Course Summary:

This two-week training programme covering Advanced Procurement strategies, Contract Management and effectiveNegotiation tactics is designed to enable delegates to set up and manage a procurement activity. The training agenda covers supplier evaluation methods and selection criteria, as well as supplier performance measurment tools.

Upon successful completion of this two-week training series, delegates will have identified effective ways to increase the procurement effectiveness of their organisations. In addition, they will learn how to negotiate with suppliers, to use contractual methods and pro-actively manage contractual changes. The course also provides tested solutions to resolving supplier disputes.

Course 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

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

• First steps to management after contract award
• Building the supplier relationship
• Developing KPIs to monitor and improve service
• Linking compensation to contract 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