COURSE OBJECTIVE

To sharpen and refine your skills in contract negotiation for purchasing, procurement and supply to make a positive impact on your bottom line.

If you want to succeed in procurement and purchasing, you will need a thorough and specific understanding of negotiating within a procurement management context.

Negotiating for Purchasing, Procurement, Contract and Supply has been designed to be highly interactive. You will be involved with group discussions, negotiation simulations and practical activities to enable you to apply concepts and techniques examined on the course to your own industry and work situations. By attending this course, you will also benefit from meeting with participants from a variety of industry and gain valuable insights into other industries, their issues and solutions that you can transfer into your own workplace.

Negotiating for Purchasing, Procurement, Contract and Supply is a practical and hands-on course that combines technical know-hows (e.g. contracts, legal agreements, Total Cost of Ownership) and the personal behavioural side of negotiating.

7 GREAT REASONS TO ATTEND THIS COURSE

1. Achieve more from your negotiations by understanding how to effectively prepare for and conduct negotiations within a procurement management framework.

2. Align your negotiation strategy with your procurement process to rationalise categories, select high performing suppliers and consistently manage them to better business results.

3. Adapt your negotiation approach to better fit the category of supply.

4. Establish and build relationships that provide a platform for supplier management with minimum hassle and maximum results.

5. Confidently bargain for what you want by understanding how trading variables fit within a Total Cost of Ownership framework. Know when to trade and when not to.

6. Learn how to select legal agreements and use lawyers to support the outcomes you want.

7. Deal more confidently with negative and manipulative negotiation strategies. 

Day One

Negotiation Within A Procurement Management Context

• How negotiation fits within the strategic procurement management process of

- category rationalisation

- vendor selection

- supplier implementation

- supplier management

• How negotiation is affected by an organisation’s approach to Total Cost of Ownership (TCO):

• Control over adding new vendors

• Purchasing process considerations

• Process ownership

• Implications of maverick expenditure on purchasing credibility and contract fulfilment

• Process savings

• What are they?

• How you calculate them?

• What is their “Real” vs. perceived value?

• Hard vs. soft savings

• Keeping track of procurement’s value add

• Getting suppliers to help you keep score

Planning For Negotiation

• Aligning negotiation strategy to support category management outcomes

• Recognising who has the power

• Identifying and prioritising outcomes for both parties

• Using Total Cost of Ownership analysis to identify the real cost of doing business for both parties so that the focus is on margins not just on price

• Identifying trading items and bargaining ranges

• Understanding the offer and bargaining with concessions

• Manoeuvring disagreements and overcoming negotiation roadblocks

• Developing alternatives so you are never without options

• Defining behavioural standards for the negotiation process

PRACTICAL EXERCISE

Using planning tools to:

• Identify strategic vs. commodity suppliers

• Define supplier management strategies

• Identify soft and hard savings

• Identify trading variables and areas for concessions

• Develop a BATNA (Best Alternative to Negotiated Agreement)

• Define negotiation opening and trading strategies

Day Two

Personal Negotiation Skills Inventory

When to:

• Compete

• Collaborate

• Compromise

• Concede

• How your personal behaviours affect your negotiation effectiveness

PRACTICAL EXERCISE

• Which is your preferred negotiation strategy?

• Which negotiation strategy do you under-utilise?

• Action planning to capitalise on strengths and minimise weaknesses as a negotiator

Negotiation Skills

• Managing aggressive or passive responses

• How to keep the focus on YES and getting beyond NO

• Overcoming common negotiation tricks and ploys

• Bargaining and trading

PRACTICAL EXERCISE

Two Team Negotiations Role Plays:

• Using negotiation planning worksheets

• Identifying team roles and leadership

• Opening

• Trading

• Seeking agreement

• Closing

Contracting & Supplier Management

• What constitutes a contract and why is it important?

• Deciding what sort of supplier management approach fits

• Developing a contract

• How and when to involve lawyers in writing a contract

• Using penalties vs. gain-sharing

• Terminating contracts with non-performing suppliers

• Contract reviews - when to re-tender