Page 73 - DMGT525_MATERIALS_MANAGEMENT

Materials Management

Notes Mapping out a Strategy
The target audience for this new training concept at Delphi Delco initially focused on
engineers. That’s why the primary communications strategy was to approach senior-level
engineering, purchasing and other executives about the advantages of helping the
engineering staff to deal with the so-called ‘back-door selling’ suppliers. After all, purchasing
works hand-in-hand with engineering in winning business and getting the best prices.
Glass went to the top of the organization with an assertive message: “Here’s something
that we believe will not only help purchasing to do it’s job, but also engineering as an
integral part of our success.” Soon after, senior executives were invited to hear Robert
Benedict, a national negotiating specialist, talk about the power of knowledge as a
bargaining tool. They, in turn, went back to their staffs and recommended the program
based on their own positive experiences.
Based on several options for rolling out the program offered by Benedict Negotiating
Seminars, Delphi Delco selected the lowest price, highest value option, said Hosking.
“Bob Benedict trained our people who, in turn, trained others.”
Key to the roll-out strategy throughout the company was a team approach: A senior
purchasing manager and senior engineering manager presented the class together to
employees within all engineering disciplines: design, software, mechanical, electrical,
manufacturing, process, and system design engineers.
“The one thing that really surprised us as we started rolling this out was the enthusiasm
from our engineering group,” says Hosking.
Evie Van Rens is an engineering analyst in the Milwaukee Design Center of Delphi Delco
who believes that the ‘Dealing with the Highly Skilled Salesperson’ training was needed
years ago. She explained: “Engineering has interfaced with suppliers for years to get
specialized tooling and other products. By not having this training sooner, we as an
organization may have unwittingly disclosed valuable company information without
being aware of it, thus overpaying for the end product.

“Val Hoffmann from Delphi Delco’s Purchasing in Kokomo, Indiana did an excellent job
presenting the educational materials in an articulate and professional manner within the
context of our business environment. He used the video and training manual, and
challenged the participants to get involved in order to get the most out of the workshops.
By using our real situations, asking penetrating questions and suggesting responses, it
was time well spent — and meaningful on a career Performance Development Plan (PDP)
as training,” according to Van Rens.
“Finally somebody other than the Purchasing Department sees ‘back-door selling’ as an
issue — and this gives me more ammunition to continue or to strengthen what is being
done through this program,” said Glass. He believes the training is a tool to arm Delphi
Delco people so they are successful in their jobs and capable of knowing what information
to share with whom.
Before the program from Benedict Negotiating Seminars, “it was an uphill battle when we
were trying to negotiate and a supplier already knew all the details behind the project;
who was going to get the business or the fact that the customer will not change whatever
they were bidding on and that the timing was in their favor,” said Glass. “It makes us
stronger as buyers across the table when we know how to deflect a question, fog it or to
just not answer it.”
Now before any big negotiation, the Purchasing Department ensures that the Delphi
Delco people have gone through the ‘Dealing with the Highly Skilled Salesperson’ program.
Contd...

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