THE ROLE OF NEGOTIATION SKILLS IN PURCHASING AND CONTRACT MANAGEMENT

THE ROLE OF NEGOTIATION SKILLS IN PURCHASING AND CONTRACT MANAGEMENT

CHAPTER ONE

1.0     INTRODUCTION

This research identifies effective practices that successful procurement contract managers use in the negotiating and contracting process. It is important to identify these practices because modern governments, specifically state and local governments, increasingly contract for social services. Yet, there continue to be barriers to contracting for procurement services (Thedore, 2014).  

The complexities of the worldwide supply chain  have entangled the way toward creating authoritative terms and conditions. These complexities have likewise added to the postpones looked in verifying agreement and endorsements from every one of the gatherings engaged with contracts. Time weight from inside clients is one more test for the acquisition and contracting experts in building up the most fitting terms and conditions. As acquisition and contracting proficient, you ought to have the option to conquer these difficulties and have the option to build up the most proper terms and conditions that will be useful to both the purchasing association and the provider. The specialty of arrangement has been supplanted by the art of exchange (Savolainen, 2010).

This section presents the introductory part of the research , by showing the background history of negotiations and purchasing contract management, statement of the problem, research objectives followed by the research questions. Also the chapter presents the significance of the study, scope of the study as well as the general organisation of the study. 

1.2       Background of the study 

Negotiation is not new phenomena in human life; it has existed since the evolution of human life. Negotiation is the way of life itself. Everyone negotiates something every day. Most business now understands the importance of building core competencies in the areas essential to their strategies.  Negotiation is one of the field in which organizations need substantial competencies. Negotiation skills are required for effective interactions between managers and subordinated, between different departments, between organizations and their suppliers, service providers, contractors, customers, unions, consultants and many other situations. (Kong, Dirks.

and Ferrin, 2014)

In the  past , negotiation was not  taken seriously  as one of the  key  factors   that  can  enhance   effective purchasing contract management,  negotiations  were  not  taken  formally   and no  specific  procedures  were   followed  during   negotiations.  As  years   pass  negotiation  was  seen as  one  of  the  key  factors  that   improves   purchasing   contract  management  between  suppliers , contractors  as well  as  service  providers.  The negotiation procedure has turned into a progressively significant part in acquirement as organizations hope to lessen their use while expanding their obtaining power. This implies obtaining experts need to arrange progressively better rates with providers while keeping up or expanding quality and administration (Fulmer, and Gelfand, 2012)