Team D (NAC)
One of the main challenges in the upcoming negotiations with the USSL is the cultural differences between our countries. In order to overcome this barrier, we have to plan our negotiation approach very careful and detailed. According to Lewicki, Saunders, and Barry (2011), “The dominant force for success in negotiation is in the planning that takes place prior to the dialogue” (Lewicki, Saunders, & Barry, 2011, p. 97).
The main issues in the upcoming negotiations are:
* Number of vessel used per year
* Logistics ...view middle of the document...
General agreement on the subject of changes, including penalties and cancellation fees;
4. Payoff and terms of payment;
5. The cost of transportation (may vary in between $40-$60 per cubic meter, but cannot exceed $60 per cubic meter);
** Note to the teammates: The initial offer shall not exceed $15 per cubic meter.
6. Agreement on the US ports of transportation;
7. The ground transportation within the US (a general overview, a subject for the additional session);
8. Strategic planning related to the ocean transportation over other continents;
9. Supervision for the implementation, including responsibilities, authorities, and a schedule of the processes.
The main underlying interests, and needs, of NAC are:
• Full confidence in the second party;
• Safety of goods during the transportation;
• Low-cost ocean transportation (as low as below $40 per cubic meter);
• A wide range of the available ports of destinations;
• Increase of the mutual operations to include the trucking of the cargo to the different US states.
• Quantitatively non-binding agreement for the usage of ships, which can be adjusted according to the demand on the cars;
In general, NAC evaluates additional alternatives, as:
- Service agreement with another freight forwarder.
- Limitation of the agreement with the USSL to the short-term contract (one-two years only). The current option allows more flexible usage of the fleet; however, will be more costly.
NAC is interested in reaching the following targets:
1. The number of USSL RoRo ships dedicated to transporting NAC vehicles will be limited to 4 units only. The number can be increased at any point of time, per written request of the NAC management.
2. The cost of transportation should not exceed $40 per cubic meter.
3. The logistics support services provided by USSL, including ongoing rail and highway transportation, is a subject for the additional session of negotiation.
4. The number of agreed destination seaports will be as following:
- At least three for the first two years,
- At least four for the third year of...