Basic Negotiations

Negotiating is a critical skill for every procurement professional, but not everyone feels comfortable negotiating or knows the strategies for success. This course will provide an introduction to negotiation styles and tactics, with a special emphasis on preparation steps, such as market research and price analysis.

After completing this training, participants will be able to:

1. Know the basics of the negotiation process as it pertains to procurement

2. Know the elements of effective planning in procurement negotiations

3. Understand negotiation styles and tactics

4. Learn how to evaluate a supplier’s price

5. Apply knowledge of the negotiation process to internal and external negotiations

6. Develop basic negotiating skills and procurement issues

Modules:

• Module 1: Introduction to Negotiations

• Module 2: Negotiations Planning: the Key to Success

• Module 3: Managing the Negotiations

• Module 4: Personality and Negotiations

• Module 5: Performing Evaluation of a Supplier’s Proposed Price

• Module 6: Conducting the Negotiation

• Module 7: Buyer Tactics

Intermediate Negotiations

This course will provide the procurement professional who has some experience negotiating with the additional knowledge to take their skills to the next level. This course will focus on developing the negotiator’s understanding of power dynamics, controlling the flow of negotiations, managing conflict, and choosing the appropriate style and behavior at various points in negotiations.

After completing this training, participants will be able to:

1. Evaluate the negotiation environment in a procurement setting

2. Understand the role of negotiator power, either from a buyer’s or a supplier’s perspective

3. Determine the appropriate negotiating style

4. Manage conflicts that arise during negotiations, either internally or with suppliers

5. Understand the strategic and tactical roles and responsibilities of negotiators representing the buyer and supplier

Modules:

• Module 1: The Negotiating Environment

• Module 2: Negotiations: Use a Model That Works

• Module 3: Establishing Agendas and Control Points

• Module 4: Conflict Management

• Module 5: Cultural Approaches to Negotiations

• Module 6: Effective Habits of Intermediate Negotiators

Advanced Negotiations

For the procurement professional with a firm grasp on negotiations, this master class will provide the final strategic insights necessary to cement an expert understanding of negotiation. Negotiation theories will be discussed, and a more in-depth coverage of negotiation styles and power dynamics will be provided.

After completing this training, participants will be able to:

1. Understand the unique negotiation dynamics present in buyer/seller interactions

2. Understand new negotiation theories and apply them to upcoming negotiations

3. Develop frameworks or goals for complex negotiations

4. Identify negotiation styles and potential results

Modules:

• Module 1: Using Frameworks to Set Negotiating Goals

• Module 2: Negotiation Modes and Styles

• Module 3: New Tactics and Techniques to Consider

• Module 4: Breakthrough Bargaining

• Module 5: Consensus Decision-Making

• Module 6: Packaging the Details of the Negotiation

• Module 7: How to Deal with Objections

• Module 8: Ensuring Success as an Advanced Negotiator

Strategic Sourcing

Strategic sourcing aims to create value for your organization through your product and service purchases by providing a standardized, step-by-step methodology for all staff to follow.  Creating value is more than just cost savings.  You might also focus on quality, customer service, or operational efficiencies in addition to finding the most cost-effective solution.  Best practices organizations use the Strategic Sourcing process to save money and improve supplier performance.

After completing this training, participants will be able to:

1. Learn how to create a world-class strategy for sourcing projects.

2. Evaluate options for sourcing strategies and the type of supplier relationships desired for suppliers.

3. Apply a 7-step process to use in completing sourcing projects to implement the category strategy.

4. Identify and understand specific requirements of key stakeholders to include in sourcing plans.

5. Develop team composition, roles and responsibilities, and a framework for working together to achieve strategic sourcing goals.

Modules:

• Module 1: Introduction

• Module 2: Step 1 - Perform Spend and Market Analysis

• Module 3: Step 2 - Develop Sourcing Strategy

• Module 4: Step 3 - Evaluate Supplier Market Capabilities

• Module 5: Step 4 - Develop Solicitation

• Module 6: Step 5 - Evaluate Supplier Proposals: Select the Best Supplier

• Module 7: Step 6 - Negotiate Terms of Purchase

• Module 8: Step 7 - Implement the Signed Agreement

Innovation in Supply Management 

In this course, you will learn how to develop a system of innovation sharing with your suppliers; be able to identify areas for innovation in your supply chain processes and your suppliers’ operations; learn how to put innovation into action; and learn how to access supplier capability for innovation. You will develop a plan to work with your suppliers to increase the number of innovative ideas generated and implemented.

After completing this training, participants will be able to:

1. Create a channel to receive innovative ideas from suppliers

2. Recognize areas requiring innovation in supply management

3. Put innovative ideas into action

4. Tap supplier capability more effectively

5. Create an environment to receive and consider supplier and internally generated ideas.

Modules:

• Module 1: Defining Innovation in Supply Management

• Module 2: Developing Innovation Strategies

• Module 3: Creating Culture and Relationships

• Module 4: Supply Chain Design: Innovation and Supplier Management

• Module 5: Managing Innovation Projects

• Module 6: Tools to Drive Innovation

• Module 7: Implementing Supplier Innovation

Supply Chain Management 

Supply chain management is a dynamic process that enables companies to track customer needs, respond to demand fluctuations, manage supplier capabilities, evaluate information and communications systems within the supply chain, understand market trends and shifts, and develop plans to ensure the Company’s interests are protected.

After completing this training, participants will be able to:

1. Define supply chain diagnosis and evaluation

2. Identify best practices of supply chain management

3. Understand how to manage better the supply chain inputs, outputs, and measures

4. Assess the cross-functional and cross-organizational aspects of the supply chain

5. Discern the cause and effect of supply chain behavior

6. Make decisions based on supply chain implications

Participants will understand their roles and responsibilities in managing the supply chain and apply this knowledge to their daily work.

Modules:

• Module 1: Introduction to Supply Chain Management

• Module 2: Supply Chain Costs

• Module 3: Forecasting, Demand Management, and Elements of Total Cycle Time

• Module 4: Strategic Sourcing: Diagnostic Process and Implementation Program

• Module 5: The Transformation Process

• Module 6: Managing Resources: Supply Chain Bottleneck Analysis, Distribution, and Inventory 

Value Analysis 

Value Analysis is a systematic approach to evaluating the cost of a product or service in light of the customer’s expected function. It focuses on identifying unnecessary processes, steps, and materials to reduce total procurement costs without sacrificing quality.  Value Analysis can also be used to optimize organizational and supply chain costs.

After completing this training, participants will be able to:

1. Use value analysis to streamline supply chain operations and reduce costs

2. Understand the fundamentals of value analysis and value management

3. Complete projects using the value analysis process

4. Demonstrate the skills to develop plans and apply value analysis to their respective purchasing categories and organizations

Modules:

• Module 1: Definition of Value Analysis

  1. Value analysis process

• Module 2: Value Management

  1. What creates value?

  2. Mapping the value stream

• Module 3: Value Engineering and Value Analysis

  1. Functionality versus cost

  2. Following the process

  3. Determining solutions

• Module 4: Managing the Value Analysis Process

  1. Implementing the process and solutions

Cost & Price Analysis

Cost and price analysis is used to determine which supplier will provide the best value to your organization.  This information is essential to all negotiations and contract management. 

After completing this training, participants will be able to:

1. Identify the difference between cost, price, and cost analysis

2. Conduct price, cost, and should cost analyses

3. Identify areas to reduce the total costs of products and services

4. Use templates to make business decisions based on Total Costs

5. Use Value Analysis and apply its benefits

6. Develop cost reduction strategies

7. Understand and apply strategies regarding life cycle costs

The course will provide a detailed analysis of cost elements.  Participants will be able to define contract costs used in contract pricing, conduct price and cost analysis, and understand cost estimating and cost accounting.

Modules:

• Module 1: Overview of Cost and Price Analysis

• Module 2: The Need for Total Cost Management

• Module 3: The Elements of Cost

• Module 4: Performing a Cost Analysis

• Module 5: Developing a Should-Cost Analysis

• Module 6: Costs and the Product/Service Life-Cycle

• Module 7: Value Analysis

• Module 8: Preparing for Negotiations