Purchasing and Negotiation Training

Harry Hough, PhD, founder of the American Purchasing Society

While business a bankruptcy may not mean that a company goes completely out of business, it does mean that buyers may have difficulty in obtaining quality products or services delivered in a timely fashion, if at all.

 Not just bankruptcy

Supply chain interruption can also result from  other causes.  For example, when a company is bought out the new owners may decide to discontinue a certain product. Supply can also be disrupted because of a fire, flood, or other natural disaster. Supply from international sources can be curtailed because of war or government restrictions. At a premium, the buyer can help offset some of these causes by split sourcing and by carrying a large safety stock inventory. That is impractical when usage quantities are low or when the buyer must pay for required expensive duplicate tooling.

It is therefore important to evaluate the stability of suppliers when purchased products are critical for the buyer’s business and alternative sources of supply are not available.

 Some remedies

Buyers should include clauses in any long-term contracts that permit the buyer to purchase from another source and even cancel the agreement if any of the above mentioned situations develop. But even if the buyer can locate an alternate source, there may be a costly delay in obtaining delivery.  There is no 100% sure way of preventing an interruption of supply, but taking due diligence reduces exposure to the risks. Here is how to minimize the risks.

1. Know your supplier. Check bank  and customer references. Get a credit report and learn about about the supplier’s operations.
2. Determine how long the company has been in business. Most failures occur within the first few years. Companies that have been around for a long time are more stable.
3. Ascertain employee turnover rate. Stable companies keep employees longer. Employees don’t leave a well-run, profitable company.
4. Learn what labor unions are involved and when the labor contracts will expire. This information is also useful to prepare for price negotiations. Ask salespeople their opinion of their employer’s labor and employee relations. What is the labor relations history? Have there been strikes? When was the last one? Beware of labor problems. Strikes can tie up production for years. It is sometimes difficult to get tooling moved.
5. Obtain financial statements for three years from the supplier, or a D & B report. If the supplier’s stock is publicly traded, the financial statements are public records and can be easily obtained. If it is a closely held corporation or a proprietary company, then the buyer must convince the supplier to provide the statements. The buyer should indicate that he or she would sign a nondisclosure agreement guaranteeing the confidentiality of the information. If the request is refused, the buyer should carefully consider the risks of dealing with the source.
6. Conservative organizations may not grow as fast as high flyers, but they usually last a lot longer. Look at the amount of revenue for each of the three years. If it has gone up steadily, it is a good sign. Small increases may be better than large ones. If there are declines, small declines may not be significant. If there is a decline every year, it could mean trouble for the buyer.
7. If profit has gone up every year, chances are the company is healthy. Small increases in profit may be better than very large ones. Look at the debt ratio. Nearly all well run companies have debt and no problem is indicated as long as the organization can pay the interest and make any necessary payments against the principal. Compare the current liabilities to the current assets to see if the company has the ability to pay bills when due.
8. Ask salespeople about the customer base. Companies with only a few customers or where one or two customers provide most of the sales dollar are in a vulnerable position. By losing a major customer, the company may not be able to continue to be profitable or even to stay in business.
9. Finally, compare the supplier’s performance with that of the industry. Learn if there are too many competitors for all to survive.

Editor’s Note:  Steve writes, speaks, and consults on customer service.

This disappointment gave me that sick feeling in the pit of my stomach because the conference was just days away and I knew the conference host was up to his neck in details, but I needed a resolution. Not wanting to be an added drain on his last-minute conference preparations, I reluctantly phoned the conference host and politely verified that a hotel room had been reserved for me. His positive answer reassured me that everything was okay, so I called the hotel again.

A different reservation agent answered the phone when I called, and again their records did not include my hotel reservation. My disappointment was audible and the reservation agent asked me to be patient why she dug a little deeper. “Perhaps your name is misspelled in our system,” she suggested, as she searched for a different variation of “Coscia.” She found my room reservation and corrected the misspelling. My relief was apparent to the reservation agent and I thanked her profusely for going the extra mile.

Steve’s World Class Value Pack

The extra tenacity that she demonstrated was what made the difference in both problem resolution and customer satisfaction. By definition, tenacity means persistent determination and firmness of purpose. It’s a skill that is honed and developed over time and successful service professionals understand its importance when serving customers. The cumulative effect of numerous service professionals who lack the persistence to stick with problems through to the end, results in a culture of mediocrity in which problems go unresolved, customers remain unsatisfied, and blame gets shifted to someone else within a company.

When customers call for help, a service professional must understand that it isn’t their fault, but it is their responsibility and they must take ownership. Tenacity is a world-class behavior that must be enforced by management.

Steve Coscia

Robert Menard, Certified Purchasing Professional, Certified Professional Purchasing Consultant

Editor’s note:  This is a follow up post on foreign trade for US companies buying overseas.

 From the US point of view, we export when selling  and we import when buying.  The term “balance of trade” or net exports, is the difference between the monetary value of exports and imports over a period of time.  A positive balance of trade is a trade surplus and results from greater exports than imports; a negative balance of trade is a trade deficit or a trade gap and results from greater imports than exports.  For example, the US had a trade deficit with China in 2006 as we imported (bought) from China about five times as much as we exported (sold) to them.

According to the US Census Bureau Foreign Trade Statistics, the top ten US trading partner countries account for 66% of US imports, and 62% of US exports.  This means that all the other 240 or so countries in the world combined account for about the other third of all US foreign trade!  

Canada

Canada has consistently been the US’s largest trading partner and perennial leader in total trade, exports and imports.  Canada exports agricultural, fish and food goods, petroleum, forestry products, machinery & equipment, industrial goods, metals, chemicals, and consumer products. 

Trade with Canada is easy for most American companies as the two countries share culture and language to a great extent.  We can expect the balance of trade to trend toward the US over the near term as the recent rise of the Canadian loonie and fall of the US dollar make US goods cheaper to buy in Canada and Canadian goods more expensive in the US. 

Mexico

Mexico is a unique trading partner because of the North American Free Trade Agreement or NAFTA has dramatically altered the export/import landscape.  While oil continues to be a major export from Mexico, the many US countries manufacturing “in bond” is a relationship shared by no other US trading partner.  In one curious twist, the largest port “in Mexico” is Houston.  Houston receives more raw materials headed to the Maquiladora strip of US manufacturing plants along the Rio Grande than any Mexican port.  Finished goods are then returned to the states for internal consumption or export.

INDIA

India

India enjoys a thriving and growing economy and presents an interesting case.  Although the US imports engineering goods, petroleum products, precious stones, cotton apparel and fabrics, gems and jewelry, handicrafts, tea, among many other commodities from India, it accounts for less than 1% of US foreign trade, ranking below the small country of Ireland.  

WESTERN EUROPE 

western Europe

Currency differences similarly affect trade with our European partners whose Euro monetary unit has risen sharply against the US dollar making their goods more expensive to the US buyer/importer and thus affecting the balance of trade.  Although we do not share as great a cultural and language overlap with our western European partners as enjoy with the Canadians, our long tradition of business provides well traveled path.

France, the ninth-largest trading partner of the US, exports aircraft and engines, beverages, electrical equipment, chemicals, cosmetics, and luxury products.  Germany’s main exports to the USA include motor vehicles, machinery, chemicals, and heavy electrical equipment.

The United Kingdom and the US experienced a near even trade relationship in 2006.  Principal exports from the UK are machinery & transport equipment, manufactured items, chemical products, mineral fuels and lubricants, beverages and tobacco. 

ASIA

Asia

These countries tend to be the most difficult for Americans for many reasons: language, culture, religion, food, and traditions are so different that it takes time, practice, and education to master them.  For instance, a direct question posed to a Chinese supplier may result in a nod and a yes answer.  However, that quite probably means that he understood the question rather than expressed agreement. 

In descending order, our largest Asian trading partners in 2006 were China, Japan, South Korea, Taiwan, and Singapore.  Because of their vast population and awakening economies, these countries are likely to be the greatest growth markets for US imports and exports over the near term. 

While the robust economies of Japan and South Korea are more familiar territory for US importers, is wise to proceed more slowly with the lesser developed nations.  Ample evidence of trade problems with Chinese suppliers include poor quality, contamination, lack of continuity in supply chain processes and the like gives pause to the cautious buyer.

As advances in technology, transportation, and awareness shrinks the global commerce onion, it expands the commercial opportunities.  Potential American importers would do well to learn as much as they can about global economy, study the language, culture, and export ability and capacity of likely trading partners, and to visit these countries and suppliers before invest the first purchasing dollar.

Robert Menard, Certified Purchasing Professional, Certified Professional Purchasing Consultant

The spike in demand for competent purchasing professionals resounds in newspaper want ads, recruiters’ calls, web circulars and virtually every other source of professional purchasing talent.  Surely this question has occurred to us; “Should I earn my professional certification?”  To answer this question, I interviewed several purchasing pros who had records of achievement.  I wanted their insight and experience into how certification has affected them, their employers, and how this trend toward certification is driving the profession. 

What purchasing pros have to say?

Mary Walker of Hagemeyer North America is well known purchasing authority.  She believes so heartily that she has earned multiple professional certifications including Certified Purchasing Professional (CPP) and Certified Professional Purchasing Manager (CPPM).  “Certification is the entrée to upper management; I could not have advanced without it.”  She also stresses the important distinction between certification and academic certificate programs.  “Professional certification conveys far more credibility than an academic certificate.”

A public procurement veteran and CPP attributes the rise in competence, earnings, and prestige to his certifications.  “It is the key to career success. Training, education, and professional certification are investments in yourself; the best investments you can make.”

Paul Crisafulli, CPP and CPPM, notes that purchasing is now much more in the corporate focus.  “Certification proves that you have earned the credentials required to practice at the professional level.  It is so important that most leading companies encourage certification and some defray the cost.”

Everyone interviewed agreed that certification as a CPP and CPPM identifies us as those at the pinnacle of our profession. It demonstrates competence and ability as well as devotion to the business.  It proclaims to the rest of the business world that we are experts in negotiation, business law, ethics, and trends in the profession and all other areas of purchasing practice. 

If you have considered certification

The testimony of others is persuasive but there are three important objective reasons to pursue certification:

adding up the coin

1. Value to the employer
2. Consequential boost in earnings
3. Enhanced prestige and satisfaction of achievement

Especially in the case of purchasing, employers are very concerned with measurable Return On Investment.  Some still look only at price reductions but most successful firms recognize that reducing costs is the key to savings.  The certified purchasing professional is an expert at cost management and a pro at the bargaining table.  It is not at all uncommon for a CPP or CPPM to earn scores of times of his or her salary in savings

According to an annual salary survey, certified purchasing pros earn an average of 7.3 % more than their uncertified brethren and are 16.3 % above the median.  Indisputably, certified purchasing pros earn more.

Finally, the pride that one takes in achieving the highest level in one’s profession cannot be overstated.  Certifications in the accounting and purchasing professions show a parallel.  While public accountants work in Certified Public Accountant firms, only the CPAs become executives, partners, and leaders.  What do you think purchasing certification would do for your career?

For detaials on how to obtain a Certified Purchasing Professional (CPP) or Certified Professional Purchasing Manager (CPPM) visit the certification page

Robert Menard, Certified Purchasing Professional, Certified Professional Purchasing Consultant

The issue of supplier evaluation has caused some misunderstanding in purchasing circles.  A coherent supplier management strategy requires this best practice so let’s clarify some of the major points that make an evaluation program a success. 

Is supplier evaluation the same as certification?

Supplier certification or qualification is an initial screening process by which suppliers are approved to compete for business.  It means that the supplier meets certain objective standards.  For example, a hardware distributor can not qualify to provide catering services. 

Supplier evaluation, sometimes called score-carding, is an objective method for measuring performance. It applies metrics (standards of measurement) to calculate ratings in important cost categories and combines these to obtain an overall score.  This evaluation score represents the Total Cost of Ownership (TCO) of doing business with a supplier. 

Why evaluate?

Supplier evaluation is an essential tool in managing performance and reducing costs.  The business adage of “We cannot manage what we cannot measure” relates directly to supplier evaluation.  The three compelling business arguments driving supplier evaluation are to:

• Justify decision
• Improve performance
• Reward performance

What to measure?

Universally there are four major elements of cost – Quality, Service, Delivery and Price.  The sum of these four amounts to the TCO.  Since the importance of each element depends upon the purchase, take the example of replacement valves for cardiac surgery.

• Quality is the most important element, hands down.  Purchasing should consult with the surgical staff to learn exactly what technical quality standards should be measured. 
• Delivery is the secondary cost element.  Cardiac surgery is often a scheduled event so on-time delivery might be good a metric.
• Service is third since the valve may require maintenance over time.  A useful metric may be ease of maintenance, such as external or minimal intrusive electronic adjustment.
• Price is least important, especially if you are the patient!  Therefore, the scorecard or evaluation methodology will be established to place greater weight on Quality, and then in descending order, Delivery, Service, and Price.

Which suppliers should be evaluated?

In general, the greater the potential disaster, the more the supplier’s performance is evaluated.  How often and how detailed depends upon your analysis of the potential burn.  “Partner, key, strategic, or core competency” suppliers are among those which will receive the greatest the most thorough evaluation scrutiny.  

How to create a model to measure supplier performance?

First, enlist the aid of internal customers or end users.  Supplier evaluation is not idle exercise and will have a lasting impact on supplier and customer alike.  The buyer must ensure that the supplier understands how its performance will be measured.  Proactive buyers also require the supplier to internally audit their own performance and have a scorecard to compare with the buyer at periodic review meetings. 

Other benefits of supplier evaluation

Your evaluation model is just that, a model.  It provides a starting point for negotiations with suppliers on how to justify, reward and improve performance.  When the supplier understands and accepts how their TCO performance affects their ability to continue to do business with us, the business dynamic shifts away from personality based selling of Price to the solution centered concept of lowest TCO.  Objective, quantifiable data driven decisions are undisputable facts, not subjective opinions. 

By identifying specific areas of improvement, lowest TCO suppliers may be justifiably rewarded with larger books of business while low performing, high TCO suppliers can be justifiably removed, shrinking the supplier base to a leaner profile.

Supplier evaluation events are ideal opportunities to ask the supplier how we, the customer, can improve.  They may be able to offer suggestions to reduce the costs of doing business that are not so obvious to us. 

There is every reason to adopt the best practice of supplier evaluation and move away from the pulse and price basis of doing business.

For a related story, see

Economic trends put more emphasis on supplier management

Harry Hough, PhD, founder of the American Purchasing Society

Editors note: Dr. Hough is a regular guest contributor to this blog.

You can reduce your work and limit problems if you are careful before sending request for bids to suppliers. A request to an unqualified supplier who then submits an unreasonably low bid leaves you vulnerable to criticism. You may need to spend time explaining why you didn’t award business to that supplier. An auditor will question your decision not to award business to the lowest bidder. You’d better have good documentation to prove your reasons were justified.

Another reason to take care when selecting suppliers is the wasted time spent with those that aren’t likely to be competitive in the first place. If you are sending out requests periodically, say annually for a similar item, why send them to those who submitted bids that were nowhere near the winning bid on the previous request. This is especially true when there are many suppliers of the product who are only too anxious to have an opportunity to bid.

RFQ

Some buyers select the most competitive previous bidders and then add new organizations that never bid before. For example, if they send out six requests, they may pick the three lowest bidders from the previous request and add three completely new suppliers to make up a new group of six. Doing this period after period helps assure very competitive bidding.

This is not to say that you should never go back to a completely uncompetitive bidder. Conditions change. Errors are made. A supplier may have different management that institutes different pricing strategy. New processes or new equipment may make a formerly uncompetitive bidder have the lowest cost. The point is that you should place some thought into selecting bidders as well as into the decision of who will get the order.

Robert Menard, Certified Purchasing Professional, Certified Professional Purchasing Consultant

Our dominant obligation and duty as purchasing professionals is to manage costs.  To do so, we must be able to identify and analyze the costs that make up the goods and services we buy. 

What is Cost Analysis?

Simply defined, Cost Analysis is a breakdown and examination of constituent costs.  We will use a basic model for convenience here, but in practice, your breakdown will have a greater or lesser degree of sophistication, depending upon the importance of the purchase; the more critical the buy, the more in depth the breakdown.  For instance, a buyer of manufactured parts may need to know the amounts and percentages of the cost of raw material, production, logistics, indirect, and overhead.  Indirect is always tricky as there is no precise, uniform definition.  Some organizations lump packaging, advertising, marketing, and sales expense into the indirect category, often by percentage allocation.  No matter what it is called, we must know about it.

How is Cost Analysis information obtained?

There are a variety of ways but the easiest way is to ask.  Provide a non disclosure or secrecy agreement to facilitate the exchange of information. You are ethically bound to keep the information confidential anyway so memorialize the agreement in writing.  In some instances, if the supplier suspects that you could make the part, you may need to sign a non-compete agreement as well. 

Refusal to disclose cost information waves a red flag.  The supplier may not know its costs, which is dangerous as it could easily slip into a situation where it cannot perform because of underestimated costs.  Conversely, a supplier may not want to divulge the cost because we are paying far more than is economically justified.  Either one of these two situations requires immediate remedial action. 

When is it obtained?

There are two ideal times, with a new supplier and at periodic performance review.  For a new supplier undergoing the qualification process, the risk of losing a new customer makes it more responsive to cost analysis requests.  Compare its cost structure to other similar suppliers and verify reasons for differences.  Recall that purchasing pros buying goods may not induce or receive a discriminatory (not cost justified) price.  Edges in raw mat sourcing, proximity to customers, or other strategic advantages may benefit a supplier and thus justify the cost difference. 

Contract renewal or evaluation is the other ideal time, particularly if there has been a failure in the recent period.  Supplier and customer have an opportunity to examine how to collaboratively reduce costs.  Elimination of needless costs reduces the price.  For example, assume you buy a part for $100. If you remove $2/piece in needless logistics or packaging costs, that entire $2 savings can be applied to reducing the price to $98.

Quo vadis?

Not that you have all this information where do you go with it?  Begin with the cost drivers, a buzz word meaning either the greater or more volatile cost elements.  Consider the example in this chart.  

 The place to begin your analysis is in the raw material category as it contains 60% of the cost, the greatest single category.  The main cost driver is copper as it comprises the single biggest item of raw mat.  Copper and PVC are commodities whose price is established daily on major exchanges around the world.  Raw material should be the easiest category to justify or in which to spot problems.  For instance if the supplier claims it needs a price increase because the raw material have increased, you can easily verify the claim.  Moreover, the copper price increase applies only to 40% of the price you pay.  A 10% price increase in copper raises the cost by $0.16 (10% @ $1.60), not 10% of the $4.00 selling price. 

Production costs will vary depending upon the supplier’s capacity, technology, efficiency, etc.  It is our job as purchasing pros to understand and verify differentials amongst suppliers so that we are comfortable that the costs are properly analyzed and that we have made a prudent and professional decision.

The more we focus on reducing costs, the less adversarial the buy/sell relationship becomes.  Cost Analysis is a perfect example of how data driven decisions lead to sound business judgment.

Robert Menard, Certified Purchasing Professional, Certified Professional Purchasing Consultant

In over two decades of conducting seminars and workshops for fellow purchasing pros, all have voiced one constant refrain.  Everyone’s goal is “to become more comfortable, confident, and competent in negotiations.”

Needs and solutions

Businesses must constantly train buyers in negotiation, the core competency of the profession.  When sales skyrocket, negotiation training controls costs.  When sales collapse, negotiation provides much to all of the profitability.   

In today’s economic climate, the question of which training medium and associated costs is top of mind.  Traditional in house customized training is best but also most expensive while self study through books, manuals, CD/DVD, and online courses is more convenient.  No matter your choice, the credentials and recommendations of the training service provider makes all the difference.

Selecting a negotiation training for buyers

Most commercially available negotiation training is presented from the slant of sales, legal, or academic worlds.  Buyers want the material to be presented and developed by an expert who has earned chops in their trade.  This means having worked at the buying profession and continuing such work on a frequent consulting basis.  He or she should have earned professional designations such as Certified Purchasing Professional (CPP).  Most importantly, ascertain and verify references of polished speaking, presentation, and adult education & training skills and accomplishments. 

Negotiation, Texas style

Call the trainer to talk one on one.  Most large training houses will not connect you with their staff who are generally poorly paid and inadequately skilled.  Most have little depth beyond the printed page of the manual before them.  These sources are particularly bad choices for corporate clients with demands for customized regimes. While something is better than nothing, the adage of getting what one pays for applies.

Benchmarks

• One thousand days of seminar and workshops should be the minimum that your trainer has under the belt. There is no substitute for time on the feet in front of thousands of individuals to hone the skills. 
• Demand and verify references.  A successful veteran trainer can produce a vault full of written references and contacts with past clients.   
• Contributions to the profession must include not only earned professional designations but published articles, books, CDs and DVDs, and the like at o help fellow pros improve their performance
• Education resources are valuable follow on resources for seminar participants.  These include fully customized high quality training manuals and handouts that reflect your company’s unique situations
• Exercise driven and interactive content; adults learn best by doing   Brief lecture and frequent spot and formal exercises drive participant satisfaction and crystallize the learning.  The exercises must reflect workplace challenges and not merely regurgitate generic examples

How is all this done?

Most of the time, it is not done, certainly not by the large training houses who have been using the same material for decades.  Your service provider must engage in preparation such as

• Instruments         Pre and Post Assessments benefit the participant and client.  The Pre Assessment establishes the base line and reveals challenges that may not have been envisioned.  It can also divulge ample exercise material to incorporate into the program.  The Post Assessment, when compared to the Pre provides a quantitative measure of progress and an effective client gauge to measure ROI.    
• Questionnaires and Interviews       These in depth studies of the individual client are crucial to successful customization
• Tools          a Negotiation Template is standard in my programs as well as other analyses as appropriate.  Your trainer/supplier should also under promise and over deliver.

What does it cost and what else should you get

A good rule of thumb is between $250 and $350 per participant per day, depending upon the trainer’s fee, educational resources provided, and market factors.  Doing the math for a two day seminar for thirty people, the range is between $15,000 and $21,000.  Over seas travel or other extraordinary expenses will add to the total. 

If you choose the right trainer/supplier, and have a multiple day program, demand the trainer/supplier write a consulting report on observations and make recommendations based upon experience and knowledge.

The moral of the story: to get the most for your training investment, hire a proven pro.

See related story from Purchasing magazine on negotiation being the number one requested skill by purchasing pros

"Shorten your sales cycle & increase your win rate through competitive excellence"

Editors note: Stu Schlackman is a regular guest contributor to this blog.

Selling your products and services to customers involves negotiation.  Speaking the buyer’s language will enhance your success.  To do so, we must understand the buyer’s concept of Total Cost of Ownership (TCO).  It says that a buyer will pay a higher price if it buys a lower TCO.  I highly recommend a book written by an expert in purchasing and negotiation as well as a friend and colleague of mine, Robert Menard.  All sales pros should read.  “You’re the Buyer You Negotiate It!”. 

Total Cost of Ownership (TCO) = Quality + Service + Delivery + Price.

Quality is often the most important element of TCO but it depends on the product you’re purchasing.  Quality is very important in the purchase of a fault tolerant computer system.  Service depends upon the type of service contract you purchase and the coverage. For maintaining a computer system for a mission critical application like an airline reservation system you would want an immediate response time.  Delivery’s importance varies depending on the industry. If you need to replace an air condition system in a hospital in Phoenix during July, immediate delivery would be critical and you most certainly are willing to pay for it. 

The importance of Price depends on the product or service.  A buyer will typically rank Price higher in the case of a “commodity” purchase.  For instance, a Fortune 500 company buyer of ten thousand plain ball point pens determines that Price is has a far greater impact on the TCO than the service (none), quality (all pens are pretty equal) and delivery (no sense of urgency).

Rank the TCO Elements as the Buyer Ranks Them

We must rank the most important cost elements to the buyer to determine our negotiation strategy. By doing so, we can concede on a point of low actual cost to us but of high perceived value to the customer.  For example, an upgrade may cost us pennies but may be extremely important to the customer.  We can afford to stand firm on Price if our service is perceived as high importance and critical to the customer’s success and we can sacrifice delivery if the cost of it is negligible to us. We must know where we can concede without hurting our bottom line and how to provide the lowest TCO to the customer.

Here is one example of how buyers ranked Quality, Service, Delivery, and Price (QSDP) in a seminar in Madison, WI.

The objective of every negotiation is a win-win for both parties involved. Understanding the personality style of the customer can help us in anticipating their negotiation strategy.

The Effect of Personality and Communication Styles

Blues will focus on making sure a win-win is established for both parties with minimal negotiation and gaining agreement as soon as possible.

Golds will focus their negotiations on all of the financial aspects of gaining agreement. Give and take with excellent documentation along the way will be their approach.

Greens will negotiate by asking for reason and justification for each and every aspect of purchasing the solution. Greens need to know all the information and what they are getting in regards to service, delivery, price and quality in regards to the overall cost of ownership.

Oranges will focus on getting a great deal and rely mainly on service and price. If the Orange scores points they will feel they have accomplished their objective for making the purchase.

Going into the negotiation with information about the company and their issues, along with knowing the personality styles of the decision makers involved can give you the insight you need to close the sale as a win-win leading to a long term partnership.

Robert Menard, Certified Purchasing Professional, Certified Professional Purchasing Consultant

• Preparation for CPP Exam Part One
• Business Ethics for Buyers and Sellers  

• Essential Law for Buyers and Sellers
• Math for Purchasing and Business

 Week Three  

• Preparation for CPP Exam Part Two
•  Managing Inventory – Maintaining the Proper Level
• Certified Purchasing Professional Examination

CPP emblem

I will be available for questions and comments and may also email you with questions or for comments about the material. This will help to enhance the learning experience. Students will not be graded or judged by the answers and comments that are made during the course sessions. Only the certification exam given at the end of the course will be graded. 

 Once an application is received, it can be processed and all of the work that must done by the Society to certify a purchasing professional can be completed.  Although the successful completion of this course will fulfill the course and exam requirements for certification, certification must still be applied for separately, reference checks must be passed, and enough points assigned to an application.

There are two powerful motivators militating in favor of CPP achievement, professional enrichment and greater earning.  It is a path to greater respect and earnings and a measure of devotion to the profession.  Moreover, employers are increasingly demanding,, requesting, or encouraging certification for their purchasing personnel.

To see just how much more earnings can be for Certified Purchasing Professionals, please see the Society’s annual Salary Report available to members.