Negotiation Skills as a Tool for Enhancing the Timely Delivery of Material; A Case Study of NOCACO
Chapter One
Purpose of the Study
- To identify various negotiation skills in an organization and their contribution to enhancing the timely delivery of materials.
- To identify the resources required to support negotiation planning and execution.
- To highlight the benefits of good negotiation skills to the organization.
- To make relevant recommendations on how NOCACO can improve negotiation skills.
CHAPTER TWO
LITERATURE REVIEW
conceptual framework
Cost reduction means more value for the money we incure
RESOURCES ——ACTIVITY—–> BENEFITS
- Improving of the environment
- Existing standards examined at the broad use detailed levels.
- Based on full knowledge of organisation’s use of resources. The subject of cost reduction is no doubt of great importance especially in the dynamic world of today. It is an age of the survival of the fittest and any leadership shown by the more advanced countries to the developing economics of world, should not be mistaken for a happy and cosy position in the economic world.
In cost reduction, the standards set for achievement must constantly be challenged for improvement. There is no aspect of business which does not come under the preview of cost reduction. The potential savings lie buried in the standards or norms set, and can only be dugout and seen through planned and continuous investigation and research. Cost reduction can not be achieved by accident.
It has to be planned and followed up. The Institute of Cost and Works Accountants, have defined cost reduction as : The achievement of real and permanent reduction in the unit cost of goods manufactured or services rendered without impairing their suitability for the use intended.
TECHNIQUES FOR COST REDUCTION PURCHASE MANAGEMENT
Performance of an organisation depends on the people in the organisation. people’s performance depends on their abilities.
Their ability to a great extent is dependent on the systems of the organisation. The major thrust in this field are Research & Development in Purchase Managements way of working. How effective the system is a matter which needs study. Systems do not achieve objective. People using the systems do. Systems are followed andinitiative is taken, time and cost could be saved directly or indirectly.
Following are the major
COST REDUCTION TECHNIQUES
in Purchase Management with special reference to power sector.
- Value Analysis
- Import Substitution
- Standardisation and codification
- The JIT Techniques
- Inventory Management and EOQ
- Music-3D View in Purchase Management
- Scientific Wareshousing
- Vendor Rating
- Negotiation Techniques
- Role of Learning curve in Purchase Management
- Training for personnel in Purchase Management
- Cost reduction through proper use of Executives
- Cost reduction through computerised Purchase Management
CHAPTER THREE
RESEARCH METHODOLOGY
Research Design
This is a descriptive research design aimed at finding out the negotiation as a timely delivery tool in materials purchases.
Population of the Study
For the purpose of the study the population of this study consisted of all the workers in NOCACO. LTD command headquarter Kaduna.
Sample and Sampling Procedure
For the sample size, the researcher took some workers and men of NOCACO. LTD in Kaduna state. Thus, a sample study consisted of the two main groups namely (Administration and enforcement). The administration consisted of finance store, admin from each of these groups were randomly selected and were serviced with twenty (20) questionnaires, making a total of sixty (60) questionnaires allotted to the administrative workers. Samples from the enforcement workers consisted of workers and builders. This group was allotted the remaining sixty five (65) questionnaires. Each sub-group was randomly served with twenty (20) questionnaires. The samples were all drawn form the workers of 5 star building company.
CHAPTER FOUR
DATA ANALYSIS AND RESULT PRESENTATION
Analysis of Research Questions
Data Interpretation According to the Question Item
Research Question One: does negotiation amount to cost reduction in materials purchases?
CHAPTER FIVE
DISCUSSION OF FINDINGS, RECOMMENDATIONS AND CONCLUSION
Discussion of Results
The analysis of results in chapter four shows that effective negotiation is a good timely delivery tool in materials purchasing.
That Effective negotiation help to achieve high cost reduction in materials purchasing
However, negotiation is only a tool for achieving cost reduction in materials purchasing.
CONCLUSION
There are several different strategies and tools that a buying organization can use to reduce the cost of purchased services. Each buying organization will have to determine the best strategies to use based on its own unique factors, strategic goals, and core competencies. Strategies that work well for one organization may not work effectively for another.
Carefully evaluate the options available to you and choose the strategies that fit the particular needs and situations of your organization.
Some of the money saving strategies identified in this paper include tracking spend more closely to identify opportunities to take advantage of volume aggregation; being involved in supplier development efforts to improve relationships with key suppliers; developing integrated sourcing strategies that decrease maverick buying by promoting purchasing compliance, increasing contract compliance, increasing the level of financial controls and improving payment efficiencies; assigning the tasks of services purchasing to the most appropriate staff members; exploring group or consortium buying opportunities; outsourcing some or all of the services purchasing responsibilities to a third party; and using reverse auctions appropriately. By effectively using some or all of these strategies, any organization can begin to realize significant savings on its services spend.
Recommendations
Negotiation skills are important to organisations, but cant substitute for good management of materials to reduce cost, they can assist management but do not replace management of provide an excuse for poor management. The following recommendations are adopted.
There should be a continue control on the part of management and low level of wastage to ensure adequate cost reduction.
There should be adequate management system to ensure proper accountability.
REFERENCES
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- Fearon, H.E. and W.A. Bales. Purchasing of Nontraditional Goods and Services, Center for Advanced Purchasing Studies, Tempe, AZ, 1995.
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- Purchasing, “Harley Davidson Looks to Suppliers for Cost Savings,” April 20, 2000.
