Training Certificate

Prolific Consultants FZ LLC Certificate of Course Completion will be issued to all attendees

Course Introduction

This Effective Purchasing and Contract Negotiation Strategies training course challenges the belief that anyone can purchase well, and within that belief everyone can negotiate effectively. Neither of these beliefs is true. Organisations large and small waste their energy and profit in this belief. This training course could prevent your organisation losing significant sums of money as it firstly establishes a solid understanding of the benefits good purchasing offers and how to create a function capable of delivering those benefits through organisational excellence.

The second fundamental to achieving success is the ability to negotiate, not only with the marketplace but with internal departments e.g., Engineering, Production, Finance, and Safety functions. Unfortunately such negotiation is often delegated to those least able to deliver an effective outcome. This failure impacts upon the whole organisation resulting in reduced profitability and increased business risk, and an increase in personal stress and operational costs.

The delegates are expected to compare their understanding of their capabilities against the key principles that support effective purchasing and to take away concepts and ideas that will benefit both their business and them personally.

This Purchasing and Contract Negotiation Strategies training course will highlight:

• The objectives of a well run purchase process and how to reach your internal customer. Establishing a basic understanding of the process of Negotiation
• Importance of getting the right specification to reduce both cost and risk. Evaluating potential suppliers and managing the supply chain
• Tenders & bid evaluation & analysing Price Cost and Value through financial management /analysis
• The purpose of a contract / Legal needs / Terms and Conditions. Preventing contract failure. Discovering your personal negotiation capability
• Obstacles to good negotiation. Tools of the successful negotiator. Essential elements of negotiation and developing a personal action plan for improvement

Course Objective

At the end of this Purchasing and Contract Negotiation Strategies training course, you will learn to:

• Build an efficient and effective purchasing function
• Communicate more effectively inside and outside of the organisation
• Understand your personal strengths and weaknesses
• Understand contract needs and eliminate contractual risks
• Plan and deliver a successful negotiation and negotiate with different cultures
• Have confidence in your ability to negotiate at all levels with all organisations

Suitable For

This training course benefits those who make policy as well as those whose role is to apply policy. Status / Job title / Role in the Company is irrelevant. It is applicable to those new to the purchasing as well as those experienced in the process.

This training course is suitable for a wide range of professionals but will greatly benefit:

• Those who are new to purchasing
• Those with some years’ experience in purchasing but who wish to regenerate their thinking or attitude
• Those at all levels in projects / site contract management / engineering with supply chain involvement
• Those in a Company who influence the selection of materials/ services / source of supply
• Any person regardless of background or present role / position who wishes to understand the purchase process

Training Methodology

A highly interactive combination of lectures and discussion sessions will be managed to maximize the amount and quality of information and knowledge transfer. The sessions will start by raising the most relevant questions, and motivate everybody find the right answers. You will also be encouraged to raise your own questions and to share in the development of the right answers using your own analysis and experiences.  Tests of multiple-choice type will be made available on daily basis to examine the effectiveness of delivering the course.

Very useful Course Materials will be given.

Course Content

DAY 1

Where is Purchasing Failing & Introduction to Negotiation

• What is Purchasing?
• Why is professional purchasing in decline?
• Is your organisation infected with the virus of purchasing failure?
• Should We Outsource the Process
• Can we be Effective without being Efficient
• The Importance of Reaching-out to the Internal Customer
• Purchasing Strategy – Where does your money go?
• Introduction to Negotiation
• Styles of Negotiation
• Uncertainty in Negotiation
• How the Supplier Evaluates You

DAY 2

Are you a Good Negotiator & Understanding the Offer

• Knowing yourself - What you value, What you don’t
• Who are you? - Myres Briggs Analysis
• The Mental Traps of Negotiation
• Importance of Social Skills
• Competency or Skill
• Analysis of Personal Competencies
• Competencies of the Negotiator
• The Importance of Market Research
• Globalisation & Supply Chain Risk
• Price / Cost / Value
• Pricing Mechanisms
• Price & Cost Validation
• Total Cost of Ownership

DAY 3

Contract Needs and Making the Contract Work

• Contract Structure
• Supporting Documents
• Terms and Conditions
• Payment Options
• Warranty and Guarantees
• Insurance
• Ownership
• Making the Contract Work
• Legal Needs
• Undue Pressure Duress / Mistake / Misrepresentation
• Frustration / Breach of Contract / Variation / Privity
• Agency
• Failure to Agree

DAY 4

Finding Reliable Suppliers & Culture in Negotiation

• Do We Select the Right Supplier?
• Supplier Evaluation
• Tenders - The Process
• Tenders - Do they deliver what we desire?
• Long Term Supplier Relationships - Good or Bad
• Electronic Commerce Advantages and Dangers
• Ethics – Impact of Bribery and Corruption in business
• Corruption - Personal
• Corruption - Global
• Corruption - What can be done?
• Self-awareness in Negotiation First Know Yourself
• Negotiating with Different Cultures
• Personal Cultural Comfort Zone

DAY 5

What Makes a Successful Negotiation

• Listening and Persuasion
• Asking the Right Questions
• Reading Body Language
• Timing the Negotiation / Venue
• Dealing with Power and Authority
• Telephone Negotiations
• The Importance of Planning
• Engaging with the Other Side
• Bargaining
• Making Concessions
• Dealing with Tactics and Threats
• Closing the Deal
• Essential Things To Do in Every Negotiation
• Review -  What three things will you take away with you to discuss in your business?

Case Studies, Last Day Review, Discussions & Pre & Post Assessments will be carried out.