This workshop is a breakthrough in the professional purchasing field. It gives you the purchasing technology and know-how for being confident that the services you purchase are as cost-effective as the products you buy. The demand that your organization has for services is rapidly increasing. In the purchasing function you will be faced with negotiating and managing service contracts on a much larger scale. They will cover every imaginable area, from legal, accounting, and financial services to utilities, software, maintenance, and consulting.

You should seriously consider attending if you have to deal with service suppliers...work in the service sector...are a purchasing manager or buyer...are responsible for the purchasing function...or have significant interaction and interest in the interface between purchasing and suppliers.

PARTICIPANTS WILL LEARN:

• Negotiating the most cost effective service contracts
• How to find the right service supplier for your needs
• Using a proven supplier evaluation process
• Developing and managing a concrete contract
• The key role a "statement of work" plays
• Accurately measuring service supplier performance

WHO SHOULD ATTEND:

• Everyone who has to deal with "Service Suppliers"
• Associate Buyers
• Buyers
• Senior Buyers
• Everyone who works in the "Service Sector"
• Managers responsible for the purchasing function
• Managers and Administrators with Purchasing-Supplier interface

SPECIAL NOTE:

• Attendees should be instructed to bring hand held calculators to class with them.

WORKSHOP OUTLINE

1. WHAT A SERVICE SUPPLIER IS - AND IS NOT

• Critical differences between service suppliers
• Important areas of service you need to consider
• Key considerations in the service sector
• Dealing with a single source - the norm for service suppliers

2. WHERE TO LOOK FOR THE RIGHT SERVICE SUPPLIER

• Identifying when you need a "service"
• Documenting your needs
• Useful resources for finding the best service suppliers
• Precautions to remember when the supplier is a small business

3. DEVELOPING A SERVICE SUPPLIER SELECTION PROCESS

• The "make versus buy" process in the service arena
• Who should select the supplier
• Four fool proof stages of service supplier selection
• Ten ways to save dramatically on equipment service

4. THE CONTRACT DEVELOPMENT PROCESS

• Understanding critical legal aspects of service contracts
• What to include in your contract to protect you
• Contract enforcement: Controlling the cost of monitoring
• Key contract areas to avoid

5. THE STATEMENT OF WORK

• What to include in your Request For Quotation (RFQ)
• Defining "Statement of Work"
• Making the Statement meaningful and workable

6. CONTROLLING COST ELEMENTS IN SERVICE PURCHASING

• Using the cost-breakdown approach
• Consultants as resources
• Elements of cost in key service industries
• Insider approaches for different services

7. MEASURING SERVICE SUPPLIER PERFORMANCE

• Concrete approaches to supplier rating
• Pivotal elements of the best service supplier rating systems
• Requisitioner rating: A major factor in successful service

8. NEGOTIATING YOUR SERVICE CONTRACTS

• Mastering the four steps to success
• Creating a win/win contract
• Negotiating price - without calling it "price"

9. YOUR OPEN FORUM PROBLEM SOLVING SESSION

• Bring your service supplier contract forms, questions, and problems for in-class review and analysis