II. Supply Strap Supply Simulation Results

This simulation is demonstrating the use of multivariate blind bidding with Smartsettle Suggestions as an alternative to the time consuming negotiation dance that typically characterizes conventional negotiations. Continue reading below to see results from joint sessions.

Joint Sessions

Joint sessions are held by the parties to discuss the issues, develop their Framework for Agreement and choose decision variables for negotiation. We are only posting the highlights of the simulation here. If you are interested in seeing more details you may request permission from This e-mail address is being protected from spambots, you need JavaScript enabled to view it

Parties began their discussion in the Smartsettle Joint Session where the process was outlined by the lead facilitator. There are many ways that parties can communicate with each other during the Smartsettle process. The Joint Session is used to record and organize progress toward agreement.

Assisted by their private Facilitators, each party created their own draft Framework for Agreement on the basis of given background information, expression of interests, and brainstorming about the issues.

In response to the drafts submitted by the parties, the Lead Facilitator posted a shared draft Framework for Agreement as shown below.

Following is a summary descriptive of each of the issues.

TERM (months)

This is the length of the contract.

COMMITTED VOLUME (%)

Buyer agrees to purchase from Supplier at least this percentage of their total consumption.

STEEL STRAP PRICE ($/10 kg)

This is the price that will be paid for Steel Strap.

SEALS PRICE ($/1,000)

This is the price that will be paid for Seals.

EDGEBOARD PRICE ($/1,000)

This is the price that will be paid for Edgeboard.

MINIMUM ORDER SIZE (@10 kg)

This is the minimum size of each order that Buyer will make.

ORDER LEAD TIME (hours)

This is the length of time within which Supplier must deliver the order.

PRICE INDEX INTERVAL (months)

There are two prices for each product; a variable "base price" and a fixed "invoice price". The invoice price, which is currently being negotiated, will be constant for the length of the contract while the base price will be allowed to increase by up to 5% a year to adjust for Supplier's increased costs according to a formula described in the prior contract. The difference between the two prices determines the Buyer's rebate during each indexing interval.

INVOICING FREQUENCY (days)

This is the minimum average length of time between invoices.

PAYMENT TERMS (days)

This is minimum time within which Buyer must pay Supplier’s invoice.