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g the contract OR SAP Typical progression of a negotiation with a supplier Lead the negotiations 18 Conducting negotiations : Key sucess factors PREPARATION ? Being adequately prepared : Having maximal knowledge of the supplier Communicating coherently the key points of a file to the supplier ? Mastering Carrefour different levers Preparing alternative scenarios (positive/negative) Preparing a strategy with some promise Use efficiently the time by not waiting too long for supplier answers Planning the next meeting at the end of previous one COMMUNICATION ? Show strong determination and no room for hesitation ? Show confidence in Carrefour strategy ? Acting in a gentle, patient and smooth manner but with determination ? Have clear ideas when presented to supplier ? Good Listening to the other party (will give new nego ideas) ? Asking questions : learning about the supplier 19 NEGOTIATION SHEET C hi na Mer c handi s e Head O ff ic e12 Fai re S hare c o e f f584 Val u e e v o l Val u e e v o l Val u e e v o l 30%S c hic k 7 , 5 6 6 , 9 3 1 1 7 . 1 9 % 8 , 7 0 1 , 9 7 1 1 5 . 0 0 % 1 0 , 0 0 0 , 0 0 0 1 4 . 9 2 % 3 8 .8 2 % Ne g o Targ e t Ga p Ne g o v s ta rg e t39 6 , 6 0 4 , 0 3 1 1 8 . 4 3 % 7 , 5 9 4 , 6 3 6 1 5 . 0 0 % 8 , 8 0 0 , 0 0 0 1 5 . 8 7 % 3 9 .6 9 % 0. 87% 7%1 17+ 25 60 PAD 60 PAD 60 PADVal u e R e m ar k s % i n Pu rch ase % i n S al e s Val u e R e m ar k s % i n Pu rch ase % i n S al e s Val u e R e m ar k s % i n Pu rch ase % i n S al e s Val u e R e m ar k s % i n Pu rch ase % i n S al e sG e n e ra l D i sc o u n t 1 9 8 , 1 2 1 3 .0 0 % 2 . 6 2 % 3 5 6 , 9 4 8 4 .7 0 % 4 . 1 0 % 4 4 0 , 0 0 0 5 .0 0 % 4 . 4 0 % 0 . 3 0 %C o m m o n Asso rt m e n t 5 9 4 , 3 6 3 9 .0 0 % 7 . 8 5 % 6 8 3 , 5 1 7 9 .0 0 % 7 . 8 5 % 8 1 8 , 4 0 0 9 .3 0 % 8 . 1 8 % 0 . 3 0 %D at a E xch an ge 3 3 , 0 2 0 0 .5 0 % 0 . 4 4 % 3 7 , 9 7 3 0 .5 0 % 0 . 4 4 % 4 4 , 0 0 0 0 .5 0 % 0 . 4 4 % 0. 00%B ra n d Mark e t D e v . 2 6 4 , 1 6 1 4 .0 0 % 3 . 4 9 % 3 0 3 , 7 8 5 4 .0 0 % 3 . 4 9 % 3 5 2 , 0 0 0 4 .0 0 % 3 . 5 2 % 0. 00%N o R e t u rn 0. 00%O t h e rs ( t o be de f i n e d) 0. 00%C O M M UN IC AT IO N DM 7 9 2 , 4 8 4 1 2 .0 0 % 1 0 . 4 7 % 9 4 9 , 3 3 0