Purchasing Techniques, Negotiation and Cost Reduction

This workshop will examine an organization’s revenue that is spent on goods and services – everything from raw materials to spaces and stocks items, when the goal is to increase earnings by lowering costs, world-class organizations look closely at their purchasing strategies. Success in purchasing is dependent not only on an awareness of the potential opportunities but more importantly and the focus of this workshop is the knowledge implementation of the methods, processes and techniques that should be utilized in order to become efficient and understanding cost reduction.

Contents:

Continuous Improvement is Cost and Productivity

• How do other function view purchasing
• A purchasing saving model
• Cost reduction initiatives
• Modern methods of analyzing the spending

Defining Cost Reduction Opportunities

• Purchase price index
• Supply marketplace
• Resisting price increases
• Supplier performance measurement
• Cost saving method

Methods of Price Evaluation

• Price justification
• Methods of price analysis
• Method of cost analysis
• Breaking down the elements of cost
• Developing “should cost”

Successful Negotiation

• Negotiation skill sets
• Steps in negotiation preparation
• Method of persuasion
• What win/win really mean?
• Determining the issues
• Rating and valuing issues

Determining Strength and Weaknesses

• Analyzing the other size
• Prepare the negotiation team
• Tips for the actual negotiation
• Better alternative to negotiation agreements (BATNA)

For Whom: Stores, Purchasing and Logistics Personnel in the Public and Private Sectors.

Training Methodology

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participants will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.

Contact Person

Chris Onwuasigwe, FCA