Program Objectives
- To set up and manage a procurement activity
- To select suppliers using appropriate evaluation methods and criteria
- To measure supplier performance
- To identify ways to increase procurement effectiveness and efficiency
- To work with user departments to improve procurement within the organisation
- To negotiate effectively with suppliers
- To manage supply-side risk using contractual methods
- To manage contractual changes
- To understand how contracts end
- To identify and determine how to resolve supplier disputes
WHO SHOULD ATTEND?
- Purchasing executives, senior managers, and professional staff from supply chain management, logistics and inventory planning and control
- General managers wanting to understand the procurement function
- Project managers involved in plant and equipment development projects
- Technical personnel involved in performance specification of plant and equipment
- Engineering planners working with complex maintenance material requirements
- Quality managers seeking to understand how suppliers are selected.
Course Outline
Role of the Procurement Function:
- Key responsibilities
- Supporting operational requirements
- Managing supplier relationships
- Supporting strategic goals
- Detecting and preventing fraud
Managing the Purchasing Process:
- Making the case to purchase
- Deciding the procurement strategy
- Advertising the contract
- Generating interest
- Running the competitive cycle
- From ITT to contract award and beyond
Managing Tender Requests and responses:
- Capturing user requirements
- Documenting the scope of work
- Output based specifications
- Evaluating tender responses
- Further competitive activity
The Supplier Perspective on Bidding:
- Researching the client
- Understanding client requirements
- Identifying competitive advantage
- Qualification of opportunities
- Ethical supplier behaviour
Creating Appropriate Contract Documentation:
- Principles of contract law
- Drafting your terms and conditions
- Using contract templates
- Managing risk through the contract
- Contract case studies
Managing Supplier Performance:
- Creating the contract management plan
- Setting the basis for measurement
- Contract administration organisation structures
- Automated contract administration tools
- Reviewing performance
Negotiating in a Purchaser Supplier Relationship:
- When to negotiate
- Objectives of negotiation
- Negotiation preparation
- What are our negotiables?
- BATNA – what to do when the negotiation fails
- Reaching a win-win agreement
Making changes to Supplier contracts:
- Why contracts have to change
- The contract variation process
- Managing price variations
- How contracts change
Managing Contract Disputes:
- What is a contract dispute?
- “I’ll see you in court”
- Arbitration
- Alternative dispute resolution methods
- Negotiating a settlement
WORKSHOP STYLE
A mixture of short presentations, interactive discussion, individual exercises and group work. The emphasis throughout is on a practical approach using case material and examples.
