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Procurement Training, Purchasing Training, Supply Chain Management Training - Click to Watch Now!

Procurement Training, Purchasing Training, Supply Chain Management Training - Click to Watch Now!

Are you looking to enhance your skills in procurement, purchasing, and supply chain management? Look no further! In this article, we will provide you with an overview of a training session conducted by Omid Hammami, an expert in the field, on best practices for contract negotiations.

Overview of the Training Session

During the training session, Omid Hammami discusses four key areas that are proven to drive change and improve results in an organization's procurement process. These areas include:

  • Taking costs out of the supply chain
  • Writing contracts to prevent and remedy total cost of ownership (TCO) excursions
  • Cost modeling and benchmarking for success
  • Achieving win-win negotiations

Omid emphasizes the importance of taking costs out of the supply chain and provides real-life examples of how companies have achieved cost savings by focusing on areas beyond supplier profit reduction. He also highlights the significance of writing contracts that prevent and remedy TCO excursions, as well as the use of cost modeling and benchmarking to drive TCO reduction. Finally, Omid delves into the concept of win-win negotiations, teaching principles on how to achieve high-value objectives while maintaining a positive relationship with suppliers.

Throughout the training session, Omid provides practical tips and strategies that procurement professionals can implement in their organizations to save time, drive cost savings, and improve supplier management.

Key Takeaways

  • Taking costs out of the supply chain requires a focus on areas beyond supplier profit reduction.
  • Writing contracts that prevent and remedy TCO excursions is essential for effective contract management.
  • Different types of cost models and benchmarking strategies can be used to drive TCO reduction.
  • Win-win negotiations involve understanding supplier needs and providing high-value, low TCO concessions.

Keywords

Procurement, purchasing, supply chain management, contract negotiations, cost savings, supplier management, TCO, cost modeling, benchmarking, win-win negotiations, contract management.

FAQ

  1. What are the key areas discussed in the training session?

    • The key areas discussed are taking costs out of the supply chain, writing contracts to prevent and remedy TCO excursions, cost modeling and benchmarking for success, and achieving win-win negotiations.
  2. How can organizations take costs out of the supply chain?

    • Organizations can take costs out of the supply chain by focusing on areas beyond supplier profit reduction, such as eliminating unnecessary processes or customizations.
  3. What is the importance of contract management?

    • Effective contract management is crucial to prevent and remedy TCO excursions, ensuring that contracts are aligned with the organization's objectives, and to maintain positive supplier relationships.
  4. How can organizations achieve win-win negotiations?

    • Organizations can achieve win-win negotiations by understanding supplier needs, providing high-value, low TCO concessions, and creating a positive and collaborative relationship with suppliers.