THE ROLE OF NEGOTIATION IN THE PURCHASING STRATEGY AIMED AT CREATING VALUE Cover Image

ULOGA PREGOVARANJA U STRATEGIJI NABAVKE USMERENOJ NA STVARANJE VREDNOSTI
THE ROLE OF NEGOTIATION IN THE PURCHASING STRATEGY AIMED AT CREATING VALUE

Author(s): Alija Jašarević, Mile Ličina
Subject(s): Economy
Published by: Интернационални Универзитет у Новом Пазару
Keywords: negotiation; purchasing; supply chain; value creation; competitiveness; strategic importance

Summary/Abstract: Purchasing is increasingly becoming a strategic function, whose decisions are based on the philosophy and policy of value creation and the reduction of total costs in the supply chain. Long-term partnerships are built with suppliers. In the process, partners specialize in performing the activities of their core competences and strategic advantages. The purchasing departments include suppliers in development projects and product value analyses when solving logistics problems and other strategic tasks in order to achieve the best possible results. The goal is to lower the total costs of the value creation chain, starting from the sub-suppliers, through suppliers and their own company, to the end users, and to increase the benefits to the end consumer of goods or services. In today's hyper-competitive environment in which the struggle to win market space is becoming ever more aggressive and more dynamic and in which only those companies that have incorporated in their business environment a high level of flexibility, innovation and competitiveness, negotiation becomes a rounded business process and one of the crucial sources of competitive advantages. The strategic importance of the role of purchasing has made negotiation significantly a more complex and a more dynamic process that has a direct impact on the achievement of business results. The strategic importance of negotiation is reflected in its everyday use in governing and management of a company, which is becoming more dependent on teamwork, but also on the more emphasized role it plays in the inorganic strategies of growth by mergers, acquisitions and strategic alliances with others. Strategic and systemic approach to the negotiation process offers the opportunity for the creation of new organizational capabilities where, by using different techniques and tools, the participants strive to maximize the value of each of the company's activities. By investing in an efficient bargaining system based on the ability and skill of the human capital, it is possible to achieve goals that lead to the creation of value and increase of the overall business results.

  • Issue Year: 2012
  • Issue No: 02
  • Page Range: 89-99
  • Page Count: 11
  • Language: Serbian