Strategic Procurement Management & Vendor Negotiation Skills: How to Effectively Negotiate With Your Suppliers for Competitive Advantage

23 Aug, 2021, Virtual Classroom Training

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MANO HAARAN has more than 21 years of practical work experience in contracts administration, supplier management, procurement, project management, supply chain and logistics, etc. He specializes in training, facilitation and consulting to both the public and private sector in areas like Procurement Efficiencies including addressing issues of contracts administration, fraud, cost management and product life cycle management, Warehouse Management, Operations Management, Total Cost Management, Supply Chain Management, Total Logistics management, Stock Taking and Auditing,

 

His landmark consulting experience was designing of materials part numbering and coding systems, preparation of standards, policies and procedures for a large rail network. He was also involved as a consultant for the development of an automated business solution for a wholesale/retail stationery business with off shore branches where he was instrumental in business process analysis, process improvement, project management and eventual successful completion and commission of the system.

 

Mr. Haaran’s sample of illustrious clients list for training include Shell, UMW Toyota Motor, Celcom, Samsung, Proton, Colgate-Palmolive, Eon Finance, Philips, Hicom- Yamaha, Malaysian Oxygen, NEC, Petronas, General Electrics, Gamuda, Johnson & Johnson Medical, JVC, Kontena Nasional, Glaxo Wellcome, Hitachi, Hong Leong Lurssen Shipyard, National Heart Institute (IJN), Kenwood,
Macfood Service, Nestle, Mattel, Matsushita Industrial Corporation, Maybank, Minolta Precision Engineering, MISC, Perwaja Steel, Seagate, Canon, BASF and UPS, Petronas Carigali, Sidel, Western Digital, Perodua, Sharp, Panasonic

 

He holds Masters in Business Administration (MBA) USA.

Venue Details

Virtual Classroom Training

Contact us

Juliany,
M - 012 2281 247
juliany@ipa.com.my

Michelle,
M - 019 363 7822
michelle@ipa.com.my 

FOR CUSTOMISED IN-HOUSE TRAINING
Yvonne,
M - 012 201 1247
yvonne@ipa.com.my

ADDRESS 
A-28-5, 28th Floor, Menara UOA Bangsar, 
No.5, Jalan Bangsar Utama 1, 
59000 Kuala Lumpur
www.ipa.com.my

FOCUSING ON
  • Session 1: Analysing the Procurement Process
  • Session 2: Supplier Sourcing & Selection
  • Session 3: Understanding Costs to Negotiate Better
  • Session 4: Negotiating with Suppliers
OVERVIEW

This 7-hour on-line course is designed to address fundamental issues in strategic procurement and effective negotiation with suppliers for a mutually beneficial long-term relationship.

 

Strategic procurement is the alignment between sourcing options and the business objectives that leads to more significant and sustainable benefits to the company. It looks at long term sustainable value creation as opposed to a series of tactical operating models that may deliver short term cost benefits that lock in existing inefficiencies and fail to address the root causes of poor performance.

 

Procurement strategies are developed based on our buying power, our relationships with our suppliers, our internal process capabilities, etc., that will provide us with the competitive advantage to sustain our business in a supply chain. Procurement strategies will not work in isolation and it requires the participation of suppliers and customers. Negotiating with suppliers for mutually beneficial business relationship is difficult but absolutely possible if you understand the psyche of the suppliers and why they are in business. Understanding suppliers better, requires that we establish good relationship with them through a process of sharing critical information both ways and working towards total cost of ownership concept. This one-day on-line course addresses all these issues and will help you work with your suppliers better and more productively.

KEY BENEFITS OF ATTENDING THIS COURSE...
  1. Knowing how to negotiate with suppliers for a win-win situation
  2. Total cost approach to procurement
  3. Focuses on strategic approach
  4. Critical view of supply management
AT THE END OF THIS COURSE, PARTICIPANTS WOULD BE ABLE TO UNDERSTAND:
  1. The effect of the procurement process to the sourcing strategy
  2. Analysing and understanding suppliers better with Kraljic Matrix
  3. How to negotiate with suppliers for mutual benefits
  4. How to select, retain and manage suppliers
WHO SHOULD ATTEND

Managers/Executives/Officers from:

  • Purchasing/Procurement
  • Distribution & Supply Chain
  • Materials Planning & Control, Logistics
  • Vendor Development
  • Suppliers
  • Finance
  • IT/MIS
  • Business Development
  • Merchandizing
  • Sourcing
  • Operations
  • Buyers
METHODOLOGY
  • Interactive Lectures
  • Class Participation and Exercises
COURSE OUTLINE
9.00

Session 1: Analysing the Procurement Process

  • Understanding:
    - Procurement
    - Buying
    - Sourcing
  • Company policies on procurement
    - Single source or multiple suppliers
    - Price or cost based
  • Procurement constraints
    - Policies related
    - Customer related
    - Supplier related – sole source
10.45

Session 2: Supplier Sourcing & Selection

  • Working with policy constraints
  • Establishing supplier database
  • Establishing an Approved Supplier List
  • Understanding the Kraljic Matrix and how to analyse supplier risks
1.00

Lunch

2.00

Session 3: Understanding Costs to Negotiate Better

  • Life Cycle Costing & Total Cost of Ownership
  • Internal cost drivers – company related
  • External cost drivers – supplier and supply chain related
  • Price/Cost Analysis
  • Inventory management constraints – costs and options
3.45

Session 4: Negotiating with Suppliers

  • Traditional vs new ways of negotiation
  • Challenging the norm with PICO method
  • Preparation – knowing your limits; your WATNA, BATNA, WAP & ZOPA
  • The negotiation matrix that emphasis on long term relationship building
  • Special procurement negotiation situations – sole source, single source, contracts, projects, warranties, conditions, guarantee, etc.
  • Towards a successful contract
5.00 End of Course