Negotiation Benefits: RTO Training Packages
Problem
Block 5 were engaged to secure material writers for the rectification of issues in training documentation for a Registered Training Organisation within a very tight timeframe. The urgency of this project meant that securing the right skills quickly was critical to achieving value for money.
Block 5 Actions
Block 5 was responsible for the end to end procurement activities for material writers, including:
• Design and development of a personalised sourcing strategy;
• Assistance in specification and contract development;
• End to end management of the procurement process;
• Negotiation of scope, price & commercial terms;
• Managing a sensitive situation with discretion and respect.
The supply market was limited with a minimal number of responses received at significantly different calibres and prices. Block 5 worked with the client to ascertain the most appropriate solution and ensure that the most capable supplier was selected.
The preferred supplier’s pricing was significantly higher than the client had budgeted for. Block 5 conducted extensive market research to uncover pricing anomalies within the proposals and entered negotiations with the preferred supplier to reduce their tendered pricing.
Outcome
Conscious of the project critical timeframes, Block 5 completed negotiation within three days. By designing a tailored negotiation strategy and using a win-win negotiation approach, Block 5 was able to reduce the package price by $129,000, a 25% saving on the tendered price, without reducing the scope of what was offered by the supplier.