Course Objectives.

• The importance of planning in successful negotiations
• Approaches in Negotiations
• Standards of ethics
• How to determine, rate, and value the issues in a negotiation
• Elements of supplier cost structure to assist in negotiations
• Evaluating strengths and weaknesses
• Important issues in various contract clauses
• Important elements of final preparation
• Common negotiation tactics & countermeasures
• Gain experience through the actual negotiation of sample cases

Course Outline
 Negotiation

• Why are we here?
• What are negotiations?
• Our responsibilities as Agents
• Exercise: Defining Negotiation Skill sets

Who Wins Negotiations

• Preparation-the critical step?
• The most important thing to remember in negotiations
• Steps in Negotiation Preparation

Comparing Approaches in Negotiations

• Win/lose approach
• What does Win/Win really mean?

What gets negotiated?

• How many issues?
• Determining the issues

Timing as an Issue

• Business cycle
• Market conditions
• Lead-time

Defining Purchasing Issues

• Payment terms
• Transportation issues
• Inventory
• Quantities
• Pricing issues

Contract Issues for:

• Types of contract
• Progress Payments
• Warranties

Defining Contract Issues for

• Acceptance
• Spare parts
• Liquidated damages
• Training

Rating & Issue Types

• Ranking issues
• Determining the 4 types of issues

Valuing Issues for Both Sides

• Understanding elements of supplier cost structure
• Total cost of ownership considerations

Negotiating Contractor Contingencies

• Economic Price Adjustment Clauses
• Price Indexes

Let’s Talk about Ethics

• Standards of ethics in purchasing and contracting conduct
• Sharp practices
• Assess Strengths & Weaknesses
• Evaluating your position
• Analyzing the other Side
• The 4 sets of needs

Defining The Objectives

• Determining initial positions
• Negotiation objectives diagram
• Negotiations planning forms

Impact of other Influences

• Actions of competitors
• Economy

Pre-negotiation Exchanges

• Purpose of pre-negotiation exchanges
• Preparing the team for pre-negotiation exchanges

Final Preparation

• Team or individual negotiations
• How to handle the issue of authority
• Determine strategies
• Where and when
• Planning the agenda
• Role play and role play

Tips for the actual Negotiation

• 18 important negotiation points to remember
• Ending Deadlocks in negotiations

Common Negotiation Tactics & Countermeasures

• Undermining
• Delaying Action
• Questioning
• Negative concessions
• The “if” Statement
• Comparative Options
• Funny Money

Post review and analysis

• Document results
• Analysis against objectives

Model Negotiations

• Participants will negotiate model cases and discussing the results to provide an opportunity to put into practice the topics covered earlier.

Who Should Attend?

Managers and professionals involved in projects, contracts, purchasing, operations, maintenance, engineering, quality, and 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.

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