Negotiating Successfully With Suppliers

Overview of Course

This course is designed to help those buying goods or services to undertake their roles with confidence and skill. The starting point for the training is in recognising that negotiations with suppliers are regular and different, and that the typical tactics and bargaining techniques used e.g. in Sales Negotiation courses, are not necessarily suited to the more complex drivers in supplier relationships.

The course is suitable for anyone who is involved in procurement negotiations for goods or services with existing or prospective suppliers. The course will show how delegates can use their negotiating skills to enhance long term relationships with suppliers, as well as getting the best deals for their company.

Participants will come out with a clear plan of action, feeling confident and better equipped to go into negotiations, communicate with suppliers and get the best (win / win) outcome for all concerned.

Course Objectives

By the end of this course participants will be able to:

• Recognise the importance of negotiation to get profitable deals and maintain long term supplier relationships.
• Understand the five possible outcomes of a supplier negotiation and prepare an appropriate negotiation strategy
• Demonstrate the 4 phases of negotiating
• Understand the behaviours of highly skilled negotiators and use them appropriately
• Deal with negotiating tactics and ploys used by the other party

Course Content

Understanding Procurement Negotiations

• What does negotiating with suppliers involve?
• Why are negotiations with suppliers different?
• Red / Blue Negotiating Styles
• Relationship v ‘The Deal’
• Negotiation Outcomes (Competing, Compromising, etc.)

The 4 Phases of Negotiation

• Preparation (Objectives, Agendas, BATNA, Tradeables)
• Discussion (Timing, Discussion points, Communication skills)
• Proposals (Conditional offers, concessions. ‘testing the water’
• Bargaining ( “If…Then”, Making trades, How to reject offers)

Negotiating with Suppliers: Essential Skills

• Key Communication Skills
• Recognising negotiating ploys (Salami, Personal criticism etc)

Top Tips’ when negotiating with Suppliers

Practice Negotiation Exercise & Review