Negotiation As A Cost Reduction Technique In Material Procurement

The general objective of this study was to assess the effect of negotiation as a cost reduction technique in material procurement at Cavendish University. The specific objectives of the study were to find out the effect negotiation techniques in material or service procurement at Cavendish university, to determine the effect negotiation strategies in material or service procurement Cavendish university and to determine the effect of coordination and management of supplier in material or service procurement. Exploratory research design was used in collecting data from employees at Cavendish university.

The target study was of 60 employees at Cavendish university. Stratified random sampling procedure was used to select a sample size of 18 employees which is 30% of target population. Questionnaire was used as tool in collecting data. The study also used both primary and secondary data collection methods. Reliability of the instrument was ensured by test retest method while validity of the instrument was ensured by seeking expert opinion from the University supervisor. Collected data and being qualitative study, the data was analyzed thematically through the use of tables and charts. which were generated using the excel software. The study found t that negotiation strategies in negotiation as a cost reduction technique in material procurement at Cavendish university is often used. The effective use negotiation strategies in negotiation as a cost reduction technique in material procurement is best chosen on win – win negotiation (integrative strategy).

The study shows that negotiation techniques in negotiation as a cost reduction technique in material procurement at Cavendish university is often used. And planning is the most effective technique in negotiation as a cost reduction technique in material procurement at Cavendish university. Last but not the least from the findings. The regular use of coordination and management supplier in negotiation as a cost reduction technique in material procurement is often used. And the effective use of coordination and management supplier in negotiation as a cost reduction technique in material procurement at Cavendish university shows that coordination is the best way to integrate operations of supply entities to achieve common goals and management supplier providing the optimal flow of high quality, value for money, materials services and other essential resources and it is found that Cavendish university uses management supplier to create long term supplier relationships.