NEGOTIATION SKILLS AS A TOOL FOR IMPROVING PROMPT MATERIAL DELIVERY
1.1 BACKGROUND OF THE STUDY
This project’s title is Negotiation skills as a strategy for expediting goods delivery. Every institution, whether large or little, governmental or private, must acquire materials for production or consumption. This material can be raw materials, finished commodities, or equipment that can be extremely expensive for an organization. Negotiation is necessary in order to obtain the appropriate materials at the appropriate delivery time and location.
The focus of this research will be on highlighting the numerous negotiation strategies accessible in the sector of purchasing and supply. The strategies will significantly improve the purchase of materials at the lowest possible cost and in the quickest feasible period. Purchasing products or services necessitates extensive negotiation because it expedites the delivery of materials.
Negotiation is one of the most significant, intriguing, and difficult aspects of supply management. In business and at most levels of government, the term “negotiation” is frequently conflated with “bargaining” and “pricing haggling.” Government negotiating is frequently perceived as a deceitful method for avoiding competitive bidding and giving huge contracts to forward vendors.
Negotiation is widely defined by Webster’s dictionary as “consulting, discussing, or bargaining to obtain an agreement in a business transaction.” Negotiation, according to Herb Cohen, is a process of persuasion in which parties in a position of initial disagreement strive to reach an agreement on subjects of mutual importance. Consequently, a negotiation must always involve both common interests and points of contention. Clearly, without commonality, there is no reason to reach agreements. To be entirely effective in purchasing, negotiation must be incorporated into the decision-making process in its fullest sense. In this context, negotiation is the process of planning, examining, and analyzing that a buyer and a seller employ to reach an acceptable agreement or compromise on all aspects of the commercial transaction, not just the price.
A negotiation is unlike a baseball game or a battle. One side can only win in these activities; the other side must lose. In the majority of successful corporate negotiations, both parties are victorious, a strategy commonly referred to as “win-win negotiation.” However, the “winnings” are rarely distributed equally; generally, one side wins more than the other. This is an appropriate business practice. Greater business acumen merits superior compensation.
Cross-table negotiations are becoming more prevalent. In order to function as an integrated entity, functional teams must be well-coordinated.
1.2 STATEMENT OF THE PROBLEMS
The country’s economic position is currently undergoing a metamorphosis, particularly as a result of the implementation of a new strategy for procurement and operation in every ministry and commercial business.
With the adoption of this policy, each government ministry and commercial entity will be required to have a procurement section or department responsible for contract negotiation and awarding on behalf of the organization. By doing so, the business will be able to save costs, maximize the return on every naira invested, and accelerate the delivery of its materials.
Negotiation is a crucial responsibility; as a result of a lengthy negotiation process and a delay in the arrival of material orders, the majority of businesses have delivery problems.
1.3 OBJECTIVE OF THE STUDY
This project is a prerequisite for the awarding of the Higher National Diploma (HND) in the department of purchasing and supply at Kaduna Polytechnic. In addition, the researcher is expected to accomplish the following goals:
i. Identifying various negotiation skills inside a company and their contribution to boosting timely material delivery.
ii. Determine the required resources for supporting negotiation planning and implementation.
iii. To emphasize the benefits of effective negotiation skills to the organization.
iii. Make pertinent recommendations regarding how NOCACO can enhance its negotiation skills.
1.4 Importance of the Research
This research is required as part of the requirements for the award of a Higher National Diploma (HND) in purchasing and supply at Kaduna Polytechnic’s college of Business and Management Studies.
However, the researcher will benefit from the study by gaining a deeper understanding of the issue, which is negotiation skills. The study will aid Kaduna Polytechnic students by serving as a secondary data source for any subject or topic linked to this study. Additionally, the study will assist the organizations, particularly NOCACO as the case study.
1.5 RADIUS OF THE STUDY
The research discusses negotiation skills as a method to improve the timely delivery of materials at NOCACO, Kaduna. The research utilizes specific organizational departments, including management, accounting, production, marketing, and procurement. This research is limited to the aforementioned organizational departments only. This is because of the stipulated time by the purchasing and supply department to accomplish the project.
1.6 RESEARCH QUESTIONS
In order to accomplish specified goals, the following inquiries will be posed:
i. To what extent does bargaining ability improve the timely delivery of materials?
What resources are required to support the planning and execution of negotiations in your organization?
What are the advantages of having strong negotiation skills while placing a materials order?
How can you strengthen your bargaining abilities to ensure the timely delivery of materials?
1.7 HISTORICAL BACKGROUND OF NOCACA
NOCACA (Northern Cables Processing and manufacturing CO) was formed in June of 1978, and production began in July of 1980, with the intention of supplying automotive plants with locally manufactured cables harmess and supplying the Nigerian market with all types of electric cables and wires. Due to its technical nature, the company’s equity shares are distributed as follows: 40% to Nigerian shareholders and 60% to the foreign partner listed in the enterprise promotion degree’s schedule III. Mallam D.H. ABDU serves as chairman of the Board of Directors, while Mr. E.H. SCHNARE is the managing director. Beginning with 26 employees in 1980, the company presently has over 240 employees. Today, NOCACO is known as the leading cable maker in the northern United States, providing cables in compliance with national and international standards and customer-specified specifications.
NOCACO offers around 300 distinct types of cable, including standard wire cable, conduct cable, and insulated aluminum services cable. Aluminum over-the-air lines, both bare and steel, cords and drop wires for telecommunications.
NOCACO places a high value on the quality of its products, as they are designed and manufactured in accordance with internal and international standards, such as the Nigeria Industries Standard (NIS), the British Standard (BS), and the German Industrial Standard (VDE). And to meet specific consumer needs. NOCACO conducted stringent quality control tests on its goods at each stage of manufacture, as opposed to the final inspection, to ensure that the conductor cable’s high standards were maintained over its entire length.
NOCACO has been awarded the ACIS gold medal for their PVC-insulated (non-anored) single and multi-core cable and aluminum overhead line. The Capability of NOCACO to produce very high quality cables that meet national and international standards at a cost that represents value at all times has culminated in the company’s ability to be the first cable manufacturer in the northern part to design, install, and implement a quality system that has been certified as meeting the requirements of the international organization for standardization.
NOCACO is the first cable manufacturing in the northern Nigerian state of Kaduna, which is located in the state’s centre.
NEGOTIATION SKILLS AS A TOOL FOR IMPROVING PROMPT MATERIAL DELIVERY