improving elements such as:

• Prices or total costs
• Timescales
• Quality
• Innovation
• Sustainability
• Other source of added value

Demonstrate and encourage best negotiation practice for delivering value