Introduction
In the world today it is not unusual for more than 50% of an organization’s revenue to be spent on goods and services — everything from raw materials to overnight mail. So, when the goal is to increase earnings by lowering costs, World-class organizations look closely at their purchasing strategies. Success in purchasing is dependent not only on an awareness of the potential opportunities, but more importantly, and the focus of this seminar is the knowledgeable implementation of the methods, processes, and techniques that should be utilized in order to become a leader in obtaining real supply management savings.
Conference Objectives of Purchasing Techniques, Negotiating & Cost Reduction
Upon completion of this seminar, participants will know:
- How to be on the road to world-class in cost reductions
- Processes for data mining and developing strategic plans
- Methods of cost improvement
- Process for developing purchase price index
- Procedure for reporting cost improvements
- Cost Reduction vs. Cost Avoidance
- How to evaluate supplier prices
- Reducing low-value activities
- Best practices in qualifying suppliers
- The importance of planning in successful negotiations
- Approaches in negotiations
- Standards of ethics
- The importance of rating and valuing the issues in a negotiation
- Negotiating important issues in various contract clauses
- Important elements of the final preparation
Conference Delegates of Purchasing Techniques, Negotiating & Cost Reduction
- Contracts, Purchasing, and Procurement personnel
- Engineering, Operational, Project, and Maintenance personnel
- And all others who are involved in the planning, evaluation, preparation and management of purchasing, tenders, and contracts that cover the acquisition of materials, equipment, and services, and who are in organizations whose leadership want high levels of competency in those involved in these activities.
Conference Process of Purchasing Techniques, Negotiating & Cost Reduction
This seminar will combine a variety of instructional methods including a lecture by an experienced practitioner and consultant, exercises, and role-playing, and group discussions covering current practices and their relationship to the implementation of new concepts.
Conference Benefits of Purchasing Techniques, Negotiating & Cost Reduction
Attendees will gain by participation in this program as a result of:
- Increased skill sets in finding savings opportunities.
- Greater ability to lead continuous improvement programs.
- A greater sense of confidence and professionalism.
- Greater ability to obtain desired outcomes in negotiations.
- Increased recognition by the organization due to improved performance.
Conference Results of Purchasing Techniques, Negotiating & Cost Reduction
The organization will benefit by:
- Higher productivity of personnel involved in procurement activities.
- The reduced total cost of ownership for purchased materials, equipment, and services.
- Improved productivity of the entire organization by better on-time delivery of high-quality goods and services.
- Having the advantage in negotiations as a result of their employees being better prepared and trained than the employees of the other side.
- Improved supplier performance and relations.
- Greater strategic focus of those involved in supply management.
Core Competencies of Purchasing Techniques, Negotiating & Cost Reduction
Attendees will gain in the following competencies as a result of the program:
- Developing spend profiles
- How to prioritize their time for maximum benefit
- Finding costing reduction opportunities
- Evaluating prices
- Understanding supplier pricing structures
- Developing purchasing strategic plans
- Planning for negotiations
- Defining issues
- Understanding Total Cost of Ownership
- Conducting negotiations
Conference Outlines of Purchasing Techniques, Negotiating & Cost Reduction
Day 1: Continuous Improvement in Cost and Productivity
- The Need For Change
- How Do Other Functions View Purchasing
- A Purchasing Savings Model
- Total Cost Of Ownership Models
- Continuous Improvement Skill Sets
- Cost Reduction Initiatives
- Cost Savings Reporting Procedure
- Data Mining
- Establishing A Strategic Focus With The ABC Analysis
- Modern Methods Of Analyzing The Spend
Day 2: Defining Cost Reduction Opportunities
- User Group Brainstorming Sessions
- Developing Company Purchase Price Index And Comparing To External Indexes
- Understanding Of Supply Marketplace And How Suppliers Price
- Benchmarking
- Process Mapping To Eliminate Low Value Activities
- Developing Purchasing Material/Services Strategic Plans
- Resisting Price Increases
- You Will Never Be Better Than Your Suppliers
- Supplier Performance Measurement
- Cost Saving Methods
Day 3: Methods of Price Evaluation
- Price Justification
- Model For Selecting Analysis Methods
- Methods Of Price Analysis
- Competition
- Historical Prices
- How Much Profit Is Fair
- Methods Of Cost Analysis
- Breaking Down The Elements Of Cost
- Developing “Should Cost”
Day 4: Day Four
Successful Negotiations
- Our Responsibilities As Agents
- Negotiation Skill Sets
- Steps In Negotiation Preparation
- Methods Of Persuasion
- What Does Win/Win Really Mean?
- Determining The Issues
- Defining Issues For Specific Contract Provisions
- Payment Terms
- Progress Payments
- Warranties
- Spare Parts
- Rating & Valuing Issues
- Standards Of Ethics In Purchasing And Contracting Conduct
Day 5: Determining Strengths and Weaknesses
- Evaluating Your Position
- Know Your BATNA
- Analyzing The Other Side
- Negotiation Objectives Diagram
- Negotiations Planning Forms
- Prepare The Negotiation Team
- Tips For The Actual Negotiation
- Participants will negotiate model cases and discuss the results to provide an opportunity for hands on experience
About London
The UK capital of London is a city that combines the old and the new. It is as equally famous for the latest fashion and innovation as it is for its impressive heritage. London's attractions range from the Royal Palace to the DIY atmosphere of its markets. It is also a picturesque city of parks and of course, the majestic Thames River. The city extends for miles beyond its ancient core and each neighborhood has its own charming atmosphere for visitors to explore. London also wears its status as a world city proudly and the influence of different cultures is plain to see in the food and fashion of the capital.
Things to do and places to visit in London
With so many attractions in London, anyone can find something to delight them. Art lovers will enjoy the world-renowned museums and galleries, most of which are free. Sports fans are spoilt for choice by the city's array of football clubs. Theatre and music fans have a vast list of venues to visit, whilst shopaholics have Harrods, Oxford Street, Camden and much more to look forward to after arranging flights to London.
Some unmissable London attractions include:
- Seeing priceless masterpieces in the Tate Britain or the National Gallery.
- Watching the changing of the guard at Buckingham Palace.
- Visiting Trafalgar Square's famous monument.
- Marveling at the Crown Jewels in the Tower of London.
- Getting a bird's eye view of the city from the London Eye.
- Tasting one of Brick Lane's famous curries.
- Browsing the exclusive shops of Knightsbridge.
- Visiting a market – Spitalfields for antiques, Camden for clothes or Borough Market for street food.
- Admiring design from around the world in the Victoria and Albert Museum.
- Looking for clues at the home of fiction's most famous detective, Sherlock Holmes.
- Strolling through one of the lovely parks, including Hyde Park, St James' Park or Kew Gardens.
- Eating Britain's most famous dish, fish and chips.
- Watching the street performers in Covent Garden.
- Enjoying the views at a South Bank cafe.