Course Objectives:

• Learn to win in negotiations.
• Taught by a consultant with years of actual experience in negotiations with suppliers and buyers as well as an expert in the implementation of cost reduction programs.
• Fast paced with group and individual exercises to provide experience with the techniques presented.
• Receive a cost reduction reporting procedure and a template for a purchased material/service strategic plan.

Course outlines:

Continuous Improvement in Cost and Productivity

• The Need For Change
• How Do Other Functions View Purchasing
• A Purchasing Savings Model
• Total Cost Of Ownership Models
• Continuous Improvement Skill Sets
• Cost Reduction Initiatives
• Cost Savings Reporting Procedure
• Data Mining
• Establishing A Strategic Focus With The ABC Analysis
• Modern Methods Of Analyzing The Spend

Cost Reduction Opportunities

• User Group Brainstorming Sessions
• Developing Company Purchase Price Index And Comparing To External Indexes
• Understanding Of Supply Marketplace And How Suppliers Price
• Benchmarking
• Process Mapping To Eliminate Low Value Activities
• Developing Purchasing Material/Services Strategic Plans
• Resisting Price Increases
• You Will Never Be Better Than Your Suppliers
• Supplier Performance Measurement
• Cost Saving Methods

Methods of Price Evaluation

• Price Justification
• Model For Selecting Analysis Methods
• Methods Of Price Analysis
• Competition
• Historical Prices
• How Much Profit Is Fair
• Methods Of Cost Analysis
• Breaking Down The Elements Of Cost
• Developing “Should Cost”

Successful Negotiations

• Our Responsibilities As Agents
• Negotiation Skill Sets
• Steps In Negotiation Preparation
• Methods Of Persuasion
• What Does Win/Win Really Mean?
• Determining The Issues
• Defining Issues For Specific Contract Provisions
• Payment Terms
• Progress Payments
• Warranties
• Spare Parts
• Rating & Valuing Issues
• Standards Of Ethics In Purchasing And Contracting Conduct

Strengths and Weaknesses

• Evaluating Your Position
• Know Your BATNA
• Analyzing The Other Side
• Negotiation Objectives Diagram
• Negotiations Planning Forms
• Prepare The Negotiation Team
• Tips For The Actual Negotiation
• Participants will negotiate model cases and discuss the results to provide an opportunity for hands on experience.

Who Can Benefit?

• Engineering , Operational , Project , and Maintenance personnel.

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