Negotiation Strategies for Better Purchasing Value

Course Objectives

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

Who Should Attend?

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

Course Outline

• 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
  • Controlling emotions 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