This course prepares students for careers in business by teaching principles of purchasing, negotiating skills, and SAP Enterprise Requirements Planning software transactions comprising the procure to pay business process.

Getting to Yes Ch 1 - 8

State of Texas Procurement

Module 1

Lecture 1 - Global Purchasing, Supply Chains, and Businesses (Purchasing Ch 1-3, 14)

                1.1.1. Understand the role of purchasing in achieving supply chain strategies and objectives.

1.1.2. Understand the role of supply chains in achieving business strategies and objectives.

1.1.3. Discuss approaches for aligning purchasing, supply chain, and business strategies.

1.1.4. Compare global purchasing organizational structures.

Lecture 2 – Don’t Bargain Over Positions (Getting to Yes Ch 1)

1.2.1. Explain the problems with positional bargaining.

1.2.2. Discuss 3 criteria for a wise negotiation:  agreement is possible, process is efficient, relationship of parties is sustained.

1.2.3. Discuss outcomes of arguing.

1.2.4. Explain why positional bargaining is worse when there are multiple parties.

1.2.5. Consider why being nice is not an answer.

1.2.6. Explain an alternative to hard and soft negotiating.

Lecture 3 - Sourcing (Purchasing Chapter 5)

1.3.1. Discuss when to make or purchase materials and supplies.

1.3.2. Discuss when to insource or outsource the supply of materials or services.

1.3.3. Examine local and global sources of supply.

1.3.4. Examine purchasing directly from suppliers or indirectly through wholesalers or distributors.

1.3.5. Examine techniques for gathering and analyzing data needed to make informed sourcing decisions.

Lecture 4 – Separate the People from the Problem (Getting to Yes Ch. 2)

                1.4.1. Recognize that negotiators are people first.

                1.4.2. Describe two interests of negotiators…substance and relationship.

                1.4.3. Recognize that deals require differences in thinking to be understood.

                1.4.4. Examine why feelings are more important than talk in resolving bitter disputes.

                1.4.5. Understand the critical role of communication in negotiations.

Lecture 5 - Requirements (Purchasing Ch 6, 7)

1.5.1. Explain how to gather requirements for materials or services being purchased.

1.5.2. Understand quality requirements and the process for measuring the quality of products and services that will be purchased.

1.5.3. Understand environmental and social responsibility expectations for suppliers.

Lecture 6 – Focus on Interests, not Positions (Getting to Yes Ch 3)

                1.6.1. Analyze why reconciling interests vs. positions produces wise solutions.

                1.6.2. Explain ways to discover interests.

                1.6.3. Discuss best practices for talking about interests.

Module 2

Lecture 7 – Inventory, Transportation, Logistics Providers (Purchasing Ch 8, 9)

2.7.1. Understand quantity requirements, demand forecasting techniques, and ways to improve forecast accuracy.

2.7.2. Understand the need for lean and resilient supply chains.

2.7.3. Understand supplier managed inventory programs (e.g. VMI).

2.7.4. Discuss when the purchasing organization should select transportation modes and carriers and freight terms.

2.7.5. Discuss use of 3PL (third party logistics) and 4PL (fourth party logistics providers) logistics providers.

Lecture 8 – Invent Options for Mutual Gain (Getting to Yes, Ch. 4)

                2.8.1. Create multiple options

2.8.2. Separate inventing from deciding by following the 4-step circle chart.

2.8.3. Use creative problem-solving techniques.

2.8.4. Explore positions that make it easy for the other party and you to decide.

Lecture 9 - Supplier Selection (Purchasing (Ch. 4, 10)

2.9.1. Examine competitive bidding.

2.9.2. Discuss reverse auctions and where they can be best used.

2.9.3. Analyze when to accept supplier discounts and forward buy more than Economic Order Quantities (EOQ).

2.9.4. Examine target pricing.

Lecture 10 – Insist on Using Objective Criteria (Getting to Yes Ch. 5)

                2.10.1. Illustrate why objective criteria and principled negotiation produces wise agreements.

                2.10.2. Examine techniques for creating objective criteria.

                2.10.3. Discuss 3 ways to introduce objective criteria in negotiations.

2.10.4. Practice using objective criteria in a negotiation with a party using positional bargaining.

Lecture 11 - Supplier Selection (Purchasing Ch. 11, 12)

2.11.1. Discuss when to take the lead in documenting and when to allow the supplier to take the lead in documenting terms and conditions.

2.11.2. Examine the importance of understanding the “total cost of ownership” when purchasing materials and services.

2.11.3. Discuss use of cross-functional teams in evaluating and selecting suppliers

2.11.4. Discuss sole sourcing.

2.11.5. Create scorecards to rate and rank supplier proposals.

Lecture 12 – What if They are More Powerful? (Getting to Yes, Ch 6)

                2.12.1. Examine using Best Alternative to a Negotiated Agreement (BATNA to protect yourself.

                2.12.2. Using BATNA to make the most of your assets and increase your negotiating power.

Module 3

Lecture 13 - Supplier Evaluation & Relationships (Purchasing Ch 13)

3.13.1. Examine ABC analysis of vendors and how “A” vendors are managed.

3.13.2. Examine ways to evaluate supplier performance.

Lecture 14 – What if they Won’t Play? (Getting to Yes Ch. 7)

                3.14.1. Evaluate 3 approaches for getting the other party to engage in the negotiation.

                3.14.2. Examine negotiation jujitsu approaches.

                3.14.3.  Assess the one-text approach for reaching agreement on requirements.

                3.14.4. Examine the ‘change the game’ strategy for getting another party to negotiate.

Lecture 15 - State of Texas & Governmental Procurement Practices

                3.15.1. Examine State of Texas procurement practices not previously discussed in other lectures.

Lecture 16 – What if They Use Dirty Tricks? (Getting to Yes Ch 8)

                3.16.1. Discuss remedies for dealing with dirty tricks.

Lecture 17 – Questions 1 – 6 (Getting to Yes)

                3.17.1. Examine questions 1 – 6 on how to get to yes.

Lecture 18 – Questions 7 – 10 (Getting to Yes)

                3.18.1. Examine questions 7 -10 on how to get to yes.

Module 4

                Sallu Soprano Negotiation

                                4.1. Practice concepts learned in Getting to Yes in a negotiation exercise.

                Negotiation 2

                                4.2. Practice concepts learned in Getting to Yes in a negotiation exercise.

                SAP Procure to Pay Exercise

                                4.3. Explore SAP ERP Software suite.

                                4.4. Process selected Procure to Pay transactions.

Module 1

Lecture 1 - Global Purchasing, Supply Chains, and Businesses (Purchasing Ch 1-3, 14)

                1.1.1. Understand the role of purchasing in achieving supply chain strategies and objectives.

1.1.2. Understand the role of supply chains in achieving business strategies and objectives.

1.1.3. Discuss approaches for aligning purchasing, supply chain, and business strategies.

1.1.4. Compare global purchasing organizational structures.

Lecture 2 – Don’t Bargain Over Positions (Getting to Yes Ch 1)

1.2.1. Explain the problems with positional bargaining.

1.2.2. Discuss 3 criteria for a wise negotiation:  agreement is possible, process is efficient, relationship of parties is sustained.

1.2.3. Discuss outcomes of arguing.

1.2.4. Explain why positional bargaining is worse when there are multiple parties.

1.2.5. Consider why being nice is not an answer.

1.2.6. Explain an alternative to hard and soft negotiating.

Lecture 3 - Sourcing (Purchasing Chapter 5)

1.3.1. Discuss when to make or purchase materials and supplies.

1.3.2. Discuss when to insource or outsource the supply of materials or services.

1.3.3. Examine local and global sources of supply.

1.3.4. Examine purchasing directly from suppliers or indirectly through wholesalers or distributors.

1.3.5. Examine techniques for gathering and analyzing data needed to make informed sourcing decisions.

Lecture 4 – Separate the People from the Problem (Getting to Yes Ch. 2)

                1.4.1. Recognize that negotiators are people first.

                1.4.2. Describe two interests of negotiators…substance and relationship.

                1.4.3. Recognize that deals require differences in thinking to be understood.

                1.4.4. Examine why feelings are more important than talk in resolving bitter disputes.

                1.4.5. Understand the critical role of communication in negotiations.

Lecture 5 - Requirements (Purchasing Ch 6, 7)

1.5.1. Explain how to gather requirements for materials or services being purchased.

1.5.2. Understand quality requirements and the process for measuring the quality of products and services that will be purchased.

1.5.3. Understand environmental and social responsibility expectations for suppliers.

Lecture 6 – Focus on Interests, not Positions (Getting to Yes Ch 3)

                1.6.1. Analyze why reconciling interests vs. positions produces wise solutions.

                1.6.2. Explain ways to discover interests.

                1.6.3. Discuss best practices for talking about interests.

Module 2

Lecture 7 – Inventory, Transportation, Logistics Providers (Purchasing Ch 8, 9)

2.7.1. Understand quantity requirements, demand forecasting techniques, and ways to improve forecast accuracy.

2.7.2. Understand the need for lean and resilient supply chains.

2.7.3. Understand supplier managed inventory programs (e.g. VMI).

2.7.4. Discuss when the purchasing organization should select transportation modes and carriers and freight terms.

2.7.5. Discuss use of 3PL (third party logistics) and 4PL (fourth party logistics providers) logistics providers.

Lecture 8 – Invent Options for Mutual Gain (Getting to Yes, Ch. 4)

                2.8.1. Create multiple options

2.8.2. Separate inventing from deciding by following the 4-step circle chart.

2.8.3. Use creative problem-solving techniques.

2.8.4. Explore positions that make it easy for the other party and you to decide.

Lecture 9 - Supplier Selection (Purchasing (Ch. 4, 10)

2.9.1. Examine competitive bidding.

2.9.2. Discuss reverse auctions and where they can be best used.

2.9.3. Analyze when to accept supplier discounts and forward buy more than Economic Order Quantities (EOQ).

2.9.4. Examine target pricing.

Lecture 10 – Insist on Using Objective Criteria (Getting to Yes Ch. 5)

                2.10.1. Illustrate why objective criteria and principled negotiation produces wise agreements.

                2.10.2. Examine techniques for creating objective criteria.

                2.10.3. Discuss 3 ways to introduce objective criteria in negotiations.

2.10.4. Practice using objective criteria in a negotiation with a party using positional bargaining.

Lecture 11 - Supplier Selection (Purchasing Ch. 11, 12)

2.11.1. Discuss when to take the lead in documenting and when to allow the supplier to take the lead in documenting terms and conditions.

2.11.2. Examine the importance of understanding the “total cost of ownership” when purchasing materials and services.

2.11.3. Discuss use of cross-functional teams in evaluating and selecting suppliers

2.11.4. Discuss sole sourcing.

2.11.5. Create scorecards to rate and rank supplier proposals.

Lecture 12 – What if They are More Powerful? (Getting to Yes, Ch 6)

                2.12.1. Examine using Best Alternative to a Negotiated Agreement (BATNA to protect yourself.

                2.12.2. Using BATNA to make the most of your assets and increase your negotiating power.

Module 3

Lecture 13 - Supplier Evaluation & Relationships (Purchasing Ch 13)

3.13.1. Examine ABC analysis of vendors and how “A” vendors are managed.

3.13.2. Examine ways to evaluate supplier performance.

Lecture 14 – What if they Won’t Play? (Getting to Yes Ch. 7)

                3.14.1. Evaluate 3 approaches for getting the other party to engage in the negotiation.

                3.14.2. Examine negotiation jujitsu approaches.

                3.14.3.  Assess the one-text approach for reaching agreement on requirements.

                3.14.4. Examine the ‘change the game’ strategy for getting another party to negotiate.

Lecture 15 - State of Texas & Governmental Procurement Practices

                3.15.1. Examine State of Texas procurement practices not previously discussed in other lectures.

Lecture 16 – What if They Use Dirty Tricks? (Getting to Yes Ch 8)

                3.16.1. Discuss remedies for dealing with dirty tricks.

Lecture 17 – Questions 1 – 6 (Getting to Yes)

                3.17.1. Examine questions 1 – 6 on how to get to yes.

Lecture 18 – Questions 7 – 10 (Getting to Yes)

                3.18.1. Examine questions 7 -10 on how to get to yes.

Module 4

                Sallu Soprano Negotiation

                                4.1. Practice concepts learned in Getting to Yes in a negotiation exercise.

                Negotiation 2

                                4.2. Practice concepts learned in Getting to Yes in a negotiation exercise.

                SAP Procure to Pay Exercise

                                4.3. Explore SAP ERP Software suite.

                                4.4. Process selected Procure to Pay transactions.