Negotiation

What can SPEED do to improve your negotiations?

By Lucy Patchett

A negotiation model has been developed encompassing steps to ensure that procurement professionals think "more broadly and deeply" about the process.

Colin_Linton_100.jpgColin Linton, Director at business training and consultancy firm Gidea Solutions, spoke to CIPS in the podcast SPEED Negotiation Process about the model that he has developed through his research into contract management.

Linton identifies a negotiation model he has called SPEED, based on the stages Strategy, Planning, Execution, Evaluation and Delivery.

He notes: "It's easy to assume that negotiating the contract falls broadly into three distinctions: before, during and after the negotiation is concluded. However, the risk of only looking at these three separate stages is that you may miss out on key steps that could help with preparation and enhance chances of reaching a better conclusion".

10 Best practices for procurement managers in 2020

LindaAshok_100.jpgBy Linda Ashok
A content, communications and branding professional

So many things are slated to change in 2020, the milestone year! But what matters most is your career; how is it going to prepare you as a procurement manager? Okay, let me clarify that there isn't any significant difference between a Purchasing or Procurement Manager. Of course, you know it because you are in the procurement arena already.

Typically, a procurement manager's job description entails the following:
• Partner with the category teams and leaders in developing and implementing strategies to drive significant value from the supplier base
• Conduct in-depth research on existing and emerging trends, identifying new technology/solutions, screening potential new suppliers, and performing complex analytical studies
• Manage relationships with key suppliers, developing negotiation strategies, and conducting negotiatio
• Lead critical process improvement projects and drive higher value for the operating companies.
• Consult internal functional areas such as marketing, R&D, operations, logistics, legal, and corporate functions

With such expectations in mind, an aspiring procurement manager must possess modern skillsets that organizations will seek in 2020. In this article, we cover both the elementary and advanced expectations from the role of a procurement manager.

What can board games teach us about procurement?

GordonDonovan_100.jpgThere are several parallels between games and business strategy. Gordon Donovan (FCIPS), Group Director: Procurement and Supply, Epworth Healthcare, wonders what we could learn about procurement from games and, as such, takes a look around the world wide web to find out more.

Join us at Smart Procurement World Western Cape on 9 & 10 April to understand "procurement board games". Ian Russell (founder of Disrupting Consultancy, ex-CEO of BCX and a former CPO of Telkom, SABMiller and Absa) will discuss what procurement leaders should grasp now to become board-ready

10 procurement value creation ideas

DavidMillington_100.jpgHow can procurement create value beyond cost savings?

David Millington, Certified Supply Chain Professional, Next Level Purchasing Association, offers ten procurement value creation ideas in this month's SmartProcurement.

Join us at Smart Procurement World Western Cape on 9 & 10 April for a discussion on reaching true partnerships with strategic suppliers. Sanet Shepperson (Executive Head: Property and Procurement, Cell C) will facilitate a session on innovation and value creation in key supplier partnerships

Sales perspective: 5 tips on how to deal with procurement

NegSkills_100.jpgEditors note: We thought it might be useful to procurement professionals to get some INSIDE INFORMATION FROM THE OTHER SIDE. This article is written by a consultancy specialising in advising sales people to deal with procurement. Enjoy!:

"It has been said over the past couple of years that procurement departments are becoming increasingly powerful. They dictate how negotiations unfold as value propositions are torn apart and prices lowered until vendors can hardly think straight. It sounds like a horror story, right? But it doesn't have to be that way. Dealing with procurement is always going to be a challenge, but if you understand their game, it will be much easier to play yours."

Mercuri International, a consulting and result-improvement company, has put down five insights into how to stay on track with your goals while negotiating with procurement.

6 ways to prevent a negotiation blow up

Negotiation_blowup.jpgYou're preparing for a big negotiation with a group of key suppliers and you're already anticipating a disastrous outcome. Perhaps you already know that the people you're dealing with are difficult, or you've heard about their reputation. Or, maybe you know your own negotiation skills leave a lot to be desired when it comes to crisis management.

Whatever your reason for being nervous, there's no denying that negotiations can be tough. But, the best thing you can do to lessen the tension and prevent a negotiation from blowing up is to be prepared.

At a recent negotiation roundtable on the topic of emotions and negotiation, a number of procurement and sales leaders gave advice on how to keep negotiations sweet.

Join us at Smart Procurement World to discuss the top ten negotiation failures: negotiation is a key skill for any procurement professional. Knowing what to do and how to do it is important. But equally important is know what not to do!

What if procurement savings didn't matter?

Madeleine_Tewes.jpgMost say that savings are just one component of this value proposition and that we need to look outside of savings into other areas of value, like stimulating innovation, supporting the organisation’s corporate social responsibility goals and reducing risk throughout the supply chain. Everyone agrees with these articles and, as we map out KPIs for our procurement department or individuals, we ensure savings is just one, albeit important, metric that their value will be evaluated on.

What happens, though, when you remove the value of savings altogether from a procurement department and its individual members? Even from the offerings of procurement consultancies that often focus on savings as a way of convincing CPOs to accept their services? asks Madeleine Tewes, Project Manager.

Expense reconciliation: tips to improve your process

 

HelpfulTips.jpgIs the financial year-end getting the better of you? Are suppliers unco-operative? Are you late with their payments? Are you over budget and struggling to balance the books?

If any of the above scenarios apply to you, take heart in knowing that you’re not alone.

Balancing inconsistent supply chain management practices with increasing costs and pressures to reduce those costs, as well as heightened compliance around invoicing are just some of the headaches procurement managers face daily, Pascalle Albrecht, National Travel and Procurement Manager at Nedbank, tells SmartProcurement.

Negotiating with consultants - the insider perspective

 

BillMichels.jpgIn the indirect category one of the tricky negotiations is consultants. In many cases, they are brought in at high levels of the organization for their specific expertise. Often they have already been awarded the contract and are ready to start the assignment with the contract being the clean-up details. Has this ever happened to you? Bill Michels, CEO and founder of Aripart Consulting, gives some hints to improve negotiations with consultants.

3 new-year negotiation resolutions

 

ChrisWebber.pngThis strapline is the inspiration for many resolutions in January, designed to make you fitter, healthier or to become a better person.

Returning to work after the festive break, to an inbox bursting with adverts and stories promising a leaner and better you in 2017, Chris Webber, Practice Head for The Gap Partnership, was inspired to consider what negotiators should resolve to change this year to be more effective.

 

Visitors and exhibitors flock to the Smart Procurement World conference

 

FirstPic.jpgAs the second day of Smart Procurement World conference unfolds, more than 1000 visitors have come through to equip themselves with knowledge about procurement, supply chain, enterprise development and how to support Small, Medium and Micro Enterprises (SMME).

“Google can give you so much, but by attending this conference, I am hoping to find relevant suppliers, particularly black-owned female companies. We want our company to be in line with the B-BEEE Codes and thank goodness for this platform where one can source active and relevant suppliers,” said Tamsyn Louw, procurement professional attending the conference.

Nice-guy negotiators come first, says United Nations

negotiator.jpg
“A good negotiator should be a nice guy,” according to Khaled Chatila, senior procurement officer for the United Nations’ World Food Programme in Egypt.


“You should be caring, clear and an active listener who is honest and willing to compromise or offer solutions,” said Chatila, at the CIPS Middle East Conference focus day in Dubai in April.

Developing countries can improve public services through fair, open procurement practices

 

GTY_lagos_nigeria_tk_140507_16x9_992.jpgOrganisations continue to face considerable obstacles, linked to transparency, efficiency and other ills of government procurement systems around the world, a new World Bank Group report finds.


Such obstacles negatively affect the ability of small and medium sized organisations to do business with governments, says the Benchmarking Public Procurement (BPP) 2016 Report, which assesses public procurement regulatory systems in 77 economies.

Draft regulations have the "potential to legalise corruption"

 

ReformsCorruption.jpg“The new draft regulations, if they are accepted, will legalise wholesale corruption at an even grander scale than we are currently witnessing,” said Helen Zille, Democratic Alliance (DA) premier of the Western Cape Government.


Speaking on amendments to Preferential Procurement Regulations put forward by government, the premier said that amendments to the procurement law “will cause the collapse of the South African economy”.

New study highlights directors' perceptions on supply chain negotiations

 

DirectorNegotiations.jpgInitial outcomes from a study are finding that while finance and legal are still seen to be the most powerful functions during the negotiation process, supply chain directors are becoming increasingly involved in initial negotiations with potential suppliers.


The six-year study, entitled 'Director Level Perceptivities on Aspects of Supply Chain Management', to be released by Professor Douglas Boateng and the PanAvest Partnership this month, seeks to understand the perceptions held at director-level on aspects of Supply Chain Management by examining an array of issues related to negotiations, agreements, contracts and bargaining.

Return to 'SCM first principles' before scheduling more SAP training

 

StevenFreemantle2.JPGWith daily technological advances in the SAP world, focus tends to fall on the next-best technology and users forget that they already use a set of powerful basic supply chain management (SCM) tools. In fact, users may have never known about these SCM tools, and if they did, they may have 'lost' them through staff attrition over the years.


While adopting new developments may be key to keeping up with the times, users must not forget that any addition to a SAP suite of tools relies heavily on the original technology, says Steven Freemantle of SweetThorn Thought Leadership in this month’s SmartProcurement.

Stationery - Managing and optimising a complex category

 

AlanLow_2013.jpg“Recent benchmark reports have shown price variances for specific items of more than 60% and on A4 paper in excess of 40%.”


Alan Low has seen both sides of the stationery supply world: from benchmarking stationery supply arrangements for many of South Africa’s top organisations, to being the Managing Director of a UK stationery company in 1980s.


“From a supplier perspective, the cost of fulfilment (the procure-to-pay process for the supplier) is inordinately large when compared with the average value of a stationery order. When you factor in service requirements such as to-desk delivery and no minimum order value, making a profit becomes even harder,” says Low, of Purchasing Index (PI) in this month’s SmartProcurement.

Negotiate, agree on specificities and then contract

 

NegotiationGrowthAfrica.jpgIn order to reverse the current bargaining trends in Africa, it is important that supply chain organisations, professionals, executives and directors move away from price-chiselling practices towards long-term negotiation, said Professor Douglas Boateng, the founder and CEO of PanAvest International and Partners.


Speaking at the Institute of Directors Zimbabwe’s ‘Director of the Year Awards’, Boateng insisted that not only will a shift towards engaged negotiation facilitate organisational success and value creation, but it will also help to move the Zimbabwean supply chain environment in line with industry specific best practice.


 

 

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