effective procurement, cost reduction and negotiation … procurement, cost... · effective...

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Effective Procurement, Cost Reduction And Negotiation Skills UNIT 1: PROCUREMENT OVERVIEW Introducing procurement Purchasing vs procurement Evolution and development Importance of procurement Role and responsibilities of procurement UNIT 2: THE PROCUREMENT FUNCTIONS Developing procurement objectives Span of control Understanding the procurement cycle Different types of procurement Being proactive SWOT analysis Supplier IFAS matrix Comparisons of suppliers UNIT 3: NEGOTIATION SKILLS The 3 critical phases of negotiation Do’s and don’ts of negotiators 6 basic steps in negotiation Phase 1: pre negotiation Considerations in preparation Collecting information 10 critical strategies Using ploys Phase 2: during negotiation Being creative in bargaining 8 critical mistakes to avoid Body language Phase 3: Post negotiation UNIT 4: COST REDUCTION TECHNIQUES Importance of cost reduction Overcoming the 6 barriers Cost reduction responsibilities Developing KRAs, KPIs and target setting The cost reduction process Cost reduction action plan UNIT 5: COST REDUCTION TECHNIQUES & ANALYSIS Comparative analysis Total cost analysis Inventory analysis Price cost analysis Direct material cost analysis MRO cost analysis MRO supplier evaluation Purchasing operation cost analysis Supplier cost reduction Cost reduction summary report Course Content Trainer Dr Jasjit Kaur who holds a PhD from USM, possesses an MBA (General Management) and a Bachelors Degree (Hons) in Business Administration, both from UUM and a Certificate in Personnel Management from MIPM. She has more than 16 years of experience; both in the manufacturing and service industry. She has held various positions such as Administration Manager, Assistant Director of Human Resources and Group Admin/HR Manager that covers the areas of human resources, store management, purchasing management, shipping and general administration. Dr Jasjit has been a corporate trainer since 1994. She has conducted extensive Public and In-house training ranging from logistics management, inventories, purchasing management, warehouse management, human resources, counselling, motivation & team building, supervisory skills, office management and leadership skills to business communication. In her capacity as a Training Specialist, she has conducted training for all levels of staff. In the past, she has conducted Training Courses for PLUS, Teknik Jaya, Northern Steel, Mattel (M), LKT Ind, PGEO Group, Genting Sanyen, Nemic Lambda, Sanwa RC System, Kayaba Meiban, World Kitchen, Serba Wangi, Public Packages, AIMST, Shangri-la Hotel and she has also conducted training in Singapore, Penang, Kuala Lumpur and Johor. In addition, she is a certified Trainer for Development Dimension International’s Recruitment Programme, a certified ISO 9002 Internal Auditor and a certified Verifier by the National Vocational Training Council. August 18 & 19, 2014 Monday & Tuesday 8:45 am - 5:00 pm @ FMM Institute, Perak OBJECTIVES Upon completion of this course, participants will be able to : • develop procurement objectives • establish KRAs, KPIs and target setting • develop SWOT analysis • develop supplier IFAS matrix • negotiate effectively • utilize negotiation strategies and ploys • apply the cost reduction techniques • conduct cost reduction analysis WHO SHOULD ATTEND All purchasing personnel, procurement or purchasing managers, executives, officers, assistants Registration: Upon Faxing / Mailing the completed Registration Form to FMM Institute, Perak, you are deemed to have read and accepted the terms and conditions. The course would also be deemed as confirmed unless informed otherwise. Will be based on First-Come-First-Served basis. Payment: Cheques made in favour of FMM INSTITUTE should be forwarded to FMM Institute Perak. For SBL Scheme, an Attendance of 100% is a MUST, in any case, employers will be billed in full. Cancellation: Must be in Writing with Reasons. 7 days before the course ~ No Payment Charged 3-6 days before the course ~ 50% Payment Charged < 3 days before the course ~ Full Payment Charged Participants who did not turn-up will be charged full payment. Replacements can be accepted at no additional cost. Disclaimer: The FMM Institute reserves the right to change the facilitator, date and to vary / cancel the course should unavoidable circumstances arise. All efforts will be taken to inform participants of the changes. Enclosed cheque / bank draft No. ______________________ for RM _______________ being payment for _______ participant(s) made in favour of the ‘FMM INSTITUTE’ . Name: Designation: Company: Tel: Fax: Email: Address: FMM Membership No: MyCoID: Dear Sir / Madam Please register the following participant(s) for the above programme: Name Designation I.C. No. 1. 2. 3. 4. Also available as an In-House Course REGISTRATION FORM EFFECTIVE PROCUREMENT, COST REDUCTION AND NEGOTIATION SKILLS Closing date: August 11, 2014 Medium of Instruction: English CPD: 14 hours COURSE FEE (Fees include Course Materials, Refreshment, Lunch and Certificate of Attendance) FMM Members RM 500.00 per pax Others RM 600.00 per pax SBL Scheme PURCHASING category ADMINISTRATIVE DETAILS FMM INSTITUTE PERAK (Centre for Professional Development) Attn : Puan Eda / Ms Harvindar / Ms Nicole) No. 1, Lorong Raja DiHilir, Off Jalan Raja DiHilir, 30350 Ipoh, Perak. Fax. No. : (05) 548 8221 & (05) 548 8331 • Tel. No. : (05) 548 8660 Email : [email protected] (475427-W) Effective cost reduction measures and negotiation skills are value added services that the procurement unit can contribute towards an organization. These lead to profit maximization and provide an organization with the platform to enhance organizational performance and effectiveness. During troubled times, it is one way to keep a business afloat. (Please attach a separate list if space is insufficient.) Submitted by:

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effective Procurement, Cost reduction And negotiation Skills

unit 1: procurement overvieW• Introducingprocurement• Purchasingvsprocurement• Evolutionanddevelopment• Importanceofprocurement• Roleandresponsibilitiesof

procurementunit 2: the procurement functionS• Developingprocurement

objectives• Spanofcontrol• Understandingthe

procurementcycle• Differenttypesof

procurement• Beingproactive• SWOTanalysis• SupplierIFASmatrix• Comparisonsofsuppliersunit 3: negotiAtion SkillS• The3criticalphasesof

negotiation• Do’sanddon’tsof

negotiators• 6basicstepsinnegotiation• Phase1:prenegotiation• Considerationsin

preparation• Collectinginformation• 10criticalstrategies

• Usingploys• Phase2:duringnegotiation• Beingcreativeinbargaining• 8criticalmistakestoavoid• Bodylanguage• Phase3:Postnegotiationunit 4: coSt reduction techniqueS• Importanceofcost

reduction• Overcomingthe6barriers• Costreduction

responsibilities• DevelopingKRAs,KPIsand

targetsetting• Thecostreductionprocess• Costreductionactionplanunit 5: coSt reduction techniqueS & AnAlySiS• Comparativeanalysis• Totalcostanalysis• Inventoryanalysis• Pricecostanalysis• Directmaterialcostanalysis• MROcostanalysis• MROsupplierevaluation• Purchasingoperationcost

analysis• Suppliercostreduction• Costreductionsummary

report

course content trainer dr jasjit kaur who holds a PhDfrom USM, possesses an MBA (GeneralManagement)andaBachelorsDegree(Hons)inBusinessAdministration,bothfromUUMandaCertificate inPersonnelManagementfrom MIPM. She has more than 16 yearsof experience; both in the manufacturingand service industry. She has held variouspositions such as Administration Manager,AssistantDirectorofHumanResourcesandGroup Admin/HR Manager that covers theareasofhumanresources,storemanagement,purchasing management, shipping andgeneraladministration. DrJasjithasbeenacorporatetrainersince1994. She has conducted extensive PublicandIn-housetrainingrangingfromlogisticsmanagement, inventories, purchasingmanagement, warehouse management,human resources, counselling, motivation& team building, supervisory skills, officemanagementandleadershipskillstobusinesscommunication.InhercapacityasaTrainingSpecialist,shehasconductedtrainingforalllevelsofstaff.Inthepast,shehasconductedTraining Courses for PLUS, Teknik Jaya,Northern Steel, Mattel (M), LKT Ind, PGEOGroup, Genting Sanyen, Nemic Lambda,Sanwa RC System, Kayaba Meiban, WorldKitchen,SerbaWangi,PublicPackages,AIMST,Shangri-laHotelandshehasalsoconductedtraininginSingapore,Penang,KualaLumpurandJohor.Inaddition,sheisacertifiedTrainerforDevelopmentDimension International’sRecruitmentProgramme,acertifiedISO9002InternalAuditorandacertifiedVerifierbytheNationalVocationalTrainingCouncil.

August18 & 19, 2014

Monday &tuesday

8:45 am - 5:00 pm@ fmm institute, perak

oBjectiveS

Uponcompletionofthiscourse,participantswillbeableto:•developprocurement

objectives•establishKRAs,KPIs

andtargetsetting•developSWOT

analysis•developsupplierIFAS

matrix•negotiateeffectively•utilizenegotiation

strategiesandploys•applythecost

reductiontechniques•conductcost

reductionanalysis

Who Should At tend

Allpurchasingpersonnel,procurementorpurchasingmanagers,executives,officers,assistants

registration:• Upon Faxing / Mailing the completed Registration Form to FMM

Institute, Perak, you are deemed to have read and accepted the terms and conditions. The course would also be deemed as confirmed unless informed otherwise.

• Will be based on First-Come-First-Served basis.payment:• Cheques made in favour of FMM InStItute should be forwarded

to FMM Institute Perak.• For SBL Scheme, an Attendance of 100% is a MUST, in any case,

employers will be billed in full.

cancellation:MustbeinWritingwithReasons.• 7 days before the course ~ No Payment Charged• 3-6 days before the course ~ 50% Payment Charged• < 3 days before the course ~ Full Payment Charged• Participants who did not turn-up will be charged full payment.• Replacements can be accepted at no additional cost.

disclaimer:The FMM Institute reserves the right to change the facilitator, date and to vary / cancel the course should unavoidable circumstances arise. All efforts will be taken to inform participants of the changes.

Enclosed cheque / bank draft No. ______________________ for RM _______________ being payment for _______ participant(s) made in favour of the ‘FMM InStItute’ .

Name: Designation:

Company: Tel: Fax: Email:

Address:

FMMMembershipNo: MyCoID:

Dear Sir / Madam Pleaseregisterthefollowingparticipant(s)fortheaboveprogramme:

name designation i.c. no.

1.

2.

3.

4.

Also available as an

In-House Course

regiStrAtion Form

eFFeCtive ProCurement, CoSt reDuCtion AnD negotiAtion SKiLLS

closing date: August 11, 2014Medium of Instruction:EnglishCPD: 14hoursCourSe Fee (Fees include Course Materials, Refreshment, Lunch and Certificate of Attendance)FMMMembers RM500.00perpaxOthers RM600.00perpax

SBL Scheme

PuRcHASInGcate

gory

ADminiStrAtive DetAiLS

fmm inStitute perAk(Centre for Professional Development)Attn:PuanEda/MsHarvindar/MsNicole)No.1,LorongRajaDiHilir,OffJalanRajaDiHilir,30350Ipoh,Perak.Fax.No.:(05)5488221&(05)5488331•Tel.No.:(05)5488660Email:[email protected](475427-W)

Effectivecostreductionmeasuresandnegotiationskillsarevalueaddedservicesthattheprocurementunitcancontributetowardsanorganization.Theseleadtoprofitmaximizationandprovideanorganizationwiththeplatformtoenhanceorganizationalperformanceandeffectiveness.Duringtroubledtimes,itisonewaytokeepabusinessafloat.

(Pleaseattachaseparatelistifspaceisinsufficient.)

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