Advanced Negotiation Preparation for TCO

Course details

PROGRAM SUMMARY
Negotiations are won and lost before they ever start. At least 80% of your
time should be spent preparing for negotiations. Rookie negotiators however
compromise on price to make the supplier feel like they got a win/win deal.
Purchasing Masters use powerful behavioral psychology techniques to drive
win/win results that do not impact the purchasing professional’s TCO
objectives, thereby allowing both parties to be successful.

You will learn how to recognize, pursue, track, and report the various types of
cost savings so that every opportunity is recognized and captured. Plus
discover how to develop cost modeling (must cost, should cost, total cost, &
benchmarking) for pre-negotiations data analysis – knowing which one to use,
how to use, and when to use. A deep analysis will be done on how to
understand costs and cost drivers and how to take costs out of the supply
chain - instead of simply focusing on reducing supplier profit margins.

This seminar will culminate in giving advanced tools and methodologies that
provide breakthrough results to set you apart from your peers and put your
results and your career on the fast track to success.

PROGRAM PAYBACK

• •Why the goal of purchasing is NOT to make the internal customer happy 
• • Stop making compromises on price & start making compromises and 
• concessions in areas that don’t impact your total cost objectives 
• •How to organize and manage your negotiating team for orchestrated 
• results? 
• •Behavioral psychology techniques that motivate the supplier to want to 
• make concessions and compromises to help you achieve your total cost 
• objectives 
• •How to do should cost, must cost, and total cost models - when and why to 
• use them? 
• •What critical information to gather in the pre-negotiation phase from the 
• supplier and how to interpret it? 
• •How to call a supplier’s bluff when they say they are going to walk from the 
• negotiation table? 
• • Stop focusing just on reducing supplier profit margins to get a better price 
• &start focusing on end to end cost opportunities. 
• •How to correctly capture & categorize cost savings and put suppliers to 
• work for you to help make these figures take off. 
• • Learn how to put the supplier to work for you to help aggregate internal 
• expenditures for better volume discounts? 
• • Powerful examples and techniques to take costs out of the supply chain. 
• •How to manage and lead highly successful negotiations? 

WHO SHOULD ATTEND?

Buyers , Purchasing Planners, Commodity Specialists/Managers, Supplier
Managers, Finance Employees and Managers, Purchasing Supervisors/
Managers, Purchasing Directors, Supply Line Managers, Contract Managers,
Supply Chain Specialists/Managers, Business partners of the purchasing
department (customers, finance, etc), Anyone who aspires to work in
purchasing , Sales professionals who wish to better understand purchasing
strategies of their customers

TRAINING METHODOLOGY

Participants will increase competencies through a variety of instructional
methods including lecture by an experienced practitioner and consultant,
individual and team cases, and group discussions covering the many topics
presented in the program.