MIM 524Global Sourcing

Class Eight

Agenda

- Negotiation game- Sustainability Lecture- Group A Final presentations- Group B Commodity Studies are due- No Current Events- Closing Remarks

Assignments

Buyers

2 people from Team 1Team 2Team 4Team 6

Sellers

2 People from Team 1Team 3Team 5Team 7

Instructions (Total 30 Min)Prep Time: 15 minGet together in Assigned Groups

Determine who will report out for the teamRead the case hand outDetermine the existing situationDetermine which strategies you might use to close

this deal? Negotiation Time: 15 minBe prepared to report out to class

Final ThoughtsBe prepared – plan aheadDon’t be afraid to walk away from a

negotiationYou can negotiate anything…Don’t get in a time pressure situationALWAYS maintain integrity and ethics It is never over….

Assigned Reading

Sustainability Purchasing Initiative: A Study Assessing Interest in a Sustainability Purchasing Network to Grow Sustainability Purchasing in the Region

Prepared by C. Easton & Associates

Sustainability purchasing defined as….Source: Easton, Reeve & Strandberg“selecting goods and services which promote a

healthier community and environment by considering the cost as well as the environment and social impacts of products and services through all stages of their lifecycle; from product/service development and manufacturing through product/service use and ultimately to the disposal of whatever remains of the product/service at the end of its useful life”

Typical Buyer PracticesSource: Easton, Reeves and Strandberg

Buying eco-labeled products and services with 3rd party certification

Buying according to internally generated standards where external certifications may not be available or sufficiently customized – Ex: Supplier Code of Conduct

Using Total Cost of Ownership based on internal evaluation of a products cost over it’s entire lifecycle

Barriers IdentifiedSource: Easton, Reeve and Strandberg Lack of technical know how Lack of organizational commitment and resources Cultural and attitudinal barriers, including misinformation Pricing and product quality issues Lack of sustainability options and awareness of options Lack of credible standards NAFTA limits on buying local Burden on suppliers to address sustainability requirements Difficulty delivering stead supply Competing demands on suppliers

Final Presentations Group A

Parting Words/Questions