Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat. - Sun Tzu
All along, the procurement negotiations often mistaken as bargaining and have been looked from only one angle and that is to reduce the material cost. Yes, cost-reduction should be the concluding element of the procurement negotiations nevertheless, the transactional nature or operational nature of the negotiations always overrode the strategies aspects. This programme takes the procurement negotiations to a higher level by providing negotiations strategy. This negotiations strategy will help reduce the procurement cost for future procurement negotiations
Indigenous concepts by the faculty: - Faculty has used past attendees experience for research purposes. Based on this research, faculty has developed following forms indigenously:
- Request For Proposal (RFP) (this is very exhaustive document and when this document is used, nothing will go wrong while ordering the material)
- Pre-negotiation Costing Sheet
- Pre-negotiation Planning Sheet
- Post-negotiation Evaluation Sheet
- Negotiations Record Sheet
Cost Reduction of attending this Training or ROI on Training: - You can recover the cost of training because of the time saved in negotiations or time saved in correspondence with the vendor. Intangible benefits can be accrued by implementing "Negotiations Planning Sheet". Large chunk of intangible benefits will come when you evaluate assiduously "Post-negotiation Evaluation Sheets" compiled over a period of time.
Purchase negotiations are derived from material requirements, vendor development measures etc. For this reasonable knowledge of the concepts of materials management like inventory planning, purchase procedures, quality parameters, pricing etc is essential. Therefore, three fourths of the programme duration will be devoted to discussion of these topics. You will also get sample RFQ that our faculty has prepared indigenously. The comprehensiveness of the RFQ eliminates unwanted discussions in negotiations. Soft skills are important in negotiations but in purchase negotiations their requirement is not more than 10%.
By attending Strategies for Procurement Negotiations workshop, delegates will:
- Distinguish between purchase negotiations and general negotiations
- Understand the difference between adversarial and partnership negotiation approaches
- Understand the concept of Total Cost of Ownership (TCO)
- Importance of Kraljic Matrix and how to categorise vendors based on this matrix
- Understand the process of negotiation
- Recognise some negotiating skills and ploys
- Understand various behavioural styles of negotiations
- Understand how to evaluate the negotiations with the suppliers
In Strategies for Procurement Negotiations training course, you will get two forms. One is "Negotiation Planning Sheet" and second one is "Negotiation Evaluation Sheet". Both are developed indigenously by the faculty. After negotiations with supplier, procurement professionals can record their observations on "Negotiation Evaluation Sheet". Once sufficient numbers of these sheets are accumulated, they can analyze the details. The analyses gives insight in showing pattern in their negotiation styles and develop further negotiation commodity-wise or product-wise strategy. The training on negotiations skills in real sense happens on analyzing these evaluation sheets.
There will be a higher level discussion in this training programme. Therefore, this programme is suitable for the Managing Directors, Procurement Directors or Head Procurement, Head Supply Chain, Head Vendor Development and so on.