Advanced Case Study: Negotiations
Ability to gain alignment between internal and external parties, while achieving positive business results
Advanced Level:
Recognizes and adapts to changing situations and provides creative solutions to achieve desired results
Background: Your category, relies on a key supplier, for critical items that are very important to your customers. A sudden and unforeseen supply chain disruption has occurred due to a global pandemic, impacting the production and availability of these items. Existing agreements are no longer feasible, and a renegotiation is necessary to address the new reality. Objective: Negotiate a revised agreement this supplier that accommodates the supply chain disruption, ensures the continuity of the partnership, and minimizes the impact on your category and financial performance.
Challenges:
Limited Supply: This supplier can no longer meet the previously agreed-upon supply quantities due to the disruption. Price Increase: This supplier may seek to increase prices, given the increased risks and challenges in the supply chain. Alternative Suppliers: You need to explore alternative suppliers, and this may influence the negotiation dynamics. Contract Duration: Determine the appropriate duration of the renegotiated agreement, considering the uncertain global pandemic situation.
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