The objective of this module is to provide participants with the information and knowledge needed for an understanding of the strategic nature of procurement. It is targeted at building strategic procurement competence, giving managers the ability to formulate strategic direction and advice, in areas such as procurement technologies, processes and stakeholder management. The hands on workshop will require participants to develop specification, criteria and scoring system for evaluating suppliers. It may cover, but not be limited to, the following:

• Procurement lifecycle, concept of Total cost of Ownership (TCO) and Value for Money (VFM)
• Sourcing process
• Procurement principles – Open and Fair, Transparency and Value for Money
• Procurement lifecycle (PLC): Definition, Overview of the different stages
• Stakeholder Management
• Five Rights of Purchasing
• Specification development: Definition, Value Engineering and Analysis, Standardisation, difference between product and service specifications etc
• Use of Procurement Technologies – Reverse Auction System, Source-2-Pay System, Risk Modelling etc
• Evaluation and selection of suppliers – Developing Pre Qualification Questionnaire (Technical and Financial criteria), Defining Evaluation Criteria & Scoring Mechanism.
• Contract Management – Supplier Relationship Management, Supplier Performance Management & Supplier Risk Management

Enhance your knowledge of contract management and how to use it for competitive advantage

Objective

The intent of this module is to provide participants with the information and knowledge needed for an understanding of issues pertaining to the preparation and management of contracts. Buyers should also understand the impact of their action on contract issues on the organisation.

Learning Outcome:

By the end of this course you will be able to:

• • Understand the basics of contract law and its effective use.

• • Identify which contract management approach is most effective for a given category of spend

• • Understand the various terms and conditions in a contract

• • Create the right environment for effective contract management

• • Managing identified risks through contracted terms and conditions

• Ensure key performance measures can be effectively manage via the contract

Contract Laws

• Preparation of contracts in respect to the laws
• Major issues in relation to major laws
• Contractual conditions and their impact
• Steps leading to the formation of contracts
• Formation of contracts
• Case study
• Contract Pricing Methodology
• Pricing methods and their applications
• Combination of Pricing in contracts

Contracts Management

• Risks and its management
• Objectives of contract management
• Contractual Terms
• Handling Disputes
• Liquidated Damages
• Case study

International contracts

• World Trade Organization Requirements
• Free Trade Agreements
• Other Applicable laws/agreements
• International Delivery terms

Risks of a Public Contract

• Types of risk eg. Political, law changes, limited competition etc
• Contractual failure, consequential effects

Recovery actions   

Negotiation is a dialogue between two or more parties intended to reach a beneficial outcome. It is a bargaining (give and take) process between two or more parties (each with its own aims, needs, and viewpoints) seeking to discover a common ground and aim to reach an agreement to settle a matter of mutual concern or resolve a conflict.

Objectives The objective of this course is to provide participants with the information and knowledge to learn how to effectively plan a negotiation, prepare and manage a contract and to understand the critical role of the bargaining mix, targets, BATNA and the understand the stages of negotiation including post negotiation evaluation and improvement.

Outline
Main approaches in the negotiation of commercial agreements

• Negotiation in relation to the stages of the sourcing process
• Win-win integrative approaches to negotiations
• Win-lose distributive approaches to negotiation
• Setting targets and creating a best alternative to a negotiated agreement (BATNA)

Preparation for negotiations

• Setting objectives and defining the variables for a commercial negotiation
• The bargaining mix and defining the latitude (Max – Target – Fallback) for each of the variables in the bargaining mix
• Positions and interests
• Openings and presenting issues

Conducting, evaluating and improving commercial negotiations

• Defining the stages of a negotiation such as preparation, opening, testing, proposing, bargaining, agreement and closure
• The use of persuasion methods
• The use of tactics to influence the other party
• Reflecting on performance

Who Should Attend?
This course is designed for junior and middle managers that are involved in sales and marketing or procurement and supply. It is also useful for those involved in contract management.

The intent of this module is to provide participants with the information and knowledge needed for an understanding of issues pertaining to the negotiation and preparation and management of contracts. Buyers should also understand the impact of their action on contract issues on the organisation. It is useful for those in shipping, logistics, procurement and covers the following:
Main approaches in the negotiation of commercial agreements

• Negotiation in relation to the stages of the sourcing process
• Win-win integrative approaches to negotiations
• Win-lose distributive approaches to negotiation
• Setting targets and creating a best alternative to a negotiated agreement (BATNA)

Preparation for negotiations with external organisations

• Setting objectives and defining the variables for a commercial negotiation
• The bargaining mix and defining the latitude (Max – Target – Fallback) for each of the variables in the bargaining mix
• Positions and interests
• Openings and presenting issues

Conducting, evaluating and improving commercial negotiations

• Defining the stages of a negotiation such as preparation, opening, testing, proposing, bargaining, agreement and closure
• The use of persuasion methods
• The use of tactics to influence the other party
• Reflecting on performance
• Opportunities for improvement and development

Legal issues in the formation of the contract

• Preparation of contracts in respect to the laws
• Major issues in relation to major laws
• Contractual conditions and their impact
• Steps leading to the formation of contracts
• Formation of contracts

Contract pricing and contract management

• Pricing methods and their applications
• Combination of Pricing in contracts
• Contract Management

The intent of this module is to provide participants with the information and knowledge to learn how strategic sourcing is critical to successful procurement outcomes, understanding the elements that go into a situation analysis for strategic product purchases, and finding a most efficient way to complete a rich situation analysis. The module will also provide participants with the knowledge to use strategic sourcing tools like Porter’s Five Forces, PEST (Political, Economic, Social, Technological) and SWOT (Strengths, Weaknesses, Opportunities and Threats).
Customer and business requirements

• What do our customers need and what does the business need?

Spend analysis

• Historical usage analysis of goods or services
• Supplier positioning
• Supplier historical analysis
• Transaction cost analysis

Future spend analysis

• Forward/expected usage of goods and services
• Trends in the market.

Market analysis

• Assessment of the market capability
• Analysis of power dependency in supply chains
• Analysis of individual marketplaces
• Supplier preferencing
• Relative positioning of your organisation
• The nature of the market – appropriate type of sourcing strategy – global, regional or local

Consolidate Data and Generate Options: Develop sourcing plans

• Risk analysis
• Make/buy options; dual/single source decisions; feasibility of starting up partnerships with suppliers; benefit sharing
• Selection of option – business case, ROI Specification development
• Developing processes for supplier selection and performance criteria
• Producing and managing the sourcing process, conducting negotiations and recommendation of contract award

The objective of the module of to provide procurement managers with a tool in carrying our Spend Analysis and Category Management. The course also provides the framework to implement category management and demand aggregation projects in any organization. This module may cover, but not be limited to, the following:

a. Concept of Spend Analysis
 – What is Spend Analysis?
– Usefulness of Spend Analysis
– Practical examples
– Applications of Spend Analysis
– Identification of Organisation’s buying patterns
– Identification of trends
– Review of Spend Analysis results
– Software on Spend Analysis  
b. Concept of Category Management and Demand Aggregation?
– What is Category Management and Demand Aggregation
– Usefulness of Category Management
– Usefulness of Demand Aggregation
– Practical examples
c. Applications of Category Management and Demand Aggregation
– Common Usage
– Relevance to Government expenditure
– Case studies review
d. Steps in establishing Category Management and Demand  Aggregation
 – Normal set up steps
– Common problems faced and overcoming such issues
– Practical trials

The purpose of this module is to provide participants with the information and knowledge to appraise suppliers and then monitor and improve the performance of suppliers. It is also intended to provide participants with the information and knowledge to review and develop existing supplier relationship and build and develop new supplier relationships. It may cover, but not be limited to, the following:
Supplier Appraisal

• Methods of Supplier Appraisal
• How to select criteria to appraise suppliers?
• Evaluation of Appraisal results
• Appraisal Timing
• Benefits of Supplier Appraisal
• Using appraisal as strategic tool to build supplier capability
• Types of Appraisal – Technical, Financial, Commercial,
• Environmental and Ethical appraisal
• How Much Appraisal to do?
• Appraisal Process

Financial Appraisal

• Evaluate the appropriate cost and benefit models for a wide variety of scenarios
• Evaluate and assess reports that have their origins in finance and accounting and relate them back to the business
• Compare the value and relevance of financial information in the context of the decision-making process for evaluation and selection of supplier and service providers
• Use the wide variety of finance and accounting terminology
• Propose financial management tools and techniques and be able to apply these in relation to the total procurement and supply chain process
• Evaluate the elements that make up a complex business case for a capital acquisition, including downstream maintenance, service provisions for the life of the acquisition, and disposal.
• Assess the non-financial factors that are interrelated with financial modeling and analysis, and predict their impact

Supplier Performance management


• Setting key performance indicators
• Assessing supplier performance
• Supplier performance scorecard
• Stakeholders involved and their implications

The intent of this module is to provide participants with the information and knowledge to learn how to effectively segment a supply base and identify important and strategic suppliers, describe and apply different approaches and interventions for important and strategic suppliers, put in place a supplier performance measurement system and develop KPIs, implement escalation steps to drive and manage supplier improvements, conduct supplier review working for implementing corrective and preventive measures and develop joint working approaches for strategic relationships to collaborate on key initiatives.
Dynamics of relationships in supply chains

• The buyer/supplier relationship and relationship spectrum
• Introduction to Supplier Relation Management (SRM)
• Supplier segmentation and what makes some suppliers important or strategic
• Supplier Performance Measurement and developing KPIs
• Developing a framework for implementing SRM
• Governance for SRM

Techniques for supplier relationship management

• Supplier selection
• Team selection and responsibility for supplier improvement
• Supplier performance measurement
• Creating targets and assessment of performance
• Developing Escalation model for handling deviation of performance

Techniques for supplier development

• Organising Supplier workshops
• Initiating the Project
• Creating Improvement charters
• Mapping and Measuring
• Developing the Process
• Achieving Results
• Controlling the Process
• Securing innovation from supply base
• Recognizing the Team

Techniques for supplier communication

• Making supplier communication more consistent
• Use of Supplier portals
• Use of supplier conference
• Supplier Awards programme

This course is designed for Operations, purchasing, inventory control and transportation managers who want to ensure high customer-service levels and reduce total cost of ownership. The participants will gain a deeper understanding of the role supply chains in a company’s overall business strategy. The course offers an opportunity to gain an awareness of the scope of supply chain and an understanding of the concepts of logistics, procurement and warehousing.
Compare supply chains, supply network and supply chain management

• Defining supply chains, supply networks and supply chain management
• The use of supplier tiering and network sourcing

Relationship between functional, business and corporate levels of strategy

• The relationship between the supply chain, business and corporate levels of strategy
• The impact of supply chain management on business and corporate performance
• The impact on profitability of the supply chain
• Supply chain risks and their impact on business and corporate performance

Contribution of strategic supply chain management to corporate and business strategy

• Creating sources of competitive advantage such as cost, improved quality, time to market, product and service differentiation
• Enterprise profit optimisation
• The use of outsourcing to achieve competitive advantage
• Offshoring and sourcing from low cost countries
• Quality improvement methodologies in the supply chain

Analyse the main approaches to developing networked supply chains

• Supply chain flows and the use of supply chain and value stream
• Tiering in supply chains and the use of network sourcing
• Identifying value added activities and the value chain in supply chain networks
• Network optimisation modelling
• The use of reverse logistics in supply chain networks

Role of distribution systems in supply chain management

• Channel design
• The impact of ecommerce on distribution networks
• Logistics flow path design
• Physical network configuration
• Challenges in transportation management
• Locations of distribution centres
• Positioning in local, regional and global chains

Achieving lean and agile supply chains

• Comparing lean and agile supply chains by variety and volume
• Implementing lean supply and lean thinking
• Matching supply with demand
• The impact of promotions and causal events on demand
• Improving demand planning accuracy and the use of statistical forecasting
• The use of technology to communicate data in supply chains

Analyse the main approaches to measuring supply chain performance

• Measuring processes and the use of key performance indicators (KPIs) in supply chain management
• Measure of organisational, functional, team and individual performance
• The use of surveys to obtain feedback
• Applying balanced scorecards in the supply chain

Cost reduction activities for a supply chain to achieve competitive advantage

• Supplier rationalisation and aggregation of requirements
• The risks and benefits associated with single sourcing arrangements
• Negotiating reductions in prices and costs
• Collaborative and competitive models of supply
• Value analysis and value engineering

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1. Logistics Concepts
   1. Logistics as a business process
   2. Business requirements for logistics
   3. Understanding material flows

2. Logistics Audit
   1. Setting up logistics audit
   2. External customer audit
   3. Lead time analysis

3. Logistics planning
   1. Logistics planning structure
   2. Planning inventory flows
   3. Integrating material flows
   4. Facility location
4. Logistics Operations
   1. Source planning
   2. Manufacturing planning
   3. Warehouse planning
   4. Transport planning

5. Logistics implementation