Program Information

Duration:

1 Day

Fees:

RM 1,000

Mode:

Online

Program Overview

This course provides an introduction to negotiation in a procurement context (i.e., negotiations between a buyer and a vendor/supplier). The objective is to provide the participant with a structured foundation in the preparation and conduct of such negotiations. Since practice is key in building up expertise in negotiation, case studies and exercises/games will be used to supplement lectures.

Is this course for you?

This course is designed to have a broad appeal and provide an understanding of how negotiation in business can be performed effectively. Professionals from procurement and purchasing organizations will particularly benefit from this program.

Program Content Highlights

  • Learn why is preparation important and how it can affect your negotiation process. BATNA and Reservation Price
  • Learn in negotiation; Building relationships and trust; Cultural differences
  • How to conduct effective negotiations from start to finish
  • Learn about Questionable Tactics; What is Permissible? Lost Opportunities; Bluffing, Fraud and Lying. Post Negotiation Analysis is key to future success

All our short courses are under HRDCorp claimable course (SBL-Khas) scheme, subject to prior application to HRD Corp by the employers/companies.

Program No:
Provider Name: Malaysia Logistics Innovation Berhad
Training Provider ID No: 936566

Curriculum

Introduction to Negotiation in Procurement

  • What is Negotiation? What are the different types of negotiation?
  • How to classify a particular negotiation?

Preparation for Negotiation

  • Why is preparation important? What constitutes good preparation?
  • How do you prepare for an important negotiation?
  • What is BATNA? Reservation Price? How do you develop your BATNA?
  • Barriers and Power in negotiation; Unintended consequences from preparation

The People Factor

  • The “Opposition”: Knowing your “opponent”; Difference between organization and individual objectives; Organization levels in negotiation; Building relationships and trust; Cultural differences and similarities
  • Your Team: Subordinates & Bosses; Aligning Roles & Responsibilities

Due Diligence on Supplier Cost Structure

  • Importance of knowing the supplier’s cost structure
  • Finding out about your supplier’s cost structure
  • Identifying key cost drivers in your supplier’s operations for this RFQ
  • How to best use this information

Due Diligence on Supplier Cost Structure

  • Importance of knowing the supplier’s cost structure
  • Finding out about your supplier’s cost structure
  • Identifying key cost drivers in your supplier’s operations for this RFQ
  • How to best use this information

Understanding your Supplier’s position

  • The real motivation behind your supplier’s need to negotiate
  • Their financial situation and performance in the stock market
  • Do they have specific objectives for this negotiation?

Data at Your Fingertips – Tools & Analysis

  • Total Landed Cost / Total Cost of Ownership estimation analysis
  • Overall market analysis for this commodity/component
  • Impacts of FX variability, INCO terms, other specific negotiation parameters

The 10 Negotiation “Rules”

  • Importance of knowing the supplier’s cost structure/li>
  • Finding out about your supplier’s cost structure/li>
  • Identifying key cost drivers in your supplier’s operations for this RFQ/li>
  • How to best use this information/li>

Conducting the Negotiation

  • The real motivation behind your supplier’s need to negotiate
  • Their financial situation and performance in the stock market
  • Do they have specific objectives for this negotiation?

Ethics in Negotiations

  • Total Landed Cost / Total Cost of Ownership estimation analysis
  • Overall market analysis for this commodity/component
  • Impacts of FX variability, INCO terms, other specific negotiation parameters

The Post Negotiation Analysis

  • How well do you think you did? How was conflict handled?/li>
  • Type of solution achieved; Buyer’s and Seller’s Surplus Estimates/li>
  • State of the future relationship; Storing the “lessons learned”/li>

Negotiation Exercises

  • Case Studies & Negotiation Games

Trainers & Industry Experts

Get More Information

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    MISI University
    No. 2A, Persiaran Tebar Layar,
    Seksyen U8, Bukit Jelutong, Shah Alam,
    40150 Selangor, Malaysia.

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