Chartered Professional Negotiator - Supply Category Management

The Negotiation Institute CPNTM-CM certification program was designed to set a standard for strategic supply and category management negotiations. The CPNTM-CM program consists of the following eight modules and includes: presentation of materials, case studies, breakout exercises, Capstone, and a final presentation of results to the stakeholders/executives of your organization. Each module is a one or two-day training session on- site at your organization. All modules must be completed within a 12-month period.



The Negotiation Institute CPNTM-CM certification program was designed to set a standard for strategic supply and category management negotiations.

The CPNTM-CM program consists of the following eight modules and includes: presentation of materials, case studies, breakout exercises, Capstone, and a final presentation of results to the stakeholders/executives of your organization. Each module is a one or two-day training session on-site at your organization. All modules must be completed within a 12-month period.

  • Each module covers key elements of the seven-step sourcing process, including best practices, tools, techniques, and solutions. At intervals throughout each module, participants will break out into category teams to apply the tools–with coaching by TNI Faculty–and present templates and analyses.
  • Participants should prepare and bring with them the following materials: High level spend analysis; Current list of suppliers; List of current stakeholders; List of potential competitors and competing industries for supply; Existing supplier scorecards; Sample contracts
  • Module VII will involve an online negotiation simulation “Capstone” that will engage the team in understanding how to manage multiple supply chain parameters, and the challenges of managing supply chain relationships from a TCO and risk management perspective.
  • During the final portion of Module VIII, participants will combine all material from Module I through Module VII into a set of executive presentations, providing upper management with an overview of the category, with next steps and recommendations for cost savings and improvement.
  • Upon successful completion The Negotiation Institute will confirm an official Certificate to each participant upon completion of the Supply Chain & Procurement Certificate program.

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Module I

MODULE I: Procure-to-Pay (P2P) & Spend Management

The Procure-to-Pay (P2P) processes encompass all of the activities involved in acknowledging a need, sourcing a product or service to meet that need, and completing required financial transactions and recording in a proper and efficient manner. Many organizations recognize that their P2P processes have over time become cumbersome, error-prone, and costly to operate, and does not provide the foundation required to build effective spend analyses and sourcing strategies. This module provides an overview of the P2P processes, and defines the roadmap for change that organizations will need to follow as they seek to improve this important organizational activity.

The session begins by defining the P2P process, as well as the internal and external points of contact that occur in the process. Next, TNI Faculty will define a process map that illustrates a “typical” P2P process, and define different stages of maturity that organizations proceed through as they improve the process. Next, the group will explore how organizations should initiate a P2P improvement project, and the different components of change that will have to occur. The approach to define Buying Channels, and how they should be aligned to the procurement situation, will be covered as well. Module I concludes with some recommendations learned by trial and error from organizations that have gone through this change, setting stage for Module II.

  • Understand the P2P process and internal / external functional contact in the process.
  • A process map of the stages in a “typical” P2P process.
  • How to initiate a P2P improvement project, and components of change to consider.
  • Understand Buying Channels and the differences between each type.
  • Understand the core processes required for data cleansing and analysis.
  • Describe the costs and benefits of different buying channels, and how to categorize different types of buying situations to an appropriate channel.
  • Review of organizational “lessons learned” during an improvement process.
Module II

MODULE II: Market Intelligence & Stakeholder Engagement for Category Management

Organizations are facing increased uncertainty in supply markets, and sourcing category managers need to monitor market conditions in order to build strategies that exploit opportunities and mitigate risk. When building sourcing category strategies, managers need to begin by fully understanding stakeholder needs in order to begin the process of market intelligence data collection and analysis. Module II provides a set of guidelines for
structuring this engagement process throughout the entire category strategy development process, as well as the market intelligence required to develop an effective strategic sourcing/category management outcome.

Module II will begin by defining strategic sourcing and category management, describing the difference in these approaches. Next, the group will explore the fundamental elements of supply market intelligence, with emphasis placed on the use of multiple forms of data, public sources of data, financial risk assessment, global sourcing issues, and in-depth supplier analysis to prepare and develop an effective category strategy. Participants will be expected to work through their own category and identify sources of market intelligence, as well as use the tools identified in the steps as they work through details of how to build a sourcing strategy. TNI Faculty will provide insight into the five key steps that managers must take in engaging stakeholders before, during, and after a category strategy is developed, from identifying the importance of spending time with stakeholders to understand their competitive to identifying opportunities and assessing them based on potential and complexity. The group will understand the critical questions stakeholders need answers to, and the type of information that can best help them answer these questions and make decisions. They’ll identify effective approaches for delivering the information, and addressing additional questions that arise–as well as identifying what information requires
updating, and how often those updates need to occur in order to be effective.

Module II concludes with an overview of the types of skills that effective managers need to develop in the future when working with internal stakeholders.

  • Understand the sourcing process and using market intelligence to develop an effective strategy
  • Market Assessment Tools, TCO Analysis and Value Chain Analysis
  • Opportunities for creating internal stakeholder value
  • Key questions and information required for business decisions
  • Approaches for transferring knowledge to stakeholders
  • Criteria for updating market information
  • Key skills of successful managers in engagement stakeholders
Module III

MODULE III: Category Management Strategy Development

Strategic category management stems from the recognition that a single technique to identify and select suppliers is limiting and insufficient. The purpose of strategic sourcing is to obtain the right supplier for the company’s need, taking into account competition, market dynamics, supply reliability, switch-out costs, and similar factors.

At the end of Module III, participants will be able to answer the following questions:

How should we position the category relative to market complexity and criticality?
What are the strategic alternatives to sourcing this category in the market?
What are the necessary internal change tactics required to deploy this program?
How do we communicate the market position to stakeholders?
What is the appropriate supplier relationship strategy for this category?
What are the appropriate buying channels for stakeholders to engage with suppliers to requisition products and services, and receive them in a timely manner?

  • Know elements that are inputs into category strategy development
  • Strategic Tools (Supplier Segmentation Tool, Supplier Preferencing Tool, Supplier Evaluation Matrix)
  • Use Strategic Levers to e stablish and document sourcing options
  • Use a decision- – making grid to guide category teams in identifying different sourcing options
  • Take an in- – depth look at tactics for execution
  • Build the basis for on- – going supplier performance improvements through updates and category reviews
  • Ensure stakeholder
Module IV

MODULE IV: Strategic Cost Modeling

Module IV will cover how to prepare for a strategic negotiation, which begins with conducting a cost modeling effort. Participants will be expected to prepare for a procurement negotiation and build, as well as execute, a strategy. The group will first discuss the key elements of strategic cost management and modeling for negotiation planning. This includes best practices, tools, techniques, and solutions. Participants will also utilize multiple case studies to demonstrate the concepts of strategic cost management and how to use these tools in a negotiation.

  • Prepare for a procurement negotiation
  • Use the PPI index and other sources to understand price variability
  • Understand Strategic Cost Analysis and Pricing Analysis
  • Discover optimal contracting structures
  • Develop a cost model using Should- – Cost models and target c c osting
  • Build and Execute a negotiation strategy
  • Manage a cost model with multiple
Module V

MODULE V: Supplier Performance Measurement

Module V covers key elements of supplier performance measurement as a component of supplier relationship management. Measuring performance is fundamental to the establishment of establishing expectations for performance. Participants will conduct a thorough supplier evaluation and analysis based on internal company information and be introduced to the Dunn & Bradstreet Financial Analysis tool to evaluate financial status of suppliers. Each category team will develop a list of potential suppliers and potential evaluation criteria for the scorecard and detail important issues to include in RFP.

  • Supplier presentations
  • Supplier capability assessments
  • Short- – list suppliers
  • Procurement plan and negotiation plan
  • Finalize evaluation matrix
  • Develop a risk mitigation plan
  • Develop supplier scorecard/KPI’s
  • Prepare and send RFPs
  • Analyze results, complete scorecard and select supplier
  • Single versus multiple sourcing
  • Financial ratios
  • Market power
  • Contingency planning
  • Set goals
Module VI

MODULE VI: Negotiating Supplier Relationships

In order to improve management of supplier relationships, it is important to implement a consistent set of skills and disciplines for better defining the needs of customers. Defining a clear Negotiation Process for approaching contract manufacturers and requesting improvements will help stakeholders to: More effectively frame the specific issues that need to be addressed with data, scorecards, and specific requirements; Develop key alternatives
for improvement and establish objective outcomes for the negotiation; and Build relationship capital over time that will encourage suppliers to engage earlier and provide improvements to the situation.

Module VI begins with Intelligence Gathering, an interactive dialogue to gain an understanding of the business’ view of their needs, and to help you think through and better document the specific performance issues that are occurring, the measures that can quantify these elements, and how they should be framed. An emphasis on identifying facts and issues, establishing a position on issues, and determining the key requirements for success will be emphasized. Ideally, this should occur prior to the initial meeting with the supplier, allowing the individual to be better prepared for the initial meeting. In some cases, internal intelligence gathering may reveal that some performance issues are a result of internal communication issues, not always supplier-based issues. Next participants will learn how to document supplier performance with a “Supplier Scorecard”, an analysis for widening the thought process and considering alternative approaches for the negotiation, documenting all of the key issues, problems, and current vs. expected performance criteria. It is also important during this process to develop “Least Preferred” and “Best Possible” outcome alternatives, develop a BATNA (“Best Alternative to Negotiated Agreement”), and recognize supplier issues that may come up. Participants will then learn how to execute a
negotiation that motivates suppliers to perform (selling the solution—and determining actions to follow-up on to continue to monitor and improve performance). Techniques for building support and communicating the performance expectation to the supplier will be explored and developed and documented during this part of Module VI. Finally, the group will discover a process for assuring clarity on timeline and next steps. This part of the
process is important for documenting “Lessons Learned” that can be incorporated into future planning and technical development project cycles for suppliers.

  • Understand the process of negotiation
  • Describe the four stage negotiation process
  • Learn the elements of power that occur in a negotiation
  • Develop the characteristics of a successful negotiator
  • “Lessons Learned” in driving supplier performance
Module VII & Module VIII

MODULE VII: Collaborative Supply Chain and Relationship Management


One of the greatest sources of uncertainty in business contract negotiation is the effect of decisions made by external, but interdependent parties to an organization. These parties include not only customers, but suppliers as well. When this line of thought is extended further, the nature of the mutual interdependence of multiple tiers of suppliers and customers upon one another as a “supply chain” becomes clear. An integrated approach to managing supply chains is a central premise upon which negotiation training was developed. Due to the complexities and uncertainties of many supply chains, disruptions (e.g., product/service failures, unplanned delays, etc.) to planned product flows are inevitable. These disruptions may result in negative repercussions to the supply chain and its participants. The discovery of (and recovery from) these disruptions are critical to ensure a smooth flow of products through the supply chain. However, this area has received little attention in supply chain research from both a theoretical and practical standpoint. The need to provide insights into this area is further enhanced by the movement towards supply chains that are lean and time sensitive.

In Module VII and VIII, participants will gain an appreciation of the complexities of the supply chain and the various trade-offs involved. Unfortunately, the natural attitude of many managers is to ensure they’re making the most money, often at the expense of their supply chain partners. In the Module VIII “Capstone”, the group will participate in a Supply Chain Simulation that enables them to experience first hand the effect of various decisions they made on the entire supply chain. The central tenet of this exercise is the importance of mastering the art of negotiating good contracts. Participants will learn, through personal experience, the close relationship between companies in the supply chain and the necessity to ensure that each trading partner performs well in order to set up a supply chain that is both profitable and sustainable. It is our belief that this Simulation is a very effective, realistic and feasible mode of educating professionals on negotiating contracts.

  • Negotiate effectively and develop collaborative solutions to buyer- – supplier business problems
  • Discover opportunities for identifying, evaluating, and developing strategic suppliers
  • Improve skills in writing contracts, reducing risk, and anticipating legal issues in supply management
  • Understand advanced concepts in strategic sourcing processes, demand planning and forecasting

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