Executives and All Employees Working in Purchasing Departments

Basic Purchasing Skills Program Code 8207E

Participants Executives and all employees working in Purchasing Departments

Objective By the end of this program the participant will be able to apply effectively purchasing process.

Outline Purchasing General Principles  Purchasing Mission Statement  Goals of Purchasing  Scope of Purchasing Function & its main responsibilities  Purchasing Department Organization Modern Purchasing Concepts  Integration of Purchasing function with other department activities: Engineering, Operation, Stock Control,..  Purchasing vs. Procurement  Purchasing’s Role in Business  6 Business Functions  5 M’s - Manufacturing  Conflict between Traditional purchasing Methods & Just-In-Time Trend  Early Purchasing/Supplier Involvement (EPI & ESI)  Impacts of Computer Systems & EDI  Purchasing Cycle 1. Material Need Identification 2. Evaluate potential Supply Source 3. Source selection 4. Release & receipt of material مركز الدارة والتنمية طريق مصر حلوان الزراعى برج بدر – أمام فدق المعادى 56 Telefax: 7509755 - 5198139 - Mobile: 0101790797 Email: [email protected] Website: www.mdcegypt.com

5. Supplier performance measurement & continuous supplier Management  Purchasing Policies  The Appropriate Quantity, Quality, Price and Time  Purchasing form the Appropriate Supplier  Centralization against Decentralization of Purchasing function  Purchasing Procedures  Order Processing  Preparation of RFQs  Contract Preparation  Requirement Gathering  Bid Evaluation  Order Follow-up  Invoice Reconciliation  Behavioral Skills in Purchasing  Communication skills  Negotiation skills  Dealing with different types of Suppliers  Purchasing Function and ISO900  Assessment of subcontractors  Purchasing data  Verification of Purchased products  Purchasing Benchmarking  Purchasing System Balanced Scorecard  Customer Perspective  Internal Business Process Perspective  Learning and Growth Perspective  Financial Perspective

Management & Development Center 2

Negotiation Skills for purchasing Personnel Program Code 8206 Participants All mangers and all employees whose jobs require to participate in different types of negotiation with suppliers or subcontractors; and those who are candidates for such jobs. Program Objectives By the end of this program the participant will be able to: • Acquire all the technical and behavioral skills of negotiation. • Understand negotiation strategies • Assess different alternatives planning actions • Coordinate between negotiating teams

Program Outline Nature of the Negotiation Process • What is Negotiation? •• In a general context •• In a purchasing context • What is an effective purchasing Negotiation? • Why Negotiate in Purchasing? •• Before a contract is entered into execution •• During the operation of a contract • When to Negotiate? •• after selection of a preferred offeror; •• before contract signature; •• before any contract variation; and •• whenever any issues arise during the operation of the contract • What can be negotiated? •• Price: but first explores the wider opportunities to improve the overall “value for money” package by negotiating better terms and conditions such as: •• Technical Support aspects - warranties, life-cycle support, maintenance agreements etc; •• Financial Aspects - deposits, payment terms, discounts, payment schedule, travel costs, cancellation penalties etc; •• Risk Management Aspects - bonds and financial guarantees, insurances, warranties, type of contract used, service standards, liquidated damages clauses etc; •• Management Information Aspects - access to information, reporting, documentation, attendance at progress meetings etc; •• Timeframes - completion dates, delivery dates, milestone achievement, length of contract etc; •• Performance Incentives •• General Matters including packaging and freight, use of specified personnel, sub-contracting arrangements etc. Negotiation Steps •• Preparation for Negotiation •• Conducting the Negotiation.

•• Ending the Negotiation. •• Assessment and follow up the Negotiation process Planning & Preparation for Negotiation •• Understanding the context: level of risk, the level of expenditure and the complexity of the good or service •• Knowing what needs to be achieved & Setting Negotiation Objectives: Price, Time, Response, … •• Decide which areas are negotiable •• The negotiation team, stakeholders interests, •• Defining Negotiation Issues & Opportunities •• Identifying Negotiation principles, alternatives’ evaluation criteria and constraints •• Studying & Reviewing Documents •• Study your Counterpart (his behavior- interests –point of weakness and strength- his reactions.) Balance of power in the negotiation •• Power •• Time •• Information •• The Concepts of BATNA Best Alternative to a Negotiated Agreement by the Harvard Negotiating Project Negotiation Strategies & Tactics •• WHY Strategy (The Required Results) •• WHAT Strategy (Time Strategy) •• How Strategy (Negotiation behavior Strategy) •• Positive & Negative Tactics •• Building Scenarios: • Defining Alternatives –and possible concessions • Define Negation Tactics (Offensive- Defensive- Gradual..) •• Preparation of Negotiation Agenda Behavioral Aspects of the Negotiation Process •• Verbal and Non verbal Communication •• Verbal and Intellectual Skills •• Effective Communication Skills •• Innovation and Creativity in Negotiation •• Different Styles of Foreign Negotiators Negotiation Styles •• Competition •• Accommodation •• Avoidance •• Compromise •• Collaboration Negotiation Approaches •• Eight Steps for Successful Negotiation •• Win –Win Strategy •• Characteristics of the Negotiation Process •• Negotiation principles •• Negotiation elements

Conducting the Negotiation: Key techniques for successful negotiation •• Opening •• Exploring issues and inventing options •• Making offers •• Offering concessions •• Reaching closure •• Documentation When things don't go according to plan •• Breaking deadlocks •• Deciding to walk away •• When the other party is unreasonable •• Countering tactics