seminar strategic negotiations in procurement purchasing

1 Purchasing & Procurement Center +603 7665 2035 +603 7665 2038 [email protected]

COURSE SUMMARY COURSE OUTLINE

This course will provide tools and

techniques to enable participants to

determine the need to negotiate, pursue a

tactical or a strategic approach to the

negotiation and how to separate the key

negotiation drivers of the individual parties.

Further learn how to examine the

importance of the negotiation strategy and

how it is fully integrated into the corporate

procurement strategy.

Attend & Discover:

Plan in multi-disciplinary teams

Create the right negotiation strategy

Understand key tactics and ploys

Understand the impact of legislation on

the outcome

Select the right type of supplier

relationships - recognise their

applicability and the best means of

measurement.

Identify key behavioural aspects within

the negotiation

Know what makes a skilled negotiator

Integrate negotiation into the total

purchasing cycle

Apply the key tasks for the preparation

and planning needed for successful

negotiation

Manage the key phases of negotiation

This Course is Conducted By:

Rob Thompson

The Evolution of Negotiation within

the Procurement Environment

Strategy Preparation and Determination

Implications for the Buyer and Seller

Negotiation Research

The Ideal Negotiation

Preparation and Planning

Key Phases

Key Issues

Key behavioural aspects

Tactics and Ploys

The Negotiation

Structure

Conflict Management

Persuasion Techniques

Review and Analysis

Control

Agreement

Implementation

Personal Negotiation Profiling

Characteristics of a skilled Negotiator

Individual Improvement Programmes

What are they?

How are they created?

How can they be used?

What will they tell me?

Skills Assessment Profiling

Analysis and Creation of Individual

negotiation profiles

Style

Power

Attitude

Flexible v positional

Handling the Negotiation

A Business scenario to provide base data to

form part of the individual Improvement

programme and re-affirm the

appropriateness of the profile created

Develop the right information base

Understand the Business methods

Understand the social and political

organisation

Understand the Financial and legal modus

operandi

Understand the Infrastructure and logistical

systems

MAJOR PROCUREMENT NEGOTIATION

EXERCISE:

A negotiation Exercise testing the skills and

profiles of the participants will run for the rest

of the day.

We want the supplier to say yes

The business problem will incorporate all the

key factors of the programme.

Evaluating and re-assessing the Individual

Improvement Programmes and setting targets

for the future.

Who Should Attend:

Materials, Contracts, or Purchasing Managers,

Buyers, Contract Administrators, any other

Managers or Professionals involved in

Implementing cost reduction initiatives or

looking for savings relating to the purchase of

goods, equipment, supplies, and services.

Rob’s interactive approach & in-depth explanations and examples added immense value. He added new dimensions to the Contract Management, Contracts Creation & relationship with strategic information and application.

Contracts Manager BT APPLIED TECHNOLOGY

Other Trainings:

Strategic Contract Management For

Oil & Gas

Supplier Qualification and

Performance Measurement

Cost Reduction in Purchasing

Leading & Managing for Procurement

& Purchasing

Tender Management

IT Contract Management

Global Procurement Best Practices

Materials & Demand Planning

IT Contract Negotiation



This programme is designed to improve

delegates’ awareness of techniques and

best practices associated with the

management of oil and gas contracts let to

third party suppliers. This is a fully

participative programme that will update

delegates on key advances in contract

management and developments in the oil

and Gas sector best contracting practices.

It will incorporate a number of case studies

as well as group working throughout.

After attending you will be able to:

Compose objectives for a procurement of

the provision of products or services from

external suppliers

Recognise the skills of a contract

manager

Differentiate the factors that lead to poor

performance versus the achievement of

sound value for money

Identify the key stages of the tendering

process and evaluate how these stages

can impact on the success of the contract

Interpret and formulate key performance

indicators and specifications

Employ techniques that will help motivate

supplier performance and build

continuous improvement

This Course is Conducted By: Rob Thompson

Common problems associated with

contracts with suppliers in the oil &

gas

Internally Driven

Externally Driven

Proactive Strategies to effect problem

management

Actions to mitigate the impact

Setting objectives for procurement

projects

The special skills required for

effective oil & gas contract

management

Relationship management

strategic planning and implementation

Identification of the key risk

determinants

Development and promulgation of policy

and guidance

Standard setting across the organisation

Policing/enforcement responsibility to

ensure the organisation’s Policy/

guidance/ standards are being adhered

to

Competitive tendering and how each

stage impacts on the contract

Procurement Cycle Analysis

Supplier management

Total cost approach

VA/VE

Supply Market Development

Developing robust oil & gas contracts

Mapping Demand

Defining appropriate specifications

Writing Control Documents

Risk Management in Oil & Gas Contracts

Undertaking risk assessments

Developing risk management strategies

Analysis of Key Provisions in

International Oil & Gas Contracts

Competitive bidding and Reimbursables

Leverage and Horizontal Integration

Standardisation v Innovation v Competitive

Differentiation

Strategic Supplier and Market Development

Bidder Selection

MMO Demand Management

E-Procurement opportunities and cross

functional competency management

Supplier capacity relocation and quality

control

Risk Gain share and Reward

Asset Whole life Cost Management

Principal Standard Form Contracts Used

in the Oil and Gas Sector

EPIC/EPC(I) v Discrete Demand and

Assembly

EC, EP, BOT, GC, MC, PSC, TSA, PSAC,

Concession and service contracts

Managing Agent

Consortia/Joint Venture

Ensuring compliance with the contract

Understanding contractual remedies for

poor performance

Key Contract Clauses

Applying effective contract monitoring

Key Measures of Supplier Performance

Improving Performance

Change control mechanisms

Handling Claims and Variations

Partnering & Negotiations

Creating partnering style relationships with

suppliers

Negotiating improvements to current

service delivery

Management and Negotiation Techniques

Managing the Legal Issues

Dispute Resolution Process

Key Legal Contractual Risk Management

Issues

Managing force majeure and liability

clauses

Motivational factors that enhance

performance and create continuous

improvement

Joint Performance Systems

Performance Reviews

Incentives

Review and evaluation

Who Should Attend: Contract Administrators, Project Coordinators, Contracts Officers and Managers, Engineering Project Managers, Construction Managers, Tenders Managers, Buyers, Procurement/Purchasing Managers, Project Managers, Maintenance Mangers and Systems Managers and all others in organizations whose leadership want world-class skills sets in those involved in contract management activities. The program is a great way to develop those new to the function, prepare for a major project, or useful as a refresher for veterans

Rob is exceptionally skillful and excellent trainer. … he successfully managed to transmit excellent and well composed information to us. I have gained more knowledge (new) with improvement of existing ones.

Contracts Manager ALDAR PROPERTIES

This course has added to me more information and gave me a guideline and rules to be implemented in my work. I really thank you [for the] quality training that your company had provided.

Contracts Specialist MAADEN PHOSPHATE COMPANY



Most organizations recognize that they cannot perform any better than their suppliers perform and therefore continuous improvement of supplier performance is critical to the success of any organization. As a result supplier assessment, selection, and performance measurement are being recognized as critical processes where high management and professional competencies are required. This fast paced seminar provides both strategic and practical insights into:

Achieving Supplier Total Quality

What can Measurements Accomplish

Developing the Qualification Process

Supplier Performance -What to Measure

Collecting, Rating, and Reporting Supplier Performance

How To Use Performance Measurements

Seminar Objectives

Benefit from hearing the practices and experiences of others

Cover the many steps in a proper supplier evaluation

Develop performance weightings

Learn how to use performance results for continuous improvement

Explore various rating systems Discuss methods of collection and reporting data.

Training Methodology

Participants will increase competencies through a variety of instructional methods including lecture by an experienced practitioner and consultant, individual and team cases, and group discussions covering the many topics presented in the seminar.

Program Summary

Supplier qualification and performance measurement are the processes of evaluating, measuring, analyzing, and managing supplier selection and performance with the objective of improving quality, reducing Total Cost of Ownership, reducing risk, and providing continuous improvements in supplier and contractor performance. This program provides methods and competencies directed at improving these processes within the buying/contracting organization.

This Course is Conducted By: Robi Bendorf

Achieving Supplier Total Quality

World Class organizations understand that their success will be determined by their abilities to select, manage, and continuously improve a complex network of suppliers.

How Are We Doing In Supplier Assessment & Performance Measurement?

Steps In Achieving Total Quality From Suppliers

Achieving Total Quality From Suppliers--What Will Not Work!

Case: How Does Your Supplier Performance Compare.

What can Measurements Accomplish

Determining the best approach for supplier performance measurement requires that you first clearly define the objectives of such a system as it relates specifically to your organization.

Objectives of Supplier Performance Measurement

Best Practices In Supplier Qualification

Best Practices in Supplier Performance System

Best Practices in Supplier Relations

Case: Supplier Performance Measurement Objectives

Developing the Qualification Process

Selecting the best supplier through the implementation of a world class supplier qualification procedure is one of the most important parts of the Supply Management Process.

Developing The Qualification Process

The Preliminary Supplier Assessment

The Supplier Site Assessment

Who Participates In Supplier Qualification

The Supplier Evaluation Forms

Qualified Supplier List

Case: Developing Supplier Qualification Procedure

Supplier Performance -What to Measure

In our efforts to increase margins, it is critical to understand the areas in which supplier performance most significantly drives Total Cost of Ownership.

Key Elements Of Supplier Performance Measurement

Common Performance Categories

Category Weighting

Deciding Which Suppliers To Measure

The Difficulties Of Measuring Supplier Performance

Quantitative Vs. Qualitative Data

Cases-What to Measure for the Supplier Scorecard and Determining Criteria Weightings

Collecting, Rating, and Reporting Supplier Performance

Only about ½ of the organizations measure supplier performance and only about 5% of them do it well.

Collecting the Data

Rating Methods - Basic Points

Rating Systems Options

Developing Performance Standards

Applying Supplier Performance In Total Cost Of Ownership (TCO)

Performance Indexing as a KPI

Cases: Selecting Suppliers using Supplier Performance in a TCO model and developing supplier performance indexes.

How to Use Performance Measurements

In addition to mitigating risks of supply disruption and lowering total costs, there are a number of other benefits from measuring and analyzing supplier performance.

Benefits From Measuring And Analyzing Supplier Performance

Establishing Expectations

Sharing The Information

Holding Supplier Recognition Events

Motivate Supplier With Performance Measurements

Expectations From The Supplier’s Point Of View

Case: Letting the Supplier Measure Your Organization as a Customer

WHO SHOULD ATTEND: Contracts, Procurement, Purchasing, and

Project personnel, Engineering, Operational,

Quality, and Maintenance personnel, and all

others who are involved in interfacing with

contractors or suppliers in the acquisition of

materials, equipment, parts, and services or

anyone who wants to improve supplier

performance and gain successful outcomes.


Who Should Attend:








Did you know that as a purchaser you

could be responsible for spending over

50% or your organization’s revenue? This

could be spent on goods and services like

raw material or even overnight mail. Yet,

by contrast, labour costs seldom exceed

10 to 15 percent of sales. So when the

goal is to increase earnings by lowering

costs, you have to look very closely at

what and how you buy. Cost Reduction

Programs and Cost Price Analysis and

tools, when properly implemented, will

result in dramatic reductions in cost and

bring significant improvements in

productivity across your organization.

Key benefits of attending this

workshop:

Explore 20 cost reduction methods

and gain substantial savings

Learn proper Cost Reduction

Reporting Procedures

Streamline and improve your supplier

performance

Master data mining and learn the art

of strategic plans

Accurately monitor your cost

improvements

Learn how to get control of your time

with the all important ABC analysis

Develop your skill in handling

Purchase Price Indexes


Purchasing Savings Impact on the

Bottom Line

See the purchasing savings go right to the

bottom line whereas a small percentage of

sales hit the bottom line

The need for change

Purchasing savings model

Essential Issues in Cost Reduction

Initiatives

A check List resulting for experiences

Cost Reduction Reporting Procedures

A formal reporting process is essential for

you to have a successful initiative and to

motivate people to search for savings

Difference between cost reduction and

avoidance

Types of reduction

Sample reporting form

Continuous Improvement Skills Set

This will give you an essential skill set and

training

A comprehensive list of crucial skill

sets

Data Mining

The 1st critical step for you to perform

world class purchasing is to have a spend

profile

Sources of date to develop the spend

profile

Developing the spend profile

Commodity Codes

Developing the ABC analysis

Opportunity Assessment

After the spend profile is developed, you

need to show how to analyze data.

Included are some essential tools used by

very few purchasers

Analyzing the spend profile

A demonstration of how to use Pivot

Tables, Filters in Excel Course outline

Develop Opportunity Hypotheses

This will enable you to identify specific

opportunities and how to rank them

User group brainstorming sessions

The Improvement Opportunity form

Purchase Price Index

This will show you how to develop a KPI to

show positive savings performance even

when prices are increasing

Developing company purchase price

index and comparing to external

Indexes

Cost Reduction Methods

This will clarify typical savings methods

and enable you to implement improved

performance

Benchmarking

Early Purchasing

Supplier Involvement

Supplier reduction

Advancing supplier relationships

Supplier qualification methods

Supplier performance measurement

Strategic alliances

Understanding of supply marketplace

Developing commodity plans

Resisting price increases

Reengineering processes

Negotiations

Inventory reduction

Improving terms & conditions

Long term agreements

Information Systems

Value analysis

Reducing Waste in the supply chain

Defining Price/ Cost Analysis

“Robi is a true Guru of Purchasing. Case study exercises were excellent! The Cost Reduction Strategies content/programme is practical & relevant to promote effective buying. Robi has changed my perspective of procurement buyers. He has lifted the professional profile of buyers.”

GM Procurement Celcom Axiata Group Berhad



Supply management is becoming more

challenging every day with most

organizations demanding and expecting

purchasing and procurement personnel to

provide leadership abilities and

management skills directed at bringing

their performance to World-Class status.

World-Class Procurement Operations bring

significant annual total cost improvement,

significant strategic value added, and

strong recognition to the function and

those in it. Yet according to many studies,

most organizations must significantly

improve their supply management

operations in order to provide the

continuous improvements needed to win

and earn profits in today’s very

competitive market place.

This fast paced seminar is designed to

explore areas of leading and managing the

procurement organization toward

procurement best practices so that

participants can successfully implement

the strategies necessary to make

purchasing a recognized core competency

of their organization.

Seminar Objectives:

Upon completion of this seminar,

participants will know:

Essentials for Leadership Success

Difference between Managing and

Leading

Setting the Direction for World-Class

Supply Management

How Minding the Gap Results in a

Strategic Plan

Best Practices Categories in

Strategically Focused Sourcing

Operations

Professional Standards of Ethics

Key Performance Measurements

How To Develop A Strategic Sourcing

Plan

A Process for Developing


Organizational Impact:

The organization will benefit by

Higher productivity of personnel involved

in procurement activities

Reduced total cost of ownership for

purchased materials, equipment, and

services thru better leadership and

management

Improved productivity of the entire

organization by better on time delivery

of high quality goods and services

Improved supplier performance and

relations

Greater strategic focus of those involved

in supply management

Personal Impact:

Attendees will gain by participation in this

program as a result of:

Better leadership and management skills

Increased skill sets in supply

management

A greater sense of professionalism

Knowledge of world-class purchasing

practices

Greater ability to lead continuous

improvement programs

Increased recognition by the

organization due to improved

performance

Course Outline- Leading & Managing for

Purchasing & Procurement –cont’d:

Leading and Managing

Skilled leaders and managers are essential

if procurement is to bring to the

organization the vast benefits of

World-class supply management.

Management and Leadership--What is the

difference?

What helps or Interferes with becoming a

True Leader

Developing Leadership Competencies

Setting the Direction for World Class

Purchasing

It is critical to establish the importance of

the function and the need for it to emerge

as a core competency of the organization.

Winning And Procurement As A Core

Competency

Leadership is About Results—Getting To

World Class

Leading Change to Become More

Strategic

Showing Purchasing’s Impact On The

Bottom Line

The Procurement Mission & Vision

Statement

Determining and Managing the ―Gap‖

Developing the Procurement

Organization’s Strategic Plan

Purchasing Skill Sets

Good managers know that Purchasing

Departments cannot perform better than their

people and that world class performance in

procurement activities requires highly trained

competent professionals with high ethical

standards.

Purchasing Personnel Required Skill Sets

Job Descriptions

Skill Set Assessment

Training Programs

Professionalism

Purchasing Ethics

Strategic Sourcing

Purchasing personnel must move from the

tactical focus of most purchasing operations

to a much more strategic focus that brings

continuous improvement to the bottom line of

the organization.

Time Spent On Various Tasks

Commodity Coding

Developing Spend Profiles

ABC Analysis

Risk Analysis

Strategic Sourcing Plans

Relations with Other Functions

Integrating with other functions and providing

the organization with clear high value added

activities is essential for supply management

to reach its strategic potential.

How Do Other Functions View Purchasing

Developing And Maintaining A Customer

Focus

Internal Customer Survey

How Does Senior Management Measure

Purchasing

Purchasing Accountability

Measuring Purchasing Performance With

Key Performance Indicators

Process Improvement

World-class organization are not asking if they

need to improve their process but only how

fast can they improve them.

Supplier Relationship Management (SRM)

Process Mapping To Eliminate Low Value

Activities

Reengineering Processes

Total Cost of Ownership

Making Sure We Obtained Lowest Cost

High performing procurement departments

can proudly point to the fact that the best

practices being applied are resulting in the

lowest Total Cost of Ownership for their

organization.

Developing A Company Purchase Price

Index

Cost Reduction Initiatives

Savings Reporting

Supply Chain Management

Who Should Attend:









Good endings usually require good

beginnings. This is particularly true for

procurement activities where best

practices in tender management, the

beginning of the contracting process, are

essential for a successful project outcome

and minimization of total cost.

This program is designed to take the

participant from the time the requirement

is defined and a contract is desired thru

the major steps of the tendering process

that conclude with successful negotiations.

The critical issues of the tendering

process, risk mitigation thru contract

types, contractor selection, evaluating the

price, and finally planning for successful

negotiations all receive coverage in this

valuable program that is certain to reduce

costs and add to the organization’s

objective for improved performance in all

activities.

Seminar Objectives:

Upon completion of this seminar, participants will know:

The Tendering Process And The Major Steps That Should Be Followed

Mitigation Of Risk By Selection Of Contract Type

Methods Of Selection And Qualifying Contractor

Applying Technology To The Tendering Process

The Criticality Of The Statement Of Work

Terms & Conditions For Economic Price Adjustments

Essential Elements of a Valid Contract Avoiding Disputes Payment Types

Organizational Outcomes:

The organization will benefit by:

Reduced Cost Of Contracts For Materials & Services

Reduced Risks In Contracting Higher Productivity Of Contracting

Personnel Greater Strategic Focus Of Those

Involved In Contracting

Personal Outcomes:

Attendees will gain by participation in this program as a result of:

Increased Skill Sets In The Tendering Process

A Greater Sense Of Professionalism Knowledge Of World-Class Tendering

Practices Greater Ability To Lead Successful

Negotiations Increased Recognition By The

Organization Due To Improved Performance

The Tendering Process

What Should Be Tendered—The ABC

Analysis

Major Steps And Flow Of The

Tendering Process

Elements Of A Good Procurement &

Competitive Bidding Process

Principals And Standards Of Ethical

Supply Management Conduct

Small Group Exercise: What is fair and

reasonable pricing and what is a fare profit

for the supplier?

presents an overview of the steps in the

tendering process and looks at the

objectives of both parties which must be

considered in developing the tender and

contract strategy.

Defining the Scope & Total Cost Of

Ownership

Total Cost Of Ownership

The All Critical Statement Of Work

Types Of Statement Of Work

Statement Of Work Check List

Small Group Exercise: Develop a check

list for writing an effective statement of

work

introduces the point that all

participants in the tendering process must

clearly have knowledge of what they are

buying and the marketplace if the outcome

is to meet the organization’s

objectives.

Types of Contracts & Risks

Contract Types

Mitigating Risk By Contract Type

Market Price Indexes

Economic Price Adjustments Contracts

Individual Exercise: Apply the Economic

Price Adjustment formula to an actual case

to determine the results.

develops the awareness that there are

more than just lump sum

contracts in the procurement tool box and

that in many cases other types of

contracts types will be to the benefit of the

buyer.

Structuring the Contract

Commercial Terms & Conditions

Acceptance Clause

Example Of Contract Check Lists

Methods Of Payment

Progress Payments

Small Group Exercise: Defining

Acceptance Clause issues

Segment 4 focuses of the importance of

having tendering personnel carefully design

the terms and conditions for the contract

which must be part of the tender

documents.

Qualifying Suppliers & Price Evaluation

Best Practices In Supplier Qualification

Reverse Auctions In The Tender

Process And Evaluation

Requesting Supplier’s Cost Or Pricing

Data

Small Group Exercise: Applying Bidder’s

past performance measurements to adjust

Bidder’s Price

involves the critical steps of supplier

qualification, presents the use of technology

in obtaining bids and then

discusses issues related to competitive bid

evaluations.

Negotiation Planning and Strategies

When Does The Negotiation Start

Types of Negotiations

Identifying Negotiation Issues And

Objectives

Group Exercise: Discuss best strategy for a

specific case involving an attendee.

In Segment 6 we acknowledge that the side

that prepares the best usually wins the

negotiation and therefore focus on

negotiation planning strategies.


Robi Bendorf

WHO SHOULD ATTEND:

Contracts Officers and Managers, Procurement/

Purchasing Managers Engineering Project

Managers, Construction Managers, Tenders

Managers, Buyers, Contract Administrators, Project Coordinators, Maintenance Mangers and

Systems Managers and all others in organizations

whose leadership want world-class skills sets in

those involved in tender and contract

management activities. The program is a great

way to develop those new to the function,

prepare for a major project, or useful as a

refresher for veterans.

“Robi is an experienced trainer and I picked up some good ideas from his training. Materials are up to date.”

Sourcing Manager Lafarge Malayan Cement Sdn Bhd



Once the commercial transaction is

negotiated and signed, most contracting

teams in the IT/Outsourcing sector are

pulled from the process – at the same

time that the parties are escalating their

focus on the transaction. Both parties are

incented to maximize their financial yield

on the transaction and minimize their risk,

yet some do not treat Contract

Management as a key to their overall

success. This interactive session that

includes 5 exercises related to the IT

sector, will help you discover:

Attend and Discover:

How to dedicate the necessary tools,

techniques and talent to managing

commercial relationships?

What is the difference between

Contract Administration, Contract

Management and Relationship

Management in the IT/Outsourcing

sector?

What is needed for you to succeed at

all three levels?

How to drive greater value and

innovation into subsequent

contracting cycles with your

commercial partners?

Learn cost effective contract

administration and management

techniques

Identify opportunities to reformulate

your commercial IT contracting

Strategies

Develop specific and realistic

commercial relationship performance

metrics

Achieve excellence in your commercial

relationships

Identify opportunities to automate

your contract management processes

through software and other tools

Resolve contractual disputes without

destroying the relationship

Overcoming the challenges in contract

implementation

Developing a implementation project

plan

Keeping the roles and responsibilities

clearly understood

How to overcome resistance points and

barriers in the implementation

Exercise 1 Maintaining separation

between a System Design and System

Maintenance contract

Addressing the differences in contract

administration and management

What is contract Administration

What is contract management?

Keeping focused on the rights and

responsibilities throughout the

fulfillment phase

Exercise 2 Performing contract

administration and management on an

outsourcing services contract

Selecting Contract Management

Software that is a best fit to purpose

What is your electronic contracting

strategy?

Which options are the best fit for your

strategy?

Managing the contract change order

process

What is a change order and why does it

happen?

Understanding the relationship

dynamics behind a change order

Documenting the change order and

preventing excessive changes

Embracing Supplier Relationship

Management tenets in contracting

What is Supplier Relationship

Management?

Understanding the benefits of a well

managed supplier relationship

Exercise 3 Managing a hardware

maintenance services agreement

Applying Customer Relationship

Management principles in contracting

What is Customer Relationship

Management?

Understanding the benefits of a well

managed customer relationship

Keys to success in Customer

Relationship Management

Exercise 4 Managing a software

maintenance services agreement

Utilizing Alternative Dispute

Resolution options

What is arbitration?

What is mediation?

Exploring negotiation options before

taking the litigation path

Exercise 4 Resolving a dispute over a

Cloud computing services agreement

Managing key contracts in the IT/

Outsourcing sector

Hardware equipment sales

agreements

Hardware and software maintenance

agreements

Software licensing agreements

Telecom and cloud services

agreements

Managing contract close-out

Why do contracts terminate?

Understanding the rights and

responsibilities that survive

termination

Closing out the contract -

communication and change

management considerations

Exercise 5 Managing the software

license contract into perpetuity


Jim Bergman

WHO SHOULD ATTEND:

Purchasing, sourcing and supply management

professionals, Sales contracting professionals,

Contract lawyers and attorneys, Contract

management professionals, Contract

managers and administrators, End-users who

impact, or are impacted by, the contracting

process, Finance professionals involved in

contracting, Contract negotiators, Operational

managers, Commercial relationship managers.

“One of the best courses I’ve been to and a great help to my work ”Practical, Easy to Understand and Extremely Useful. What more can I ask.”



In today’s economic environment, doing what you’ve always done-even if you do it very well-is no longer acceptable. Under pressure to contain costs and produce results despite challenging circumstances, you need to transform rather than simply improve operations. That means adopting the philosophies, methods, and processes that will make your organization ―best in class‖

What makes an organization best in class? The answer can vary with each company, but there are practices that many leading companies are adopting. We will present key practices that have been employed in a variety of industries and locations.

The sequence of these best practices does not indicate any priority or suggest a higher or lower importance ranking. However, the presentation does offer a systematic approach for measuring the effectiveness in building a best in class procurement group.

These practices include the following:

Enterprise alignment in conjunction with

strategic direction

Utilizing certain technologies to enhance

capabilities and proficiency

Establishing relationships with key

suppliers

Engaging in g in strategic sourcing

Application of total cost of ownership

(TCO) and not price

Using a structural application to fit multi

– national supply requirement

Initiating the appropriate level of control

to ensure accomplishment of results

Minimizing risk via a systematic and

collaborative approach

Optimization of inventory

Even if you have implemented some of

these practices, the insights and examples

presented will serve to validate your

current strategy. Understanding more

about these practices will aid you in

selecting the additional ones to move you

closer to a best in class enterprise!

This Course is Conducted By: Michael Gozzo

What you will learn:

How to initiate an assessment of your

posture relative to best practices

How to employ effective tactics that will

win stakeholder engagement

The best technology tools to employ in

various situations

Spend Analysis capability

Supplier Relationship Management

Collaborative Forecasting Planning

and Replenishment

How to establish alliances for critical

relationships

How to create a platform for problem

resolution

What are the steps involved in

employing strategic sourcing

What is Total Cost of Ownership (TCO)

How to employ TCO

What is optimization of inventory

How to achieve an inventory level that

will reduce inventory

How to determine procurement/supply

organization to fit most situations

I. Introduction

a. Today’s competitive issues

b. The role and impact of procurement

c. Studies identifying the best practices

II. Enterprise Alignment

a. Leaderships Role

b. Structural considerations necessary for

best results

c. Stakeholders – who, why and how to

involve

d. Exercise - enlightenment

III. Collaboration - A Major Results Tool

a. Supplier relationship maturity model

b. Transforming the relationship

i. Developing ―Trust‖

c. How to increase supplier involvement

IV. Strategic Sourcing as a Major Tool

a. What is it and why do it?

b. Defining the process – steps to

accomplish it

c. Developing and managing the supply

base

i. How many suppliers are needed?

ii. Selection and evaluation

techniques

d. Exercise – Supplier Selection/

evaluation

V. Procurement s and Cost (TCO)

a. Traditional financial impact

b. Procurement process cost factors

c. Operational performance costs

d. Total Cost of ownership (TCO) vs.

Traditional Accounting

i. How to reduce the TCO

e. Process Improvement Model

VI. Leveraging Technology

a. Supplier Relationship Management

(SRM)

b. Supply Chain integration

c. Definition of e-tools and their

application

i. Spend Analysis

ii. E-sourcing

d. Pitfalls to avoid but learn from

VII. Risk and Procurements Role

a. Where are the risks?

b. Risk Analysis Tools for mitigation

VIII. Case Study Application of Best

Practices

WHO SHOULD ATTEND:

Purchasing, Procurement, and Supply Chain

Managers and professionals, Materials,

Contracts, Projects, Maintenance, Operations,

and Financial Managers and, All other

Managers and Professionals interested in

lowering total cost and increasing productivity

and profit contributions from better

purchasing operations.



Today’s economics in business has brought many companies to address major investments like inventory with a limited results solution outsource the function and/or activity. Procurement services and Contract manufacturing activities are typically what have been employed. Some reduction of inventory occurs BUT it is minimal as to what it could be.

In order to achieve a level of significant reduction (more than 20% improvement per a research agency) throughout the supply chain, a deeper awareness of what creates inventory needs to be understood. WHY? Certain actions taken will only provide a short term impact/result. The basic problems haven’t been addressed (actions to reduce order quantities & revert to Lean Practices for delivery have downstream impacts: 1) increased equipment downtime; 2) increased transportation and handling costs. These effects could have been avoided by addressing core operating issues/problems.

The presentation will provide the basic foundation to the principles driving inventory decisions. Instruction will deal with premises and practices that necessitate some inventory but end up becoming drivers of day to day activities. The result being excessive levels building during ―good times‖ and reduction efforts in ―bad times‖. The focus of the enterprise needs to be a balance and minimization of the inventory level ―all the time‖.

Learning Outcomes

How to control inventory physically and virtually via computer systems and planning techniques.

What are the advantages of the various valuation techniques (LIFO, FIFO, Average Cost)

How to determine which is the appropriate replenishment technique to employ

What are the various order quantity approaches and when they should be used

How to calculate the Cost of Carrying Inventory and it’s application

What are the different measurements and what they mean

How to define what is the appropriate inventory level?

What are the requirements and practices for improving your posture? (competitive advantages of an enterprise).

How do you arrive at a projection of your business revenue?

What is the frequency of the adjustments to the projection and what precipitates it?

What level of inventory investment is required to ensure 99.9% customer service?

How are your business planning and operational policies adjusted regarding forecast revision?

How to incorporate operating practices that promote cross-functional relationships to resolve and improve customer service and satisfaction performance?

Today’s business environment

Impact of the Supply Chain

Lean thinking principles

Customer satisfaction and

collaborative relationships

Global posturing

Information technology and its

influence

Overview of concepts application

What is forecasting?

The four (4) factors affecting a

forecast

Demand Management and its

correlation with forecasting

Statistical inventory management &

control

Inventory investment versus service

levels

How lead time and various inventory

replenishment systems affect

customer satisfaction and investment

Database Development

Terminology

Database map and editing

Why merge databases

Forecasting

Its impact on a business....pro and

con

What is the complexity of your

environment?

Forecast process strategies

Various approaches/methods of

forecasting

Affects of product life cycle position

Demand Management

Reasons for inaccuracy

Monitoring the forecast for variation

Techniques used Bias, trend signals,

demand filters and others

Customer Relation Management

(CRM)

Collaborative Planning Forecasting

and Replenishment (CPFR)

Sales and Operations Planning (S&OP)

What is it and its role in a

company?

Identifying the product/service

hierarchy

The five (5) process steps

involved in creating a S&OP

Developing a S&OP grid

Outputs from the S&OP

Assessing your S&OP

process – What then?

The benefits of the S&OP

Inventory Management and Control

Why carry inventory?

Ten (10) critical inventory issues

The relationship of inventory to

forecast revision, demand

consolidation and succession

Inventory management versus

control

Three (3) steps to inventory

control

Safety stock, why and how much?

Service policy a realistic necessity

Average inventory

Measurements

Turns versus days of supply

Other performance indicators

Inventory and forecast variability

Ordering rules/policy

Replenishment alternatives

Kanban, ROP, MRP, VMI &

others

Conclusion


Michael Gozzo

WHO SHOULD ATTEND:

This program is targeted at people who are

responsible for planning and forecasting

especially: Forecasters / Forecasting

Supervisors or Managers / Master Schedulers

or Planners / Master Scheduling Managers,

Directors, GMs / Inventory Planners or

Analysts / Inventory Managers, Directors or

GMs / Supply Chain Analysts, Managers or

Directors / Warehouse Managers / Material

Management Managers & Directors /

Distribution Managers or Directors / Product

Planners or Analysts / Financial Analysts or

Controllers / Operations Managers /Product

Analysts, Planners, Managers or Directors /

Marketing Managers or Directors / Customer

Service Analysts



Many negotiation courses address the

topic in a general light or focus on

negotiation as a sales tool without much

focus on contracts & procurement.

This workshop however, is specifically

focused upon the IT and Outsourcing

commercial relationship negotiation

interface. You will learn how to become

an effective negotiator in the context of a

commercial contract – you will realize that

negotiation is not merely an event, but

rather an inter-related phase in a larger

process.

Attend and Discover:

When should you negotiate?

How can you best prepare for

negotiations with IT/Outsourcing

commercial partners?

Why are internal negotiations with

stakeholders sometimes tougher than

negotiating with external commercial

partners?

Develop effective negotiation

strategies for your contracts in the IT/

Outsourcing sector!

Assign effective roles to negotiation

team members!

How to create negotiation strategies

that enable greater value and risk

positions?

Identify negotiation tools that are

needed for negotiation success in the

IT/Outsourcing sector!

Defining viable and effective

negotiation tactics

Knowing the tactics and when to use

them anticipating the tactics of the

other side - and planning how to react

and respond

Assigning certain tactics and roles to

the appropriate team members - and

preparing for the implementation

Exercise 1 - Addressing twenty potential

tactics, and selecting the right ones, for

negotiating a IT/Outsourcing contract

Developing a robust negotiation

strategy document

Defining the overall strategic outcome

of a negotiation

Key elements of a negotiation

strategy document

Socializing the negotiation strategy

throughout the enterprise before the

negotiation formally commences

Exercise 2 Creating useful

multi—purpose negotiation strategy

documents - from data modeling

contracts to hardware maintenance

contracts

Pursuing a positional negotiation

approach

What is positional negotiation?

Knowing when to use positional

negotiation approaches

Creating a principle-based negotiation

strategy

What is principle-based negotiation?

Knowing when to use principle-based

negotiation approaches

Understanding the risks and benefits

of principle-based negotiations

Exercise 3 - Role play: Negotiating a

maintenance services agreement, using a

principal-based approach

Mastering the challenges of internal

negotiations

The differences between internal and

external negotiations

Tactics and strategies for internal

negotiation success

Understanding the stakeholder -

negotiation adversary or enabler?

Exercise 4- Negotiating a services

contract to support stakeholders across

the entire integrated, multi-national

enterprise

Populating the negotiation tool box

The proliferation of electronic

negotiation platforms

The need for negotiation strategy

documents

Capturing lessons learned and driving

continuous improvement across other

negotiations

Calculating financial equivalents in a

winning negotiation

How to measure financial equivalents

in a negotiation

What to do when negotiating the

immeasurable. Keeping score - even

when the financial equivalents change

Exercise 5 Negotiating a IT maintenance

services contract - and knowing the value

of what was gained and given

This Course is Conducted By: Jim Bergman

WHO SHOULD ATTEND:

Purchasing, sourcing and supply management

professionals Sales contracting professionals

Contract lawyers and attorneys Finance

professionals involved in contracting Contract

management professionals Contract managers

and administrators, End-users who impact, or

are impacted by, the contracting process

Contract Negotiators Commercial,

relationships Manager Purchasing, sourcing

and supply management professionals Sales

contracting professionals Contract lawyers and

attorneys Finance professionals involved in

contracting

“Really happy that I signed up for this course. Full marks!” “Jim is one of the best instructors for contracts and procurement around!” “I like to thank Jim for this great course”


Robi Bendorf CPM, CSPM, MCIPS has more than 35 years of diversified, has over 30 years of diversified industrial purchasing and sales experience involving both domestic and international activities for a broad range of manufacturing and service businesses. His vast practical experience combined with an excellent theoretical understanding, strategic focus, and ability to

quickly implement concepts makes him a much sought after international authority in procurement.

HERE ARE A FEW HIGHLIGHTS OF HIS ILLUSTRIOUS CAREER:

Westinghouse Distribution and Control Business Unit:

▪ $14 million in cost reductions by developing procurement

strategies for key commodities that took advantage of multi-plant volumes and resources

▪ Increased value from 17 to 30% of materials controlled by

central purchasing by managing commodity specialists in implementation of strategies

Westinghouse Trading Company:

▪ Doubled sales income by promoting benefits of overseas

procurement to Westinghouse corporate and division level executives

▪ Achieved cost savings opportunities of over $3 million by on-

site analysis of products and components purchased or made in house.

▪ Tripled supplier base by determining potential sourcing countries

and locating new suppliers

Westinghouse Commercial & Industrial Air Conditioning Division:

▪ Improved productivity of department by 76% with excellence

guidelines

▪ Increased cost reduction by 200% with cost reduction strategies

Medical Instrument Manufacturing Division of Fortune Top 100 Corporation with Annual Sales $700 million:

▪ Achieved 20 to 35% savings from overseas suppliers by

developing formal Global Sourcing Process and implementing actions

Non-Profit Health Insurance Association Annual Sales: Over $2 Billion:

▪ Accomplished $1.5 million in savings in less than 6 months

by re-organizing spend profile

Large non-profit Professional Society Annual Revenues $70 million:

▪ $ 1 Million in savings opportunities identified

▪ Reduced 1500 suppliers by 25% per year by implementing cost

reduction program

Trainer’s Profile

Michael has over 30 years experience in Supply Chain, Demand Flow Technology, Just-In-Time, Total Quality Control, Inventory Control and Production/Operations Management. His experience as a practitioner concluded after completing seven years as Director of Operations at a division of Allied-Signal. He

subsequently became a consultant and guided manufacturers and computer OEM’s (Apple) in the planning and interface with their suppliers. He has traveled and worked extensively in Canada, England, Hong Kong, Ireland, Scotland, Germany, Japan, Korea, Mexico, Indonesia, etc. Michael has been selected to Who's Who in American Manufacturing and is one of the best in his field as can be seen from his Certifications, Memberships, Publications, Clients and Testimonials outlined below: Certifications & Memberships

Certified in Production and Inventory Management (CPIM) & Certified Supply Chain Professional (CSCP) by the Association for Operations Management (APICS),

Member of the American Society for Quality (ASQ), Member of the Institute for Supply Management (ISM

formerly NAPM), Member of Society for Manufacturing Engineers

(SME), Member of International Service Quality

Association (ISQA).

Books Published: Michael is a successful and established author of many books. He is the co-author of "Made In America - The Total Business Concept", "Just-In-Time Purchasing", "Supplier Certification", "Behind Bars: Bar Coding Principles and Applications", and his latest "People Empowerment—Success Through Involvement".

CONTACT US if you would like to have an

IN-HOUSE TRAINING

[email protected]

08.30am Registration & Morning Coffee 09.00am Training Starts 10.45am Morning Coffee Break 11.00am Training Resumes 01.00pm Lunch 02.00pm Training Resumes 03.40pm Afternoon Coffee Break 04.00pm Q & A 05.00pm End of Training

TRAINING SCHEDULE

To Register, please see the last page

mailto:mailto:[email protected]


Jim Bergman VP - IACCM With extensive contracting and negotiation experience in IT, outsourcing and various other types of commercial contracting, Jim serves as Vice President for Asia Pacific and Middle East for IACCM a global association focused on the effective development, creation and implementation of leading contracting practices. Prior to joining IACCM, Jim was a

contracts attorney for a Fortune 500 petrochemical corporation, Amoco Corporation, and was responsible for legal and negotiations support to the IT procurement staff. He supported multiple locations globally, where he addressed strategic sourcing, IT/outsourcing and legal issues concerning services valued at more than $1 billion annually. Jim’s experience encompasses developing, drafting, negotiating and managing IT, Telecom and outsourcing contracts for a wide array of projects with multiple clients. He has extensive background in the negotiation of outsourcing of hardware acquisition, hardware maintenance, software development and maintenance, system integration, ERP, telecommunication equipment, services and networks and various other outsourcing projects. Across his wide array of experiences, he has been extensively involved in establishing many customer-provider relationships founded on IT contracting and outsourcing best practices. He has also led in developing and delivering both public and internal training programs related to IT/outsourcing. As a strategic management consultant, Jim has assisted numerous clients through all phases and steps of contracting, negotiation, outsourcing, overall sourcing and bidding processes, and contract management processes, demonstrating savings well in excess of $100 million. Jim has also served as a workshop instructor in many topics regarding sourcing, contracting, law and negotiations. His audiences and clients have included attorneys, plus financial, operational and contracting professionals from multinational corporations and the public sector, including BP, Delphi Automotive, DuPont, FedEx, General Motors, Intuit, Johnson & Johnson, Lam Research, Makro, Maxis, Merck, Monsanto, Petronas, Shell, the State of California, the State of Florida, the State of Texas, Sun Life of Canada, Warburg Dillon Read/Union Bank of Switzerland, WalMart, Wellpoint, and the Workers Comp Board of British Columbia. Jim holds a Law Degree, an MBA, a Bachelor of Arts and a Master of Arts degree. In addition, he is licensed to practice law in Illinois, Texas and Oklahoma, as well as various US federal courts. Testimonials:

Trainer’s Profile

“One of the best courses I’ve been to and a great help to my work

”Practical, Easy to Understand and Extremely Useful. What more can I ask.”

“Really happy that I signed up for this course. Full marks!”

“Jim is one of the best instructors for contracts and procurement around!”

“I like to thank Jim for this great course”

Rob Thompson is an outstanding procurement & contracts professionals with 30 years international experience in strategic & operational procurement and contracts. He has a natural passion for training procurement & contracts people seen in the facts that he has delivered over 1,000 specialist training programs with CIPS and over 400 other training programs with other organisations worldwide.

His specialist areas include purchasing and contract management, the development and implementation of major business strategic initiatives, negotiation, contract law and market and supplier development across a broad spectrum of business organisations and commodity areas including oil & gas, facilities management, construction, financial services, manufacturing, food processing and IT. He’s an expert at developing and organising the interface with internal and external suppliers, customers, and sub-contractors.

Rob has the ability to merge theory with practice and make lively and interactive sessions.

“Rob has a unique style of training, he has the ability to combine theory with practical application to create workable solutions for the organisation.”

Sarah Sediqa

Strategic Business Development, LKPP Indonesia

Rob is not just a procurement & contracts consultant and trainer, but also as a practitioner where he has many achievements on cost savings, contract utilisation, supplier base reduction and commodity negotiations & development.

As a Regional Director of Purchasing Rob achieved:

Over $15 Million in Savings;

15% reduction in supplier base;

Increased contract utilisation by 15%; and

Increased purchasing efficiency by 18%.

As a Regional Purchasing Manager earlier in his career Rob achieved a 5% savings when developing and negotiating contracts for 5 new commodity areas.

Here’s what others say about Rob.

“We wish we had many more like Rob he has inspired us to develop procurement to a higher level of credability within our organisation.”

Samir Taghiyev

Contracts Engineering Specialist, BP Azerbaijan

“Rob has a great enthusiasm for procurement and his style and personality is infectious.”

Raul Aliyev

Contracts Engineering Specialist, Ras Gas

“Rob has generated a greater interest in procurement across the collective organisations we work with than any other procurement trainer.”

Valerie Roberts

Legal Adviser Public Procurement , IDLO

CONTACT US if you would like to have an

IN-HOUSE TRAINING

[email protected]

mailto:mailto:[email protected]


REGISTRATION FORM REGISTRATION FORM

PAYMENT OPTIONS: Please tick your method of payment PAYMENT POLICY: Payment is required within 5 days upon receipt of the invoice.

BANK TRANSFER Bank Name: STANDARD CHARTERED BANK MALAYSIA BERHAD Bank Address: Lot 10, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia Bank Account Name:

KAVAQ BUSINESS INTELLIGENCE (M) SDN BHD

Bank Account No: 897156698585

Swift Code: SCBLMYKXXXX All payments must be received prior to the event date.

CHEQUE Please make your cheque crossed payable to KAVAQ BUSINESS INTELLIGENCE (M) SDN BHD in Malaysia Ringgit (MYR).

REGULAR FEE RM 5,995.00 / USD 1,995.00 per participant

Group of 3 to 5 RM 5,635.00 / USD 1,875.00 (6% off) per participant

Group of 6 or more RM 5,096.00 / USD 1,696.00 (15% off) per participant

Supplier Qualification and Performance Measurement 14 - 15 January 2013, Kuala Lumpur - Malaysia Cost Reduction in Purchasing 16 - 17 January 2013, Kuala Lumpur - Malaysia Strategic Negotiations in Procurement & Purchasing 25 - 26 February 2013, Kuala Lumpur - Malaysia Oil & Gas Contract Management 27 - 28 February 2013, Kuala Lumpur - Malaysia Leading & Managing for Procurement & Purchasing 16 - 17 April 2013, Kuala Lumpur - Malaysia Tender Management 18 - 19 April 2013, Kuala Lumpur - Malaysia IT Contract Management 18 - 19 April 2013, Kuala Lumpur - Malaysia Global Procurement Best Practices 27 - 28 May 2013, Kuala Lumpur - Malaysia Materials & Demand Planning 29 - 30 May 2013, Kuala Lumpur - Malaysia

IT Contract Negotiation 1 - 2 July 2013, Kuala Lumpur - Malaysia

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