This document provides definitions and explanations of key concepts related to negotiation and supply chain management. It defines negotiation tactics like "fait accompli" and "cherry-picking" and negotiation steps like "dig" and "develop." It also explains supply chain concepts like forecast error, safety stock, synchronization, and kanban. Key drivers of shareholder value and benefits of collaborative planning are outlined as well. The document serves as a reference guide for important terms and ideas in negotiation and supply chain management.

1. Final Review

2. IMPORTANT
DATES
MIDTERM: December 1 (Fri)
ASSSIGNMENTS: December
4 (Mon)
FINAL EXAM: December 7
(Thurs)

3. A person showing a collaborating tendency is focused on creativity, problem
solving and seeks to generate new options that meet shared or dovetailed
interests.

4. A person showing a competing tendency is focused on the substantive
outcome of a negotiation more than the relationship.

5. A person showing an avoiding tendency is stepping back from the
negotiation and is neither asserting nor cooperating.

6. A person showing an accommodating tendency is focused on the
relationship aspect of a negotiation more than the substantive outcome.

7. A BATNA is the best no-agreement alternative a party may have.

8. Addressing interests NOT options is the first key to unlocking yourself from
the trap of positional bargaining. Interests are the reasons underlying
positions.

9. Almost all Negotiations are Cross-Cultural.

10. BPA: Best possible agreement

11. Criteria are NOT the possible solutions to which the parties might agree for
satisfying their shared, differing, and conflicting interests.

12. Criteria are NOT the subjective needs, concerns, and desires of the parties.
They are the basis from which people negotiate.

13. Effective negotiating means being able to build a working relationship that
encompasses respect for and understanding of another’s beliefs.

14. Finding options that satisfy interests creates a higher likelihood of achieving
an agreement.

15. In the decide step, we make agreements or walk to our BATNA.

16. In ICON Interests, Criteria, Options, and No-Agreement Alternatives. These
four elements are the building blocks and substance of a negotiation.

17. Interests are NOT objective benchmarks, precedents, and standards of
legitimacy to filter and judge which options are best. Savvy negotiators come
to the table with a good understanding of relevant benchmarks even before
anything is agreed to.

18. MPA: Minimum possible agreement

19. The Flinch is when no matter what offer you begin with, the other party
reacts as if it is extreme. The goal of this tactic is for you to lower your
aspirations and make larger concessions.

20. No-Agreement Alternatives are what the parties will do if they walk away from
the negotiation without coming to any agreement.

21. Options do NOT refer to the standards, external benchmarks, commonly,
accepted procedures, and precedents we can point to as we negotiate.

22. Proper design sets the stage for a win-win approach to negotiating, making it
easier to discuss interests, options, and criteria, and to expand the pie.

23. The best way to approach a competition, debate, performance, negotiation, or
any big event is to prepare thoroughly.

24. The take-home message in cross-cultural negotiating is to be honest, open,
and sensitive.

25. The dig step is where underlying interests are discovered.

26. The develop step is where options are brainstormed and narrowed through
criteria and interests.

27. The Old Dog is an inflexible negotiator who won’t change—who won’t learn
new tricks. Often this person’s only approach to negotiation is concessional.

28. Develop step moves parties closer to agreement in a win-win fashion.

29. Auction Fever is a tactic contains parallels to the frenzied bidding at an
auction: Bids go up, but intrinsic value does not change.

30. Just One More Thing tactic is used to catch you off guard and take
advantage of the fact that you expect and want to come to closure.

31. Fait Accompli tactic occurs when the negotiator tells you that the decision
has already been made on his side. He does this to get the agreement on his
terms.

32. Cherry-Picking tactic occurs when you are negotiating issue by issue and
the other negotiator tries to maximize his or her “take” on each issue without
regard to the whole agreement.

33. Dig step gets parties to dig beneath their positions and to create value and
expand the pie.

34. Hoarding happens when a negotiator latches onto any idea you put out
there.

35. Criteria help parties feel fairly treated rather than taken advantage of and can
help parties defend their decisions.

36. Core Message is a theme a negotiator will stick to throughout the
negotiation. This theme often seeks to integrate both substance and
relationship.

37. Options are possible solutions to satisfy interests. Some of these options will
later become part of the final agreement.

38. Interests are the foundation for the entire negotiation— the reasons for being
in a negotiation.

39. Criteria are the precedents, benchmarks, and standards used by negotiators
to evaluate their options.

40. Balanced concerns are negotiations in which both relationship and
substance matter.

41. Substance Goal is what you would like to see accomplished as a result of a
negotiation or specific meeting.

42. No-agreement alternatives are the self-help possibilities each party has if no
agreement is reached.

43. Negotiation is a discussion to reach agreement. Involves parties attempting
to persuade or influence each other.

44. Two factors that perhaps contributed more than anything else to the growing
importance of customer service as a competitive weapon are the continual
increase in customer expectation and slow but inexpressible transition
towards 'commodity' type market.

45. The five basic drivers of enhanced shareholder value include revenue growth,
operating cost reduction, fixed capital efficiency, working capital efficiency and
tax minimization.

46. All five of these drivers are directly and indirectly affected by logistics
management and supply chain strategy.

47. Benefits of CPFR (Collaborative planning, forecasting and replenishment)
include increase sales revenue. Reducing the incidence of out-of-stocks at
the point of sale (increase in on shelf availability) improving the service to the
consumer and reduces lost sales.

48. Forecast error does increases more than proportionally over time.

49. Safety Stock is carried in order to provide a safeguard against demand
during the replenishment lead time being greater than expected and/or
variation in the lead time itself.

50. Synchronization implies that all parties in the supply chain are ‘marching to
the same drumbeat’.

51. Kanban is a ‘pull’ system that is driven by the demand at the lowest point in
the chain.

52. Pressures leading to the growth of time-sensitive markets include shortening
life cycles, customers’ drive for reduced inventories, and volatile markets
making reliance on forecasts dangerous.

53. Agility can enable companies to break free of the classic trade-off between
service and cost.

54. The goals of logistics pipeline management are lower costs & high quality,
more flexibility, and faster response times

55. Today’s business is increasingly ‘boundaryless’, meaning that internal
functional barriers are being eroded in favor of horizontal process
management and externally the separation between vendors, distributors,
customers and the firm is gradually lessening.

56. Networks is the idea of a chain in series of linear one-to-one relationships
whereas the reality is that the focal firm lies at the center of a complex web of
interconnected and interrelated yet independent entities.

57. One of the features of global pipelines is that there often a higher level of
uncertainty about the status of a shipment whilst in transit.

58. Risk profile attempts to seek out the ‘critical paths’ through a network where
management attention should be especially focused.

59. Embedded innovation implies a close integration between product design,
manufacturing and logistics to ensure that the supply chain begins on the
drawing board.

60. The four elements of logistics-derived customer value are ‘Better, Faster,
Cheaper, Closer’

61. Global sourcing and offshore manufacturing the well-established trend to
low-cost country sourcing and manufacturing has meant that supply chains
are significantly extended, and products travel much further.

62. The ability to see from one end of the pipeline to another is essential.