A firm’s primary goal for its upcoming raw material negotiations with a well-performing supplier is...

Research Market Conditions: Understanding current market conditions helps in assessing whether the supplier's prices are competitive and reasonable.

Supplier’s Financial Situation: Knowing the supplier’s financial health and their tolerance for early payment incentives can be crucial in negotiations.

Negotiate Incentives: Offering early payment incentives can be an effective strategy to negotiate cost reductions. This benefits the supplier by improving their cash flow.

Evaluate Alternatives: Consideration of alternative suppliers or negotiating other terms can also put pressure on the supplier to offer better pricing.

References:

CIPS: "Negotiation Techniques in Procurement and Supply"

ISM: "Supplier Negotiation Strategies"