Procurement, Tendering, and Contract Management

Introduction:

The procurement function has evolved from an administrative task to a strategic component critical to a company’s operations. In today’s business environment, simply fulfilling requisitions is insufficient. Organizations must develop and implement comprehensive strategies to acquire materials, goods, equipment, and services while minimizing operating costs and enhancing quality and productivity.

This course covers procurement, tendering, and contract management, focusing on the strategic role of procurement and its significant impact on organizational success. Participants will explore supplier evaluation, negotiation skills, procurement processes, tendering, and contract management to optimize procurement's profitability and contribution.

Objectives:

By the end of this procurement, tendering, and contract management course, participants will be able to:

• Understand the fundamental features and procedures of procurement systems.
• Identify and analyze sourcing methods and evaluate supplier performance.
• Grasp the administrative and legal complexities related to contracts.
• Efficiently manage the tendering processes.
• Design appropriate metrics to measure procurement and tendering performance.
• Develop skills in all areas of strategic purchasing.

Training Methodology:

• Cases
• Lectures
• Acting
• Guest Lectures
• Panel Discussion
• Exercises
• Presentations
• Performances
• Reviews

Course Outline:

Unit 1: Introduction to Procurement Management

• Course objectives and welcome.
• The role of purchasing in procurement management.
• Purpose of procurement.
• Procurement processes and activities.
• The procurement team’s role.
• Make or buy decisions and procurement planning.
• Q&A and related tasks assignment.

Unit 2: Sourcing Analysis and Supplier Evaluation

• Review of previous session and homework solutions.
• Defining sourcing and its purpose.
• Complete supplier assessment.
• Understanding the buyer-seller negotiation process.
• Creating value-based win-win negotiation models.
• Q&A and related tasks assignment.

Unit 3: Effective Negotiation and Procurement Execution

• Review of previous session and homework solutions.
• The complexity of the communication process.
• Personality types in negotiation.
• Negotiation practices and procurement execution.
• INCO Terms: understanding each term.
• Q&A and related tasks assignment.

Unit 4: Tenders and Contract Management

• Review of previous session and homework solutions.
• Tender procedures and contract documentation analysis.
• The importance of security deposits.
• Contractor qualification requirements.
• Q&A and homework.

Unit 5: Management of Suppliers and Best Practices

• Review of previous session and homework solutions.
• Good practices in contract management.
• Procurement document review.
• Supplier performance evaluation.
• Targeting procurement metrics.
• Introduction to basics of federal contract law.
• Ethical standards in purchasing.
• Practical exercises in determining the optimum order quantity.
• Q&A and practical applications.

Conclusion:

This course provides participants with a comprehensive understanding of procurement, tendering, and contract management. They will grasp the principles of tendering and contracting, improve their tender management skills, and be equipped with best practices to enhance procurement and contract management performance in their organizations.