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Negotiations for Cost Reduction Seminars
Cost reduction is, and always will be, a major goal of the purchasing profession. This course features a contemporary look at purchasing negotiations in the current economic environment. The implementation of many other purchasing techniques such as partnering, just-in-time inventory, single sourcing, E.D.I., continuous improvement, and supplier certification make a positive approach to negotiation and indispensable prerequisite.
Seminar Outline:
Basic Pricing Systems
- Market Pricing
- Cost Plus Pricing
- Theory of Price
The PRAM Model of Negotiation
- Developing Win-Win Plans
- Establishing Win-Win Relationships
- Forming Win-Win Agreements
- Performing Win-Win Maintenance
Cost Analysis Models
- Market Test
- Cost Build-Up and Break Down
- PacTel's "Should Cost" System
- "Total" Cost Considerations
Step One: Planning
- Assessing "State of Mind"
- Reversing a Negative "State of Mind"
- Role Of Personalities
- Forming Planning Teams
- Site Selection Issues
- Determining Goals, Issues, and Priorities.
- Anticipating the Other Party's Wants.
- Developing Win-Win Solutions.
- Planning Questions.
Step Two: Relationships
- The Role of People in Negotiation
- Getting Off On The Right Foot
- The Danger Of Win-Lose Relationships
- Building The Elements Of A Positive Relationship.
Step Three: Win-Win Agreements
- Verifying Areas of Agreement and Disagreement
- Engaging In Mutual Problem Solving
- Handling Deadlocks
- Defending Against Seller's Tactics
- Avoiding "Ball Droppers"
- Agreement Finalization
- Post-Agreement Debriefing
Step Four: Maintenance
- Maintaining the Agreement
- Maintaining the Planning
- Maintaining the Relationship
- Maintenance Activities
Partnering: The Ultimate Win-Win Goal for Cost Reduction
C.P.M. Points
Those who attend this seminar will earn one (1) C.P.M. point and receive a certificate of completion. For more information about the C.P.M. program, call the National Association of Purchasing Management at (800) 888-6276, extension 3027. |
