Negotiation skills are a core skill which procurement professionals should be well equipped with. Here are some of the areas where negotiation skills in procurement and supply can be of importance
Negotiation can be required as a result of procurement role in challenging user identified requirement. This is important because through negotiations procurement professionals can ensure that the requirements are commercially sound and add value.
Negotiation is necessary in situations where the terms of sale include many and varied clauses or if the buyer suspects that the quoted price is unreasonably high
Negotiation may also be used in open or less prescriptive specification to agree on better benefits, total package and value for money
Negotiations can also be applicable as a means of conflict resolution between the buyer and the supplier
Post tendering negotiation may also be used if there is a possibility of improvement in supplier offer
It’s therefore important for procurement professionals to be on top of their negotiation’s skill.
- As a buyer, you need to interact with suppliers for various deals. The success or failure of the deal depends on how effectively you can negotiate with your suppliers. To gain maximum advantage from the suppliers, you need to keep in mind certain principles of negotiation.
- Negotiation is a process in which you and your supplier with conflicting requirements reach an agreement of mutual interest. It is thus all about creating a movement between each other.
- The objective of the negotiation strategies course is to ensure the supply of five rights: right product or service at the right price, right time, right location and right quantity. You will have to balance these rights i.e. a faster product delivery may result in a higher price.
This course uses a variety of interactive training methods such as role playing, videos, team exercises, individual exercises, case studies, group discussions and questionnaires.
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
Procurement Officers, Buyers, senior buyers, purchasing supervisors, and all other company personnel who are involved in the negotiation process
- Strategic negotiation
- Planning skills
- Executing skills
- Dealing with difficult suppliers
- Communicating with suppliers
- Implementation skills