Introduction
The utilization of best practices in the processes of Purchasing and Contracting has been recognized by world-class companies as essential to the success of modern organizations. Global Horizon Training Center is pleased to bring this fast-paced one-week training program designed on providing high value-added activities to these critical functions. Included in the many topics covered in this training session, to move purchasing and contracts functions from the tactical to a more important strategic focus, are:
- Developing the right organizational strategies for your team
- Roles and responsibilities of Purchasing and Contracting Personnel
- Negotiating with suppliers and contractors
- Cross-functional purchasing and contracting approaches
- Elements Of A Good Request for Quote and Tendering Process
- Selecting The Right Contract Type
- Important Contract Terms and Conditions
- Contract Management
Course Objectives of Contracts & Purchasing Masterclass
- The essential requirements for purchasing and contracts management
- Review contract strategies
- Team structures and roles
- The benefits of continuous improvement in purchasing and contracting
- See examples of important commercial contract clauses
- Implementing changes within the team and with other departments
- Strategies and tactics for improved buying and contracting
- The uses of tendering, negotiation and other approaches
- essential elements of a contract
- Measuring and improving purchasing and contracting performance
- Using key performance measures
TRAINING METHODOLOGY
Participants will increase competencies through a variety of instructional methods including a lecture by an experienced practitioner and consultant, exercises, and group discussions covering current practices and their relationship to the implementation of new concepts.
Course SUMMARY of Contracts & Purchasing Masterclass
Those involved in purchasing and contracting activities understand well the significant challenges in this very volatile supply market environment. This training session is designed to increase the competencies of all those contributing to the acquisition process for equipment, materials, construction, and other services so that the continuous improvements in total cost, quality, and delivery available from the undertaking of best practices in purchasing and contracting will be achieved.
Course Outlines of Contracts & Purchasing Masterclass
Objectives of Contract Administration
- Effective Contract Administration
- The Most Critical Elements
- Key Players In Contract Administration
- Post-Award Conference
- Analysis Of The Contract
- Establishing Major Deliverables
- What Needs To Be Measured?
Outputs and Contract Types
- Typical Outputs Of Contract Administration
- Monitoring Techniques
- Identify The Risk
- Responses To Risk
- Contract Types
- Administration In Cost Type Contracts
- Economic Price Adjustments
Maintaining Schedules & Contract Changes
- Maintaining Contract Schedules
- Expediting Techniques
- Major Causes Of Changes
- Contract Price Changes
- Evaluating Price Changes
- Practical Considerations for Bonds & Guarantees
- Types of Bonds and Guarantees
Issues in Contract Performance
- Contract Terminations
- Service Level Termination Event
- What Constitutes a Breach?
- Responding To A Breach
- Right To Cover
- Manuals And Drawings
- Supplier/Contractor Relations
- Subcontractor Issues
Acceptance and Close Out
- Warranties
- Forms Of Payment
- Progress Payments
- Claims and Disputes
- Negotiation Of Claims and Disputes
- Final Acceptance
- Close-Out Procedures
- Post Contract Review Meeting
Effective Purchasing in Modern Organisations
- What is the role of Purchasing?
- What do other functions want from Purchasing?
- Essentials for Effective Purchasing
- Concepts and approaches in Purchasing Management
- Team Roles and responsibilities
- What do you want to achieve?
Tools for Effective Purchasing
- Spend Mapping
- Supply Positioning
- Supplier Intelligence
- Supplier Selection
- Role of Distributors and Agents
Financial and non-financial Purchasing Measures
- Pricing Mechanisms
- Value Analysis
- Cost analysis
- Total Cost of Ownership
- Capital Equipment Life Cycle Costing
- Early Involvement of other functions
Use of appropriate sourcing techniques
- Use of Tendering, negotiation, direct sourcing and e-commerce
- Tendering, RFIs, RFQs
- Negotiation preparation, strategy & Tactics
- Negotiation with other cultures
- E-procurement
Implementing Purchasing Improvements
- Using Key Performance Measures to monitor and deliver improvements
- Metric hierarchies
- Implementing Change
- Planning Communications
- Planning for Action
