Win-Win Negotiation

Finding the win-win agreement

Traded goods need not be like the poker games, where only one side can win the pot.

Negotiation is something of logistics professionals will be called to lead several times during their career. It comes with the territory. Negotiation success is essential for businesses - especially when the economy is in trouble. Everyone strives for the best value and lower costs when obtaining the best possible service.

Unfortunately, when it comes to freight negotiations, many companies that specialize in "win-lose" approach - a negotiation or positional distribution in which the gain is the loss of part of another party.

In win-lose bargaining, both parties are in direct competition and there can be only one winner.

Understandably, many people look like a win-lose kind of game. In fact, it can be compared to poker because it is contradictory in nature, with both sides trying to win the dish through the observance of the weaknesses of an opponent, and a strategic use of commodity exchange. The big difference, of course, is that win-lose negotiations are not a game. And the stakes are very real.

Poker players like to play their cards "close to the vest," careful not to reveal too much information or share your opponent. The same goes for win-lose negotiations, where there is minimal disclosure to the other party. In addition, buyers avoid giving any clues (or "tells") that reveal their true location. In fact, good negotiators are known for their poker faces. They 'hold' and 'lift', if necessary, pressure tactics and pressure on their opponents with delays, strikes and threats.

How effective is this approach to the negotiations? Not much. In fact, it is often counterproductive and has no long-term sustainability.

Even when you win in this comparison style of business, still lose because the relationship with the other party is irreparably damaged. If you win enough your opponent will eventually stop playing the game. Nobody likes to lose, and certainly do not appreciate being bullied. As the relationship deteriorates, the winner can expect to turn the tables when the opponent is even providing a poor service at lower cost, in an attempt to recover losses.

In win-lose negotiations, supply chain professionals are taking short-term, potentially blocking their businesses in a narrow range of positive results. Win-lose does not serve the interests of long-term winner, although short-term goals are achieved.

"Win-win" negotiations, on the other hand, involve bargaining or interest-based bargaining, in which the parties work together to reach a mutually advantageous.

In win-win approach to negotiations of freight, the shipper and carrier are engaged in finding the best solutions to move goods economically. It produces an agreement in goods each party is willing to make.

Buyers logistical success, trying to get better results using win-win techniques which both sides in the negotiation on foot with the way they achieved their goals. Relationships are developed that have a basis of trust because they are mutually beneficial. At the heart of negotiation is true cooperative problem solving, cost cutting, customer service and mutual benefit.

This type of collaboration requires additional work by the purchaser logistics.

1. Preparation

This is the most important element in reaching an agreement ... and it starts long before sitting down at the table. It is a lot of data collection.

In the first place, to understand the shipment. What is the size? The weight? The average cube for shipping? What type of good is it? It 's dangerous? He has special needs? Will be necessary to control the temperature? A further protection? Limber?

Then, you need to know your customers' needs. As will be shipped? How often? What are the delivery locations? What about the dock-side requirements? Unloading equipment to the recipient? Dock? Tailgate? Pallet? Hand grenade?

Now, what kind of equipment will be needed? Dry van? Reefer? Service heated? B Flat? Tri? Tandem?

And finally, what is the cycle time of service? What is the best way?

Proper preparation will help you understand the implicit costs. Use benchmarking, historical data, industry associations, and the Internet to spy on what you need. Based on this information, the sender may set flexible goals. They will consider what would be the ideal situation, the best you can get. They'll also get a sense of the biggest challenges you'll face.

Preparation also involves finding the right transportation providers to negotiate with. Search and qualifying carriers can provide the services requested. To learn more about the companies, as it may, the alleyways of service, their service goals, their response to damage their reputation in the market, the corporate culture that fostered ... everything that can contribute to the discussion.

2. Exchange of information

At preliminary meetings with potential partners, a frank and open debate is the best way to achieve the objectives. The shipping information is shared and service requirements are discussed. When the different sides, their experience will be needed to improve the cost and service.

3. Making a Deal

When you're close to an agreement, have the carrier provides a complete proposal of cost and service electronically before the meeting. This allows you to prepare for the meeting. Analyze the estimate with the current shipping data to understand the value proposition. The next meeting should consist of a discussion to include services, rates, fuel surcharges and ancillary charges, and process improvements.

There is space now for misconceptions. Do not be afraid to ask the representative of carriers and the rates can be lowered. Talk about what should be done. Never assume the figure quoted is the final price. Most of the tariffs of carriers have a certain amount "wiggle".

The steps needed to improve the transport agreement are important elements to build a solid relationship. Some concessions may be provided to achieve lower costs, but it's worth it. The solution of problems must be done jointly.

Learn at your fingertips, not to take positions, and to be flexible, using fair trade practices. The most important thing, use reason, not control, pressure, or power. Listen to what is being said. Find ways to make your goods attractive to the carrier.

This is true win-win negotiation, and guarantees that in the long run, everyone wins.

Sam is the main Kopytowski at Solutons XCD Logistics Ltd. can be reached at skopyto@xcdlogistics.com.

With Sam Kopytowski ...