Download Lecture Content - International Master in Public Procurement

MODULE n.
Purchasing Organisation and Strategy
LECTURER
Giovanni Atti
LECTURE
TITLE
Economic and Technical Aspects of the Negotiation in private
procurement
To recognize that the value added of the negotiation may apply to
various steps of the buying/selling process and that it occurs both
at intra company and cross-company levels.
To understand that the negotiation strategy, and goals have to be
aligned with the type of relationship one wishes to develop with his
supplier.
OBJECTIVES
To realize that the negotiation of critical supplies and long-term
agreements involves experts of various functions (negotiation
team).
To understand the importance of the preparation and planning
phases, and specifically the definition of the issues to be negotiated
together with the relevant targets.
To learn that the number and type of issues to be negotiated
depend on the importance/criticality of the supply, and the
competitiveness and risks of the relevant supply markets.
To understand when the buying process has to include the
traditional face-to-face buyer-supplier negotiation, and when it is
not worthwhile.
To understand the importance of the communication network
between the buying and selling team.
Contents of the programme
DESCRIPTION
CLASS
MATERIAL
Concept and characteristics of purchasing and supply management
Structure of the buying process
Phases of the buying process (contract management) in private
procurement and list of those that could ensure value added if
properly managed
Definition of the issues to be negotiated and setting the relevant
targets
Common mistakes to be avoided
Definition of negotiation
Internal and external negotiation phase
Ways to manage the negotiation phase in private procurement
Principles inspiring the private Buying Process
The importance of cross-functional and cross-company synergies
Comparisons between private and public procurement
Key procedures in private and public procurement
Importance of the compliance in the contract execution
The law of supply and demand and the formation of prices in “perfect
competition” markets
The formation of prices in the real world (language of modern
economics)
The buying center and the communication network
Gross Margin: how much buyers are available to pay and sellers
charge
Award criteria for contracts
Variables impacting the outcome of the negotiation
Relationship between Product Classification and content of the
relevant contract.
Example of contract clauses
Two Power Point Presentations