Procurement Best Practice Workshops

Workshops overview

Procurement is a strategic function tasked with improving an organisation’s profitability. It does this by driving cost savings and adding business value, whilst typically being responsible for spending more than 60% of an organisation’s revenue. Research shows procurement can and does deliver, but only when procurement teams and professionals apply procurement best practice

After these workshops, you will be able to apply the processes, skills and tools that are fundamental to the success of the world’s leading procurement organisations. You will be able to achieve double-digit cost savings and form constructive business partnerships with your stakeholders. You will learn how to develop business-driven procurement strategies. By becoming an advanced negotiator, you will be able to ensure your suppliers deliver the best value to your business.

Who Should Attend

These courses will greatly benefit you if you are a procurement professional:

  • With tough savings targets and/or high business demands
  • Looking to accelerate your development and career progression
  • Who is an experienced, senior practitioner wishing to update or refresh your procurement knowledge and skills and support your team in becoming more strategic and effective

The courses will also benefit other business functions who have procurement as part of their role or who often partner with procurement:

  • Sales professionals looking to understand the thought process of the procurement function
  • Professionals looking to learn from and network with other like-minded professionals

Workshops outline

Workshop 1 Adding Value in procurement function (12 hrs)

  1. Procurement categories
  2. 5 rights of procurement
  3. stakeholder management
  4. Segmenting external expenditure
  5. ABC analysis & Kraljic Matrix

Workshop 2 procurement cycle & infrastructure (6 hrs)

  1. procurement cycle review
  2. procurement department structure
  3. e-procurement and supply chain systems
  4. procurement in different sectors

Workshop 3 understanding and developing specification (6 hrs)

  1. Definitions of specifications
  2. Examples of specifications such as drawings, samples, branded and technical
  3. Conformance & performance specifications
  4. Typical sections of a specification

Workshop 4 understanding costs & budgets (6 hrs)

  1. Types of market data that can provide information on costs and prices
  2. Direct and indirect costs
  3. Producing estimated costs and budgets
  4. Approaches to total costs of ownership/ total life cycle costing
  5. The purpose of financial budgets
  6. Cost entries and timings of cash flows
  7. Performance and control of budgets
  8. Dealing with variances to budget

Workshop 5 sourcing process (6 hrs)

  1. Strategic and tactical sourcing
  2. The sourcing process
  3. Selection and contract award criteria
  4. Gathering and verifying supplier information
  5. Vendor performance management (KPIs)
  6. Supply and Supplier preferencing Model
  7. Supplier appraisal and selection models
  8. Assessment of suppliers’ proposals

Workshop 6 Financial Appraisal of Suppliers (6 hrs)

  1. Why appraise suppliers’ financial position
  2. Sources of financial information on suppliers
  3. The balance sheetg
  4. The profit and loss account
  5. Cash flow statements
  6. Ratio Analysis

Workshop 7 Surveying the Supply Market (6 hrs)

  1. Purchase research & Demand analysis
  2. Supply market analysis
  3. Inquiries, quotations & tenders process
  4. Recommending sources of supply
  5. International and global sourcing
  6. The use of incoterms & Payment mechanism
  7. Opportunities in international sourcing
  8. Risks in international sourcing
  9. Managing currency and exchange rate risk

Workshop 8 Negotiation (6 hrs)

  1. Understand the main approaches in the negotiation of commercial agreements with external organisations
  2. Understand how to prepare for negotiations with external organisations
  3. Understand how commercial negotiations should be undertaken

Workshop 9 Contracting in procurement and supply (6 hrs)

  1. Developing commercial agreements
  2. Contract terms & contract schedules
  3. Standard and model form contracts
  4. Legal Issues in Creating Commercial Agreements
  5. Understanding legal aspects of contracts
  6. Elements of a legally binding agreement
  7. Invalid and incomplete agreement
  8. Contractual agreements for supply

Workshop 10 Managing Contracts (6 hrs)

  1. Types of contracts (One-off purchases, Blanket,etc.)
  2. The contract management process
  3. Remedies for breach of contract
  4. Limitation of liability
  5. Termination of contract
  6. Contractual disputes
  7. Responsibilities of the contract manager
  8. Contract administration & performance data

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