Only answer one question:

1. What is gained by the negotiating strategy of reaching a win/win scenario?
2. In order to be successful in the negotiation process, you must negotiate from a position of power. What does this mean?
3. What is a key element to a successful negotiation strategy with a selected vendor/supplier?

The best deal a food service manager can achieve represents the best overall value. The food service manager needs to negotiate with the supplier the lowest possible AP (as purchase) price which provides the best EP (edible portion) or A5 (as served) price. It is important to note that value has many other dimensions and must be considered when selecting the best product or service at the AP (as purchased) price. Q The Connection Between Best Value and Value Proposition Every successful food service operation must have a business model which contains a clear statement of the organization's unique value proposition. The value proposition is defined as a statement of what it offers both in products and services to customers that is not available at other foodservice operators in the marketplace. While a unique value proposition is essential for the business, this is especially true for a food service operation that must compete on a daily basis to attract patrons over other operations. There are many potential options for a value proposition for a food service operation to include menu choices, affordability, service, and atmosphere. Therefore it is critical the procurement officer consider the value proposition as part of every purchasing decision to align purchasing strategies in finding the best value based on the value proposition, vision and mission statement of the operation. Best Value In the best value process, the value of procured goods or services can be simply described as a comparison of costs and benefits (added value). A supplier or vendor is thus selected through a process of researching the vendors or supplier before a purchase is made. The best value decision is based on a number of elements to include AP price, quality, added value and services as part of the purchase decision. Preparation Arguably the most important step is preparation. Without thorough preparation including research, knowing the objectives, understanding the concessions, and having a BATNA, the negotiation is unlikely to reach the optimum outcome. Bargaining This takes place where each party offers to give up something in return for something back i.e. tradeable. If one party has to give something up but receives nothing back in trade, this is known as a concession. Opening This is where both parties explain what they want as a result of the negotiation. Testing This stage is where parties try and understand what is really important to each other and where concessions could be made. Effective communication is very important at this stage, ensuring that good listening skills are put into play to gather as much information as possible as well as reading body language from the other parties. Proposing This is where each party puts forward their proposals of what they would like to achieve having heard the opening stage and been involved in the testing. Agreement Once bargaining has been completed it is expected that an agreement can be made. The agreement has to have acceptance from both parties to be legally binding. Closure The final stage is closure. This stage includes the documentation of what has been agreed, whether that is a contract or minutes from a meeting. The closure is an important stage without the documentation, the agreement is open to interpretation. management team needs to pay particular attention to the labour, food, and beverage costs, also knovVn as the operator's primary costs. In addition to these critical costs, there is the cost of reusable operating supplies such as cutlery, glassware, china, and linen in fullservice food service operations. Given that most operations have both a service side (interacting directly with the consumer) and a production side (preparing food or drink to be consumed), the primary costs incurred during these activities often determine the feasibility or success of the operation. This is especially true as the main product (e.g., food and drink) is perishable; ordering the correct amount requires skill and experience. The procurement officer needs to be acquainted with the following terms and formulas to achieve the necessary information for the team to make the correct decisions. AP - As Purchased EP - Edible Portion AS - As Sewed is the portion of food that is in the is the portion of food remaining is the exact portion of the food that raw state before any cutting, from the original raw production is served on the plate. It is the same processing, or cooking has occurred. often referred to prior to as EP but always considers the final portioning the product that will be portion was given consideration to served to a customer after the garnish and other incurred raw food has been cut and cooked material expenses When considering the concept of value the following holds true. The food service manager must procure the appropriate quality needed for the intended purpose or use rather than the lowest AP price for a product. When the quality of the product or service matches the intended purpose then the correct AP price and concept of value has been established. The quality control focus then must be on determining what the quality should be, no more and no less, and negotiating how to ensure that you receive it every time at the best AP price. Advice for a food service manager new to the procurement process is to focus on the absolute need, not what you don't need. It is the practice by vendors to persuade procurement officers an upsell of a product and service for a small increase in AP price for an increase in quality. Remember to focus on the exact quality required. The product procured must suit the operation's needs and represent the best AP price. Q What Are the 7 Stages of Negotiation Courtesy of Chartered Institue of Procurement and Supply "What Are the 7 Stages of Negotlation". https:/_/www.cips.org/knowledg_e/_procurementtopics-andski|ls/strategy-policyegotiation1/_ 12' Win-win negotiations focus on integrative or value-creative bargaining processes and techniques. Rather than the traditional haggling or distributive bargaining process that most people are used to. By utilizing an integrative or value-creative bargaining process, each party learns what the other party wants. Thereby making it easier to work within those confines or restrictions to ensure both parties walk away satisfied and happy. The win/win strategy of negotiation and its process comprises seven main stages: Preparation Opening Testing Proposing This is where both parties explain what they want as a result of the negotiation. Arguably the most important step is preparation. Without thorough preparation including research, knowing the objectives, This stage is where parties try and understand what is really important to each other and where concessions could be This is where each party puts forward their proposals of what they would like to achieve having heard the opening stage and been involved understanding the concessions, and having a BATNA, the negotiation is unlikely to reach the optimum outcome. made. Effective communication is very important at this stage, ensuring that good listening skills are put into play to gather as much information as possible as well as reading body language from the other parties. in the testing. The food service manager must use a strategy of negotiation when tasked with purchasing products and services for the Agreement Costs operation. To reach mutual The strategy can be involved in a number of ploys and tactics To reduce the agreement in a cost of acquisition by but regardless of the approach taken, preparation is key to its collaborative style achieving a lower success. where all parties price are satisfied There are a number of reasons why negotiation is important in To achieve To achieve added Quality Value the procurement process. To reduce the cost of purchasing optimum quality Reasons value such as goods and services by achieving the lowest AP (as purchased) through reducing reduced lead or defects For price. cycle times Negotiation Often the foodservice manager will negotiate an added value to To solve a To improve the AP product or service. For example, reduced lead or cycle problem performance by open times of an important inventory item necessary for continuous through KPIs discussion To resolve and SLAs nance production needs. Problem conflict through reaching Negotiation skills are also necessary for a number of other understanding Perform management functions and responsibilities such as improving the performance of employees or processes (Key Performance Conflict Indicators). Throughout the procurement process, the negotiation process is critical to resolving conflict and misunderstanding between two Image source: Jarvis-Grove, 2020 parties interested in reaching a mutual agreement. The food service manager must negotiate the quality of the product and service to be acquired to achieve optimum quality by reducing defects and unnecessary trim or waste. Most importantly is through successful negotiation a mutual agreement is reached in a collaborative style where all parties are satisfied.The equation for determining edible portion weight is EPweight = APweight x percent yield. If you need to calculate the edible portion cost, you would divide, instead of multiply (again, remember the two points above regarding which one will be higher than the other): EPcost = APcost / percent yield As with any algebra equation, you can flip-flop your variables to solve for what you are looking for. Here is the weight equation is written differently for also solving for AP weight and percent yield: APweight = EPweight / percent yield Percent yield = EPweight / APweight And for the cost: AP cost = EPcost x percent yield Percent yield = APcost / EPcost Now let's dive into that meal! First, we'll start with the traditional turkey. This meal's turkey weighs 20 pounds raw and untouched. This information is as purchased (AP) weight. After cooking, removing the skin, and removing the meat from the bones, we're left with 9 pounds of edible meat. This is the edible portion (EP) weight. How much did the turkey yield in edible meat? See below for how this was calculated. 1. We use the standard formula for weight of EP = AP x yield 2. Flip the equation so it is solving for yield: yield = EP / AP 3. Enter in the known variables: yield = 9 pounds EP weight / 20 pounds AP weight 4. Solve: yield = 0.45, or 45% yield Next, we'll work on the stuffing, made up of breadcrumbs, fruit, nuts, and some other ingredients. The completed ready-to-eat stuffing weighs 3.5 pounds (the EP weight). The yield for the stuffing is 87.5%. There wasn't much waste from any cooking or of the Wha poking (AP weight )?Value Proposition The value proposition is dened as a statement of what it offers both in products and services to customers that is not available at other foodservice operators in the marketplace. While a unique value proposition is essential for the business, this is especially true for a food service operation that must compete on a daily basis to attract patrons over other operations. Q Fast Track Terminology Cost Control Cost control and containment of expenses are essential for all food service operations. The procurement ofcer we have learned in earlier modules needs to contribute as part of the working management team as they supervise the cycle of control. The management team needs to pay particular attention to the labour, food, and beverage costs, also known as the operator's primary costs. In addition to these critical costs, there is the cost of reusable operating supplies such as cutlery, glassware, china, and linen in full-service food service operations. Given that most operations have both a service side (interacting directly with the consumer) and a production side (preparing food or drink to be consumed), the primary costs incurred during these activities often determine the feasibility or success of the operation. This is especially true as the main product (e.g., food and drink) is perishable; ordering the correct amount requires skill and experience. The procurement officer needs to be acquainted with the following terms and formulas to achieve the necessary information for the team to make the correct decisions. (fT{] Practical Look at AP, EP, and AS calculations Courtesy of https://visualveggies.com/as-purchased-and-edible-portion/ C As Purchased and Edible Portion In keeping with the spirit of the holiday of Thanksgiving coming up next month, I thought it would be appropriate to go over a frequently asked question on AP and EP (or as purchased and edible portion). We'll take a common Thanksgiving meal and do a few calculations! What is Edible Portion and As Purchased? It's probably best to first go over some definitions on the topic: * Edible portion (EP) is the portion of food that will be served to a customer after the food has been cut and cooked. * As purchased (AP) is the portion of food that is in the raw state before any cutting, processing, or cooking has occurred. * Percent yield is the factor used to determine how much of the food is lost as a result of the cooking, cutting, and processing of the food. EP and AP questions should be pretty straightforward. There will typically be two bits of information given, and you need to solve for the third. The questions can be expressed in weight or price. You may need to calculate the EP weight when given the AP weight and percent yield, or vice versa. Alternatively, you may be asked to solve the equation for the EP cost (cost of the edible portion of food) when given the AP cost (how much was paid for the raw material) and also vice versa. If you are asked for the weight, the EP weight will always be less than the AP weight since this accounts for the weight of the product after the losses of processing and cooking If you are asked for the cost, the EP cost will always be higher than the AP cost. Take apples for example. You may need a pound of apples for a recipe and paid $1.00 for that pound of raw apples. But after skinning and coring the apples, you end up needing more of the fruit for the pound needed in the recipe. This increases the cost of the apples. The equation for determining edible portion Weight nt yield. If you need to calculate the edibleQ Negotiation Skills Courtesy of Indeed.com "Negotiation Skills: Definition and Examples". Published July 27th, 2020. https:[/www.Indeed.com/career-advIce/careerdevelopmentegotiationskills E'a' Negotiation skills are qualities that allow two or more parties to reach a compromise. These are often soft skills and include abilities such as communication, persuasion, planning, strategizing and cooperating. Understanding these skills is the first step to becoming a stronger negotiator. The skills you'll need depend on your environment, your intended outcome and the parties involved. Here are a few key negotiation skills that apply to many situations: Communication Persuasion Planning Strategizing Essential communication The ability to influence In order to reach an The best negotiators skills include identifying others is an important agreement that benefits enter a discussion with at nonverbal clues and skill for negotiation. It both parties, it is crucial least one backup plan, expressing yourself in a can help you define you consider how the but often more. Consider way that is engaging. It why your proposed consequences will all possible outcomes, is important to solution is beneficial to impact everyone in the and be prepared for each understand the natural all parties and longterm. Planning of these scenarios. flow of conversation and encourage others to skills are necessary not always ask for feedback. support your point-of only for the negotiation Active listening skills are view. process but also for also crucial for deciding how the terms understanding the other will be carried out. party. By establishing clear communication, you can avoid misunderstandings that could prevent you from reaching a compromise. edible meat. This is the edible portion (EP) weight. How much did the turkey yield in edible meat? See below for how this was calculated. 1. We use the standard formula for weight of EP = AP x yield 2. Flip the equation so it is solving for yield: yield = EP / AP 3. Enter in the known variables: yield = 9 pounds EP weight / 20 pounds AP weight 4. Solve: yield = 0.45, or 45% yield Next, we'll work on the stuffing, made up of breadcrumbs, fruit, nuts, and some other ingredients. The completed ready-to-eat stuffing weighs 3.5 pounds (the EP weight). The yield for the stuffing is 87.5%. There wasn't much waste from any cooking or processing of the stuffing. What was the weight of all the ingredients combined prior to any processing or cooking (AP weight)? See below for this calculation. 1. Again, we'll use the standard formula for weight of EP = AP x yield 2. This time, though, we flip the equation so it is solving for AP: AP = EP/yield 3. Enter in the known variables: AP = 3.5 pounds EP weight / 0.875 yield 4. Solve: AP = 4 pounds of raw stuffing ingredients Finally, we'll finish off with some sweet pumpkin pie. Except for this time, we're going to look at it from a cost perspective. The cost of the fresh pumpkin is $2.00. The pumpkin has an edible portion yield of 43%. What is the edible portion cost of the pumpkin? See below. 1. This time we'll use the formula for cost, not weight: EP cost = AP cost/yield 2. Enter in the known variables: EP cost = $2.00 AP cost of the raw pumpkin / 0.43 yield 3. Solve EP cost = $4.65 cost of the edible portion of the pumpkin