Introduction:
Current and future leaders in contract and procurement functions are expected to develop advanced skills in world-class buying and contract management practices. This expedited professional services procurement and contract management training is designed to provide contract and procurement leaders with the strategies, concepts, and techniques necessary to perform at the highest industry standards. The course aims to motivate participants and support the practical implementation of successful strategies.
Given that a significant portion of organizational expenses is dedicated to external goods and services, recognizing Contracts and Purchasing as a professional competency is crucial. This course is particularly beneficial for organizations seeking to reduce costs while enhancing their processes.
The seminar addresses key issues in contract and procurement management, helping participants evaluate their operations against best practices and enhance value within their organizations.
The course explores the processes involved in planning, preparing, negotiating, and executing procurement contracts. Participants will study the management of procurement contracts from certification through practical application.
An integrated teaching approach ensures that learners acquire relevant skills in procurement and contract management that can be effectively applied in their roles as purchasing contract managers.
Objectives:
Participants in the procurement and contract management course will be able to:
- Identify elements involved in an effective contracting management process.
- Understand methods of tender evaluation.
- Compare and evaluate various types of contracts.
- Collect data on important contract information.
- Recognize defining characteristics of contracts.
- Use contract checklists.
- Manage efficient purchasing structures.
- Develop intelligent purchasing strategies based on solid knowledge.
- Create spend profiles and analysis to support strategies.
- Review reporting of key performance indicators (KPIs).
- Identify essential skills for contract and purchasing professionals.
Training Methodology:
- Pen-and-Paper and Retells
- Case studies
- Team activities
- Simulation exercises
- Simulation activities
- Practice using and answering questions
- Comparison exercises
Course Outline:
Unit 1: What is a Contract’s Definition and What Does It Involve?
- Necessity of contractual relationships
- Aspects required for an effective contract
- Examples and power of representation
- Tendering and secondary sourcing
- Improving agreement effectiveness with a focus on the external environment
Unit 2: The Anatomy of a Contract
- Drafting the Agreement
- Terms and Conditions – Order of precedence
- Expanding requirement contracts – new and old styles
- Transfer of risk and title in international sales
- Notifications and applicable law/courts
Unit 3: Collateral Documents
- Securing performance obligations
- Bonds, guarantees, and parent company guarantees
- Letters of intent, comfort, or awareness
- Insurance policies
- Assessing collateral necessity
Unit 4: Change and Variation
- Changes to contract documents
- Assignment/Novation – detailed explanation
- Variation clauses and alterations
- Claims – definition and explanation
- Delay, disruption, and force majeure
Unit 5: Resolving Disputes
- Conflict avoidance and tiered resolution provisions
- Negotiation, litigation, arbitral proceedings
- Mediation, ENE, and other dispute resolution best practices
Unit 6: The 1st STEPS to Being World Class
- Four stages to world-class procurement
- Articulating the current perception of purchasing
- Strategic sourcing and preparing spend profiles
- Job description changes and required competencies
Unit 7: Evaluating Your Operation
- Best practices in purchasing
- Identifying gaps and creating a strategic plan
- Setting up KPIs for procurement
- Creating a purchase price index
Unit 8: Continuous Improvement and How to Get It
- Steps for cost reduction and forms of cost control
- Wastes in the supply chain and supplier cost structure
- Strategic planning for commodities/services
- Avoiding higher prices and supplier classification
- Supplier screening and assessment metrics
- Making purchasing decisions based on performance
- Improving process design and electronic procurement
Unit 9: Improving the Image of Procurement
- Sourcing from foreign suppliers
- International wage rate comparisons
- Implementing customer orientation
- Corruption and fraud prevention measures
- Enhancing procurement proficiency and professional updates
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