PURCHASING TECHNIQUES, NEGOTIATION, AND COST REDUCTION
TRAINING OVERVIEW
Achieving success in purchasing requires not only an awareness of cost-saving opportunities but also the strategic implementation of methods, processes, and negotiation techniques. Mastery of these elements is crucial for organizations seeking to optimize supply management, enhance cost efficiency, and drive profitability.
The Purchasing Techniques, Negotiation, and Cost Reduction training course equips participants with the skills necessary for effective negotiation in purchasing and cost reduction. As global businesses continue refining their procurement strategies to maximize earnings and minimize expenses, this course provides practical tools and methodologies to achieve significant savings and operational efficiency.
Participants will gain hands-on expertise in modern purchasing strategies, negotiation tactics, and cost-reduction frameworks, empowering them to become leaders in effective supply management.
TRAINING TOPICS:
• Modern Cost and Productivity Techniques • Identifying Opportunities for Cost Reduction • Price Evaluation and Supplier Cost Analysis • Advanced Negotiation Strategies for Procurement • SWOT Analysis and Strategic Decision-Making
BY THE END OF THIS TRAINING COURSE, PARTICIPANTS WILL BE ABLE TO:
• Analyze key spend profiles and identify cost-saving opportunities. • Evaluate and implement cost reduction methodologies. • Understand supplier pricing structures and cost drivers. • Apply strategic purchasing plans for enhanced procurement efficiency. • Develop effective approaches for negotiation planning and execution. • Implement advanced cost-reduction techniques in purchasing. • Create and utilize a purchasing price index for cost tracking. • Assess supplier prices using structured evaluation methods. • Apply negotiation techniques to drive value and reduce expenses. • Understand and integrate strategic purchasing frameworks.
TRAINING IS TAILORED TO:
• Professionals in Contracts, Purchasing, and Procurement. • Engineering, Operations, Project, and Maintenance Personnel. • Individuals involved in planning, evaluation, procurement, and management of purchasing, tenders, and contracts related to materials, equipment, and services.
TRAINING METHODOLOGY
The Purchasing Techniques, Negotiation, and Cost Reduction training program employs an interactive and practical learning approach designed to enhance participants' understanding and application of key procurement strategies. The course combines expert-led lectures, real-world case studies, and group discussions to provide in-depth insights into cost reduction, price evaluation, and negotiation techniques. Participants will engage in hands-on exercises, including role-playing negotiation scenarios, supplier evaluation simulations, and strategic procurement planning activities. Additionally, best practices and proven frameworks will be explored to ensure a comprehensive grasp of modern purchasing methodologies. Through workshops and collaborative exercises, participants will develop the confidence and skills necessary to optimize procurement processes, maximize cost savings, and implement effective negotiation strategies in real-world business environments.
COURSE OUTLINE
DAY 1:
Modern Methods in Cost and Productivity
• Implementing a structured cost reduction model. • Understanding Pareto Optimality and its application in cost management. • Analyzing procurement spending and establishing cost control mechanisms. • Applying the Total Cost of Ownership (TCO) model for procurement decisions. • Exploring effective cost-reduction techniques in purchasing.
DAY 2:
Opportunities for Cost Reduction
• Developing and utilizing a Company Purchasing Price Index and external benchmarking. • Assessing supplier pricing models and market influences. • Implementing best practices for cost reduction in procurement. • Understanding supplier performance measurement and resistance to price increases.
DAY 3:
Methods for Evaluation of Price
• Conducting a structured price analysis methodology. • Evaluating price structures and cost-reduction opportunities. • Understanding key components of cost analysis. • Assessing actual cost versus selling and buying price ("Should Cost" analysis).
DAY 4:
Skills for Successful Negotiation
• Essential preparation techniques before entering negotiations. • Identifying negotiation priorities and valuing key issues. • Applying persuasion techniques in procurement negotiations. • Implementing the Win-Win negotiation strategy for mutual benefits.
DAY 5:
SWOT Analysis and Strategic Negotiation Execution
• Identifying strengths and weaknesses in procurement strategies. • Understanding BATNA (Best Alternative to a Negotiated Agreement) and its role in negotiation. • Preparing an effective and results-driven negotiation team. • Practical negotiation simulations and strategy development workshops. • Final course review, interactive Q&A session, and hands-on negotiation model creation.