This Contract Negotiation Strategies & Effective Purchasing training course challenges the belief that anyone can purchase well and negotiate effectively. Neither of these assertions is correct. This belief wastes both large and small organizations' energy and profit.
This training course may save your company money by establishing a solid understanding of the benefits of purchasing offers and how to create a function capable of delivering those benefits through organizational excellence.
The ability to negotiate, not only with the marketplace but also with internal departments such as Engineering, Production, Finance, and Safety, is the second fundamental to success. Unfortunately, such negotiations are frequently delegated to those who are least capable of producing effective results. This impediment has a ripple effect throughout the organization, resulting in lower profitability, increased business risk, increased personal stress, and increased operational costs.
Participants must compare their understanding of their skills to principles that support effective purchasing and address concepts and ideas that benefit both the organization and themselves.
The objectives of a well-run purchase process and how to reach your internal customer. Establishing a basic understanding of the process of Negotiation
Significance of getting the specification to reduce both cost and risk. Evaluating potential suppliers and managing the supply chain
Tenders & bid evaluation & analyzing Price Cost and Value through financial management /analysis
The purpose of a contract / Legal needs / Terms and Conditions. Preventing contract failure. Discovering your personal negotiation capability
Obstacles to good negotiation. Tools of the successful negotiator. Essential elements of negotiation AND developing a personal action plan for improvement
Build an efficient and effective purchasing function
Communicate more effectively inside and outside of the organization
Understand your personal strengths and weaknesses
Understand contract needs and eliminate contractual risks
Plan and deliver a successful negotiation and negotiate with different cultures
Have confidence in your ability to negotiate at all levels with all organizations
This training course is very participatory. Participants are expected to associate lessons with their experiences and challenge current thinking in group discussions. Team-based exercises cover key learning phases in which participants examine problems and provide solutions for specific exercises. Smaller negotiations during the course lead to more complex negotiations on the final day. Each representative is expected to develop an action plan to bring learning back to work.
Identify the key failures which prevent the purchasing operation from being successful
Develop a more confident individual, comfortable representing the function at all levels in the Company
Reduce total cost of purchased materials, equipment, and services at reduced risk
Change from being reactive to needs to being proactive in all aspects of performance
Protect the Company’s interests through a better understanding of negotiation and contracts
Make performance improvement a key element in managing the business
An appreciation of what is possible in Purchasing and how you may contribute more
An understanding of your present capabilities and where you should invest in personal improvement
Increased confidence in operating in different environments/cultures / business levels
Greater comfort and confidence when placed in ‘difficult’ negotiating positions
An appreciation of other people’s problems and how to persuade them to your way of thinking
Become more challenging of existing methods and systems and less accepting of the way things are
