Open Courses

Contract Negotiation & Purchasing

CN3

Introduction

Contract negotiation is an important part of the role of the purchasing professional. This practical programme will demonstrate how to create value through your negotiations, gain the confidence to plan and conduct negotiations which will reduce deal cycle-times and achieve cost effective deals. The programme will also provide an insight of how to manage the contract and provide an effective ongoing supplier relationship.

Who should attend

This course is suitable for procurement managers and professionals who wish to increase the effectiveness and efficiency of their negotiations and reduce deal cycle times. It will also be valuable to contract managers and specialists.

COURSE PROFILE

Overview of Procurement Cycle, Supply Chain Management and Importance Of Contracts

  • Principles of the procurement cycle and it’s contribution to effective Supply Chain Management
  • Supplier appraisal, post-tender appraisal and developing relevant tender documents
  • The fundamentals of contracts within the procurement function
  • Understanding standard contracts operating in your own organisation

Developing a Contract Strategy

  • Agreeing on your organisation’s contract strategy
  • Assessing and selecting different types of contract and the duration
  • The importance of creating effective tender documents
  • Identify the various risks that exist in the contract formulation
  • Understand the key areas of the contract which are likely to be negotiated when entering contractual relationships with suppliers

Developing your Negotiation Skills

  • Characteristics of a successful negotiator
  • The importance of questioning and listening
  • Communication skills and developing rapport
  • Using silence as a powerful negotiation tool
  • Understanding body language

Conducting the Negotiation

  • Pre-negotiation research: understanding the subject, the contract and the supplier
  • Identifying concessions
  • Effective bargaining techniques
  • Identifying a “win-win” result
  • Resolving stalemates and conflict resolution

Contract Management and Reviewing Performance

  • The need for ongoing supplier performance management
  • Identifying and developing key performance indicators (KPIs)
  • Regular assessment suppliers using service levels agreements (SLAs) and other techniques
  • Maintaining positive working behaviours and preventing declining supplier performance
  • Use tools and techniques for monitoring contractual obligations
SKILLS

At the end of the course participants will be able to:

  • Understand the procurement cycle, Supply Chain management and contracts
  • Prepare your organisations contract strategy
  • Select the right contract and terms for each deal
  • Negotiate with confidence and improve the results of your negotiations
  • Manage and review the delivery of the contract, achieving consistent supplier performance
COMPETENCIES
  • Communication
  • Conflict Resolution
  • Contract Strategy
  • Negotiation Skills
  • Procurement Management
  • Purchasing
  • Supplier Assessment Tools
  • Supply Chain Management (SCM)
BOOKING

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