1. Getting the Best from your relationship with Providers and Clients Negotiating in a Localisation context

2. Dynamics Buyer Position Seller Position Understanding Context Objective setting Disposition of Compromise Agenda Tactics Outcomes

3. Rules of the Game Win/Win is not just a cliché Size does not matter Price is not everything It is not an annual event Take a longer-term view i.e. Have a strategy Relationship is important Use tools as support not the driver (teleconferences, spreadsheets). “Eye-to-Eye is best”

4. What’s different about our Industry Maturing supply side, with “leftovers” from previous phase of development Commodity pricing Professional demand side Value-chain analysis starting to happen No ideal industry comparisons

5. The Process Preparation using a systematic approach Consider your underlying interests and what outcomes you require Contemplate alternatives and your “bottom-line” Legitimacy. Fair treatment, legal contract Prepare options Drive a positive relationship Promote 2way communication Review and revisit

6. Measure the Outcomes Define success or failure Always document outcomes for future reference and contract conclusion. Intentions are good, but 90% of contracts fail due to misunderstandings Heads of agreement → negotiated terms → contract Prepare the ground for the next negotiation occasion Remember: people change Always look to improve the process

7. Techniques Supplier – Incremental pricing based on economic data – Pricing based on comparative data – Anticipated investment requirements – Growth hampered by working capital restrictions – Invest for sustainability Demand – Full knowledge of market prices (real or otherwise) – Threat of alternative sources of supply – Increased use of tools and technologies – Maturity has been reached so commodity pricing applies – Psychology

8. Psychology Flexibility and willingness Agnostic about logistics except schedule Confident yet factual Escalation path known Open not arrogant Listen Finally compromise

9. Working Groups Success criteria for the seller/buyer Setting out your stall Record the dynamic Be clear about understanding of outcome Discussion re outcomes