Procurement Strategy and Contract Management Essentials

Description

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 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 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.

What you will learn

Procurement and Business Strategy

• The development path for procurement from transactional to value chain management
• Procurement Organization, structure and job functions

Managing Procurement Risk

• What risks should procurement be considering?
• A process to identify, analyse and respond to priority risks
• Important supply chain risks – case study
• How to manage risks that turn into reality

Procurement – Performance Measurement and Governance

• Benefits of measuring the performance of procurement
• Assessing Purchasing Effectiveness and Purchasing Efficiency
• KPIs for measuring performance
• Procurement Information systems

Procurement Benchmarking

• Identifying cost savings potential
• Spend analysis
• Category management
• Procurement Portfolio analysis
• Developing a Sourcing strategy

Managing the Contractual Relationship

• Contract Law basics
• Contract Types
• Contract risks

Managing the Contract Financials

• Cost & Price analysis
• Bonds, Guarantees and warranties
• Managing payments
• Managing claims

Managing the Contract in a Dynamic World

• Managing contractual liabilities and indemnities
• Managing contract variations
• Contract documentation
• Contract administration

Letters of Credit

• Contract Model terms
• Why industry standard contracts are so popular
• Benefits of working with templates
• Case study of a model agreement – NEC3 / FIDIC Red Book

Course Review

• Summary and recap of key learning objectives
• Action Planning