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Purchase negotiations and supplier management


Description

The training will be conducted by two trainers. First two days of training is a two-day practice compendium of negotiation impact based on advanced psychological and social engineering techniques. During a course author-trainer consider latest and most effective in negotiating role - achievements of neurolinguistics (impact of words, syntax and style of expression on the nervous system recipient), applied psychology and psychology of temperament. The training is supplemented by knowledge and numerous exercises in field of psychodiagnostics i.e. ability to recognize those personality traits, which are important for choice of optimal techniques for dialogue. Thus, training is designed as an advanced level of the rich repertoire of professional techniques.

Third day of a training is to provide knowledge and skills required in the design and implementation of best practices in the areas of Procurement and Purchasing. In particular:

  • purchasing policy and purchasing strategy. Positioning policy decision-making process and to determine its impact on the overall performance of the company,
  • evaluation and selection of suppliers and assessment of supply's quality,
  • build and improve relationships with suppliers (Best Practices in Supplier Development),
  • negotiating offers and contracts,
  • cost control management,
  • complaint procedure,
  • use of demand forecasts and integrated planning of sales and production in the purchasing procedure,
  • inventory management.

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Goals

The first two days conducted by a psychologist will improve efficiency of negotiation and renegotiation of terms of cooperation (participants will be able to identify the impact of partner strategy and effectively implement their own economic objectives in a variety of situations). In addition, participants will gain the ability to create so-called practical psychographic maps that is recognition - diagnosis of personality traits of partner.
The aim of third day of a training is to familiarize participants with the supplier management process: from organization and work of the purchasing / procurement department, through analysis of purchasing needs in an enterprise, selection criteria and methods of verification of suppliers, with particular emphasis on common risks, development of recipient-supplier relationship and ending with complex assessment of cooperation with suppliers.

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Participant profile

People whose professional responsibility includes a role of establishing cooperation, collaboration, negotiation of contracts and conditions and legal relations - economic and renegotiate.

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Training methods

  • instruction: Mini-lectures,
  • generating new ideas: Brainstorming, Mind Maping,
  • visualization of solutions based on the methodology of Visual Thinking,
  • practice and consolidation of new competencies: RPG - Role Playing Game,
  • Review: QRVT behavioral training (Quick Reaction Video Training)
  • implementation of tools and solutions to a working environment of Participants.

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Outline

Day I and II 

  1. Scenario of creating business relations due to negotiating position:
  • with monopolist – “David and Goliath” 
  • with equivalent partner – “tug-of-war”
  • with weaker partner – “lemon”
  1. Supplier’s point of view – substantive preparation for negotiations with your company:
  • customer’s wallet and individual price politics,
  • history of cooperation – individual goals vs company’s goals
  • negotiation goals – source of information, deduction 
  • negotiation techniques and tricks of suppliers – ways of neutralization.
  1. Supplier’s point of view – emotional impact based on relations:
  • identification of signals – recommended reactions, 
  • schemas of assertive behaviors toward emotional influence.
  1. Verification of the actual price possibilities in purchase negotiations:
  • offers analysis based on Cost Model and VCA,
  • psychological tools which allow drilling “negotiation bottom”,
  • details in Suppliers’ offers as potential to counterproposal.
  1. Impact tools at the stage before negotiations:
  • Social Media – rules for the use of a network of contacts, interpretation of “soft” information,
  • Fisher and Ury scenario – decreasing Supplier’s feeling of bargaining power.
  1. Techniques of reacting in unexpected situations:
  • new facts/information from Supplier’s side, 
  • unexpected tactical maneuverings,
  • “tied proposals”,
  • new people to support the negotiations by supplier’s side or change the composition of team. 
  1. Ways of engaging other side in building compromise: 
  • BATNA – Best Alternative to Negotiated Agreement, 
  • chees matrix method,
  • Ury’s 5 stages.

Day III - Logistical aspects of the selection and collaboration with suppliers. 

  1. The strategic role of people holding company’s purchase:
  • SIM (Supplier Information Management) as a support of company’s strategy,
  • management of domestic demand – formation of scale effect,
  • building of purchase teams (design),
  • centralization or decentralization aspects of purchases,
  • models of structures and purchasing activities taking into account best practices:
    • strategic Sourcing,
    • purchasing,
    • procurement.
  1. Advanced methods for supporting decision-making - selection and evaluation of suppliers:
  • AHP algorithm (Analytic Hierarchy Process),
  • TCO (Total Cost of Ownership),
  • design criteria for supplier selection according to the company's growth strategy.
  1. The effectiveness of cooperation with individual supplier:
  • proper identification of supplier’s status / product / product group,
  • identification of potential gaps in cooperation (logistical, financial, quality, sales),
  • design of development cycle.
  1. Synergy effect in portfolio management of suppliers:
  • ANP algorithm (Analytic Network Process),
  • backward chaining method.
  1. Methods of reducing the risks associated with the introduction of changes:
  • new supplier, change of supplier,
  • new products / services,
  • reduction of co-operation, the distribution of orders, one-time order,
  • change of conditions in cooperation with current supplier.
  1. Principles of building a partnership:
  • CP (Collaborative Planning),
  • ECR (Efficient Consumer Response),
  • relations traps – a partner or a hostage.
  1. Inspiring examples of procurement policy in TOP 500 companies – profiles:
  • production,
  • service,
  • business.

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Schedule

  Schedule   Day 1   Day 2   Day 3  
                 
  Registration   9:45 - 10:00          
  Workshops   10:00 - 11:00   10:00 - 11:00   9:00 - 11:00  
  Break   11:00 - 11:15   11:00 - 11:15   11:00 - 11:15  
  Workshops   11:15 - 13:00   11:15 - 13:00   11:15 - 13:00  
  Lunch   13:00 - 13:45   13:00 - 13:45   13:00 - 13:45  
  Workshops   13:45 - 15:00   13:45 - 15:00   13:45 - 15:00  
  Break   15:00 - 15:10   15:00 - 15:10   15:00 - 15:10  
  Workshops   15:10 - 17:00   15:10 - 17:00   15:10 - 16:00  

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