Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects


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Subject to credit approval. See terms - opens in a new window or tab. Effective negotiation should be able to create confidence to supplier that long term business opportunity is possible for them to undertake any capital investment Ashcroft, However, this required high level integrity on both sides which enable accurate exchange of confidential information.

There are two approaches to business negotiation, which include the distributive and the integrative approaches. Within distributive negotiation, businesses will take the approach where negotiation is a competition between each other, with one party gaining and one party losing. The distributive approach is characterised by the perception that the issues under negotiation are fixed, whereas the integrative approach is characterized by the perception that the issues under negotiation are not fixed Mavious et al.

The negotiation approach selected by businesses will assist them in dealing with trading partners. Either approach selected by the business will have an influence on the matters that may arise during the business negotiation, such as the development of trading relationships and the qualification of suppliers Bichler et al.

Brett explained that a negotiation process is a form of social interaction by which two or more parties try to resolve perceived incompatible goals. In addition, Bichler et al. This is referred to as a negotiation protocol Bichler et al. Depending on the negotiation protocol, the negotiation structure can be divided into three levels: unstructured negotiation, semi-structured negotiation, and structured negotiation Bichler et al. Most traditional negotiations are conducted face-to-face, while others are conducted using mail, fax and telephone Bichler et al.

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Traditional negotiations are based on bilateral, multilateral or multi-bilateral negotiations over a single issue or group of issues, and they involve cooperation or competition amongst the negotiation agents Bichler et al. Traditional negotiations are rarely completely structured, and they are comprised of negotiation situations in which haggling, bartering and tendering take place Bichler et al.

One of the most popular traditional negotiations is bilateral bargaining, which involves two parties who compete or cooperate in order to compromise on an issue. The following section discuss further on the patterns of negotiation in procuring goods and services. Effective negotiation and communication able to foster good business relationship with supply chain partners.

The study population comprised of senior staff in procurement related committees and department of the University.

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Purposive sampling relies on the judgment of the researcher when it comes to selecting the units e. Usually, the sample being investigated is quite small, especially when compared with probability sampling techniques Narsh, The main goal of purposive sampling is to focus on particular characteristics of a population that are of interest and provide expert opinion on the subject under study. The study used primary data which was collected through the use of questionnaire which contained questions on social-economic characteristics of respondents, procurement strategies and realization of procurement goals.

The questionnaire provided adequate data for the assessment of impact of effective negotiation on the realization of organizational goals in Private University. A 5 points Likert scale questionnaire was used. The Likert measures the level of agreement or disagreement. Likert scales are good in measuring perception, attitude, values and behaviour. According to Pallant , reliability scores equal to or greater than 0. Table 5. The findings indicated that most of the respondents are in different purchase related committe. This explains the high level of involvement of the respondents in procurement for the university.

Deviation All employee are aware of negotiation strategies 2. Effective negotiation has an impact in realization of procurement 4. In addition the responses were spread from the mean at 0. Y represent realization of procurement goals while X represents effective effective negotiation. Coefficients Coefficients B Std.

Error Beta 1 Constant. Dependent Variable: Dependent Variables a. The results from the table indicate that effective negotiation had a statistically significant impact in realization of organizational goals as it had a probability of 0. Results indicate that a unit change in effective negotiation variable will lead to a positive change in realization of procurement goals. Error of the Estimate 1. This is supported by coefficient of determination also known as the R square of This means that effective negotiation variables explain This results further means that the model applied to link the relationship of the variables was satisfactory.

Dependent Variable: Dependent Variables b. These results imply that the independent variables are good predictors of realization of procurement goals.

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This was supported by an F statistic of Summary, Conclusion and Recommendation 6. Summary of the Findings The findings indicate that effective negotiation is a significant procurement strategy in the University with an overall mean score of 3. The findings reveal that there is a positive relationship between effective negotiation and realization of procurement goals whose beta coefficient is 0.

The results also indicate that effective negotiation had a statistically significant impact in realization of procurement goals as it had a probability of 0. Conclusion The study concluded that preparation prior to negotiation impact positively on the outcome, pre- knowledge of suppliers costs, delivery and delivery time makes negotiation effective.

Suppliers should be categorized based on their capacity for effective negotiation. Both parties must win in negotiation and negotiation works better when focus is on agreement rather than differences and team based approach to negotiation is better than individual approach. Effective negotiation has an impact in realization of procurement goals. From the results it is evident to conclude that the procurement goals are realizable with the effective negotiation strategy.

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Recommendations The study recommends that university procurement goals could be realized using procurement strategies such effective negotiation. Companies had tried to make savings from staff reductions or internal re-organisation. Now they are increasingly turning to procurement and strategic sourcing as a means for cost reduction.

When they do, they find that by analysing and rationalising their external spending, they can make considerable savings and consequently achieve their procurement goals. The university management should sensitize the university community on the various procurement strategies and procurement goals of the University as stated in the university tender board Oguntola, This structure will reduce wastage. Negotiation will be used as a path to bridge the gaps between purchaser and supplier Oguntola, Finally, the study recommends that university should organize regular training and seminar on procurement goals and procurement strategies for all staff involved in procurement in the university both at the departmental or committee level.

Staff training is another key strategy in realization of organizational procurement goals Oguntola, Areas of Further Research The gap created by this study that other researches or academic students can address includes impacts of other procurement strategies, not examined in this research, in realization of organizational goal in a Nigeria private university, this study concentrated on effective negotiation.

Further research could also be carried out on impact of procurement strategies in realization of organizational goals in a public university or a non-academic organization. Other further research could also be on comparative studies of procurement strategies in private universities in Southwest Nigeria. References [1] Agaba, E.

Enhancing Procurement Practices

Boca Raton, Fl: Academic press. Effect of procrement planning on the performance of some selected agricltural firm in ondo state. Journal of Research in national development, 13 2. Hidden dangers in global advance, Supply Management,. Commercial negotiation skills. Industrial and Commercial Training, Vol. Journal of Operations Management, Vol. Towardsa Structured Design of Electronic Negotiations.

Group Decision and Negotiatio, 12, Culture and Negotiation. International Journal of Psychology, 35 2 Procuring complex performance in construction: London Heathrow Terminal 5 and a private finance initiative Hospital.

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Journal of Purchasing and Supply Management, 15 3 Electronic Commerce, 7, European Journal of Operational Research, pp. An interview with Patricia Hanson: one on one. Journal of Supply Chain Management, 38 1 : 2—3. Making fast strategic decisions in high-velocity environments. Academy of Management Journal, 32 3 : Journal of Business Logistics, , The What of Supply Chain Management,".

NAPMInsights, pp. A data envelopment analysis approach based on total cost of ownership for supplier selection. Journal of Enterprise Information Management, 19 6 , Multivariant Data Analysis. New Jersey: Pearson International Edition.

Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects
Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects
Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects
Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects
Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects
Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects
Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects
Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects
Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects

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