Program taught by our partner AIC – Automotive Intelligence Center
Automotive suppliers are well aware of this: it is no easy task to negotiate an agreement with their large customers. The business relationship resembles a David and Goliath relationship, and global corporations make extensive use of their purchasing power to their advantage. They insist on favorable conditions and requirements and incorporate them into supply contracts as far as possible. This leaves many suppliers feeling powerless and helpless, both in normal times and in extraordinary situations.
So what can suppliers do? With a smart combination of strategic, tactical and legal elements, ʺDavidʺ can also achieve some ʺhitsʺ and influence important points to balance unilateral rules and processes. This is the content of the new module 4 of the KAM Program, which brings together strategic and legal aspects, without neglecting the current topic of price increases.
DATES:
October 3rd, 4th and 5th
Optional module: October 6th
HOURS: 24h + 8h
AIMED AT:
General Managers, Commercial Directors, Project leaders, Account Managers with interlocution with the client. Any professional who needs to develop skills and competencies oriented to negotiation with clients.
OBJECTIVE:
Understand OEM and Tier1 purchasing strategies and buyer interests. Develop tactics to evade pressure in price negotiation until a beneficial final agreement is reached. Acquire knowledge, skills and abilities for conflict prevention, management and resolution. To deepen in basic aspects of psychology to apply them to negotiation.
CONTENTS:
MODULE 1: Price negotiation with OEMs – History, fundamentals and current context.
Price negotiation. Common price reduction requests and their conditions. Preparation of the strategy to face a price negotiation. New purchasing strategies and supplier selection process. The role of the buyer and the balance in the negotiation. The power of argumentation and how to reach an agreement.
MODULE 2: Psychology in Negotiation.
Psychology and drama in negotiation. How to detect non-compliance with the rules, manipulation attempts and intentional escalation of the negotiation drama. How to regain control of the negotiation from a weak position.
MODULE 3: Price Increases in the Automotive Sector – Strategies and Tactics to achieve price increases in the current context – From raw material to chips.
Tactics, methods for cost reduction and tools to ensure an achievement of objectives and to promote a beneficial agreement.
This module includes a lecture/discussion and the development of a guideline for price increase negotiations in today’s challenging automotive supply chain situation, as well as practical work by participants on their price increase strategy.
Optional: MODULE 4: Supplier-friendly contracts? A combination of negotiation strategy and legal issues.
How to incorporate the results of a negotiation into a supplier contract. This module includes an ingenious strategic/commercial mechanism for reaffirming “Goliath” commitments, and a clever approach to enforcing and securing those commitments in supplier contracts.
Extra Content: Highlights in times of supply chain turbulence, rising costs and the threat of inflation.
