Purchasing Techniques, Negotiating & Cost Reduction Workshop

Introduction:

Today, it is common for more than 50% of an organization's revenue to be spent on goods and services, everything from raw materials to overnight mail. So, when the goal is to increase earnings by lowering costs, world-class organizations scrutinize their purchasing strategies closely.

In this purchasing technique, negotiating, and cost-reduction workshop, success in purchasing hinges on recognizing potential opportunities for cost reduction in purchasing and procurement and, more crucially, on the knowledgeable implementation of methods, processes, and techniques integral to achieving genuine cost-reduction strategies in procurement.

Participants will delve into proven cost reduction techniques, including targeted approaches to purchasing cost reduction and implementing cost reduction programs. Through interactive sessions, attendees will learn negotiation skills designed explicitly for buying contexts, enabling them to navigate complex negotiations with confidence and finesse.

Targeted Groups:

• Purchasing Supervisors.
• Purchasing Managers.
• Buyers.
• Senior buyers.
• Personnel need to understand the purchasing function.

Workshop Objectives:

By the end of this purchasing technique, negotiating, and cost-reduction workshop, participants will be able to:

• Learn how to advance towards world-class purchasing cost reduction.
• Understand the data mining process and develop strategic plans for procurement cost reduction.
• Recognize the application of cost-reduction techniques and strategies in procurement.
• Comprehend the process for developing a purchase price index and benchmarking.
• Understand procedures for reporting cost improvements and conducting a cost reduction program.
• Explore the nuances between Cost Reduction vs. Cost Avoidance.
• Assess supplier prices using purchasing negotiation techniques.
• Minimize low-value activities and utilize time effectively to reduce purchasing costs.
• Implement best practices in qualifying suppliers and engaging in procurement negotiation.
• Appreciate the critical role of planning in successful negotiations and the negotiation skills of purchasing professionals.
• Negotiate critical issues in various contract clauses with improved purchasing negotiation skills.

Targeted Competencies:

At the end of this purchasing technique, negotiating, and cost-reduction conference, the target participants will be able to:

• Developing spend profiles.
• How do they prioritize their time for maximum benefit?
• Find cost reduction opportunities.
• Evaluate prices.
• Understand supplier pricing structures.
• Develop purchasing strategic plans.
• Plan for negotiations.
• Define issues.
• Understand the Total Cost of Ownership.
• Conduct negotiations.

Understanding Purchasing Techniques, Negotiation Skills, and Cost Reduction:

Unlock the power of effective purchasing strategies with our comprehensive workshop on understanding purchasing techniques, negotiation skills, and cost reduction strategies. This purchasing technique, negotiating, and cost-reduction workshop is tailored for purchasing and procurement professionals seeking to optimize their processes and drive significant savings.

Moreover, our workshop covers a spectrum of purchasing techniques to enhance efficiency and streamline operations. From procurement cost reduction strategies to negotiation techniques in procurement, participants will gain practical insights and actionable strategies to achieve tangible results.

Led by industry experts, this purchasing technique, negotiating, and cost-reduction workshop offers a comprehensive overview of procurement cost-reduction strategies and emphasizes the importance of negotiation in achieving optimal outcomes. Whether you're looking to sharpen your purchasing negotiation skills or implement cost-reduction initiatives, this workshop equips you with the tools and knowledge necessary to excel in today's competitive marketplace.

Workshop Content:

Unit 1: 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 and Techniques.
• Cost Savings Reporting Procedure.
• Data Mining for Procurement Cost Reduction.
• Establishing A Strategic Focus With The ABC Analysis.
• Modern Methods Of Analyzing The Spend.

Unit 2: Defining Cost Reduction Opportunities:

• User Group Brainstorming Sessions for Cost Reduction Ideas.
• Develop a Company Purchase Price Index and Compare it to External Indexes.
• Understanding of Supply Marketplace and How Suppliers Price.
• Benchmarking Strategies in Procurement and Purchasing.
• Process Mapping to Eliminate Low-Value Activities.
• Developing Purchasing Material/Services Strategic Plans.
• Techniques for Resisting Price Increases.
• The Maxim: You Will Never Be Better Than Your Suppliers.
• Supplier Performance Measurement as Part of Procurement Cost Reduction.
• Various Cost-Saving Methods and Strategies in Purchasing.

Unit 3: Methods of Price Evaluation:

• Price Justification and Its Role in Purchasing Cost Reduction.
• Model For Selecting Analysis Methods.
• Methods Of Price Analysis.
• Leveraging Competition to Achieve Cost Reduction.
• Analyzing Historical Prices for Insights into Cost Reduction.
• Evaluating How Much Profit Is Fair in a Cost-Reduction Context.
• Methods Of Cost Analysis and Purchasing Cost Reduction Techniques.
• Breaking Down The Elements Of Cost.
• Developing Should Cost Models.

Unit 4: Successful Negotiations:

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

Unit 5: Determining Strengths and Weaknesses:

• Evaluating Your Position in a Negotiation Context.
• Knowing Your BATNA (Best Alternative To a Negotiated Agreement).
• Analyzing The Other Side for More Effective Procurement Negotiation.
• Utilizing Negotiation Objectives Diagrams in Preparation.
• Implementing Negotiations Planning Forms.
• Preparing The Negotiation Team with Adequate Training.
• Tips For The Actual Negotiation Based on Purchasing and Procurement Dynamics.