Need for New Opportunity
In the need for new approaches stage, traditional negotiations will inevitably occur. The buyer will press price discounts, better payment terms, freight allowances, and other concessions that save it money but cost the supplier will press for higher volume to offset concessions made to the buyer. Then, if either partner has involved personnel who are total-quality conscious, it will dawn on them that quality is not being served by this traditional negotiating. Both will begin to realize that a new approach is needed. If this awareness does not occur, the partnership will fail.
Adoption of New Paradigms
In the adoption of new paradigms stage, both partners explore ways to move toward the concept of mutual benefit. The key is for both partners to accept the principle that absorbing costs within the partnership (either by the supplier or the buyer) gives neither an advantage. The best way to promote competitiveness is for both partners to work together to lower costs. This new way of thinking (paradigm) will give the partnership a competitive advantage over other organizations that produce the same product.
Awareness of Potential
In the awareness of Potential stage, both partners become fully aware of the potential benefits that can be realized from the partnership. The potential for a true win-win relationship can now be seen. Rather than negotiating price concessions and volume increases, both partners realize that by working together they can exceed any short-term advantages that might have been realized from these traditional negotiating strategies.