ABSTRACT

Some companies prefer to divide their purchases among more than one supplier to put competitive pressure on them and ensure price competitiveness. This policy has side-effects in maintaining quality and containing costs. This chapter a case study of Oates for discussing the issues of protective clothing. Oates, a leading lift and escalator manufacturer, applies this policy for the supply, cleaning and repair of protective work uniforms for its maintenance and repair staff. The quality of the protective clothing, its cleanliness and state of repair are important elements in maintaining the clean industrial image of Oates fitters, insisted upon by its clients, because Oates' fitters often work in dirty conditions in full view of their clients' staff and visitors. This case study is an excellent simulation for the mid-part of a negotiation skills seminar. It provides practice in formulating a case, exploring possible wants, making and receiving proposals and package bargaining.