Introduction
World-class organizations recognize that best practices in Purchasing and Contracting are critical for operational success. This intensive 10-day masterclass equips participants with the skills and strategies to move these functions from tactical execution to strategic value creation.
Participants will focus on:
- Developing organizational strategies for purchasing and contracting teams
- Roles and responsibilities of purchasing and contracting personnel
- Negotiation techniques with suppliers and contractors
- Cross-functional procurement and contracting approaches
- Tendering, RFQs, and contract selection
- Key contract terms, conditions, and contract management
- Measurement and improvement of purchasing and contracting performance
Objectives
By the end of the program, participants will be able to:
- Review and implement contract strategies effectively
- Understand team structures and key roles in procurement and contracting
- Drive continuous improvement in purchasing and contracting processes
- Analyze important commercial contract clauses
- Apply strategic approaches to tendering, negotiation, and contracting
- Measure performance and implement improvements using KPIs
- Ensure contracts reflect organizational objectives and reduce disputes
Target Audience
- Purchasing Managers and Contract Managers
- Procurement Professionals
- Supply Chain and Operations Managers
- Project Managers involved in contracts or procurement
- Professionals responsible for supplier or contractor relationships
Programme Outline – 10 Days
Day 1 – Objectives of Contract Administration
- Effective contract administration and critical elements
- Key players in contract administration
- Post-award conference
- Analysis of contract deliverables
- What needs to be measured
Day 2 – Outputs and Contract Types
- Typical outputs of contract administration
- Monitoring techniques and risk identification
- Responses to risk
- Contract types and administration in cost-type contracts
- Economic price adjustments
Day 3 – Maintaining Schedules & Contract Changes
- Maintaining contract schedules and expediting techniques
- Causes and evaluation of contract changes
- Contract price changes and practical considerations for bonds and guarantees
Day 4 – Issues in Contract Performance
- Contract terminations and service-level termination events
- Breach of contract – identification and responses
- Right to cover, manuals, drawings, supplier/contractor relations, and subcontractor issues
Day 5 – Acceptance and Close-Out
- Warranties, forms of payment, progress payments
- Claims and dispute management
- Negotiation of claims and disputes
- Final acceptance, close-out procedures, post-contract review
Day 6 – Effective Purchasing in Modern Organizations
- Role of purchasing and its contribution to other functions
- Essentials for effective purchasing and management concepts
- Team roles and responsibilities, and goal setting
Day 7 – Tools for Effective Purchasing
- Spend mapping, supply positioning, and supplier intelligence
- Supplier selection techniques and role of distributors/agents
Day 8 – Financial and Non-Financial Purchasing Measures
- Pricing mechanisms, value analysis, and cost analysis
- Total cost of ownership and capital equipment lifecycle costing
- Early involvement of other functions
Day 9 – Use of Appropriate Sourcing Techniques
- Tendering, RFIs, RFQs, negotiation, direct sourcing, and e-procurement
- Negotiation preparation, strategy, tactics, and cross-cultural considerations
Day 10 – Implementing Purchasing Improvements
- Using KPIs to monitor and deliver improvements
- Metric hierarchies, implementing change, planning communications, and action planning
