Objectives
Upon the completion of this course, candidates will be able to:
- Understand the full cycle of the procurement process
- Use the different procurement tools and techniques
- Practice effective negotiations to select the right vendor
- Identify which type of contract to use, and when
- Understand and use a better approach to Contract Management
- Manage: bidding, tendering, Vendor selection and contracting processes
Outlines
1. The Procurement Function:
- The procurement process
- The buyers role
- The importance of procurement
- Objectives of procurement
- Procurement procedures
- Strategic material planning
- Quality & specifications in procurement
- Writing specifications
2. Tenders and Contracts Management:
- Tendering
- Types: Restricted, negotiated and open, serial tenders
- Procedures
3. The Negotiation Process:
- Objectives
- When to negotiate
- Negotiations strategies
- Negotiation phases
- Face-to-face negotiations
- Aides to success
4. Contracting:
- Types
- Vendor analysis
- Criterion of the contracting activity
- Vendor selection steps/supplier selection phases
- Supplier information, and supplier goodwill
- Supplier partnership
- International sourcing
- Pre-award conference
- Order placement
5. What Sourcing Channel is right for you?
- Strategic sourcing process
- Portfolio matrix
- Best practice in SCM to decrease procurement cost
- Factors to consider
6. Procurement Strategies and Material Management:
- Procurement process
- Organizational elements
- Procurement department organization
- Procurement leadership: mission analysis
- Market intelligence
- Supply chain strategies: many vs. Few, vertical vs. horizontal
- Keiretsu strategy
7. Procurement Strategies:
- Five major strategies
- Designing relationship with cooperation and trust
- Strategic role of procurement
- Cross functional teams
- Supply chain and supply network
- Strategic alliance
- E-procurement
8. Cost Reduction & Cost Analysis:
- The purpose, elements
- Classifications of costs
- Value analysis, design analysis, breakeven analysis
- Buyer 4 tools
- Quantity discounts
- Inventory costs
- Buyer planner concept
- JIT
- Kanban
- Standardization
9. Vendor/Customer Relations:
- Manuals, procedures, surveys
- Performance standards & measures
- Adding value
10. The Basics of Supply Chain Management:
- Effectiveness
- Right supplier, challenges
- Building trust, partnership
- Active relationships with vendors (ARV)
- SCM components, costs, savings
- Traditional procurement process
- Procurement techniques
- · Managing supply chain – other options
Who Should Attend
Potential candidates for this course are:
- Procurement / purchasing managers and buyers.
- Logistics managers
- Project managers
- Staff wishing to move to the above positions
- Corporate sales managers
- Corporate salespeople