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BATNA, LAA and ZOPA like the master key to unlock success

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BATNA, LAA and ZOPA like the master key to unlock success

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There ever arose a need to change the security tape supplier to maintain 5S. And having BATNA, LAA and ZOPA was very enriching when discarding possible prospects since I knew clearly what I was looking for as a minimum and the possible alternative to choose in the worst scenario of the negotiation. In the end the result was favorable, I managed to find a new supplier and generated savings of up to 60% compared to the current one. It is worth mentioning that having a solid database allowed me to arrive with greater negotiating power.

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As a new learner for Category and negotiation strategies, I recognize I have used some of these tactics for improving supplier operational performance and developmental activities.

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I have not personally negotiated deals, but utilizing these skills frequently when managing suppliers performance.

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In my career I have used several of these, multiple suppliers, in house production, on hand inventory and long term contracts. The two that seemed the best for my situation were multiple suppliers and in house production.

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I have not practice this tactics, but when you are part of the sourcing team sometimes you have to negotiate the prices with the supplier though email to get a more competitive price. It would be great put in practice this tactics to feel well equipped.

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Both used together, the 1st as stating point and the 2nd for ensuring the deal is positive for you all

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I have used these techniques in my career in garment manufacturing and sourcing.Having well-defined alternatives (BATNA) strengthens your negotiating position, while clear minimum standards (LAA) prevent accepting unfavorable terms under pressure.

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It is important to have all these in place to negotiate a better value for you. Recently used this and saved £400k in a site level project.

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I'm a big fan of silence in these situations. I find that generally people like being listened to, and if you can show you're actively listening through call and response you have a great window into getting the maximum amount of information needed prior to having to give any on your own.

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When negotiating with vendors, I always keep ZOPA and Anchoring in mind beforehand. This helps clarify how to proceed with discussions, makes it easier to verify vendor opinions, and enables us to maintain control of the negotiation process.

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Tasked with reducing a maintenance response SLA from 7 days to 24 hours, I anticipated supplier pushback—and indeed, they argued the target was too aggressive, especially with credit penalties. Identifying a common ZOPA, I proposed a 24-hour SLA with a 98% On-Time Delivery KPI, giving the supplier room to occasionally miss by hours on 1–2 repairs monthly while ensuring 98% of my turnaround times improved dramatically.

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nothing is more powerful than the competition

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Ultimatums are helpful too. Sometimes stating up front what will NOT be acceptable sets the right tone, especially if there's a time crunch. 

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Ultimatums are helpful too. Sometimes stating up front what will NOT be acceptable sets the right tone, especially if there's a time crunch. 