Introduction

This intensive five-day program develops and strengthens participants’ understanding of the critical role suppliers play in achieving customer satisfaction through an effective supply chain. Delegates will learn how to evaluate potential and existing suppliers, assess factors for an effective tender, and conduct negotiations that deliver long-term value to their organization.

Key Focus Areas:

• Planning
• Tendering
• Negotiation
• Supplier Management
• Measuring Performance
• Communication

Objectives

By the end of the program, participants will be able to:

• Identify and reduce procurement risk through a structured plan of action.
• Enhance performance of existing suppliers via evaluation and measurement.
• Strengthen the overall supply chain.
• Improve internal operating relationships.
• Award contracts based on measured performance criteria.
• Apply effective negotiation techniques.

Target Audience

This program is ideal for:

• Procurement and purchasing professionals
• Contract managers and project managers involved in supplier selection
• Supply chain officers seeking to improve supplier performance
• Professionals responsible for tendering, negotiation, and supplier relationship management

Course Outlines

Day 1: Role of Purchasing in the Organization

• Introduction to Purchasing and its contribution
• Understanding business purpose and objectives
• Managing the “go-between” problem
• Overview of the purchasing process and procurement cycle
• Positioning purchasing within the organization
• Vision, mission, and value of purchasing
• Purchasing structure and opportunities for performance improvement

Day 2: Developing the Purchasing Strategy

• Engaging with internal customers effectively
• Developing purchase agreements
• Involvement in creating specifications
• Supplier selection methodology
• Criteria for pre-qualifying suppliers
• Integrating supplier selection into business strategy
• Role of ISO 9000 in supplier management

Day 3: Supplier Selection & Performance Evaluation

• Conditioning suppliers to meet requirements
• Total cost approach to purchasing
• Cost analysis, value analysis, and hidden costs
• Life-cycle costing and use of price indices
• Evaluating supplier performance systematically

Day 4: Tendering and Bid Analysis

• Understanding process requirements for tenders
• Types of tenders and e-commerce / e-auctions
• Objective evaluation of bids
• Reviewing terms, conditions, and standard contract clauses
• Payment methods and expediting agreements
• Legal considerations if contractors fail to deliver

Day 5: Negotiation & Improvement Planning

• Fundamentals of negotiation
• Obstacles and different negotiation styles
• Tools and phases of the negotiation process
• Do’s and don’ts in contract negotiation
• Focus on four key areas of world-class performance
• Evaluating performance gaps and creating an action plan for improvement