Game Theory Successful Negotiation In Purchasing

Applied game theory in procurement has become an essential tool in many companies for systematically achieving successful negotiations. Reverse auctions are a central building block of game-theoretically optimized negotiations. A foundational knowledge of auctions and game theory has thus become vital for procurement professionals. This book clearly describes many helpful methods and their application in practice. Procurement projects with a high volume, which are interesting for suppliers and whose performance can be well specified, are particularly suitable for using game theory in purchasing. The author also shows how cartels or restrained competition between suppliers can be identified using a purely data-based method. Every purchase involves a sale. The book is, therefore, not only aimed at buyers. Auctions in procurement and the underlying game-theoretic principles also play an equally significant role for salespeople. Content Concepts of game theory Examples of applied game theory Purchasing negotiations Data-based identification of cooperation between suppliers Application and limits of game-theoretical procurement optimization The Author Dr. Christoph Pfeiffer is a consultant and managing partner of Competitio Consulting, a management consultancy specializing in the systematic optimization of negotiations. The translation was done with the help of artificial intelligence. A subsequent human revision was done primarily in terms of content.

This book presents criteria and recommendations for successful negotiations. The System of Negotiations, which was developed on a scientific basis for this purpose, clearly illustrates the most important steps, tools and applications. By using game theory and behavioral economics, the success of negotiations in purchasing can be systematically maximized. At the same time, transparency and fairness offer a high level of acceptance among negotiating partners. To this end, numerous practical examples are used to show how contracts can be awarded in the event of competition between suppliers, and how various auction formats and differentiated communication can be used to achieve optimal savings potential. Also for situations where the supplier is a monopolist, ways are described to avoid being at the mercy of pricing power.

This book presents criteria and recommendations for successful negotiations. The System of Negotiations, which was developed on a scientific basis for this purpose, clearly illustrates the most important steps, tools and applications. By using game theory and behavioral economics, the success of negotiations in purchasing can be systematically maximized. At the same time, transparency and fairness offer a high level of acceptance among negotiating partners. To this end, numerous practical examples are used to show how contracts can be awarded in the event of competition between suppliers, and how various auction formats and differentiated communication can be used to achieve optimal savings potential. The content System of Negotiations Purchasing negotiations under competitive conditions and with monopolists Perspectives and areas of application New opportunities through digitalization Glossary The authors René Schumann is the founder and CEO of the Negotiation Advisory Group. He has many years of experience in purchasing negotiations in the automotive sector and in management consulting. Stefan Oswald is founder and CEO of the Negotiation Advisory Group. He gained his numerous experiences in game theory in strategic material purchasing at Daimler AG, among others. Dr. Philippe Gillen is responsible for the topic of Data Science and its application in negotiations at the Negotiation Advisory Group. This book is a translation of an original German edition. The translation was done with the help of artificial intelligence (machine translation by the service DeepL.com). A subsequent human revision was done primarily in terms of content, so that the book will read stylistically differently from a conventional translation.

Applied game theory in purchasing has become an important tool in many companies for systematically achieving success in negotiations. The central building block of game-theoretically optimized awards are purchasing auctions. A basic knowledge of auctions and game theory is therefore particularly important for purchasers. This book describes very clearly many helpful methods as well as their application in practice. Procurement situations which have a high volume, which are interesting for suppliers and whose performance can be well specified are particularly suitable for the use of game theory in purchasing. It also shows how cartels or restrained competition between suppliers can be identified using a purely data-based method. Every purchase involves a sale. The book is therefore not only aimed at buyers. Auctions in procurement and the underlying game-theoretical principles also play an equally significant role for sellers.Applied game theory in purchasing has become an important tool in many companies for systematically achieving success in negotiations. The central building block of game-theoretically optimized awards are purchasing auctions. A basic knowledge of auctions and game theory is therefore particularly important for purchasers. This book describes very clearly many helpful methods as well as their application in practice. Procurement situations which have a high volume, which are interesting for suppliers and whose performance can be well specified are particularly suitable for the use of game theory in purchasing. It also shows how cartels or restrained competition between suppliers can be identified using a purely data-based method. Every purchase involves a sale. The book is therefore not only aimed at buyers. Auctions in procurement and the underlying game-theoretic principles also play an equally significant role for sellers.

Highly effective negotiation skills are an essential element of a purchasing and supply chain professional's toolkit. Negotiation for Procurement and Supply Chain Professionals provides a step-by-step approach to delivering winning negotiations and getting game-changing results. It provides purchasers and supply chain managers with the necessary tools and tactics for a detailed, planned approach to negotiation. Negotiation for Procurement and Supply Chain Professionals allows the purchasing professional or the buying team to evaluate the supplier in advance, assess the sales team, and tailor their negotiation strategy depending on concession strategies, cultural influences and game theory. Negotiation for Procurement and Supply Chain Professionals provides a strong framework for discussion in advance of the meeting, allowing the negotiator to plan their agenda, objectives and tactics. Based upon the Red Sheet® Methodology, this book is a proven and collaborative technique used by many companies globally. The new edition includes supply chain planning, updates on multi-party negotiation for supply chain negotiations, Brexit as a retrospective example of negotiation and how the negotiation capability will need to change in the future.

Highly effective negotiation skills are an essential element of a purchasing professional's toolkit. Negotiation for Purchasing Professionals provides a step-by-step approach to delivering winning negotiations and getting game changing results. It provides purchasers with the necessary tools and tactics for a detailed, planned approach to negotiation. Jonathan O'Brien shifts the emphasis away from relying mostly upon personality to a more structured approach that enables anyone to negotiate effectively, even when up against a formidable opponent. This approach allows the purchasing professional or the buying team to evaluate the supplier in advance, assess the sales team, and tailor their negotiation strategy depending on cultural differences, personality traits and game theory. Negotiation for Purchasing Professionals provides a strong framework for discussion in advance of the meeting, allowing the negotiator to plan their agenda, objectives and tactics. The book is based upon Red Sheet Methodology, a proven and collaborative technique used by many companies globally. If you are in a buying role, this book will increase your confidence and transform your ability to secure winning outcomes and better business results. Negotiation for Purchasing Professionals was short listed for the ACA-Bruel Prize and was Specially Commended at the Gala Dinner 2013 organised by the Association of Purchasing and Supply Chain (CESA) of HEC School of Management in Paris. Negotiation for Purchasing Professionals is the perfect companion to Jonathan O'Brien's other books Category Management in Purchasing and Supplier Relationship Management. Used together, they provide a complete and powerful strategic purchasing toolkit.

WINNER: ACA-Bruel 2013 - Special Mention Prize (1st edition) Highly effective negotiation skills are an essential element of a purchasing professional's toolkit. Negotiation for Procurement Professionals provides a step-by-step approach to delivering winning negotiations and getting game changing results. It provides purchasers with the necessary tools and tactics for a detailed, planned approach to negotiation. Jonathan O'Brien shifts the emphasis away from relying mostly upon personality to a more structured approach that enables anyone to negotiate effectively, even when up against a formidable opponent. This approach allows the purchasing professional or the buying team to evaluate the supplier in advance, assess the sales team, and tailor their negotiation strategy depending on cultural differences, personality traits and game theory. Negotiation for Procurement Professionals provides a strong framework for discussion in advance of the meeting, allowing the negotiator to plan their agenda, objectives and tactics. Based upon Red Sheet Methodology, the book is a proven and collaborative technique used by many companies globally. If you are in a buying role, this book will increase your confidence and transform your ability to secure winning outcomes and better business results. Negotiation for Procurement Professionals is the perfect companion to Jonathan O'Brien's other books Category Management in Purchasing and Supplier Relationship Management. Used together, they provide a complete and powerful strategic purchasing toolkit.

This text bridges the gulf between theoretical economic principles of negotiation and auction theory and their multifaceted applications in actual practice. It is intended to be a supplement to the already existing literature, as a comprehensive collection of reports detailing experiences and results of very different negotiations and auctions.