Negotiation Strategies for Better Purchasing Value

One of the most important and required skills for a purchasing professional is negotiation. In this course, we will explore the various modern negotiation methods from a purchasing perspective. We will cover in detail the various negotiation strategies required to meet the purchasing needs of the organization. The strong and weak points of the buyer along with the strong and weak points of the supplier will be explored. We will also discover the appropriate negotiation styles for various situations, including complex situations that will require careful attention.

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

• Develop effective negotiation strategies to meet the purchasing needs of the organization
• Implement those strategies to maximize purchasing value
• Discover the appropriate negotiation style for each situation
• Explain how to handle and deal with complex negotiation situations
• Identify supplier strong points and buyer strong points

Buyers, senior buyers, purchasing supervisors, and all other company personnel who are involved in the negotiation process.

Preparation strategies

• Developing buyer needs and requirements
• Understanding the buyer position
• Understanding the supplier position
• The number of suppliers in the market
• Economic analysis of the market
• Forming a pre-negotiation checklist
• Forming the negotiation strategy
• Forming the purchasing negotiation team
• Proper planning and preparation

Implementing the negotiation strategy

• Making the purchasing plan operational
• The best time to negotiate
• Time is power in purchasing and negotiation
• Information is power in purchasing and negotiation
• The other types of power in negotiation
• The best place to negotiate
• Understanding supplier expectations
• The 80/20 rule of negotiation

Developing a negotiating style

• Attributes of a good negotiator
• Developing those attributes by the buyer
• Expressing your purchasing needs effectively
• Knowing your products and commodities
• Knowing the supplier products and services
• Active listening techniques
• Types of questioning styles
• Preparing the right list of questions

Dealing with complex negotiations

• Sole source suppliers
• Single source suppliers
• Win/Win meets Win/Lose
• Win/Win meets Lose/Lose
• Backdoor buying tactics
• Controllingemotions during a negotiation
• Friends and relatives as suppliers
• Ethical behavior and negotiation

Preparing and conducting individual and team negotiations

• Practical role plays
• Playing the role of the buyer
• Playing the role of the supplier
• Playing the role of the evaluator
• Supplier strong points
• Buyer strong points
• Being aware of supplier hidden tactics and tricks

This training program will employ a combination of teaching methods to enhance participant engagement and knowledge retention:

• Presentations: Instructor will deliver informative presentations covering the course material.
• Group Discussions: Participants will engage in discussions to share their insights and experiences.
• Case Studies: Real-world examples of electrical incidents will be analyzed.
• Assessments: Regular quizzes and a final assessment will evaluate participants' comprehension.