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(41) COST REDUCTION TECHNIQUES & NEGOTIATION SKILLS FOR PURCHASING PROFESSIONALS 

                                        

                                       KUALA LUMPUR    l 22-23 November 2007 (new date)

 

How to Leverage Purchase on Materials & Services Cost Saving to Improve Price Competitiveness & the Company's Bottom-Line

Today's purchasing personnel have a demanding role to purchase needs on the basis of value and cost effectiveness, and get the best deals from suppliers and vendors.

It is not just the process of buying the right items, right quantity, right time, right location and right source, but it is the right price.

This course aims to help participants sharpen their skills on their work operations and procedures to attain effective cost control using basic techniques such as MBO (management by objectives) negotiation skills, value analysis, substitution, system contracting.

They will also look in-depth into the buying process before agreeing to the price.

KEY BENEFITS OF YOUR ATTENDING
By the end of this course, you will be able to:

1. Learn to improve work operations and procedures in the purchasing environment
2. Understand the mechanism of cost control & apply the basic technique of cost reduction
3. Analyze the key issues on purchases and generate profits
4. Understand the mechanism of cost-price analysis
5. Understand the concept of cost avoidance, cost analysis and cost reduction
6. Identify the negotiation process mapping
7. Apply tactics and strategies that help your negotiations
8. Apply the skills in listening, observation and questioning techniques
9. Understand the behaviour and attitude of the negotiator
10. How to overcome conflicts and confrontation when negotiation is at its stand still situation
11. Negotiating with suppliers and vendors in cultural situations

WHO SHOULD ATTEND
Purchasing Executives, Buyers, Supervisors, Accounts Executives, Store & Warehouse Supervisors, Distribution Managers and others who are interested to understand how cost reduction techniques are applied & have to deal with purchasing negotiations in their daily work.

COURSE OUTLINE
Understanding Purchasing Profits and Cost Reduction Methods
 · Overview of purchasing
· Profit leverage and purchasing bottomline contribution
· 5 basic methods for cost reduction
· Case Study: "Pay More and Save More"

Purchasing at the Right Price
· Price objectives & Investigation
· Cost Analysis
· Establishing the Price
· Purchasing Perogatives

Why Measure Purchasing Performance
· Why measure?
· Use of performance indicators
· Purchasing targets and key indicators
· Suppliers' Reduction Programme

Savings through Cost Analysis
· Cost saving measures a) cost reduction and b) cost avoidance
· Cost-Price Analysis
· Economic benefits to a firm
· Price Analysis

Managing Purchasing Schedule and Cashflow
· Exercise:
      (i) Develop procurement of materials for project
      (ii) Develop suppliers' payment terms into cashflow plan

How Negotiation Techniques help Cost Reduction Program
· What is Negotiation?
· How to Negotiate the deal
· Negotiation framework
· How to deal with vendors on quality issue
· How to negotiate on the right quantities
· How to negotiate with right supplier

The Objectives of Negotiation Process
· Negotiation objectives
· Identify the importance of each objectives
· Barriers in Negotiation
· Needs vs Wants
· Exercises

What to Expect in Certain Deals When Negotiating
· Components of expectations
· How to resolve conflicts?
· How to break deadlock and use breakdown to work for you
· Case Study: Negotiating the deal

Negotiating Mapping Techniques
· Develop a master plan (blueprint)
· Set objectives and targets
· Tactics and Strategies
· The Mapping Process

YOUR EXPERT COURSE LEADER

Allan Ang is a senior trainer and consultant specializing in Purchasing, Warehousing,

Inventory Management, Logistics & Operation Management and Supply Chain 

Management.

 

He has more than 25 years of working experience in manufacturing, store, logistics, supply

chain and material management with several multi-national companies.  He conducts 

regular workshops and in-house programs relating to Production and Inventory Control, 

Store, Warehousing, Supply Chain Management for companies in Singapore, Malaysia, 

Indonesia, Thailand and China. He is also a seasoned resource speaker at regional conference 

and international meetings.

 

Allan has been involved with international purchasing, multi million dollar negotiations, 

contracts, cost reduction exercises, inventory planning and controlling, warehousing  

and distribution functions.

 

Organizations which have benefited from Allan’s training expertise include Jusco Jaya Sdn 

Bhd, Singapore Manufacturer’s Federation, Maruwa Sdn Bhd, Matsushita Electric Asia Pte Ltd,

PT Total Mega Inovatif Progress, Purchasing & Supply Chain Management Association of 

Thailand, Mac Works Sdn Bhd and First Silicon Sdn Bhd.

 

Allan currently serves as President for the Institute of Industrial Engineers Singapore and the 

Institute of Engineering Technologists. He is also a fellow of the Institute of Logistics and 

Transportation (UK).

 

COURSE FEES

RM1,495 per person

 

TEAM DISCOUNT (For organisations sending 3 or more participants)

RM1,295 per person

 

REGISTRATION DEADLINE

1 week before each scheduled date.

Click here to register

 
 

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