Program Information

Duration:

1 day

Fees:

RM 1,400

Mode:

Online

Course Date:

3 Dec 2020
8 Dec 2020

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

IPTS Certified Code: DU027(B)

All programmes conducted by MISI are eligble for HRDF claims, subject to prior application to HRDF by the employers/companies

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

Faculty & Industry Experts

Prof. Dr. David Gonsalvez
Prof. Dr. David Gonsalvez

Chief Executive Officer & Rector Malaysia Institute for Supply Chain Innovation, Malaysia

Get More Information

OnlineClassroom

Negotiation Courses for 2020

03 Dec 2020
SCSC: Negotiation
Online
1 Day
Register Now
08 Dec 2020
SCSC: Negotiation (Full)
Online
1 Day
Register Now

Malaysia Institute for Supply Chain Innovation
No. 2A, Persiaran Tebar Layar,
Seksyen U8, Bukit Jelutong, Shah Alam,
40150 Selangor, Malaysia.

Stay up to date on the latest news from MISI

Connect with Us

Copyright © Malaysia Institute for Supply Chain Innovation 2020