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Negotiations in Procurement with Competition

In: System of Negotiations

Author

Listed:
  • René Schumann

    (Negotiation Advisory Group GmbH)

  • Stefan Oswald

    (Negotiation Advisory Group GmbH)

  • Philippe Gillen

    (Negotiation Advisory Group GmbH)

Abstract

The initiation of competition between suppliers offers the best conditions for an optimal negotiation result. The main work of the procurement department lies in the preparation of the negotiation. According to our experience, in order to achieve the best price-performance offer, he must firstly create transparency between the offers in order to be able to compare them, secondly work out a specific negotiation design for this case based on game theory and behavioral economics, thirdly ensure commitment in the negotiations and fourthly communicate the rules of the negotiation design to the suppliers so clearly that they understand them. Then the awarding itself should be possible to carry out in one day in most cases.

Suggested Citation

  • René Schumann & Stefan Oswald & Philippe Gillen, 2023. "Negotiations in Procurement with Competition," Springer Books, in: System of Negotiations, chapter 2, pages 11-74, Springer.
    • Handle: RePEc:spr:sprchp:978-3-658-40265-5_2
    DOI: 10.1007/978-3-658-40265-5_2
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