EFFECTIVE NEGOTIATION IN CONTRACT, PROCUREMENT & SUPPLY CHAIN MANAGEMENT

PROGRAMME OVERVIEW  

Negotiation is often described as both a science and art, essential to good practice yet a skill that requires honing over time in order to perfect it. In business, it is a core competence for effective Supply Chain management. Tracy (1995) defines negotiation as “a motivated process of information exchange between or among individuals, groups, organizations etc. with the aim or goal of reaching agreement about certain objectives, issues, points or reciprocal acts” Commercial negotiation is the process where parties come together to confer in a situation where there is some conflicting interest between them with an aim of coming up with a jointly acceptable agreement. It's therefore important for procurement professionals to be on top of their negotiation’s skills.

LEARNING OBJECTIVES  

At the end of the course, participants will learn: 

■ Appreciate the place of effective negotiation in securing contracts 

■ Understand the role of Procurement and Supply Chain and its contribution to achieving organizational objectives. 

■ Application of different sourcing strategies to leverage savings and ensure supply security.  ■ Management of supplier and market-associated risks to protect the interest of the organization. 

■ Supplier selection, and integration Management to achieve an optimum balance between material cost price and quality. 

■ Develop skills required for effective supplier relationships to achieve enhanced value. 

■ Manage performance of procurement processes for continuous improvement. 

Apply negotiation theories to achieve effective outcomes to the negotiation process;

■ Set objectives for negotiation;

■ Prepare and plan for effective negotiations

■ Take an active part in negotiation meetings

WHO SHOULD ATTEND?

■ Purchasing and contract management professionals 

■ Senior Supply Chain Managers and Executives looking at thought leadership of their own supply chain as well as other delegates’ experience and methods 

■ Junior Supply Chain Executives, helping to bring them up to speed with the latest thinking, frameworks, tools, and implementation                

■ Project, Engineering, Operational, and Maintenance, personnel who are involved in the planning, and execution of purchases and contracts 

■ Those wanting to create action within the supply chain to increase value and reduce cost 

COURSE OUTLINE

Module 1: Negotiating in different setting. Defining negotiation,

Phases of negotiation ·Collaborative and distributive approaches to negotiation

Understanding the supplier organization

Contract and Purchasing context for negotiation

Underpinning the negotiation, Porter's five forces framework

Module 2: Preparing for a negotiation

Risk assessment. SWOT

Developing a negation strategy

The legal framework

Analyzing supplier tender/quotation

Pricing and total costs benchmark

The negotiation processes

Module 3: The bargaining position,

Stages of the negotiation meeting / resourcing

The meeting stages

Conducive environment

Persuasive techniques, Tactics for negotiation

Positions and interests, ethical roles

Finalizing the negotiation

Ratifying negotiations

Evaluating negotiations

Module 4: The future, legal implications

Effective communication

Importance of effective communication

Developing questioning skills, questions for developing trust

Characteristics of successful negotiators

Developing negotiation competencies

Cross-cultural negotiations

Telephone negotiations

E-negotiations

Module 5: Internal negotiations

Negotiation mandates, ·Internal conflicts

Planning for internal negotiation

Evaluating personal performance

Evaluating outcomes, ·Relational outcomes

The value of reflection

Documenting learning outcomes for future uses

LEARNING METHODOLOGY

The trainer uses up-to-date training techniques and a variety of training methods, to give all participants the best opportunities for learning, including:

■Instructor-led Class Sessions  

■Presentation Slides & Videos

■Group Discussions, Exercises and role plays.

■Simulations exercises

■Case studies and Problem-Solving Exercises

■Individual assignments

■Templates and tools

WHAT YOU WILL GET?

■Trainer’s Notes – A very detailed and concise explanation of what you should do during the session, complete with the comments you should make and notes on what to do during activities etc. This is a very detailed step-by-step way of training.

■Workbook– This is a place for participants to add their action plans and learning, whilst also containing information about the course content and a place to work on exercises and activities.

■Session Plan – Details what is included in the course, so participants have complete awareness and the trainer can track course progress.

■PowerPoint Slides– All slides necessary to run the course. Please note: Our materials are not ‘Death by PowerPoint’. The major content is in the Trainers Notes and all courses have been designed to be interactive rather than presentational.

■ Case Studies – This is a method which provides descriptive situations which stimulate trainees to make decisions. The purpose of the case method is to make trainees apply what they know, develop new ideas to manage a situation or solve a problem.

■ Activities/Exercises– A detailed explanation of the activities/exercises used to consolidate learning (these are included in the trainer’s notes)

■ Pre-course Preparation – Basic advice on running the training course and also any necessary preparation that is specific to the course.

■ Certificate – A recognition to be awarded as proof of proficiency, having fulfilled all requirements.