Role play situation: Your team $($contractor$)$ are negotiating terms with the supplier team of a critical component in your manufacturing process. You receive $100$ units monthly. Your project needing $150$ units for the next $6$ months and perhaps as many as $200$ units ongoing after that. You$$ve been satisfied with the supplier$$s quality, however, there have been two occasions where late deliveries have forced overtime to meet customer commitments. An out of state vendor has offered you a $20\%$ discount for the $200$ units per month for a one$-$year contract. Analyze the power factors, set up your negotiation strategy, walk through a scenario with your team.

Contractor: You are looking at a long$-$term commitment with reduced cost over time. Decide what you want to pay and the tactics you will employ making concessions. A similar item from alternative vendor with be your benchmark in cost and deliverables contract.

Supplier: You have been a solid provider for this contractor over years with some hiccup and operational glitch that you need to recover. Nonetheless, this is not the only project that you been awarded with hence your business can always sustain without it$.$ Strategize and use the integrative approach that you can negotiate when it comes to leveraging the power that you have$/$your contractor have.