Introduction
International procurement is a complex process with the potential to deliver significant value to organizations through lower costs, improved quality, and enhanced supplier performance. This program equips participants with the knowledge and tools to locate, evaluate, and manage global suppliers, implement best practices in international procurement, draft effective contracts, and manage the international movement of goods.
Objectives
By the end of this program, participants will be able to:
- Locate and evaluate international suppliers effectively
- Implement best practices in international procurement
- Draft robust international procurement contracts
- Manage supplier performance and risk
- Plan and execute international transportation and logistics
- Optimize inventory management in a global context
- Enhance negotiation skills for international procurement
Target Audience
- Procurement and purchasing managers
- Strategic sourcing professionals
- Supply chain managers
- Contract managers and officers
- Professionals involved in global sourcing or international logistics
Course Outline
Day 1: The Modern Buying Function
- Globalization and its impact on procurement
- Modern buying practices and the role of procurement
- Utilizing the internet and e-procurement tools
- Assuring supplier performance
- Methods for determining price
- Procurement performance measurement
- Long-term contract pricing formulas
Day 2: International Buying Operations
- Overview of international procurement operations
- Counter-trade and international sourcing benefits
- Overcoming difficulties in global procurement
- Utilizing learning curves for efficiency
- Ensuring material quality and supplier reliability
- International inventory management strategies
- Reducing inventory costs and improving supply chain performance
Day 3: International Supplier Sourcing
- Moving beyond domestic sourcing to global suppliers
- Identifying and evaluating international sources
- Single-source vs. multiple-source supplier policies
- Supplier evaluation criteria
- Managing foreign exchange risk
- Ethics and compliance in international procurement
Day 4: Negotiation and Contract Preparation
- Insights into the international negotiation process
- Characteristics of an effective negotiator
- Preparing and executing negotiations
- Obtaining supplier collaboration and partnership benefits
- Legal aspects of international contracts
- Drafting robust international contracts
- Dispute resolution mechanisms
Day 5: International Movement of Goods
- International commercial terms (Incoterms)
- Buying and managing transportation services
- Air and ocean freight logistics
- Securing marine insurance
- Calculating total landed cost
- Strategic purchasing and operational reengineering
