Procurement Skills: Strategies to Reduce Vendor Prices

About the Course

Name: Procurement Skills: Strategies to Reduce Vendor Prices

Code: PSCO-112

Sectors: Procurement & Supply Chain Operations

  Date   Days   Venue   Fees
29 Aug - 02 Sep 2022 5 Dubai, UAE $3,950 BOOK NOW
05 - 09 Nov 2022 5 Live Online Classroom $1,550 BOOK NOW
12 - 16 Nov 2022 5 Jeddah, Saudi Arabia $3,950 BOOK NOW

Introduction

This intensive training course is aimed at improving the skills of the Procurement Professional and Buyers in organizations. The training course examines the strategic importance of procurement within departments by using concepts and ideas in order to maximize the procurement department’s effectiveness and thereby reducing costs throughout the supply chain. It is therefore imperative for Procurement to constantly deliver value to the organisation by delivering products and services that contributes to the well-being of the organisation. This is an important training course for Purchasing professionals who will return to their organisation with actual realistic plans on how to make considerable cost savings.

Objectives

By the end of this training course, participants will be able to:

  • Develop critical supply strategies
  • Apply the concepts of activity-based costing
  • Understand the Supply Marketplace and how Suppliers Price
  • Develop skills required for effective supplier relationships
  • Practise successful negotiations and apply negotiation techniques

Training Methodology

The training course is designed to be interactive and participatory, and includes various learning tools to enable the participants to operate effectively and efficiently in a multifunctional environment. The course will use lectures and presentations, exercises, experiential and exposure to real world problems and policy choices confronting delegates.

Outline

Day 01

  • Continuous Improvement in Cost and Productivity
  • How do other functions view purchasing 
  • A Purchasing Savings Model 
  • Total Cost of Ownership Models 
  • Cost Reduction Initiatives
  • Establishing a Strategic Focus with Pareto Analysis on Cost
  • Modern Methods of Analyzing the Spend

Day 02

  • Defining Cost Reduction Opportunities
  • Developing Company Purchase Price Index and Comparing to External Indexes 
  • Understanding of Supply Marketplace and how Suppliers Price
  • Benchmarking best practices in Cost Reduction
  • Resisting Price Increases
  • Supplier Performance Measurement 
  • Cost Saving Methods

Day 03

  • Methods of Price Evaluation
  • Price Justification 
  • Methods of Price Analysis 
  • The Competition that leads to price reduction and evaluation 
  • Methods of Cost Analysis
  • Breaking down the Elements of Cost 
  • Developing "Should Cost"

Day 04

  • SUCCESSFUL NEGOTIATION and TECHNIQUES 
  • Negotiation Skill Sets
  • Steps in Negotiation Preparation
  • Methods of Persuasion
  • What Does Win/Win Really Mean? 
  • Determining the Issues 
  • Rating & Valuing Issues
  • Avoiding Confrontational Negotiating 
  • Developing Active Listening Skills
  • Negotiating with an Angry Person 
  • Power Closes that are used on the Buyer 
  • Understanding the other Negotiator’s Power 
  • Negotiation Tactics and Countermeasures

Day 05

  • Determining Strengths and Weaknesses 
  • Know Your Better Alternatives to Negotiated Agreements (BATNA) 
  • Analyzing The Other Side
  • Negotiation Objectives Diagram 
  • Prepare the Negotiation Team 
  • Tips for the Actual Negotiation 
  • Participants will negotiate model cases & discuss the results to provide an opportunity for hands on experience

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