Page 70 - DMGT525_MATERIALS_MANAGEMENT

Unit 5: Negotiation

3. When all the clarifications have come through and all the problems are sorted out obviously Notes
there remains only drafting of agreement the points of which are decided at the discussion
meeting. A meeting for the purpose of signature on the drafted agreement may then be
arranged so that the parties may enter into a contract. This is the completion stage of
negotiation so far as meeting phase is concerned.
The above three phases may be depicted with the help of following figures:

Figure 5.1: Pre-negotiation Phase

A. Pre-Negotiation Information Recd. and

Phase Information analyzed Objectives defined

Strategies
Preliminary Tactics
developed

The two parties Additional and
B. Meeting Phase
introduced and explanationary
pleasantry exchanged information asked
for and collected

Agreement Arrived at Issues discussed the information so

Introductory Second and subsequent Agreement
Meeting discussion meeting meeting

Meeting Phase

Source: R.Punitha(2008).”Materials Management”. Excel Books Pvt. Ltd.
The post-negotiation phase may also be called executive phase. Here in execution is done of
what has to be negotiable and contracted. Placing of orders, inspection at supplier’s place,
receiving of materials, storage and prevention and payments are the actions. In an organization
post-negotiation stage takes a much longer period then the first two phases discussed above.
The post-negotiation phase may be shown diagrammatically as under:

Figure 5.2: Post-negotiation Phase

Materials
Placing of Inspection at Inspection on Materials
Received
Orders Source Receipt Accepted or

Rejected

Recording
Storage and
Preservation

Payments

Source: R.Punitha(2008).”Materials Management”.Excel Books Pvt. Ltd.

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