Excellence in Purchasing Strategies, Negotiating and Cost Reduction

OBJECTIVE
Upon completion of this seminar, participants will know:
• How to be on the road to world class in cost reductions
• Processes for data mining and developing strategic plans
• Methods of cost improvement
• Process for developing purchase price index
• Procedure for reporting cost improvements
• Cost Reduction vs. Cost Avoidance
• How to evaluate supplier prices
• Reducing low value activities
• Best practices in qualifying suppliers
• The importance of planning in successful negotiations
• Approaches in negotiations
• Standards of ethics
• The importance of rating and valuing the issues in a negotiation
• Negotiating important issues in various contract clauses
• Important elements of final preparation
CONTENT
Continuous Improvement in Cost and Productivity
• The Need For Change
• How Do Other Functions View Purchasing
• A Purchasing Savings Model
• Total Cost Of Ownership Models
• Continuous Improvement Skill Sets
• Cost Reduction Initiatives
• Cost Savings Reporting Procedure
• Data Mining
• Establishing A Strategic Focus With The ABC Analysis
• Modern Methods Of Analyzing The Spend

Defining Cost Reduction Opportunities
• User Group Brainstorming Sessions
• Developing Company Purchase Price Index And Comparing To External Indexes
• Understanding Of Supply Marketplace And How Suppliers Price
• Benchmarking
• Process Mapping To Eliminate Low Value Activities
• Developing Purchasing Material/Services Strategic Plans
• Resisting Price Increases
• You Will Never Be Better Than Your Suppliers
• Supplier Performance Measurement
• Cost Saving Methods

Methods of Price Evaluation
• Price Justification
• Model For Selecting Analysis Methods
• Methods Of Price Analysis
• Competition
• Historical Prices
• How Much Profit Is Fair
• Methods Of Cost Analysis
• Breaking Down The Elements Of Cost
• Developing “Should Cost”

Successful Negotiations
• Our Responsibilities As Agents
• Negotiation Skill Sets
• Steps In Negotiation Preparation
• Methods Of Persuasion
• What Does Win/Win Really Mean?
• Determining The Issues
• Defining Issues For Specific Contract Provisions
• Payment Terms
• Progress Payments
• Warranties
• Spare Parts
• Rating & Valuing Issues
• Standards Of Ethics In Purchasing And Contracting Conduct

Determining Strengths and Weaknesses
• Evaluating Your Position
• Analyzing The Other Side
• Negotiation Objectives Diagram
• Negotiations Planning Forms
• Prepare The Negotiation Team
• Tips For The Actual Negotiation
• Participants will negotiate model cases and discuss the results to provide an opportunity for hands on experience
FOR WHOM:
Stores, Purchasing and Logistics Personnel in the Public and Private Sectors.
Methodology
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical experience, emphasizing the application of learned techniques. This approach ensures that attendees return to their professional environments equipped with both the competence and self-assurance to effectively implement the acquired skills in their responsibilities.

DATE:

1ST BATCH:        25th – 28th Mar,               2025     

2ND BATCH:       16th – 19th Sept,             2025