ABSTRACT
This research work on negotiation as a cost reduction tools on materials purchases a case study of Asaba Tex Nig. Ltd. The scope of this research work covers every activity which has to do with negotiation problems, background to the subject matter, rationale for the study and the limitations of the study. The research reviews the related literature about the topic under discussion by gathering from distinguished authors and scholars, facts and opinions the finding of this study through the administration and oval interview of some employees of the company, revealed that effective negotiation lead to cost reduction and also contributed to the company’s profitability.
Finally, based on the findings a number of recommendations were made that Asaba Tex Nig ltd should ensure that all worker should under the professional training in the field. Also the company should amend their policy and responsibity for transportation and inspections during negotiation because this is not a good policy. The seller is suppose to be responsible since in is the one to sell his products to the organisation.
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