Executive Summary Driving value through procurement and supply is the aim of every firm that has mastered the market forces. Such firms know that quality of the products they deliver to their customers and the price they shall charge all depend on their procurement strategies. As such, it is important to develop techniques that can be used in acquiring raw materials to improve the benefit, especially when the implementation is to be done in the future. According to this paper, negotiation is one of the very critical aspects of procurement. The procurement department must be able to negotiate high value for the firm using a win-win strategy. The aim should always be to get the best value when sourcing raw materials. As shown in this paper, having a strong relationship with suppliers is as important as getting great value from them. The management should know the inclusions that should be made in the contract and measures that should be taken to ensure that changes in the market forces do not affect the agreements made in the contract. Effective management of the supply chain can help reduce the cost of production and in increasing value for the customers. Introduction In the current competitive business environment, the success of a firm is partly determined by the strategies it uses in managing procurement and supply chains. One of the ways of ensuring that a firm gets the best value in its procurement and supply chain is to use effective negotiation strategies. O’Brien defines negotiation as “a process in which two or more people with differing views, reach agreement by the use of different methods of persuasion” (67). A negotiation process can only be considered a success if the two parties reach an agreement. Not all negotiations often end up in an agreement. However, if the parties can agree on the contentious issues involved, then the process is considered completed. According to Turner, acquiring raw materials from suppliers is a process that requires negotiation (41). While the supplier may try to get as much profit from the supplies as possible, the buyer would want to purchase the products at the least possible price. These conflicting views must be addressed to make the two parties sign a contract acceptable to both of them. The management must ensure that the firm gets the needed materials within the right time and in the right quantity. In this paper, the researcher seeks to create a sourcing plan for future requirements for a mid-sized firm, which in this study will be referred to as ABC Company. Roles of Procurement and Supply in Managing This Area of Expenditure Acquiring raw materials is one of the most important stages in value chain management. According to Guth, the approach used in acquiring the raw materials often defines the cost and quality of the final product (38). Managing expenditures when acquiring these materials is, therefore, of great importance. It is for this reason that it is necessary to evaluate the roles of procurement and supply in managing this area of expenditure. O’Brien defines procurement and supply as “an area of management that involves buying of goods and services to enable a firm to operate” (81). It entails sourcing raw materials from various parts of the world and making them available for production. The following figure shows the stages that should be taken into consideration by the management of ABC Company when sourcing raw materials. Figure 1: Procurement and supply cycle. Source (Sollish and Semanik 14) The process starts with need identification. In this case, it is unders