Negotiation and Cost Reduction in Purchasing and Procurement

Course Info

Length: 1 Week

Type: Online

Available Dates


  • Apr-17-2023


  • May-22-2023


  • June-19-2023


  • July-17-2023


  • Aug-21-2023


  • Sep-18-2023


  • Oct-23-2023


  • Nov-20-2023


  • Dec-18-2023


Course Details

Course Outline

5 days course

Modern Methods in Cost and Productivity


  • Understanding and implementing a cost reduction model
  • Understanding the concept of “Pareto Optimality” and its application on cost reduction
  • Analysing the spending and how to manage/control
  • Understanding the concept of “Total cost of ownership model”
  • Methods of cost reduction
Opportunities for Cost Reduction


  • Company purchasing price index and comparison to external index
  • Pricing of suppliers and understanding of the supplier marketplace
  • Best practises in cost reduction
  • Understanding the concept of “Resisting price increase” and supplier performance measurement and further methods of cost saving
Methods for Evaluation of Price


  • Methodology of price analysis
  • Evaluation of price and price reduction
  • Different elements of cost analysis
  • How much “Should Cost”? actual price vs selling price vs buying price
Skills for Successful Negotiation


  • Methods / techniques for preparation before negotiation
  • How to determine the issues and “Rating” and “Valuing” issues
  • Methods/ techniques of persuasion
  • Methodology of “Win-Win” situation
SWOT Analysis


  • Determination of the strengths and weaknesses
  • Concept of “BATNA”- best alternative to a negotiated agreement
  • Preparation of the negotiation team
  • Tips and training for actual negotiation
  • Workshop training where trainees will create a negotiation model and discussion of results to provide hands on opportunity
  • Review of the course and “Question and Answer session”

Course Video