Advanced Strategic Procurement and Contract Management

Starting out in procurement or refreshing your procurement skills after a break, means getting to grips with the “Essentials” of the topic. This course is ideal for that purpose. The course examines how corporate procurement takes place – usually on a competitive footing, but sometimes by placing direct orders with a supplier. The course will unpick the advantages and disadvantages of competitive procurement, and looks at who does what and when they do it. It will also walk through the key steps in the procurement process and examine examples of procurement documents, such as the Statement of Requirement (also known as the Scope of Work).

Procurement Excellence is more than just operating a process. Skills in managing colleagues, potential suppliers and higher management are all necessary. But perhaps the most important ingredient is exercising judgement. Procurement involves making decisions, and that can be difficult. A good procurement manager needs to be able to set aside personal preferences for particular suppliers and operate transparently but in such a way that the organization for whom he works makes the right choices. These choices are based on a proper definition of needs and an assessment of how those needs can be met and by whom. This course explores these issues comprehensively.

The management of the procurement function itself – as opposed to the management by procurement staff of contractors and suppliers – can make the difference between having a purely administrative, internal service provider team that operates in the background, or a strategically important function that can help shape the success of the enterprise. If the head of procurement is a mid-ranking manager he or she may not have the ear of the chief executive. But if the company has a Chief Procurement Officer in the “C Suite”, working alongside his or her peers from Finance, Operations and Technology, then it’s fair to assume procurement is seen as key to delivering the corporate strategy. This course looks at aspects of procurement at its most influential and value-adding.

This course addresses three important areas of responsibility for the contract manager: Firstly the key issue of managing contractor performance – a process of measurement against deliverables or KPIs in order to achieve the contract objectives. Secondly the complex areas of contract negotiation and contract drafting – two topics that often go hand in hand. Thirdly the questions about what happens when things go wrong, leading to claims for compensation, damages, and early termination, as well as the disputes that may follow.

This course also addresses three important areas of responsibility for the contract manager: Firstly the key issue of managing contractor performance – a process of measurement against deliverables or KPIs in order to achieve the contract objectives. Secondly the complex areas of contract negotiation and contract drafting – two topics that often go hand in hand. Thirdly the questions about what happens when things go wrong, leading to claims for compensation, damages, and early termination, as well as the disputes that may follow.

The course includes site visits to organizations relevant to the course so delegates can develop an understanding of how their contemporaries function in the real-world.

The course will wrap with a summary of the key learning points, followed by an action planning exercise with a view to apply the acquired knowledge and skills immediately upon your return to work. Post-course support is also available in relation to the implementation of your action plan, up to six (6) months following course completion.

• Fundamentals of Procurement
• Global Procurement Processes
• Procurement Sourcing
• Procurement’s Support to the Organization
• Evaluating Suppliers and their Bids
• Negotiating the Best Deal
• Procurement and Business Strategy
• Managing Procurement Risk
• Procurement – Performance Measurement and Governance
• Managing the Contractual Relationship
• Managing the Contract Financials
• Managing the Contract in a Dynamic World
• Managing the Contract to get Results
• Negotiation and Preparation of Contract Documents
• Planning and Implementing an Effective Contract Structure
• Site visits
• Action Planning

This course is suitable for:

• Procurement Officers, analysts and managers.
• Contract Engineers and analysts.
• Quantity Surveyors
• Commercial advisers
• Procurement team members
• General managers
• Executives tasked with managing contracts.
• Contract Administrators
• Anyone who wishes to have a good understanding and involvement in purchasing activities.
• Inhouse legal advisers
• Company Secretaries
• Anyone who wishes to have a good understanding and develop the ability to apply the terms and conditions of a contract.

Upon completion of this course, you will understand:

• The essentials of procurement processes and the justification for adopting one approach versus another. This will include:
• Selecting the best procurement strategy for your transaction, in the public or private sector.
• Writing the Statement of Requirement / Scope of Work.
• Learning how to attract potential suppliers, pre-qualify them for suitability and make a selection.
• Working with bids and tenders documentation.
• “What good procurement looks like”.
• The choices of available procurement methods a given situation.
• How to carry out an evaluation of proposals from suppliers in a fair and transparent way.
• Practical negotiation skills.
• The key issues around sustainability in purchasing.
• The value Procurement can bring to delivering the corporate strategy.
• How to structure the procurement function, to make the biggest difference inside organizations.
• The skills required in important procurement activities, such as value chain analysis, purchasing portfolio management and category management.
• Techniques in benchmarking the performance of the procurement team.
• How to create and manage the relationship with a contractor, with a legally enforceable agreement.
• Prices and the costs that underpin prices, and the different pricing models that contractors use.
• Contract security, including bonds and guarantees.
• Managing contracts dynamically, including changing agreements and creating appropriate contract documentation.
• How to get the performance you require from your contracts and your contractors.
• How to get to contract through a process of good negotiating and good drafting.
• What to do when things go wrong, contract breaches occur or disputes arise.
• What to look for when it comes to the sustainable, social and environmental aspects of contracts.
• A practical perspective into contemporary work practices in your field.
• How to implement an Action Plan at your workplace using the knowledge and skills acquired through the course.