Pro-D Supply Management (Procurement) Track
Module 2
21st Century Negotiations
Module Summary
Negotiation is defined as “conferring, discussing or bargaining to reach agreement or the process of working out a mutually satisfactory agreement.” This outcome is also referred to as a “win-win (cooperative)” result.
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Negotiation is the one of the most popular topics covered in not only Supply Management venues but also in sales training. There are numerous trainers running around the country with seminars on how to outsmart your supplier, how to advance some sneaky tactics, or as one so-called expert on Negotiation used to advocate, “HAVE YOU KICKED YOUR SUPPLIER TODAY?”
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How does this course differ from the above? In the trainer’s 30 years experience in purchasing and negotiating with a world-wide supply base, he has found that the old saying holds true, “what goes around, comes around.”
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This course advocates that in the 21st century, a balance between maximizing return for your firm as well as allowing a good deal for your supplier. The course is dividing into two main parts – preparing for the Negotiation (which involves a detailed plan) and executing it.
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To round out this course, you will have the opportunity to complete a 50-question quiz to test your knowledge and apply what you learned. Successfully pass this module and the other 5 modules to earn your Certificate of Achievement from Missouri State University
Benefits of Attending
Upon completion of the 21st Century Negotiations course, the participant will:
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conduct a SWOT analysis which focuses on both the buyer’s and seller’s strengths, weaknesses, opportunities and threats
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incorporate Dr. Michael Porter’s Five Forces Model to determine whether it is a buyer’s or seller’s market
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understand the importance of good negotiation preparation and key preparation factors
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analyze the supplier’s position including desire for and certainty of a contract, available options, skill levels and cost modeling (for more on this, see the Applications in Cost Modeling course)
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incorporate the BATNA – Best Alternative To A Negotiated Agreement
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determine which objective(s) to set which makes up the theme of the negotiation
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review 22 skill sets of good negotiators
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compare and contrast the three outcomes of negotiation as referenced above
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incorporate the key tactic called the Caucus (time-out)
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incorporate the key tactic called Challenging The Deadline (such as an immediate price increase)
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incorporate the key tactic called Missing Person (appealing to a higher authority)
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incorporate the key tactic called BAFO – Best and Final Offer (take-it-or-leave-it)
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incorporate the key tactic called the Bogey (an appeal to the emotion of the other party)
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review two special negotiation situations – (1) with HUBS – Historically Underutilized Businesses and (2) Consortiums (different buying companies joining to leverage)
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create a detailed negotiation plan with a focus in the Introductory Summary, Particulars, Procurement Situation and Negotiation Summary
Self-Paced Learning
You will be provided with access to the BMTG e-Learning Academy which will guide you through Module 1: Fundamentals of Supplier Relationship Management.
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To ensure a smooth learning experience, each Module is presented as a comprehensive "Course Book" within the user-friendly BMTG e-Learning Academy.
The Course Book is divided into four chapters, providing you with in-depth study materials and practical insights.
Here's what you can expect in each Course Book:
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Chapter 1: Learning Objectives: Three downloadable PDFs serves as your study materials offering detailed information on the course topic comprising of a set of learning objectives that you can refer to it at your own pace, allowing you to absorb the content effectively.
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Chapter 2: PowerPoint Slide Deck with Audio: As an additional learning resource, the PowerPoint Slide Deck is accompanied by audio narration to guide you through the study materials. This audio-led approach ensures a dynamic learning experience.
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Chapter 3: Review Points: A summary PDF of the key learning outcomes to be studied prior to attempting your online assessment.
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Chapter 4: 50 Question Multiple Choice Assessment: To assess your understanding of the course content, each Course Book includes a 50-question multiple choice assessment. The passing score for the assessment is 65%, thereby ensuring you have grasped the core concepts effectively. You will be able to take and retake the assessment until you pass.
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