Table of Contents

The book guides you through four phases of negotiation, from initial analysis to final contract.

Phase 1: Analysis

  1. Pareto 80/20 Rule
    • Spend analysis
    • Political impasses
  2. Data Collection
    • Data normalization
  3. Economic Indicators
  4. Porter's Five Forces
  5. SWOT Analysis
  6. Product Positioning Maps
    • Price versus technology
    • Quality versus support
  7. Substitution
  8. Change in Technology
    • Expect progress
    • Disruptive technologies
  9. Cost Breakdowns
    • Fixed and variable costs
    • Nonrecurring and overhead costs
    • Material and labor costs
    • Other cost breakdowns
  10. Price Discount Schedule
  11. Product Bundling
  12. Buying Groups
  13. Corporate Financial Ratios
    • Liquidity
    • Debt
    • Activity
    • Profitability

Phase 2: Models

  1. Per Unit of Measurement
  2. Bottom-up Cost Analysis
  3. Analogy
  4. Exchange Price
  5. Increased Production
  6. Supplier Cash Flows
  7. Low-cost Country
  8. Make or Buy
  9. Engineer Cost Function
  10. Power-sizing Model
  11. Learning Curve
    • Learning rate
    • Variations
  12. Linear Regression
    • Simple linear regression
    • Multiple linear regression
    • Goodness of fit
  13. Aftermarket Revenues
    • Simulation
    • Warranty
    • Aftermarket cash flows

Phase 3: Negotiation

  1. Supplier Presentation
  2. Stress
  3. Timing
  4. Emotions
    • Goodwill
    • Anger
    • Fear
    • Regret
    • Pacification
  5. Fairness and Trust
    • Commitments
    • Transparency
  6. Game Theory
  7. Mixed Motives
  8. Alternative Suppliers
  9. Threats
    • Threat of substitution
    • Threat of a new entrant
    • Fractional threats
  10. Market Collusion

Phase 4: Contract

  1. Long-term Agreements
  2. Currency Exchange Rate
  3. Incoterms
  4. Contract Terms and Conditions
    • Title page
    • Typical definitions
    • Scope of work
    • Purchase order process
    • Purchase contract management
    • Change management
    • Delivery and acceptance
    • Warranty
    • After sales service
    • Confidentiality
    • Duration
    • Termination
    • Disputes
    • General
  5. Escalation

Additional Content

  • Preface
  • Introduction
  • Summary
  • Case Studies (5 real-world examples)
  • Selected Bibliography
  • Appendix (Exponents, Logarithms, Learning Curve Reference)
  • Index