Negotiating Better Payment Terms
The Harvard “7 Element” Negotiation Training process for Vendor Payment Optimization (VPO) teaches a methodology to achieve better contract terms with targeted suppliers. Completed in a half-day customized training session, the objectives are:
- To train Sourcing teams in the highly respected “7 element” Harvard negotiation method;
- The 7 elements taught are: Interests; Constructive options; Legitimacy; Walk-away alternative; Communication; Relationship; and Commitment.
- To provide training exercises to apply the “7 element sudden prep form” and cognitive dissonance strategies that enable participants to immediately contact suppliers and negotiate improved terms;
- To instill skills and confidence in trainee participants to achieve better results and stronger relationships with supply chain partners;
- To augment the process with developing and sending letters to suppliers when it can maximize the number of suppliers converted to better terms; and
- To support procurement with advice and strategy to motivate suppliers who counter-offer to agree to a new term.
Training materials include a training guide; two documents that expand on each of the 7 elements and phrases to use in tight negotiation spots to help reinforce training and make preparation easy; cognitive dissonance case exercises; and “The Getting to Yes Workbook.”
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