Purchasing Techniques, Negotiating & Cost Reduction

Course Code: PM22

Course Objective

  • Examine the key features in spend profiles
  • Evaluating costing reduction opportunities
  • Understanding supplier pricing structures
  • Apply purchasing strategic plans
  • Develop common approaches in planning for negotiations

 

Target Audience

  • Contracts, Purchasing, and Procurement Personnel
  • Engineering, Operational, Project, and Maintenance Personnel
  • Those who are involved in the planning, evaluation, preparation and management of purchasing, tenders, contracts that cover the acquisition of materials, equipment, and services

 

Course Outline

Day One: Continuous Improvement in Cost and Productivity

  • How do other functions view purchasing
  • A Purchasing Savings Model
  • Total Cost of Ownership Models
  • Cost Reduction Initiatives
  • Establishing a Strategic Focus with Pareto Analysis on Cost
  • Modern Methods of Analyzing the Spend

Day Two: Defining Cost Reduction Opportunities

  • Developing Company Purchase Price Index and Comparing to External Indexes
  • Understanding of Supply Marketplace and how Suppliers Price
  • Benchmarking best practices in Cost Reduction
  • Resisting Price Increases
  • Supplier Performance Measurement
  • Cost Saving Methods

Day Three: Methods of Price Evaluation

  • Price Justification
  • Methods of Price Analysis
  • The Competition that leads to price reduction and evaluation
  • Methods of Cost Analysis
  • Breaking down the Elements of Cost
  • Developing "Should Cost"

Day Four: Successful Negotiations

  • Negotiation Skill Sets
  • Steps in Negotiation Preparation
  • Methods of Persuasion
  • What Does Win/Win Really Mean?
  • Determining the Issues
  • Rating & Valuing Issues

Day Five: Determining Strengths and Weaknesses

  • Know Your  Better Alternatives to Negotiated Agreements (BATNA)
  • Analyzing The Other Side
  • Negotiation Objectives Diagram
  • Prepare the Negotiation Team
  • Tips for the Actual Negotiation
  • Participants will negotiate model cases & discuss the results to provide an opportunity for hands on experience 


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Date & Location

Date : 17 February 2019

Duration : 5 days

Place : Kuala Lumpur

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Date : 15 September 2019

Duration : 5 days

Place : Madrid

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