Which of the following actions should the firm undertake first?

A firm sells its products to retailers who then sell these products to customers. The firm wishes to obtain retail sales data for these products in near real time to improve its demand planning.

Which of the following actions should the firm undertake first?
A . Develop and select from negotiation options.
B . Anticipate data negotiation agreement frameworks.
C . Review data needs and potential trading options.
D . Informally discuss potential data exchanges without committing.

View Answer

Answer: C

Explanation:

Before the firm can negotiate or discuss data exchanges with the retailers, it should first review its own data needs and potential trading options. This means that the firm should identify what kind of retail sales data it requires, how frequently, and for what purpose. It should also assess the value and quality of the data, and the costs and benefits of obtaining it. Moreover, the firm should explore what kind of data it can offer in return to the retailers, and how it can create a mutually beneficial data exchange relationship. By reviewing its data needs and potential trading options, the firm can prepare a clear and realistic data exchange proposal that can facilitate the subsequent negotiation or discussion process.

1: Data Processing Agreements: Coordination, Drafting, and Negotiation