Buyer-seller Negotiation on Camera Vision System: Brazilian Case

In this article, a Brazilian automotive company engages in a buyer-seller, Type II negotiation, to reduce alternators' production costs. It identifies the possibility of replacing an imported bearing with a cheaper Chinese one, saving $0.36 per piece. However, the change requires acquiring a new vision camera to detect the correct color of the bearing on the production line. The company negotiates with the Supplier, offering a high-quality solution that costs $10,000, exceeding the available budget of $6,363.64.In a scenario like this, companies freeze and look for more viable alternatives. This work proposes best managerial practices to elucidate how to resolve this impasse by presenting this descriptive and unique case study.