Strategic Procurement & Vendor Negotiation Skills

Strategic Procurement Strategies with Competency in Negotiation 

In order to improve company profitability and ability to drive up market share, the demand for an effective and efficient procurement management is a pre requisite. Key competencies in area of cost control, applying strategic strategy to manage supplies and the negotiation of the most advantageous benefits to the company is extremely important.

This program promotes the key competencies in strategic procurement strategies, the technique of managing cost saving activities and handling effective negotiation in order for managing an efficient and effective  procurement system in the company.

By the end of the Strategic Procurement & Vendor Negotiation Skills training , you will be able to:

1. UNDERSTAND the strategic sourcing role of procurement in business operation
2. IDENTIFY The type of strategy to be in place to manage the procurement and inventory operation
3. DEVELOP action plan to implement supplies management strategies
4. CARRY OUT risk assessment and take action to overcome to ensure supplies are not disrupted
5. MANAGING the contract management system to ensure effective management

This training program is highly recommended for employees involve in the managing of the supply chain function in the company, for example, personnel from procurement, warehouse, logistics and planning department and finance.

Module 1: The Role of Procurement & Purchasing

• Definition of Purchasing versus Procurement
• Role of Purchasing versus Procurement
• Job Function of Purchasing and Procurement
• Cycle of Procurement
• Key Fundamental to Effective and Efficient Procurement

Module 2: Strategic and Tactical Objective and Goal of Procurement

• Definition of Strategic and Tactical
• The Ps , Qs and Rs of Procurement
• Key Objectives of Procurement and Purchasing

Module 3:Strategic and Tactical Objective and Goal of Procurement

• Strategic Role in Procurement
• Tactical Role in Procurement
• Strategic Sourcing Strategy and the different level of sourcing
• Competitiveness Model for strategic procurement system
• Value Chain creation in procurement
• Supplier Quality Management
• Supplier Relationship Management
• Supplier Performance Management
• Supplier Management Process Cycle
• Cause and Effect Technique (5 Why and 1 How) for problem evaluation
• Strategic Cost Evaluation with Should Costing
• Strategic Cost Analysis for best pricing
• Price Analysis versus Cost Analysis
• Supplier Segmentation Management
• Breakout room discussion

Module 4: Cost Reduction and Cost Avoidance

• Cost Reduction versus Cost Avoidance
• Area of Cost Reduction and Cost Avoidance
• Key Factors to consider in Cost Reduction
• Opportunity cost in cost reduction activities
• ERRANT cost reduction and avoidance strategy
• Break out room discussion

Module 5:Managing Smart Negotiation

• Integrative Negotiation
• Distributive Negotiation
• Contract Negotiation
• Stages of Negotiation
• SWOT analysis
• Competitiveness model
• Deciding red lines in negotiation
• Knowing your opponent traits
• The Soft Negotiator
• The Principled Negotiator
• The Hard Negotiator
• Traits of a good negotiator
• Bad Negotiator habits
• Mistakes made in Negotiation
• Body language in negotiation
• Clear planning of objectives and goals
• Understand when to walk away
• Managing Reject and counter offer
• Dealing with difficult negotiators
• WATNA strategies
• BATNA strategies
• Break out room discussion and role ply

Module 5: Preventing Procurement disruption - Third Party Risk Management

• Definition of 3^rd party risk management
• Cycle of 3^rd party risk management
• Securing supplies with 10 C selection and evaluation
• Conducting audit and key areas of audits
• Suppliers managing strategies

Module 7:Strategic and Operational Risk Management in Procurement Management

Definition of Strategic and Operational Risk Management

• Strategic Risk Assessment
• Operational Risk Management
• Conducting Competitiveness Analysis
• Fraud Management
• Preemptive technique to avoid disruption
• Case study – Where are your company operation in term of ensuring undisrupted supplies of inventory?
• Post test x 20 questions

This training will involve the following area to enhance learning:

1. Interactive input session 
2. Case studies & Brain storming session
3. Discussion on subject of learning
4. Facilitating by trainer to enhance understanding of subject matter

Some of the comment from the participants from Accenture Consulting above…..”Practical, must attend, fun and recommended, eye opener, proven and solid, practical, energetic delivery, good and practical and guaranteed to make you learn”