INTRODUCTION FOR MANAGING SUPPLIER ,COST SAVING & NEGOTIATION TECHNIQUES FOR PROCUREMENT FUNCTION

In order to improve company profitability and ability to drive up market share, the demand for an effective and efficient procurement management is a pre requisite. Key competencies in area of cost control, applying strategic strategy to manage supplies and the negotiation of the most advantageous benefits to the company is extremely important.

This program promotes the key competencies to manage procurement and purchasing effectively by delivering the technique of managing cost saving activities and handling effective negotiation.

COURSE OBJECTIVES

By the end of the 2 day classroom learning, the learning curve achieve will enable the following:-

• IDENTIFY the type of negotiation strategy to be in place to manage procurement negotiation
• DEVELOP skills in handling difficult negotiation
• UNDERSTAND successful negotiator techniques
• UNDERSTAND the right strategies for cost reduction and cost elimination (cost saving)
• IDENTIFY the right strategies to implement cost saving
• UNDERSTAND the correct techniques of cost reduction using the ERRANT methodology
• DEVELOP competencies in selecting and managing suppliers and contractor to enhanced cost saving activities
• UNDERSTAND the correct Incoterms to use to maximize saving in procurement
• DEVELOPING delivery contract to ensure company rights are protected
• SENSITIZE participants to important and impact of all the knowledge in this program

WHO MUST ATTEND

This training program is highly recommended for employees involve in the managing of the supply chain function in the company, for example, personnel from procurement, warehouse, logistics and planning department and finance.

METHODOLOGY

This training will involve the following area to enhance learning:

• Power point presentation
• Case studies & Brain storming session
• Discussion on subject of learning
• Facilitating by trainer to enhance understanding of subject matter
• Case study will be given to all participants on the 1^st day of the class for Negotiation and Cost Reduction. Cost reduction case study to be presented by end of day 1 and Negotiation case study by end of day 2.

COURSE CONTENT

Module 1 – Introduction on Program

• Supply chain – the critical path to companies success
• Procurement & Purchasing key differences\
• Procurement key to companies competitive advantage

Module 2 – Strategic and Tactical Strategies of Procurement

• Definition of Strategic versus Tactical
• Strategic sourcing
• Type of sourcing and tendering
• Evaluation and selection strategies
• On boarding and Off Boarding process
• Expediting Surveillance management

Module 3 – Understanding Delivery Contract

• Choosing the most effective delivery mode
• Understanding benefit and risk of Incoterms
• Key Fundamental of a proper Contract
• Developing Delivery Contract
• Force Majeure
• Buyer and Seller Role and Responsibility
• Sales of Goods Act for delivery contract

Module 4 – Cost Reduction and Cost Avoidance

• Cost Reduction versus Cost Avoidance
• Area of Cost Reduction and Cost Avoidance
• Key Factors to consider in Cost Reduction
• Opportunity cost in cost reduction activities
• ERRANT cost reduction and avoidance strategy
• Team setting for cost reduction
• EXCEL spreadsheet reporting on cost avoidance and reduction
• Break out room discussion

Module 5 –Key Principle of Negotiation

• What is Negotiation
• Stages of Negotiation
• 5 principles of ethical negotiation
• 7 elements of negotiation
• 4 key principle of principled negotiation
• Generate Option for positive result
• How to use Objective Criteria to Present Argument
• Handling Challenges
• Getting a Yes in negotiation

Module 6 – Understanding your Alternatives

• Definition of WATNA and BATNA
• Steps to develop your alternatives
• Looking for ZOPA

Module 8 – Negotiator Profile and Traits

• Negotiation Team
• The Soft Negotiator
• The Principled Negotiator
• The Hard Negotiator
• Traits of a good negotiator
• Bad Negotiator habits
• Mistakes made in Negotiation
• Body language in negotiation
• Mistakes made in Negotiation
• Dealing with difficult negotiators

Module 9 – Persuasion and Influencing Strategy

• Why Influencing is Important
• How do you build Influence
• Key Sources of Influence
• Power strategy versus Influencing strategy
• 3 Rs of Influencing Strategies
• Hard persuasion and influence strategy
• Soft persuasion and influence strategy
• SWOT analysis
• Case study and  Role Play

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