Training on Procurement and Contract Management
No organization is completely self-sufficient, at one moment or another it will require goods, services or works to be delivered and/or partnerships to take place in order for it to keep functioning correctly. Procurement and contract management go hand-in-hand. The procurement function helps in obtaining the value that an organization requires for its optimal operation. Contract management helps in successfully managing the relationship between two people or organizations that are exchanging a product or service.
This training on procurement and contract management aims at building the learner’s knowledge and skills in managing the procurement function and managing the contracting processes, principles and practices to meet their organization/project objectives.
Target Participants
This course is ideal for procurement staff, project managers, finance staff, operational staff, government officials and any other professionals who want to build their skills in procurement and contract management.
Course Duration
Online14 Days
Classroom-based 10 Days
What you will learn
By the end of this course the participants will be able to:
- Define the terms purchasing and procurement management
- Understand the importance of procurement in attaining organizational goals
- Create a strategic sourcing plan, evaluate internal spending and supply market trends
- Control the effectiveness of the procurement procedures for ongoing development
- Describe the drivers of change and future trends of procurement management.
- Understand the relationship between procurement and contract management
- Understand the contract management process
- Select the right contract type for their project/organization
- Formulate quality and legally abiding contracts
- Negotiate favorable contract terms
- Effectively administer contracts
- Monitor and control project work.
- Monitor and control project schedule and costs
- Write good quality reports tailored to a target audience
Procurement as a Dynamic, Interactive System
- Definition of procurement
- Overview of the procurement process
- The difference between procurement and purchasing
- What is the role of procurement and purchasing?
- What is the goal of procurement?
- Team roles and responsibilities
- Staffing the procurement department
- The system approach vs. the traditional functional approach
Developing the Strategic Procurement Decisions
- Developing the strategic procurement plan
- Make / buy decision
- Vertical integration
- Alliances and partnerships
- Inter-company trade
- Reciprocity and countertrade
- Supplier strategy
- The coordination strategy
- The purchasing organization
Implementing the Tactical Procurement Decisions
- Supplier Involvement
- Supplier selection
- Supplier rating and ranking
- IT systems and e-procurement
- Policies and procedures
Dealing with Operational Procurement Decisions
- Selecting the most appropriate ordering process
- Quality assurance
- Addressing quality issues
- Follow-up
- Overdue orders
- Expediting
- The payment process
- Reducing the cost of procurement: small value purchase orders
Contingency Procurement Decisions
- The different contingency situations
- Contingency management
Procurement Performance Measurement
- Spend analysis
- Value analysis
- Total cost of ownership
- Supplier performance measurement
Procurement in Supply Chain
- Procurement as part of the supply chain
- Support operational requirements
- Manage the procurement process and the supply base
- Develop strong relationships with other functional groups
Inventory Management
- Statistics in inventory management
- Financials in inventory management
- Selective inventory control management
- Understanding inventory status
- Reducing excess and obsolete inventory
- Improving the organization’s logistics and supply chain
Introduction to Contract Management
- Contract management
- Key concepts in contract management
- Understanding contract management process
- Types of contracts
- Elements of a Good Contracting and Procurement Process
Concepts and Principles of Contract Law
- Mandatory elements of a legally enforceable contract
- Terms and conditions
- Remedies
- Interpreting contract provisions
Planning
- Preparing the business case
- Developing contract strategy
- Risk assessment
- Developing a contract management plan
Contract Solicitation
- Market research
- Drafting specifications and requirements
- Establishing the form of contract
- Establishing the pre-qualification, qualification & tendering procedures
Contract Evaluation
- Evaluation criteria and method
- Appraising suppliers
- Evaluating offers
Contract Award
- Negotiation
- Contract preparation
- Contract issuance and signing
- Debriefing of unsuccessful suppliers
Elements of a Contract
- Legal elements of a contract
- Basic structure of a contract
- Terms and conditions of a contract
- Contractual instruments
Contract Administration
- Contract performance monitoring and control
- Change management
- Dispute management and resolution
- Financial management
- Force Majeure
- Termination
- Contract close out
