Training on Mastering Purchasing Techniques, Negotiation & Cost Reduction

Unlock significant supply management savings with this practical masterclass! Learn the essential techniques and strategies to become a leader in purchasing negotiations and cost reduction. This training on mastering purchasing techniques, negotiation & cost reduction goes beyond theory, providing hands-on skills and real-world strategies to optimize your purchasing processes, leverage supplier relationships, and achieve substantial cost savings. We'll cover everything from analyzing spend profiles and understanding pricing structures to mastering negotiation tactics and implementing effective cost reduction models. Transform your purchasing strategies and significantly boost your organization's bottom line.

Learning Objectives:

By the end of this training on mastering purchasing techniques, negotiation & cost reduction course, you will be able to:

• Analyze Spend Profiles: Identify key features and opportunities for cost reduction within your spending patterns.
• Evaluate Cost Reduction Opportunities: Assess and prioritize cost reduction opportunities effectively.
• Understand Supplier Pricing: Decipher supplier pricing structures and identify areas for negotiation.
• Develop Strategic Plans: Create and implement effective purchasing strategic plans.
• Plan Negotiations Effectively: Develop common approaches for planning and executing successful negotiations.
• Master Cost Reduction Methods: Apply efficient methods for achieving significant cost reductions.
• Create Price Indices: Develop methods for creating and utilizing purchasing price indices.
• Assess Supplier Prices: Employ techniques for critically evaluating supplier prices.
• Evaluate Cost Reduction Techniques: Assess the effectiveness of various cost reduction techniques.
• Negotiate Successfully: Master negotiation techniques and common approaches.
• Implement Strategic Plans: Understand and implement effective purchasing strategic plans.

Target Audience:

This training on mastering purchasing techniques, negotiation & cost reduction course is ideal for professionals involved in purchasing, procurement, and supply chain management:

• Purchasing & Procurement Personnel
• Engineering, Operational, Project & Maintenance Personnel
• Anyone involved in planning, evaluating, and managing purchasing and contracts

Course Outline:

Module 1: Modern Methods in Cost & Productivity Improvement

• Cost Reduction Model: Understanding and implementing a comprehensive cost reduction model.
• Pareto Optimality: Applying the Pareto principle to identify high-impact cost reduction areas.
  • Actionable Tip: Prioritize the 20% of your spending that accounts for 80% of your costs.
• Spend Analysis: Analyzing spending patterns to identify areas for improvement and control.
• Total Cost of Ownership (TCO): Understanding and applying the TCO model for informed decision-making.
  • Actionable Tip: Consider all costs associated with a purchase, not just the initial price.
• Cost Reduction Methods: Exploring various cost reduction strategies and techniques.

Module 2: Identifying Cost Reduction Opportunities

• Company Price Index: Developing and using a company-specific price index.
• Market Analysis: Understanding supplier pricing and the dynamics of the supplier marketplace.
• Best Practices: Reviewing and implementing best practices in cost reduction.
• Resisting Price Increases: Strategies for negotiating with suppliers and resisting price increases.
• Supplier Performance Measurement: Using performance metrics to identify cost-saving opportunities.

Module 3: Price Evaluation Methodology

• Price Analysis Techniques: Employing various methods for analyzing supplier prices.
• Price Reduction Strategies: Developing strategies for negotiating price reductions.
• Cost Analysis: Understanding and evaluating the different elements of cost.
• Should Cost Analysis: Determining the "should cost" of a product or service and comparing it to actual prices.

Module 4: Mastering Negotiation Skills

• Preparation: Developing effective strategies for preparing for negotiations.
• Issue Prioritization: Determining key negotiation issues, rating, and valuing them.
• Persuasion Techniques: Employing effective persuasion techniques to achieve desired outcomes.
• Win-Win Negotiation: Strategies for achieving mutually beneficial outcomes.

Module 5: SWOT Analysis & Negotiation Workshop

• SWOT Analysis: Conducting a SWOT analysis to identify strengths, weaknesses, opportunities, and threats.
• BATNA (Best Alternative to a Negotiated Agreement): Developing a strong BATNA to enhance your negotiating position.
• Negotiation Team Preparation: Preparing and briefing your negotiation team effectively.
• Negotiation Workshop: A hands-on workshop simulating real-world negotiation scenarios.
• Course Review & Q&A: Reviewing key concepts and addressing any remaining questions.

Certification:

Upon successful completion, you will receive an Uphilos certificate, showcasing your newly acquired expertise in purchasing techniques, negotiation, and cost reduction