WES Trainings

Purchasing Techniques, Negotiating & Cost Reduction

Course Outline

Day - 1

Introduction to Purchasing Techniques

  • Overview of Purchasing & Procurement
    • Importance of purchasing in supply chain management
    • Role of procurement in cost management and business success
    • Key elements of the purchasing process: need identification, supplier selection, negotiation, and contract management
  • Types of Purchases
    • Direct vs. indirect purchases
    • Strategic sourcing vs. transactional purchasing
    • Group purchasing and economies of scale
  • Purchasing Strategies
    • Just-in-time (JIT) purchasing and its benefits
    • Bulk purchasing and long-term contracts
    • Inventory management and its role in purchasing decisions
    • Ethical sourcing and sustainable procurement practices
  • Best Practices in Purchasing
    • Vendor selection and evaluation
    • Vendor relationship management
    • Ensuring compliance with procurement policies and regulations
Day - 2

Mastering Negotiation Skills

  • Principles of Negotiation
    • Understanding negotiation tactics and styles
    • Importance of preparation and planning before negotiations
    • Recognizing negotiation leverage
  • Negotiation Strategies
    • Win-win vs. win-lose negotiation strategies
    • Concessions and compromises in negotiation
    • Setting clear objectives and goals for negotiations
    • Overcoming common negotiation challenges (e.g., supplier resistance, price increases)
  • Communication & Persuasion Skills
    • Building rapport and trust with suppliers
    • Effective listening and questioning techniques
    • Non-verbal communication and body language in negotiations
  • Advanced Negotiation Techniques
    • Collaborative negotiation techniques for long-term relationships
    • Using data and market intelligence in negotiations
    • How to manage difficult negotiations and resolve conflicts
Day - 3

Cost Reduction Techniques in Procurement

  • Introduction to Cost Reduction in Procurement
    • The importance of cost reduction in procurement strategy
    • Analyzing and reducing procurement costs without compromising quality
    • Total Cost of Ownership (TCO) approach
  • Identifying Cost Reduction Opportunities
    • Conducting supplier performance reviews and audits
    • Consolidating purchases to achieve economies of scale
    • Identifying low-cost suppliers and alternatives
    • Process improvement and reducing supply chain inefficiencies
  • Strategic Sourcing for Cost Efficiency
    • Understanding strategic sourcing and its impact on cost management
    • Supplier consolidation and long-term contracts for better pricing
    • Leveraging technology and digital tools to optimize procurement processes
  • Improving Operational Efficiency
    • Streamlining procurement processes and reducing lead times
    • Automating procurement processes to save costs
    • Best practices for inventory management and cost savings
  • Negotiating for Cost Reduction
    • How to negotiate for lower prices without damaging supplier relationships
    • Volume discounts, long-term agreements, and other cost-saving tactics
    • Creative cost-sharing models in supplier contracts
Day - 4

Supplier Relationship Management

  • Building and Managing Supplier Relationships
    • Importance of collaboration and communication with suppliers
    • How to create mutually beneficial supplier partnerships
    • Managing supplier performance and measuring key metrics
  • Supplier Performance Evaluation
    • Key performance indicators (KPIs) for evaluating supplier performance
    • Continuous improvement strategies for suppliers
    • Risk management and contingency planning with suppliers
  • Contract Management & Performance Monitoring
    • Establishing clear terms and expectations in supplier contracts
    • Managing contracts and enforcing compliance
    • Using supplier performance data to negotiate better deals
  • Developing Long-Term Supplier Partnerships
    • How to approach long-term contracts and agreements
    • Using supplier feedback and collaboration to improve procurement outcomes
    • Handling conflicts and resolving disputes with suppliers
Day - 5

Leveraging Technology & Best Practices in Procurement

  • Technology in Procurement
    • Overview of procurement software tools and platforms
    • How digital tools can streamline purchasing processes and improve decision-making
    • Leveraging data analytics for better purchasing and supplier management
  • Automation in Procurement
    • The role of automation in reducing manual work and costs
    • Integrating artificial intelligence and machine learning in procurement decisions
    • Benefits of automated purchasing systems and processes
  • Global Procurement Trends & Future Best Practices
    • Current trends in procurement: digital transformation, sustainable sourcing, and supply chain resilience
    • Key challenges in global sourcing and how to address them
    • The future of procurement and cost management
  • Building a Procurement Strategy
    • Developing a comprehensive procurement strategy aligned with business goals
    • Risk management strategies in procurement
    • Continuous improvement and innovation in procurement practices
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