SSR.B408 Negotiate with suppliers of merchandise for retail sale

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1 Negotiate with suppliers of merchandise for retail sale Overview This standard is about negotiating with suppliers of merchandise for retail sale. Working within your level of responsibility you will conduct negotiations to secure an outcome which meets your company s objectives, adapting flexibly and with commercial flair to any new matters arising. SSR.B408 1

2 Performance criteria You must be able to: P1 bring your understanding up to speed on all relevant matters before P2 P3 P4 P5 P6 P7 P8 starting a negotiation conduct negotiations in line with the commercial and ethical framework of your company achieve an outcome which meets your company s objectives adapt your negotiation strategy to obtain the best results possible conduct negotiations in a way which maintains productive working relationships work within the limits of your responsibility and authorisation refer the negotiation to senior decision-makers when matters arise which you are not authorised to agree maintain clear and accurate records of the negotiations and outcomes SSR.B408 2

3 Knowledge and understanding You need to know and understand: K1 K2 K3 K4 K5 K6 K7 K8 K9 the importance of adequate preparation before beginning a negotiation including bringing yourself up to speed on: K1.1 the supplier s history and capabilities K1.2 product specifications K1.3 required terms and conditions K1.4 the realistic value of goods the commercial and ethical framework of your company as applied to negotiations with suppliers the targets and discretionary limits you are working within in order to achieve an outcome that meets your company s objectives the principles of negotiation and different sorts of negotiation strategies which can be used in different contexts how to adapt your negotiation strategy to obtain the best results possible why you should seek to maintain productive working relationships wherever possible the limits of your responsibility for making agreements who to refer the negotiation to when matters arise which you are not authorised to agree why it is important to maintain accurate records of the negotiations and outcomes and what sort of information is required SSR.B408 3

4 Additional Information Glossary Negotiation Negotiation is the process of reaching contractual agreement with suppliers of merchandise. Negotiations can be for new supplies or relate to the on-going supply of existing merchandise. Negotiations can be about any aspect of the contract for supply but would cover some or all of the following throughout the lifetime of a relationship with a supplier: 1 purchase or payment terms 2 promotions 3 compensation 4 markdowns 5 rewards for increased sales 6 stock holding 7 exclusivity arrangements 8 the volume and timing of supply delivery 9 criteria and arrangements for quality assurance and control 10 after-sales services 11 supplier responsibility for advertising (such as point-of-sale advertising or food tastings) 12 discounts Links to other NOS SSR.B407 Select and review suppliers of merchandise for retail sale; SSR.B409 Identify and resolve problems with supplies; SSR.B414 Maximise sales and profit SSR.B408 4

5 Developed by Skillsmart Retail Version number 1 Date approved May 2007 Indicative review date Validity Status Originating organisation Original URN Relevant occupations Suite Key words January 2013 Current Original Skillsmart Retail SSR.B408 Retail and commercial enterprise; Retailing and wholesaling; Sales and customer service occupations; Sales related occupations Retail buying Retailing; retailers; buyers; buys; buying; negotiates; negotiating; agrees; agreeing; items; goods; products; materials; selling SSR.B408 5