A Guide To Procurement Negotiation Training Ppt

Slide 1

This slide depicts information about procurement negotiations. It emphasizes that procurement negotiation refers to a process in which a purchasing manager selects one or more prospective contractors, negotiates with one or more of them, and awards the contract to one of them based on their best interests. It also mentions the managers' goals, such as increasing purchase savings, increasing the business's ROI (Return on Investment), and lowering the organization's risk (i.e., reputational damage, operational disruption, financial distress, etc.).

Slide 2

This slide depicts information about contract negotiations for procurement. It emphasizes that negotiating procurement contracts is a standard method for determining the best price and payment terms, delivery, key performance indicators, quality standards, etc. Winning procurement negotiations are built on the delicate balance of safeguarding stakeholder information while gathering as much information as possible on vendor priorities, preferences, and positions. It also states that negotiating procurement contracts with vendors necessitates skill, strategy, and strong vendor relationships.

Slide 3

This slide depicts information regarding the reasons for procurement contract negotiation. The reasons are: Agreement, costs, value, performance, conflict, problem, and quality. 

Slide 4

This slide depicts information regarding how buyers negotiate. Some of the tactics are: Anchoring, whack back, sticker shock, cherry picking, pencil sharpening, and going gone.