Purchasing Techniques, Negotiating and Cost Reduction

Start Date End Date Venue Fees (US $)
26 Jul 2026 Istanbul, Turkey $ 4,500 Register
29 Nov 2026 Jubail, KSA $ 4,500 Register

Purchasing Techniques, Negotiating and Cost Reduction

Introduction

This course will examine an organization’s revenue that is spent on goods and services - everything from raw materials to spares and stocks. Hence, when the goal is to increase earnings by lowering costs, world-class organizations look closely at their purchasing strategies. Success in purchasing is dependent not only on an awareness of the potential opportunities, but more importantly, and the focus of this course is the knowledgeable implementation of the methods, processes, and techniques that should be utilized in order to become a leader in obtaining real supply management savings through negotiations and understanding cost reduction

This course will feature:

  • How to be  world-class in cost reductions
  • Processes for developing purchase price index
  • How to evaluate supplier prices
  • The importance of planning in successful negotiations
  • Approaches in negotiations

Objectives

    Define the strategic role of the purchasing department. Perform accurate supplier evaluation. Identify the importance of value analysis to purchasing. Evaluate the performance of the department using proper Key Performance Indicators (KPIs). Improve the efficiency of the purchasing function.

    • Examine the key features in spend profiles
    • Evaluating costing reduction opportunities
    • Understanding supplier pricing structures
    • Apply to purchasing strategic plans
    • Develop common approaches in planning for negotiations

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practice. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

Senior buyers, purchasing supervisors, purchasing managers, and other managers who need to understand purchasing management.

Course Outline

Day 1: Continuous Improvement in Cost and Productivity

  • How do other functions view purchasing
  • A Purchasing Savings Model
  • Total Cost of Ownership Models
  • Cost Reduction Initiatives
  • Establishing a Strategic Focus with Pareto Analysis on Cost
  • Modern Methods of Analyzing the Spend

Day 2: Defining Cost Reduction Opportunities

  • Developing Company Purchase Price Index and Comparing to External Indexes
  • Understanding of Supply Marketplace and how Suppliers Price
  • Benchmarking best practices in Cost Reduction
  • Resisting Price Increases
  • Supplier Performance Measurement
  • Cost Saving Methods

Day 3: Methods of Price Evaluation

  • Price Justification
  • Methods of Price Analysis
  • The Competition that leads to price reduction and evaluation
  • Methods of Cost Analysis
  • Breaking down the Elements of Cost
  • Developing "Should Cost"

Day 4: Successful Negotiations

  • Negotiation Skill Sets
  • Steps in Negotiation Preparation
  • Methods of Persuasion
  • What Does Win/Win Really Mean?
  • Determining the Issues
  • Rating & Valuing Issues

Day 5: Determining Strengths and Weaknesses

  • Know Your  Better Alternatives to Negotiated Agreements (BATNA)
  • Analyzing The Other Side
  • Negotiation Objectives Diagram
  • Prepare the Negotiation Team
  • Tips for the Actual Negotiation
  • Participants will negotiate model cases & discuss the results to provide an opportunity for hands on experience

Accreditation

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Competency Solutions Brochure
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