미국대학원_과제_건설사의 애널리틱스, 빅데이터 사업적용에 대한 연구 제안서_Columbia Univ_Research Proposal
분야
docxNegotiation Improvement Proposal
Procurement Negotiation in ABC Construction Co.
Background
There are numerous kinds of equipment and materials to procure for an industrial construction project. Most of them do not have standard prices because their prices depend on the technical specifications requested by buyers. When a buyer places an order with a list of technical specifications to a seller and request him to manufacture a product that satisfies what is described in the specifications, such an order is called made-to-order. Since the prices and technical design for the same made-to-order item can vary depending on which supplier or seller a buyer purchases from, the purchasing procedure involves in the following: (1) the buyer sends out a request for quotation (RFQ), which describes the specific information for an item to purchase (such as name of the item, technical specification, delivery date, terms and conditions, etc) to several suppliers (usually six), (2) the buyer and an engineer check the suppliers quotations sent in response to the RFQs, which include their technical designs and prices, (3) the buyer reduces the list of the suppliers to include only the ones meet the technical needs and have competitive prices (usually three), (4) the buyer performs negotiation with each supplier individually to set the final terms and conditions, and price, and lastly, (5) the buyer make a contract with the supplier whose item meets the buyers expectation and has the lowest price.
Problem Statement
Procurement plays an important role in increasing the profitability of a construction project by reducing the costs of the equipment and materials for the project. The management wants to enhance the performance of procurement departments negotiation to further reduce the costs.
@*Note: When measuring the effectiveness of negotiation, we include financially measurable terms only.
Management-Research Question Hierarchy
Management Question
