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Effective Negotiating Strategies for Procurement and Contracts

Date: 18 September 2017 - 22 September 2017
Course ID: ADDS114/2017
Duration: 5 Days
Fee US $: 3200 US$
Venue: Istanbul / Turkey
Category: Supply Chain, Procurement, Purchasing and Logistics Management

Introduction:

Representing more than 60% of the total expenditure, purchasing is one of the major cost items on any organization’s budget. It is also one of the most important activities performed by and takes long time from the organization’s management.

Not only sales activities, but also purchasing activities could contribute positively to the profits of any organization if the later are well-organized and given enough attention. Presently, actual surveys have shown that purchasing consumes too much time that most of it could be used to perform other activities. The main reason for wasting the organization’s high-value time and complicating the purchasing processes/ procedures is the paper work. As a result, purchasing officers erratically treat high-value and less-value purchase items in the same way. This program tackles topics of enhancing purchasing activities/ performance through adopting a new strategic approach.

Objectives:

Upon successful completion of this course, participants should be able to:

 Identify the role of purchasing in increasing the organization’s profits

 Organize the purchasing department as a profit- generation center controlling purchasing activities

 Simplify the purchasing procedures minimizing the paper and document work

 Categorize purchasing items and use the ideal cost-effective and efficient purchasing technique for each category

 Use the modern techniques to resolve issues of mal-functioning in supply and procurement

 Use the modern techniques in selecting and negotiating with suppliers

 Replicate experiences of international practices in the field of purchasing

Who should attend:

This program is targeting current and potential purchase employee and department heads working for companies that aim at achieving profits, minimizing costs and better managing their time.

Daily Outlines:

Day One

Role of Purchase activities

1- The importance of purchase activities

2- The importance of purchase activities in maximizing the company’s profits

3- Techniques of cost minimization

4- Organizing purchasing department as a profit center

5- Purchasing activities re-engineering (developing procedures& techniques& paper-work minimization)



Day Two

Purchasing Strategic Planning

1- Conducting the 3-component analysis on purchase items according to importance (categorization)

2- Adopting best strategy for each category

3- How to minimize time, effort and cost on less-value items

4- How to avail the strategic high-value items



Day Three

Techniques to resolve issues of mal-functioning in supply and procurement

1- Reverse- Marketing technique to resolve issues of mal-functioning in supply

2- Marketing of purchase items

3- How to deal with a supplier who has monopoly on specific required purchase items



Day Four

Supplier selecting strategies

1- Identifying suppliers

2- Analyzing supplier competency

3- Qualifying and evaluating suppliers

4- Negotiating with suppliers

5- Supplier development



Day Five

Experiences of international practices in the field of purchasing

1- US experience in purchasing (MRP)

2- Japanese experience in purchasing

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