Negotiation and Supplier Paper 5

INDIAN INSTITUTE OF MATERIALS MANAGEMENT
Dec 2014
GRADUATE DIPLOMA IN PUBLIC PROCUREMENT

Paper No.5
Negotiations and Supplier Management

Date: 15.12.2014
Time: 2.00 p.m to 5.00 p.m.
Max Marks: 100

Duration: 3 Hours
Instructions:
Part A contains 4 questions, each question carries 10 marks. Attempt all 4 questions
Part B contains 7 questions, attempt any 4 questions. Each question carries 15 marks
---------------------------------------------------------------------------------------------------------------------------PART-A
Answer all four questions. Each question carries 10 Marks. Total 40 Marks for this section.
Q1.State True or False:
10 marks
1.1
Negotiation is over after the contract is signed.
1.2
Leverage items are available from few vendors only.
1.3
Ethical decisions often involve grey areas when choices are not clear cut.
1.4
Pre-qualification of suppliers is to limit limit bidding to a few capable suppliers.
1.5
Execution plan of the bid is to inform what bidder will do.
1.6
Better known methods of ADR are Mediation and Arbitration.
1.7
Porters market model refers to six market forces.
1.8
Correct and prompt supplier payments indicate existence of accountability.
1.9
Using standards eliminates need of writing detailed specification.
1.10 A backward pass through the network identifies earliest start dates.
Q2. Write the full form of the abbreviations below as used in the context of public procurement.
10 marks
2.1 ITB
2.3 ADR
2.5 AAA(Rules)
2.7 WIPO(Rules)
2.9
2.2 WTO
2.4 ICC(Rules)
2.6 ICSID(Rules)
2.8 SCC(Rules)
2.10 ECA
Q3. Fill in the blanks.
AGF
10 marks
a) Negotiation to expedite delivery is ________Negotiation.

b) Supplier charging price based on what buyer is willing to pay is called ______based pricing.
c) Suppliers interest in buyers company is reflected in __________Model.
d) Win-Win strategy of negotiation emphasizes ___________.
e) Schedule of activities is plotted on ________to identify critical path.
f)
Most rigorous approach to contract management is required for ______-items.
g) Mediation is a method of __________.

h) _______Arbitration is not administered by any institution.
i)
Excessive ________are one of the most common bottlenecks in public procurement.
j)
Two bid system involves _______bid and ___________bid.
Q4.
Match the columns:
10 marks
1Leverage Items.
a) Schedule Risk.
2.Logical style of
b) Element of transparent system.
Negotiation.
3. Earth quake.
c) Method of ADR.
4. Production problems.
d) Force majeure clause.
5. Compilation of all risks.
e) Risk register.
6. Using Standards.
f) Rational arguments.
7. Uniform set of solicitation
g) Streamlining procurement process.
Documents.
8. Arbitration.
h) Influences emotions in negotiations.
9 . Charismatic power.
i) Win-win approach.
10. Joint problem solving
j) High expenditure low risk items.
PART- B
Attempt any four questions. All Questions carry equal marks. Total Marks 60
Q5.
When and why should we negotiate? Explain phases of negotiation.
Q6.
What are the organizational and personal powers that affect the outcome of negotiations?.
Q7.
In what aspects of ethics procurement personnel should be trained?.
Q8.
Write Short Notes on any three :

a) Supplier perception model.
b) Alternative dispute resolution.
c) Quality risk in procurement.
d) Potential barrier to bidding.
e) Win-Win negotiation strategy.
f) Porters market model.
.
Q9.
Q10.
Describe the role of contract manager in a cooperative relationship.
How will you manage the contract schedule?.
Q.11. How a supplier will take care of financial aspect of bidding?.
*********

June 2014

Paper No.5

Date: 16.06.2014
Time: 2.00 p.m to 5.00 p.m.
Max Marks: 100

Duration: 3 Hours
Instructions:
Part A contains 4 questions, each question carries 10 marks. Attempt all 4 questions (compulsory)
---------------------------------------------------------------------------------------------------------------------------PART-A

1.1
There is no difference between RFP and ITT.
1.2
The most important parts of the bid are Scope of work and Execution Plan
1.3
Verbal agreements can be made for low value items.
1.4
International suppliers may be bound to National dispute settlement procedures only by specific
contract language.
1.5
The most common alternative dispute resolution is Mediation.
1.6
The contract manager should be skilled in the application of contract laws to deal with one time
suppiers.
1.7
Making payment to the supplier is Contract management function.
1.8
Negotiation is a process of seeking the optimum solution to the business transaction.
1.9 Differentiation is focusing on different aspects of cost of products.

1.10 Win-Win strategy in negotiation results in mutual satisfaction for both parties.
2.1 SWOT
2.3 LCIA
2.5 ADR
2.7 ITB
2.9
ILO
2.2 RFID
2.4 ITC
2.6 UNCTAD
2.8 GSA
2.10 SME

a) Arbitration is one of the methods of ___________
b) CISG establishes guidelines for the settlement of _________
c) ________arbitration reduces the time and administrative cost of settlement.
d) Allotting different functions to individuals in contract management is known as -----------of duties.
e) ______-of activities shows all activities required to achieve desired end results.
f)
_______items should require minimal contract management effort.
g) Earthquake constitute ________risk.

h) ________may need revision to reflect current situation after contract review.
i)
________model compares risk and cost to classify items of procurement.
j)
Q4.
How suppliers regard your organization is known from _________Model.
Match the columns:

1.Bottleneck items.
a) Streamlining procurement process.
2.CORE
b) Solicitation document.
3.Tough negotiating style
c) Schedule risk in contract.
4.Bargaining
d) High risk low value items.
5.Gantt chart
e) Suppliers first choice for business.
6.Bureaucracy
f) Persuation technique.
7.Incorrect specification
g) Quality risk in contract.
8.Mediation.
h) A method of ADR
9.E-Commerce.
i) Strong desire to achieve.
10.Invitation to tender
j) Identifies critical path.
PART- B
Q5.
What is the impact of suppliers perception about your organization on negotiation?. How will you judge
the position of your organization in negotiation?.
Q6.
How will you persuade the supplier during negotiation to achieve your objectives?
Q7.
What precautions you will take while negotiating with supplier from other countries?
Q8.

a) Evaluation of bids.
b) Arbitration.
c) Risk register.
d) SWOT Analysis
e) Measures to reduce corruption.
f) Negotiating styles.
.
Q9.
Q10.
Explain how price/cost analysis helps in negotiation?
How will you train your procurement personnel?
Q.11. What measures you will take to reduce/avoid complaints from bidders/suppliers?
************

Dec 2013

Paper No.5

Date: 16.12.2013
Time: 2.00 p.m to 5.00 p.m.
Max Marks: 100

Duration: 3 Hours
Instructions:
---------------------------------------------------------------------------------------------------------------------------PART-A
1.1
If you have been awarded the contract, well done! If not, then you need to find out why?
1.2
Negotiations can occur on technical performance, schedule & cost.
1.3
Pre-qualification objectives is not to limit bidding to a few interested & capable suppliers.
1.4
Use of industry and International standards help stream line the procurement process.
1.5
Any approvals that do not add value should be eliminated.
1.6
UNICTRAL has established rules & models for governing many aspects of International trades
including disputes.
1.7
Arbitration is the submission of a dispute to one or more impartial persons for a decision.
1.8
Elements of a preparation phase do not involve setting your negotiation objectives and developing
your strategy.
1.9 Critical items are characterized by low annual expenditure and low risk.
1.10 Bottleneck items are characterized by high annual usage and low risk factors.
2.1 RFID
2.3 CISG
2.5 SWOT
2.7 ITT
2.9
WIPO
2.2 WBS
2.4 AAA
2.6 LCIA
2.8 ILO
2.10 USP

a) Different types of product and services requires different .. strategies.
b) Approvals should add .. to the procurement process, not just processing time & cost.
c) Make sure that the value of change is . than the cost of making it.
d) The duration of most activities is . on the level of resources assigned to them.
e) An internal will help to keep the negotiation team on track.
f)
Deciding on the team members and their roles is a key matter in ..
g) Body language isnt always clear, especially when are intercultural.

h) The separation of duties reduces the .for unethical practices.
i)
Win-Win aims at finding .. that meet the objectives & interest of both sides.
j)
The .. path comprises all activities that will result in delays to the project schedule.
Q4.
Match the columns:

1.Negotiation Zone
a) often possible to obtain before the project is formally under

contract.
2.Procurement & supply
b) to validate the buyers contracting plan.
strategy
3.Negotiations can occur
c) is to understand the objectives of the proposed contract.
4.Start Work Order
d) follows a sequence of activities where each step builds on the

previous step and provides a basis of the next step.
5.Pre-qualification
e) the range within which the chances for an agreement are
objective
6.Analysing a bid
located.
f) on the legal provisions, & terms and conditions.
opportunity
7.Contracting process
g) should specify that the appearance of impropriety is just as

damaging as the actual violation is.
8.Ethical training
h) seems to be the favoured method of ADR.
9.Binding arbitration
i) should focus on minimizing overall costs and supply risks.
10.UNCITRL
j) provides an agreement for the use of binding arbitration.
PART- B
Q5.
Streamlining the procurement practices is one of the key strategies for reforming the
procurement process. Explain.
Q6.
Why is negotiation an important aspect of procurement process? Also explain the significance
of price and cost analysis in the negotiation process.
Q7.
Why is contract administration and review important? Explain how it assists in effective
procurement.
Q8.
Write Short Notes on any five :

a) Importance of training of procurement personnel.
b) E-Commerce.
c) Consultancy contracts.
d) SWOT Analysis
e) Managing quality
f) Contract Review Meetings.
g) Monitoring the procurement process.
Q9.
What are bidder complaints and disputes? What needs to be done to reduce them? What is the
mechanism that is built into the contract to address them?
Q10.
Explain the solicitation process. What are the important aspects in the solicitation package?
Explain in detail.
Q.11. Explain the role of ethics and transparency in Public Procurement systems. Give examples
***********

Paper No.5
June 2013

Date: 10.06.2013
Time: 2.00 p.m to 5.00 p.m.
Max Marks: 100

Duration: 3 Hours
Instructions:
---------------------------------------------------------------------------------------------------------------------------PARTPART-A
Q1.
State True or False:
1.1
Good negotiators do not learn from past mistakes.
1.2
Briefing the contract team is not essential for negotiations.
1.3
Prequalification objectives do not limit bidding to capable suppliers.
1.4
An organizations ethics officer should be one of its top managers.
1.5
Skilled negotiators recess more frequently than average negotiators.
1.6
Deciding on the negotiation team members & their roles is not a key matter.
1.7
A rehearsal is important to being well prepared.
1.8
Give as much time to preparation to negotiations as may be necessary.
1.9 The best agreement is one that is fair to both sides.

1.10 Probing questions can get you the information you need.
Q2.
Q3.
Write the full form of the following abbreviations as used in the context of public procurement.
2.1 WIPO
2.3 RFT
2.5 UNCTAD
2.7 ICC
2.9
IFPSM
2.2 ICSID
2.4 RFP
2.6 ITC
2.8 EDI
2.10 CPSM
Fill in the blanks.

a) The . of time spent on preparing for a negotiation is more important than the quantity .
b) Two better known methods of ADR are mediation and .
c) Negotiation is the process whereby two or more parties with ..views initially attempt to reach
an agreement on a common objective.
d) Cost of ownership is the total cost involved in .. & using the procured goods.
e) Most negotiations involve three phases; preparing, the negotiation meeting(s) and ..
f)
Procurement and supply strategy should focus on . overall cost and supply risk.
g) Supplier assessment is a .. aspect of the procurement and supply process.

h) The supplier power is when there are few buyers and many sellers.
Q4.
i)
You need to the process as well as the outcome.
j)
The conclusion of negotiations is the .. of a new business relationship.
Match the columns:

Column A
1.Supply Positioning
Column B
a) can limit the entry of new suppliers into your market.
Model
2.Routine items
b) usually characterized by high annual expenditure & high risk.
3.Critical items
c) usually characterized by wide availability & low yearly

procurement expenditure.
4.Supplier performance
d) a person who is friendly & easily relates to others
5.Supplier Perception
e) a person who resorts to rational arguments, facts and figures.
Model
6.Negotiation style-warm
f) refers to a variety of techniques for resolving disputes without

resorting to litigations.
7.Negotiation stylelogical
g) are those that are offered only by one supplier for reasons of
technology, patent & copyright etc.
8.ADR
h) how suppliers see your organization as a potential client.
9.Proprietory items
i) capability plus motivation.
10.High transportation
j) serves to guide you in prioritizing your efforts in business
costs
analysis and negotiating with suppliers
PARTPART- B
Q5.
When do buyers negotiate? Give an overview of the preparations needed for negotiation.
Q6.
What is price analysis? When does it become necessary? Explain the cost model.
Q7.
What is Supply Market Analysis? Explain. Also explain the Porters Market Model(variation).
Q8.

a) Bidder Protests.
b) e-procurement.
c) The phases of negotiations.
d) Transparency in procurement.
e) Payment delays
f) Supply positioning model.
g) Role of ethics in procurement.
Q9.
What are negotiation objectives? Explain the role of variables and options. Give examples.
Q10.
What is Contract Management Plan? What information is to be included in it. Explain in detail.
Q11.
What is understood by measuring and controlling performance? Explain in detail with

examples.
******

Paper No.5
Dec 2012

Date: 10.12.2012
Time: 2.00 p.m to 5.00 p.m.
Max Marks: 100

Duration: 3 Hours
Instructions:
---------------------------------------------------------------------------------------------------------------------------PARTPART-A
Q1.

1.1 Negotiation objectives should be ambitious but achievable, precise and measurable.
1.2 An organization ethics officer should be one of its top managers.
1.3 Only use logic on someone who will see it.
1.4 Negotiations stop after the contract is signed.
1.5 The agreement is not the end but the beginning.
1.6 Excessive approvals are one of public procurements most common bottlenecks.
1.7 Different types of products and services do not require different procurement strategies.
1.8 Make sure that the value of change is higher than the cost of making it.
1.9 An internal agenda may not help to keep your team on track during the negotiations.
1.10 You need to measure the process as well as the outcome.
Q2.
Q3.
2.1 AAA
2.3 CISG
2.5 UNICTRAL
2.7 LCIA
2.9
CV
2.2 SWOT
2.4 ADR
2.6 RFID
2.8 WBS
2.10 SMEs
Fill in the blanks.

a) Pre-qualification objectives bidding to a capable supplier.
b) Briefing the contract team is . before the negotiations.
c) Negotiation zone is the within which the chances for an agreement are located.
d) Payment . can destroy relationships.
e) Critical path delays will . project completion.
f)
The extent of public access must be .. against the need for confidentiality.
g) Formal complaint resolution procedure is an . ingredient for good governance.
h) High transportation costs .. the entry of new suppliers into the market.
Q4.
i)
Appearance of wrong doing can be just as as actual violation.
j)
Compromise means using a .. argument based on facts and figures.
Match the columns:

1.Market value
a) a voluntary international trade agreement that establishes

guidelines for contracting parties and dispute resolution.
2.In negotiations
b) cost involved in acquiring and using the procured goods.
3.CISG
c) helps to understand the supplier relationships required.
4.Cost of ownership
d) should focus on minimizing overall costs & supply risks
5.Procurement & Supply
e) are high risk and require full attention.
strategy
6.Leverage items
f) should not require significant contract management efforts

either as risks are low.
7.Bottleneck items
g) dealing with international trade be conversant with arbitration

rules.
8.Supply positioning
h) using a rational argument based on facts and figures.
model
9.Public procurement
i) the bargaining and proposal stages often overlap.
professionals
10.Logic
j)is what the buyers are actually paying for the product in the
market place
PARTPART- B
Q5.
What is negotiation? Why is it important in a procurement process? What are the phases of
negotiations?
Q6.
In view of the competitive environment, training of procurement personnel is of utmost

importance. Explain.
Q7.
Transparency plays an important role in public procurement. Explain. Also explain how does
this assist in reducing bidders protests and complaints.
Q8.

a) SWOT Analysis.
b) E-Commerce.
c) Consultancy contracts.
d) Monitoring the procurement process.
e) Using standards in procurement.
f) Bid evaluation process.
g) Contract review register.
Q9.
What is solicitation process? Explain in detail.
Q10. What is the importance of price and cost analysis during negotiations? When does cost
Analysis become essential.
Q11. What is alternate dispute resolution? Describe various methods and indicate the advantages of
including ADR in contracts.
**********

Paper No.5
June 2012

Date: 11.06.2012
Time: 2.00 p.m to 5.00 p.m.
Max Marks: 100

Duration: 3 Hours
Instructions:
---------------------------------------------------------------------------------------------------------------------------PARTPART-A
Q1.
1.1
Pre-qualification objectives do not limit bidding to capable suppliers.
1.2
The critical path comprises all activities that will result in a delay to the schedule if they are
delayed.
1.3
Negotiations do not stop even after the contract is signed.
1.4
Briefing the contract team is essential before the negotiations.
1.5
Routine items should require minimal contract management effort.
1.6
In negotiations the bargaining and proposal stages do not overlap.
1.7
Win win situation aims at finding solutions that meet the objectives & interest of both sides.
1.8
It is essential to have a clear idea of what is needed before the negotiation begins.
1.9 There is no ideal negotiation style.

1.10 Dont fall into the trap of agreeing to unjustified extras.
Q2.
2.1 WIPO
2.3 ILO
2.5 ITT
2.7 ITC
2.9
LCC
2.2 ICSID
2.4 RFQ
2.6 RFI
2.8 ITB
2.10 ICC
Q3.
Fill in the blanks.
a) Compromise means using a .. argument based on facts and figures.

b) Negotiation zone is the .. within which the chances for an agreement are located.
c) Routine items are . by low expenditure & available from wide choice of suppliers.
d) Critical items are .. by high annual expenditure and high risk.
e) The best agreement is that which is . to both sides .
f)
The procurement & supply strategy should focus on . overall costs and supply risks.
g) The supply positioning model helps to understand the . Relationship.

h) Proprietary items are those offered by supplier for reasons of technology, patents etc.
Q4.
i)
Different types of products and services do require procurement strategies.
j)
Make sure that the value of change is than the cost of making it.
Match the columns:
1.Disputes are
a) means the trading in variables.
2.Protests are
b) should be ambitious but achievable, precise & measurable
3.Elements of
c) isnt always clear especially when parties involved are inter-
preparation phase
cultural.
4.Excessive approvals
d) must be balanced against the need for confidentiality
5.Negotiation objectives
e) suggesting the consequences of not complying to your

demand.
6.Body language during
f) post-award supplier complaints.
negotiations
7.The extent of public
g) can limit the entry of new suppliers in the market place.
access
8.Threat of negotiations
h) is one of public procurements most common bottleneck.
9.High transportation
i) pre-award supplier complaints .
costs
10.Bargaining in
negotiation
k)Setting your negotiation objectives & developing your

strategy
PARTPART- B
Q5.
Preparing for a negotiation is essential to its success. Explain. Also explain what are different
negotiation styles?.
Q6.
What is transparency in public procurement system? Explain what is the role of the ethics
officer in the public procurement process.
Q7.
Streamlining the procurement process is one of the key strategies of reforming the procurement
process. Explain.
Q8.
Write Short Notes on any three

a) Policy and procedures.
b) Managing quality.
c) Phases of negotiations.
d) Supplier performance.
e) Contract review meetings.
f) Contract budget.
g) Training procurement personnel.
Q9.
What are bidder complaints? What measures need to be taken to reduce and avoid complaints?
Q10. Describe in brief the salient features of the solicitation document to be submitted by the supplier
in response to the bid document.
Q11. Why is contract management and review important? Explain in detail.

June 2011

Paper No.5
Date: 13.06.2011
Time: 2.00 p.m to 5.00 p.m.
Max Marks: 100

Duration: 3 Hours
Instructions:
-----------------------------------------------------------------------------------------------------------------------------------------------------
PART-A
Q1.

1.1
Payment delays can destroy relationships.
1.2
Pre-qualification objectives limit bidding to capable suppliers.
1.3
Probing questions can get you the information you need during negotiations.
1.4
The critical path does not comprises all activities that will result in a delay to the schedule if they
are delayed.
1.5
An internal agenda will help to keep your team on track during the negotiations.
1.6
Excessive approvals are one of Public procurements most common bottlenecks.
1.7
Briefing the contract team is not essential before the negotiations.
1.8
Negotiations do not stop after the contract is signed.
1.9 Formal complaint resolution are essential ingredients for good governance.
1.10 During negotiations, emotions should be sincere and never exaggerated.
Q2.
Q3.
2.1 WIPO
2.3 RFI
2.5 ICC
2.7 WBS
2.9 LC
2.2 ICSID
2.4 RFID
2.6 RFQ
2.8 ITB
3.0 AWB
Match the columns:

1.Creative Style of
Negotiation
2.Threat in
a) Setting your negotiation objectives and developing your supply

strategy.
b) A person who is friendly, and easily relates to other people.
Negotiation
3.Bargaining in
Negotiation
c) characterized by low annual expenditure & available from wide

choice of suppliers.
4.Routine Items
d) pre-award supplier complaints
5.Critical Items
e) that is fair to both sides.
6.The Supplier
f) how suppliers see your organization as a potential client.
Perception Model
7.Warm Negotiation
g) characterized by high annual expenditure & high risk.
style
8.Elements of the
h) suggesting the consequences of not complying to your demand.
Preparation phase
Q4.
9.The best Agreement
i) the trading of variables.
10.Protests
j) person who is inventive, imaginative & looks at the total picture.
Fill in the blanks.
a) Win-win aims at finding that meet the objectives & interest of both the sides.
b) It is to have a clear detailed idea of what is needed before negotiations begin.
c) Different types of products and services require different .. strategies.
d) .. items are those which are offered only by one supplier for reasons of technology, patent,
copyright etc.
e) Cost of ownership is the .. cost involved in acquiring and using the procured goods.
f)
The negotiable . is the range within which the chances for an agreement are located.
g) Clearly, you must know what you . before you negotiate .

h) Being able to forecast is important.
i)
Supplier . is a vital aspect of the procurement and supply process.
j)
There is no .. negotiating style.
PART- B
Q5.
What is negotiation? Why is it important in procurement process? What are the phases of
Negotiation ?
Q6.
Streamlining the procurement process is one of the key strategies for reforming the
Procurement process. Explain?
Q7.
What is understood by measuring and communicating performance? Explain.
Q8.

a) Policy and procedures..
b) Transparency in procurement.
c) Using standards in procurement
d) Contract Review Meetings.
e) Monitoring the procurement process.
f) Procurement Action File & Contract file.
g) Managing Quality.
Q9.
Why a Contract Management Plan needs to be prepared. What should be included in it.
Q10. Explain the importance of training procurement personnel in view of competitive environment.
Q11. What are bidders complaints? What measures need to be taken to reduce and avoid complaints.
*******************

Dec 2011

Paper No.5
Date: 12.12.2011
Time: 2.00 p.m to 5.00 p.m.
Max Marks: 100

Duration: 3 Hours
Instructions:
---------------------------------------------------------------------------------------------------------------------------PARTPART-A
Q1.

1.1
Market value is what buyers are actually paying for the product in the market place.
1.2
In negotiations the bargaining and proposal stages often do overlap.
1.3
Make sure that the value of change is not higher than the cost of making it.
1.4
Only use logic on someone who will see it.
1.5
Dont agree to any change until all costs and possible impact are fully justified.
1.6
Procurement and supply strategies should focus on minimizing overall costs & supply risk.
1.7
Win Win does not aim at finding solutions that meet the objectives & interest of both sides.
1.8
It is not essential to have a clear idea of what is needed before the negotiation begins.
1.9 The quality of time spent on negotiations is more important than the quantity of time spent
1.10 Knowing how to ask questions is an art.
Q2.
2.1 UNCTAD
2.3 AAA Rules
2.5 CVs
2.7 UNCITRAL
2.9 CISG
2.2 SWOT
2.4 ADRs
2.6 LCIA
2.8 ILO
3.0 RFP
Q3.
Match the columns:
1.Approvals
a) is a voluntary international trade agreement that establishes

guidelines for contracting parties and dispute resolution.
2.Supplier power
b) is the range within which the chances for an agreement are

located.
3.Negotiation
c) will delay project completion.
objectives
4.Negotiation zone
d) using a rational argument based on facts and figures
5.Critical path delays
e) are high risk items and require full attention.
6.CISG
f) helps to understand the suppliers relationship.
7.Compromise means
g) should be one of its top managers.
8.Bottleneck items
h) is higher when there are few suppliers and many buyers.
9.Supply positioning
i) should be ambitious but achievable, precise & measurable.
objectives
10.An Organizations
ethics officer
Q4.
j) should add value to the procurement process, not just processing

time and cost.
Fill in the blanks.
a) Disputes are . award supplier complaints

b) The extent of public must be balanced against the need for confidentiality.
c) Mile stones are achievements under the contract which are the result of a series of related
activities.
d) Body .. isnt always clear, especially when negotiations are multi-cultural.
e) Good negotiators .. from past mistakes.
f)
The conclusion of negotiations is the .. of a new relationship.
g) The .. you discover the problem, the higher the risk.

h) Dont fall into the . of agreeing to unjustified extras.
i)
Leverage items not require significant management efforts as risks are low.
j)
High transportation .. can limit the entry of new suppliers into the market.
PARTPART- B
Q5.
What is negotiation considered an integral part of the procurement process? What are the steps
needed while preparing for negotiations?
Q6.
What is solicitation process? What documents are needed by the supplier while preparing the
solicitation bid Explain?
Q7.
What is the importance of price and cost analysis during negotiations? Explain the price
analysis in brief ?
Q8.

a) SWOT Analysis.
b) The evaluation process.
c) E-Commerce.
d) Consultancy Contract.
e) Objectives and Strategy in negotiations.
f) Importance of training of procurement personnel.
g) Monitoring the procurement process.
Q9.
What is Contract Management? Why is it necessary? How does supplier performance assist in the
procurement process?
Q10. What is Alternate Dispute Resolution? Discuss various methods briefly and give the advantages
of ADR.
Q11. What are bidders protest and disputes? How does transparency assist in reducing these? Briefly
explain how are bidder complaints addressed.

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INDIAN INSTITUTE OF MATERIALS MANAGEMENT

GRADUATE DIPLOMA IN PUBLIC PROCUREMENT

Negotiations and Supplier Management

Max Marks: 100

Negotiation is over after the contract is signed.

Leverage items are available from few vendors only.

Pre-qualification of suppliers is to limit limit bidding to a few capable suppliers.

Execution plan of the bid is to inform what bidder will do.

Better known methods of ADR are Mediation and Arbitration.

Porters market model refers to six market forces.

Correct and prompt supplier payments indicate existence of accountability.

Using standards eliminates need of writing detailed specification.

Q3. Fill in the blanks.

a) Negotiation to expedite delivery is ________Negotiation.

Most rigorous approach to contract management is required for ______-items.

g) Mediation is a method of __________.

Excessive ________are one of the most common bottlenecks in public procurement.

Two bid system involves _______bid and ___________bid.

Match the columns:

b) Element of transparent system.

d) Force majeure clause.

5. Compilation of all risks.

7. Uniform set of solicitation

g) Streamlining procurement process.

h) Influences emotions in negotiations.

10. Joint problem solving

j) High expenditure low risk items.

When and why should we negotiate? Explain phases of negotiation.

In what aspects of ethics procurement personnel should be trained?.

Write Short Notes on any three :

Describe the role of contract manager in a cooperative relationship.

How will you manage the contract schedule?.

Q.11. How a supplier will take care of financial aspect of bidding?.

INDIAN INSTITUTE OF MATERIALS MANAGEMENT

GRADUATE DIPLOMA IN PUBLIC PROCUREMENT

Negotiations and Supplier Management

Max Marks: 100

Q1.State True or False:

There is no difference between RFP and ITT.

Verbal agreements can be made for low value items.

The most common alternative dispute resolution is Mediation.

Making payment to the supplier is Contract management function.

Negotiation is a process of seeking the optimum solution to the business transaction.

1.9 Differentiation is focusing on different aspects of cost of products.

Q3. Fill in the blanks.

_______items should require minimal contract management effort.

g) Earthquake constitute ________risk.

________model compares risk and cost to classify items of procurement.

How suppliers regard your organization is known from _________Model.

Match the columns:

a) Streamlining procurement process.

3.Tough negotiating style

c) Schedule risk in contract.

d) High risk low value items.

e) Suppliers first choice for business.

g) Quality risk in contract.

i) Strong desire to achieve.

j) Identifies critical path.

the position of your organization in negotiation?.

Write Short Notes on any three :

Explain how price/cost analysis helps in negotiation?

How will you train your procurement personnel?

INDIAN INSTITUTE OF MATERIALS MANAGEMENT

GRADUATE DIPLOMA IN PUBLIC PROCUREMENT

Two bid system involves _bid and _____bid.