Procurement & Negotiation

23-24 Aug, 2023, Remote Online Training - Public

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MANOHARAN MURUGESON 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 a Masters in Business Administration (MBA) USA.

Venue Details

Remote Online Training - Public

Contact us

Juliany,
03 2283 6109
juliany@ipa.com.my

Phoebe,
03 2283 6100
phoebe@ipa.com.my 

FOR CUSTOMISED IN-HOUSE TRAINING
Jane,
03 2283 6101
Jane@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
  • Module 1 – Analysing The Procurement Process
  • Module 2 – Supplier Selection And Creating An Effective Database
  • Module 3 – Supplier Risk Analysis
  • Module 4 – Life Cycle Costing, Total Cost Of Ownership & Cost Analysis
  • Module 5 – Technology For Cost Efficiency
  • Module 6 – Components Of A Successful Negotiation
  • Module 7 – Let The Rubber Meet The Road – Get Down To The Job At Hand
  • Module 8 – You Are Dealing With People – Are You Communicating?
INTRODUCTION

Many companies spend a sizable percentage of their revenue on the procurement of products and services. This is inevitable as essential supplies are necessary to keep their business operational. As such, it is important that the procurement function is efficient and effective in meeting the organization’s business objectives. Therefore, a good portion of the procurement professionals’ time is spent on negotiating with suppliers for a better deal for their company.

Negotiation is an integral part of the job functions of a procurement professional. As buyers, they seldom have a choice of whether to negotiate, but they do have a choice in when and how well they do it. Having to negotiate is inevitable; doing it well is more so. They cannot go through a day without negotiating items such as on-time delivery, quantity, quality, differences between departments, technical support, priorities, price, specification changes, etc.

Procurement encompasses sourcing and purchasing (buying) besides other fundamental activities such as risk analysis, data analysis, category management, cost management, negotiation, etc. Therefore, this course addresses the strategic and operational perspectives of procurement with a win-win outlook. Win-win solutions can be attained through supplier-buyer joint approach to solving problems, such as identifying cost drivers, eliminating non-value adding activities and arbitrary costing. These would result in stronger and longer-term business relationships.

WHO SHOULD ATTEND

Managers/Executives from:

  • Purchasing/Procurement
  • Sourcing
  • Operations
  • Buyers
  • Distribution & Supply Chain
  • Materials Planning & Control, Logistics
  • Vendor Development
  • Suppliers
  • Finance
  • Business Development
  • Merchandizing
METHODOLOGY
  • Interactive lectures
  • Group discussions
  • Exercises
  • Questions & Answers 
DAY 1
9:00

MODULE 1 – ANALYZING THE PROCUREMENT PROCESS

  • Understanding – procurement, buying and sourcing
  • Process analysis – the purchasing cycle
  • Company policies on procurement – Single source or multiple suppliers, price or cost based, supplier relationship, probity, supplier selection, quality, and price related
  • Procurement constraints – policies, customers, and suppliers 


10.45

MODULE 2 – SUPPLIER SELECTION AND CREATING AN EFFECTIVE DATABASE

  • Selection process – setting selection criteria
  • Objective evaluation of suppliers – desk research and field research
  • Supplier database – approved, qualified and preferred suppliers
  • Monitoring supplier performance to ensure unbiased supplier ratings
  • Supplier development – relationship building effort

 

1:00 Lunch
2:00

MODULE 3 – SUPPLIER RISK ANALYSIS

  • Supplier risk analysis using the Kraljic Matrix
  • Supplier risk profile – mitigating risks using risk matrix
  • Skills set required to manage suppliers and risks
  • Risks and service levels – minimizing risk exposure in critical areas
  • Dealing with sole source suppliers – how to minimize risks

 

  Exercise On Life Cycle Costing & Cost Analysis
3:45

MODULE 4 – LIFE CYCLE COSTING, TOTAL COST OF OWNERSHIP & COST ANALYSIS

  • Supplier rationalization & reduction
  • Internal cost drivers – company related
  • External cost drivers – supplier and supply chain related
  • How LCC & TCO will help in strategic sourcing?
  • Price/Cost Analysis
  • Saving purchasing costs – process improvements, technology – EDI, e-procurement, etc.
  • Inventory management constraints – costs and options

 

5:00 End of day 1
DAY 2
9:00

MODULE 5 – TECHNOLOGY FOR COST EFFICIENCY

  • Identifying current skill sets - existing skills and the gap to fulfill
  • Procurement skills required to make the difference – the individual and the department
  • The stage of technology penetration in the organization
  • Does technology help in procurement – how businesses use technology to create the difference
  • Types of technology for the procurement environment – EDI, e-Procurement, portal, SaaS and Big Data Analytics


10.45

MODULE 6 – COMPONENTS OF A SUCCESSFUL NEGOTIATION

  • The different faces of negotiation – styles and techniques
  • A different approach to negotiation – the PICO method
  • The components and how it works
  • The fundamental requirements – a level playing field
  • The negotiation matrix that emphasis on long term relationship building

 

1:00 Lunch
2:00

MODULE 7 – LET THE RUBBER MEET THE ROAD – GET DOWN TO THE JOB AT HAND 

  • Planning your negotiation – the planning model
  • Preparation – knowing your limits; your WATNA & BATNA
  • Keeping your objectives focused – reality of targets
  • The negotiation steps and missteps
  • Problems commonly encountered in highly stressed negotiations
  • Dealing with hardball negotiators (Dealing with difficult issues)

 

3:45

MODULE 8 – YOU ARE DEALING WITH PEOPLE – ARE YOU COMMUNICATING?

  • The difference between written and oral communications – how it works and why you must be good at both?
  • Do you listen or do you hear? – active listening or astral travelling?
  • Verbal and non-verbal communication – body language may give you the hint
  • People are emotional beings – how do we take this into consideration?
  • Being aggressive or assertive? – how others view your approach?

 

5:00 End of Course