Use Negotiation Skills To Elevate Purchasing
PurchTips - Edition # 224
By Charles Dominick, SPSM, SPSM2, SPSM3
Are Your Purchasing Negotiation Skills Underutilized?
Many purchasing professionals find themselves in situations where their internal customers (e.g., Engineering) cut deals with suppliers and don't involve the purchasing department until the moment a purchase order needs to be created. This is a bad practice.
Many companies recognize the consequences of not having early purchasing involvement and have policies requiring the purchasing department to be given an opportunity to participate in all supplier conversations for purchases expected to exceed a certain value. If you want to convince your management to implement such a policy, start by touting your negotiation skills as follows:
As a purchasing professional, you are an experienced negotiator. You negotiate frequently, maybe daily.
Negotiation may not be part of your internal customers' job description. By deliberately keeping you out of a negotiation, your internal customer is failing to utilize a resource that can financially benefit the organization.
Suppliers' flexibility with their pricing is dependent on their perceived certainty of getting the deal. When a supplier "seals the deal" with an internal customer and the purchasing department is involved only at the end, the supplier is certain of getting the deal and will not bow to any pricing pressure that the purchasing department tries to apply.
Salespeople are trained - and many are great - at manipulating even the smartest professionals who have their guard down because they don't negotiate every day. These salespeople know what questions to ask that seem harmless but actually get the information that they need to entrench themselves in buying plans and maximize their margins at the expense of the buying organization.
By having a skilled purchasing professional present at all supplier meetings about major purchases, it can help the organization counter these tactics and prevent the supplier from getting that sense of certainty that results in high prices. But negotiation isn't the only skill that purchasing professionals bring to the table. In the next edition of PurchTips, you'll learn three more capabilities that justify early purchasing involvement.
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Spotlight On Professional Development Opportunities
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:
The Latest Purchasing News
- Purchasing Managers/Directors: Need a clear plan for improving your team's performance? We can help. Learn if you qualify for our FREE purchasing skills benchmarking service at: www.NextLevelPurchasing.com/benchmark
- Find Next Level Purchasing on Facebook! "Like" our Facebook page to get quick access to our latest articles, blog posts, and occasional discounts. Visit www.facebook.com/NextLevelPurchasing
- Considering a career move? Browse jobs preferring candidates with the SPSM® Certification at:
How can you test your purchasing knowledge and have a little fun, too? Try our FREE "Million Dollar Savings Game" which is one version of many different games we've added to each of our online classes.
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