PurchTips - Edition # 173

 

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How To Influence A Negotiation Early, Part I

By Charles Dominick, SPSM, SPSM2, SPSM3

When Does Negotiation Influence Begin?

Waiting for a negotiation to start to begin exerting your influence may be waiting too long. There are three methods of influencing negotiation outcomes early.

Method A - Prevent Backdoor Selling

A timeless negotiation principle is that the less certainty of earning your business that a supplier has, the more leverage you'll have. So, it is important that for large purchases, you maximize your leverage by ensuring that suppliers - no matter how hard they probe - do not get clues that their proposals are acceptable. While purchasing professionals are usually adept at maintaining uncertainty, internal customers are not.

Therefore, the purchasing department should be the first entity in your organization to contact suppliers when a purchase cost is expected to exceed a certain amount. And if someone argues that the cost can't be known without contacting suppliers, then the purchasing department should be consulted when it's reasonable to believe that the purchase might approach the limit.

Method B - Get Involved In Product Design

One of the toughest negotiation scenarios is a sole source situation, where there is only one supplier who can provide a product/service. Sadly, most sole source situations are self-inflicted by buying organizations who engage suppliers in their product design process without purchasing department involvement. Those suppliers creatively lock themselves into long-term business characterized by large annual price increases.

The solution is having a purchasing professional on every design team. This person must ensure that future supplier competition is considered and part/material standardization is encouraged in design decisions.

Getting the purchasing department involved in design can be tough in many organizations. It requires top management support. To get that support, show how sole source situations have resulted in continual cost increases for previously designed products.

The next edition of PurchTips will introduce the third method of influencing a negotiation early.

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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



The Latest Purchasing News

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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

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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.