EFFECTIVE PURCHASING

EFFECTIVE PURCHASING

Objectives:

Upon completion of this seminar, participants will know:

• The importance of planning in successful negotiations
• Approaches in negotiations
• Standards of ethics
• The importance of determining, rating, and valuing the issues in a negotiation
• Evaluating strengths and weaknesses
• Important issues in various contract clauses
• Important elements of final preparation
• Common negotiation tactics & counter measures
• Gain experience & confidence through the actual negotiation of sample cases

Course contents:

What Makes a Negotiation a Success?

• Personal obstacles to a successful negotiation
• Purchasing responsibilities as a negotiator
• Understanding the phases of a negotiation
• What makes the “ winners” win – the elements of success
• Comparing Approaches in Negotiations
• Looking for a better deal for both parties
• When to use what style of negotiation
• Protecting yourself and your company
• Using Time as a key element

The Expert Negotiator Has Many Talents

• Skill sets and knowledge requirements
• The role of intuition and Emotion
• Understanding your present personal capability
• Defining the negotiator competencies
• Uncovering the learning gap
• Identifying what should be negotiated
• Positioning the negotiation
• Determining the suppliers likely position
• The influence of long and short term supplier relationships
• The importance of research

Valuing Issues for Both Sides

• Understanding price and cost
• Determining the suppliers pricing strategy
• Life cycle costing and improving added value
• Developing price indices
• Needs of a standard contract
• Developing terms and conditions of contract
• Transfer of ownership and risk
• Warranties & spare parts issues
• Liquidated damages
• Negotiating contractor contingencies
• Economic price adjustment clauses
• The Tender Process – does it add value
• Developing a tender assessment model

Common Negotiation Tactics & Countermeasures

• Framing the negotiation
• Deciding your tactics and counter tactics
• Dealing with bargaining
• How to concede to gain advantage
• How to keep the seller selling
• Dealing with deadlocks in negotiations
• Avoiding The Funny Money Trap
• Lessons in negotiation from history
• 24 essential things to do in any negotiation

Who will benefit?

Professionals involved in:

• Projects, Contracts, Purchasing, Contract administration
• Operations, Maintenance, Quality & Engineering
• Other company activities that expose them or their staff’s to negotiations with contractors and suppliers and who want to improve their competency in this critical area of performance