PurchTips - Edition # 194

 

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Negotiating on Behalf of Your Suppliers

By Charles Dominick, SPSM, SPSM2, SPSM3

Are Hidden Cost Savings Available For The Taking?

Do you have a strategic partner or sole source supplier relationship? Are you the largest consumer of your supplier's goods/services? If so, then you should look at negotiating on behalf of your suppliers.

If your suppliers have gotten their costs as low as they can on their own, negotiating with them pressures them to reduce their profit margins - a contentious situation. However, by negotiating with your suppliers' suppliers, you can reduce your suppliers' costs and your costs while keeping the suppliers' profit margins intact. Negotiating on behalf of your suppliers helps enhance those relationships that you deem as strategic and is a great way to gain additional insight and information into the industry and into your supply chain.

Here are some points to remember.

#1 Negotiate The Supplier's Entire Volume. You want a competitive advantage and may worry about the supplier passing savings on to other customers. However, the larger the volume, the greater your savings. Also add your volume for similar items to the deal to get the leverage necessary for maximum savings.

#2 Always Manage The Negotiations. You may have the knowledge and technology to manage the negotiations better than the supplier. This also gives you the control on timeline, information, etc. Lastly, it provides additional insight into just how big a customer you are to the supplier.

#3 Require That ALL Savings Must Be Passed Along To Your Organization. Now that you are managing the negotiations and helping your supplier achieve savings and efficiencies, you should require that all savings generated on your volume (and possibly a portion of the volume from other customers) be passed directly along to you.

Successful negotiations should be those that are a win-win situation. By negotiating on behalf of your suppliers, you can provide a win-win-win solution. You win, your supplier wins, and their supplier wins by gaining additional volume.

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Spotlight On Professional Development Opportunities

SPSM Certification

Are you tired of not getting enough opportunities, respect, and money out of your purchasing career? Well, guess what? Nothing will change unless you take action towards becoming a world-class purchasing professional.

You see, today's employers refuse to reward employees for yesterday's skills.They demand that purchasing professionals like you use the most modern skills and achieve unprecedented results. They want you to save more money, achieve better operational performance, and reduce risk.

Is lacking a purchasing certification keeping you from getting the results, opportunities, respect, and money that you want out of your career? Today's employers refuse to reward employees for yesterday's skills. They want you to save more money, achieve better operational performance, and reduce risk. They demand that purchasing professionals like you achieve unprecedented results and without the most modern skills that can be a challenging feat!

So how can you acquire the most modern skills, achieve meaningful results, and convincingly prove your capabilities to today's employers? There is an impressive purchasing certification program that will teach you what you need to accomplish all of this and more. It is the SPSM® Certification, earned by completing the Senior Professional in Supply Management® Program. And you could earn it in less than a year - maybe even much less than a year!

Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is the action to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSM® Certification (and perhaps get an iPad) (with the option of getting a Study Guide on an iPad) at:

Distinguishing yourself as an achiever in purchasing is key to sustaining a rewarding career, even in these difficult economic times. Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSM® Certification (and perhaps get an iPad) at:

Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is the action to take if you want to bring the most modern purchasing practices  into your organization and achieve your career potential. And if you sign up for the Senior Professional in Supply Management® Program on or before May 31, 2008, SPSMSM Certification Program on or before 4/30/2007, you also get these and other bonuses valued at over $700:

  • FREE $30 gift certificate to Amazon.com!
  • FREE CD-ROM with printer-friendly versions of the class materials!
  • FREE Purchasing Performance Measurement spreadsheet template!
  • FREE audio CD about purchasing job security!

To learn how to earn your SPSM® Certification and get these valuable bonuses, visit:

Earning your Senior Professional in Supply Management® (SPSM) Certification is the action to takeif you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSMSM Certification at:

Learn how to earn your SPSM® Certification at:

www.NextLevelPurchasing.com/spsm.html

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This Starter Kit gives procurement professionals like you a clear idea on what it will take to become certified. You'll get an excellent feel for what you will need to learn and how long it will take.

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Included in your free Starter Kit:

  • Access to two lessons from courses that are part of the Senior Professional in Supply Management® Program
  • A Certification & Training Planning Template
  • Case studies
  • A free Basic Membership in the NLPA

Together, these materials will help you decide how well the SPSM® Certification can help you achieve your career goals.

So, what are you waiting for? Begin your pursuit of a more rewarding procurement career – get your Procurement Training & Certification Starter Kit now by signing up for a free NLPA Basic Membership!

If you are already a member of the NLPA, click here to login and visit the "Starter Kit" tab to access these resources.