The document discusses the importance of persuasion and negotiation in procurement, highlighting that both are essential skills for professionals in the field. It contrasts persuasion as a short-term, emotionally driven approach, with negotiation as a strategic, long-term process aiming for win-win outcomes. The author emphasizes that effective negotiation involves understanding and applying both skills to achieve successful results.

1. PERSUASION OR NEGOTIATION
BY CHANDAN SHIRBHAYYE
14 YEARS EXPERIENCED SUPPLY CHAIN PROFESSIONAL
LINKED IN PROFILE - HTTP://IN.LINKEDIN.COM/IN/CHANDANSHIRBHAYYE
TWITTER - CHANDAN SHIRBHAYYE @CSHIRBHAYYE
SKYPE - CHANDAN.SHIRBHAYYE

2. In our regular responsibility as procurement professionals and with a priority target of reducing price in everything we do I looked back
upon our common approach of getting best price.
Majorly we have two ways for arriving at order price (mostly referred as "best price to buy"😉) discussion with our supply partners & they
are " persuasion" & "negotiation“
Persuasion is convincing others to take/agree certain actions/view. On other hand negotiations means to discuss, understand various
views and mutually satisfactory agreement.
I have created below summary of both approaches. There is no right or wrong approach, it mostly depends on skill, competency &
situation of procurement member. Obviously the effectiveness and outcome of both approach vary a lot.
PERSUASION
• EMOTIONAL IN NATURE
• SHORT TERM APPROACH
• CAN GET EGO DRIVEN
• INDIVIDUALLY DRIVEN
• GUT BASIS
• WIN LOOSE
• RESULTING IN BUFFER QUOTING
• SUPPLIER PERCEPTION ORIENTED
• SKILL & DOMINANCE
• ONE WAY
• AGGRESIVE WITH LAW OF AUTHORITY
• TARGET PRICE ORIENTED
NEGOTIATION
• STRATEGIC IN NATURE
• LONG TERM
• PROCESS DRIVEN
• RESPONSIBILITY DRIVEN
• DETAILED WORKING BASIS
• WIN-WIN
• AVOID UNWANTED COST BY COLLABORATION
• PRODUCT COSTING ORIENTED
• EXPERIENCE & KNOWLEDGE ORIENTED
• TWO WAY
• ASSERTIVE WITH LAW OF COMMITMENT WITH CONSISTENCY
• VALUE ORIENTED

3. Negotiation involves persuasion, necessarily, but not all persuasion is negotiation.
Both skills are interrelated & significant for success. FRANKLY you can't negotiate if you don't
know how to persuade, and in many situations persuasion is in the context of negotiation. An
effective persuasive negotiator will usually be more successful.
It's useful for all of us, regardless of the industry we work in, to have good negotiation skills.
There are many different techniques we can use in a negotiation. But we could be far more
successful if we knew what approach to use, based on the skills and abilities that we already
have.
Happy Negotiations.....
Thanking you for viewing. ...
Please feel free to reach me for any suggestions or feedback
BY CHANDAN SHIRBHAYYE
14 YEARS EXPERIENCED SUPPLY CHAIN PROFESSIONAL
LINKED IN PROFILE - HTTP://IN.LINKEDIN.COM/IN/CHANDANSHIRBHAYYE
TWITTER - CHANDAN SHIRBHAYYE @CSHIRBHAYYE
SKYPE - CHANDAN.SHIRBHAYYE