英文谈判案例——ShoppingToteNegotiation

ShoppingToteNegotiationPartiesinvolvedinthecase:PartyA:CompanyL(aUStradingcompany)PartyB:CompanyP(abagsupplierwhichwaslocatedinXiamenArea)PartyC:CompanyXClient(Xcorp.,oneofthelocalsupermarketsinLA)Time:MidApril,2008CompanyX(client)placedapurchaseorderof50,000piecesofnon-wovenshoppingtotetoCompanyLAccordingtoCompanyP(thesupplier),thematerialMOQ(minimumorderquantity)forthisorderwasatleast300,000pcs;CompanyPwasoneofthemostimportantsuppliersforCompanyL.ItprovidedhighqualitybagsatareasonablePrice.TheshoppingtotewasaNon-popularitem,companyLdidn’twanttocarryanystock,buttheywouldliketoaccepttheorderasitwasaniceorderwithgoodprofitmargin,alsothecompanyneededaclientlikecompanyXInfirsthalfofyear2008,theinternationaloilpricewasskyrocketing.(Crudeoilpriceincreasedfrom$50to$145sinceMay2007.)Meanwhile,thecontinuousRMBexchangeratereformandincreasinglaborcosthadbeenpushingtheproductioncosthigherandhigher.Therefore,Chinesemanufacturescontinuedincreasingprice.Insomeextremecases,thesupplierrequesteda5-10%ofpriceincreasejustonthenextweekaftercontractweresigned.Usually,foreignbuyershadtocompromiseforthreereasons.First,thesupplierdidhavethereasontoraisepriceasthepurchasingpricecan’tcovertheproductioncost.Inthatcasethesupplierwouldratherrefusetofilltheorderthanlosemoneytogettheorderdone.Second,itisusuallyverydifficulttofindanalternativesupplierinashortperiodandrushanorderatthattime.Itwasbeforethefinancialcrisis,theglobaleconomywasprosperousandalmosteveryChinesefactorywasbusytofilltheboomingordersfromallovertheworld.Manymanufacturesevenrefusetotakeanynewordersbecausetheirexistingorderswerealreadytoomuchforthisyear’sproductionschedule.Third,iftheChinesesupplierrefusedtofilltheorder,theforeignbuyerwouldsufferalossfromalackofgoodssupply,anditwasdifficulttogetcompensatedifthecompanydecidedtosuethesupplierthroughaninternationalbusinesscourt.ThewholeprocesswouldlastlongandsometimesthecompensationmaynotcovertheexpensespaidtotheLawyers.Phase1(quotation)Afterreceivedthe50,000piecesshoppingtoteorderfromX,wesenttheenquirytosomeofthebagsuppliers.WegotquotationsfromsuppliersverysoonandfoundthatPprovidedthebestprice.AmajorproblemwasthatalmosteverysupplierprovidedwiththesameMOQ–300,000pcs,toolargeforthisorder.Thereasonwasthatthenon-wovenshoppingtotematerialwasfromthesamerawmaterial,aspecialtypeofPolyester涤纶.Therawmaterialwasmadefromoil.Theupstreammaterialsupplier(e.g.PetroChina)washugeandverypowerful,thereforetheirpriceandMOQwasnotnegotiable.Thebagfactorieshadtotakethelargequantity.Unfortunately,thematerialisnotpopularforbags.Asaresult,noneofthemwouldliketocarrythestockforfutureorders.NeitherdidL.LsoondecidedtodealwithPonlyforthisorder.ThepricewasgoodandothertermsexceptMOQwerealsosatisfied.PinsistedontheMOQandLinsistedonours.Thenegotiationwasstuck.Thesupplierwasanimportantbusinesspartner,soLdidn’ttrytobetooaggressiveonthebargainingtable.Meanwhile,Lcouldn’trefusetheorderfromtheclient.So,howtomaintaingoodrelationshipwithoutsacrificingourinterests?Lneededawin-winsolution.Phase2(negotiationwithclientX)WerealizedcompanyPwantedtheorderasbadlyaswedo,buttheydidn’tknowiftherewouldbeanotherorderforthisitemandfinishthematerialstock.Theydidn’twanttherisk.Wehadbeenworkinghardonthissideanditdidn’tsolvetheproblemWethenturnedtotheclientside.Xwasafamouslocalsupermarketwhichhadsomeseasonalmarketingcampaigns.SoLtoldX:hereistheproblem,theMOQoftheorderismuchlargerthanyourorder.Wewouldliketotakeyourorderandcarrytherestofmaterialasstockfornow,assoonasyoupromiseyouwillbuyallofthemwithinthisyearXwasnotsureiftheyneedsomanypiecesatthatperiod.Theydidn’twanttotakethemallatonetime.Buttheycan’tcanceltheorderastheyhadalreadystartedthepromotioncampaignandthetotewasprintedontheproductcatalogueInlaternegotiation,wesuggestedthatXraisetheorderquantity,andsplitthetotalorderintoseveralwhichwouldreliefthepressureofheavystock.Xagreed,andtheorderquantityincreasedto200,000,andtheyaskedforabetterpriceforreturn.Alsotheywantedtosplitthe200,000into4shipments:50,000pcstobeshippedasscheduled,50,000pcstobeshippedtwomonthsafter,andsoonPhase3(furthernegotiationwithP)Wehadthreetaskstofinish:first,togetarevisedshippingtermwithP;second,toconvincethesupplierPtocarrysomestockforus;third,trytoselltherestbagstosomeotherbuyersifpossible.Again,itwasdifficulttogetasplitshippingschedule.Inthisindustry,usuallybuyerwillpaythesellerupongoodsdelivery.BecausetheRMB/USDexchangeratewasrisingrapidlyatthatperiod,itwasriskyforthesuppliertoacceptafixedUSdollarpriceifthepaymentwouldbemadeseveralmonthslaterWehadalonginternaldiscussion.Luckily,weworkedoutanewproposalwhichwasacceptedbythesupplier.Webuy250,000piecesatthefixedpriceonRMBbasis,paymentwouldbemadeinUSdollarupondeliveryaccordingtocurrentexchangerate;asareturn,Pshouldcarry50,000piecesinstock,andacceptthesplitshipmentTerm.