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NEGOTIATION
SKILLS AS A TOOL FOR ENHANCING TIMELY DELIVERY OF MATERIAL
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
This project
work is titled Negotiation skills as tool for enhancing timely delivery of
material. It is inevitable for every organization whether big or small, private
or public to procure materials for production or for consumption. Such material
can be raw material, finished goods or equipment which may cost an organisation
a huge amount of money. In order to achieve the right materials at the right
time of delivery and for the right place, negotiation should take place.
In these
research work, emphasis will be laid on stressing out the various negotiation
techniques available in the field of purchasing and supply. The techniques will
tremendously enhance the procurement of material at a very economic cost and
shortest possible time of receiving the order of materials. Negotiation is very
important in the course of buying materials or services because of enhancing
timely delivery of materials.
Negotiation
is one of the important as well as the most interesting and challenging as part
of supply management. In industry and at most level of government, the term
“Negotiation” frequently, causes misunderstandings confused with “Haggling” and
price chiseling”. In government negotiation is frequently per solved to be a
nefarious means of avoiding competitive bidding and of awarding large contracts
surreptatiously to forward suppliers.
Webster’s
dictionary define negotiation broadly as “Conferring, discussing or bargaining
to reach agreement in business transaction” Herb Cohen describes negotiation as
a persuasive process in which people ultimately attempt to reach a joint
decision on matters of common concern in situation in which there is initial
disagreement. Thus a negotiation always requires both shared interest and
issues of conflict. Obviously without commonality, there is no reason to
achieve resolutions. To be fully effective in purchasing, negotiation must be
utilized in its broadest context as a part of a decision making process. In
this context, negotiation is a process of planning, reviewing and analyzing
used by a buyer and a seller to reach acceptable agreement or compromises
include all aspect of the business agreement not just price.
Negotiation
differs from a ball game or a war. In these activities only one side can win,
the other side must lose. In most successful business negotiation both sides
win something popular usage calls this approach “win-win negotiation” the
“winnings” however are seldom equally divided invariably, one side wins more
than the other. This is as it should be in business. Superior business skills
merit superior rewards.
Increasingly,
negotiations are conducted by cross. Functional teams, these teams must be well
coordinated in order to function as an integrated entity.
1.2 STATEMENT OF THE PROBLEMS
The economic
situation of the country is currently undergoing transformation, especially
with the introduction of new policy in procurement activities and operation in
each and every ministries and private organization.
With the
implementation of this policy, each and every government ministries and private
organization must have a procurement section or department which will have the
responsibility of negotiation and awarding the contract on behalf of the
organisation. By so doing, the organization must recruit a very good personnel
with relevant skills and experience so as to help the organization to minimize
the cost, get value of every naira spent and enhancing delivery time of
materials for the organization.
Negotiation
is a critical task, most organizations are facing time delivery problem as a
result of long process of negotiation and long time of the arrival of material
order.
1.3 PURPOSE OF THE STUDY
This project
is required as a pre-requisite for the award of Higher National Diploma (HND)
in purchasing and supply department of Kaduna Polytechnic. And also the
researcher is intended to achieve the following objectives:-
i. To identify various
negotiation skills in an organization and their contribution in enhancing
timely delivery of materials.
ii. To identify the resources
required to support negotiation planning and execution.
iii. To highlight on the benefits of a
good negotiation skills to the organization.
iv. To make relevant recommendation
on how NOCACO can improve negotiation skills.
1.4 SIGNIFICANCE OF THE STUDY
This
research study is required as a partial fulfillment of the award of Higher
National Diploma (HND) in purchasing and supply department, college of Business
and Management Studies, Kaduna Polytechnic.
However, the
study is beneficial to the researcher in broadening his knowledge on the
subject matter which is negotiation skills. The study will benefit the students
of Kaduna Polytechnic to serve as a secondary source of data to any course and
topic related to this study. The study will also benefit the organizations,
especially NOCACO as the case study.
1.5 SCOPE OF THE STUDY
The research
work discourse the negotiation skills as tool for enhancing timely delivery of
material in NOCACO, Kaduna. The research makes use of some selected departments
in the organization which includes management, accounting, production,
marketing and procurement. This research is limited to the above mentioned
departments only in the organization. This is because of the stipulated time by
the purchasing and supply department to summit the project.
1.6 RESEARCH QUESTIONS
The
following questions will be asked in order to achieve stated objectives:
i. To what extent does a
negotiation skill enhance timely delivery of materials?
ii. What resources are required to
support negotiation planning and execution in your organization?
iii. What are the benefits of good
negotiation skills on materials order?
iv. How can you improve negotiation
skills to enhance timely delivery of materials?
1.7 HISTORICAL BACKGROUND OF NOCACA
NOCACA
(Northern Cables Processing and manufacturing CO) was incorporated in June,
1978 production started in July 1980, with the aim of supplying vehicles plants
with locally made cables harmess and to satisfy the Nigerian market with all
kinds of electric cables and wires. Due to it’s technical nature the company
equity shares are distributed, 40% to Nigeria shareholders and 60% to the
foreign partner contained in the schedule III of the enterprise promotion
degree. The Board of Directors has Mallam D.H. ABDU as the Chairman while Mr.
E.H SCHNARE is the Managing Director. Starting with the strength of 26 in 1980,
the company now employs over 240 staff. Today NOCACO is recognized as NO. 1
cable manufacturer in the northern part of the country producing in accordance
with National and International; Standard and specify customer’s requirement.
The product
ranges of NOCACO are approximately 300 different types of cable which include
the ordinary wiring cable, conduct cable, insulated aluminum services cable.
Aluminun over head lines both bare and steel, cords and drop and wire for
telecommunication purpose.
In the area
of quality NOCACO places a high premium on the quality of its producte as the
design and produces high quality product in line with internal and international
standard i.e. Nigeria Industries Standard (NIS) British Standard (BS) and
German Industrial Standard (VDE). And to specific customers requirement. NOCACO
carried out rigorous quality control test on its products at every stage of the
production process rather than at the final inspection so that its high
standard are maintained throughout of the full length of the conductor cable.
However, as
prove of high quality NOCACO is an ACIS gold award winner on PVC insulated
(non-anoured) single and multi core cable and aluminum overhead line. The
Capacity of NOCACO to produce very high quality cables that meets national and
international standard at cost that represent value at all times his culminated
in ability to be the first cable manufacturers in the northern part to design
install and implement quality system which has been certified according to the
requirement of international organization standardization otherwise known as
180 9001 2000 this is a quality system which aims at achieving total quality
management (TQM) in the areas of production, installation servicing.
Finally,
NOCACO has been the first cable manufacturer in the north which is centered in
the heart of northern state of Nigeria, Kaduna
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