Negotiation Exercise The Negotiation Problem - Shipping Washing Machines A trucking firm faces considerable difficulties with a shipment of washing machines that resulted in several of the units having been damaged. The units which were damaged were packed on pallets, wrapped in thick cardboard stapled to the pallets. Upon delivery the cardboard packaging on the damaged product had been compressed and wrinkled on the bottom right corner of the item. When the shipment reached the customer, a large appliance retailer, the damaged machines were put aside to be further inspected and dealt with in discussions with the supplier and the trucking frim. The appliance retailer was now short of inventory by several machines and was concerned about losing customers that had been promised prompt delivery. The appliance store manager wants new machines sent promptly, at the supplier's expense and wants recovery for costs associated with lost business (or the discounts he must now give customers for the delayed merchandise). The supplier has replied that the machines were in perfect condition when they were packaged, and the damage must have occurred in the shipping and handling by the trucking firm after it left the supplier facility. The trucking firm argued that it was the supplier who loaded his truck, and the damage likely happened upon loading- therefore it was not the trucking firm's responsibility. The supplier's shipping and receiving manager countered this argument by claiming that the machines were inspected as they were loaded on to the truck and his employees were trained to be extremely careful with such goods. The employee who loaded the truck was interviewed and insisted the machines fit perfectly on the truck, without any rubbing or bumping of the cartons. Consequently, the supplier suggested that the machines had room to move on the truck and without having been better secured by the trucking firm, they moved around during the shipment resulting in the damage that had occurred. All parties had therefore reached an impasse. As a result, we have a negotiation problem in this situation. There is a difference of views and a difference of each party's goals however, a solution needs to be found and it should be negotiated. Questions 1. If you were the appliance store manager and you wished to achieve a "win-win result for all parties how you would approach this situation? 2. What steps would you take to address the impasse that has occurred? 3. What could be your solution(s)? 4. How would each participant in this situation react to the solution? This problem can be addressed by groups of 4-5 students who will record their answers to the questions and report to the class on their findings