REF: | 15229_246099 |
DATE: | 16 - 20 Sep 2024 20.Sep.2024 |
LOCATION: |
Paris (France) |
INDIVIDUAL FEE: |
4900 Euro |
Introduction:
This course aims to improve the skills of the Procurement Professional and Senior Buyers in organizations. Advanced negotiation and procurement techniques, business continuity and contingency planning for procurement are discussed and practiced in simulations.
The course examines the strategic importance of procurement departments by using concepts and ideas to maximize the procurement department’s effectiveness and thereby reducing costs throughout the supply chain.
The training seminar further focuses on how your organization can minimize its exposure to risk, reduce costs, and the potential for disputes by discussing the key aspects of understanding, drafting, and negotiating contracts.
Targeted Groups:
- Procurement Managers & Senior Managers
- Procurement Professionals
- Contracts administrators and claims handlers
Course Objectives
At the end of this course the participants will be able to:
- Define the strategic role of the purchasing department
- Perform accurate supplier evaluation
- Develop effective negotiation strategies with all suppliers
- Evaluate the performance of the department using proper Key Performance Indicators (KPIs)
- Review the meaning of strategic procurement
- Provide an overview of the key drivers involved when viewing supply chains from a logistics/demand point of view.
- Review critical supply strategies
- Be provided the concepts of activity-based costing
- Learn the skills required for good supplier relationships
- Review how to obtain best pricing
- Understand how contracts can be used to manage risk
- Identify and avoid drafting pitfalls
- Compare ways of dealing with performance failures
- Negotiate deals, contracts and disputes successfully
Course Content
Unit 1: The Supplier Relationship:
- Transforming the Supplier Relationship
- Specifications
- Working with End-users
- Supplier Evaluation Criteria
- Appropriate Supplier Methodologies
- Total Cost Approach
- Defining the Organization’s Mission in Building Supplier Relationship
- How to be A Good Customer
- Communication, Trust, and Credibility as Key Elements
- Shrinking the Supplier Base
Strategic Approaches and Impacts to Supplier/Customer Relationships
- Practical effects on lot sizes/order quantities
- Reducing costs
- Sharing developments and collaborating
- Eliminating internal and external barriers
- Interfacing versus integrating relationships
- Segmentation and product formatting
- Business strategies and the supply chain
- Supply chain planning
- Gaining competitive advantage
- Considering outsourcing
- Using postponement and consolidation logistics
- Examining demand planning
- Approaches of Quick Response (QR), Vendor Managed Inventory (VMI) and
- Collaborative Planning and Forecast Requirements (CPFR)
- The Lean Supply Chain
Unit 2: Implementing the Tactical Procurement Decisions:
- Supplier involvement
- Value analysis
- Quality Assurance
- Supplier selection
- Supplier rating and ranking
- Contract management
- IT systems and e-Procurement
- Policies and procedures
- Staffing the Procurement Department
Dealing with Operational Procurement Decisions
- Selecting the most appropriate ordering process
- Addressing quality issues
- Follow up
- Overdue orders
- Expediting
- The payment processes
- Reducing the cost of procurement, small value purchase orders
Contingency Procurement Decisions
- The different contingency situations
- Contingency management
Procurement Performance Measurement
- Spend analysis
- Total cost of ownership
- Supplier performance measurement
Consider Key Performance Indicators (KPI’s)
- Continuous development for the buyers
- Key Performance Indicators for purchasing
- Choosing the right KPIs for purchasing
Advancing Procurement Contribution
- Attract And Retain Supply Management Talent
- Supplier Measurement
- Vendor Rating
- Steps In Developing Performance-Based Contracts
- Action Planning
- Business Continuity and Contingency Planning for Procurement
- What Is Activity-Based Costing?
- Price Cost and Value
- Ways that Advanced Procurement can Improve the Organization’s Finances
Unit 3: Pricing:
- The pricing cycle and fundamental pricing strategy
- Value-based pricing, skimming, and penetration
- The psychology of pricing
- Demand curves, reference pricing, and how to handle discounting
- Ladder pricing, bundling, price complexity, and versioning
Introduction to Risk Management Concepts
- Introduction to Risk Management
- Key Definitions
- Stakeholder Identification & Analysis
- Stakeholder Risk Tolerances and Risk Attitudes
- Defining the Prices & Price Management Plan
- Scope Management
- Cost Management
- Quality Management
Risk Management Planning
- Critical Success Factors
- Risk Identification
- Project Resource Risks
- Tools and Techniques
Qualitative & Quantitative Risk Analysis
- Qualitative Risk Analysis
- Tools & Techniques
- Quantitative Risk Analysis
- Semi-Quantitative Risk Analysis
- Tools & Techniques
Risk Responses & Controlling
- Risk Response Planning
- Negative & Positive Risk Responses
- Measuring Results
- Risk Monitoring & Controlling
Unit 4: Negotiation:
- Avoiding Confrontational Negotiating
- Developing Active Listening Skills
- Negotiating with an Angry Person
- Dealing with Back Door Selling
- Power Closes that are used on the Buyer
- Understanding the other Negotiator’s Power
- Negotiating Pressure Points
- Negotiating with Untrustworthy Counterpart
- Negotiation Tactics and Countermeasures
Supplier Evaluation and Negotiation
- Negotiating with suppliers
- Power in negotiation
- Planning for negotiation
- The 13 powers of negotiation
- Achieving the right agreements with suppliers
- Factors used to evaluate suppliers on total performance
- Ways of promoting good supplier relations
- Creating suppliers as good partners
- Choosing the right suppliers
Unit 5: Drafting Quality Manuals and Commercial Contracts:
Quality and Definitions Basics
- Definition and concept of quality
- History of quality
- Benefits of implementing a quality model
- Quality management systems
- ISO9001.
- Total Quality Management
- The cost of using poor quality
- Seven Success Secrets in Total Quality Management
- Examples of national quality awards
- Dubai Quality Award
- Malcolm Baldrige National Quality Award (EFQM)
- Quality Pioneers Review
- Quality philosophies
- Fourteen points
- Quality Goran trilogy
- The concept of zero defects for Crosby
- Quality House, Publishing, and Distribution Quality Function (QFD)
- Six Sigma Methodology
- LEAN and 5S soft system principles
Process Mapping and Management Processes
- Management elements and planning tools
- Operation "Turtle Chart"
- Analysis of failure mode and impact analysis (FMEA)
Ethical Principles in Quality Management
- The 7 principles of ethics
- American Society of Quality Conduct
Drafting Commercial Contracts
- Function, Formation, and Validity of Contracts
- Key Principles
- Choosing the Right Strategy
- Structure, Format, and Incorporation of Documents
- Language, Words and Phrases
- How to Avoid Drafting Pitfalls
- Use of International Standard Forms
Main Contract Clauses
- Delivery, Performance and Acceptance
- Title and Risk
- Programming and Completion
- Changes and Variations
- Price and Payment Terms
- Security and Withholding Rights
Other Key Clauses
- Force Majeure
- Intellectual Property Rights
- Indemnities and Insurance
- Bonds, Guarantees, Warranties
- Remedies for Default
- Damages and Limits/Exclusions of Liability
Dispute Management
- Choice of Law, Forum and Jurisdiction
- Contractual Management of Disputes
- Alternative Dispute Management Strategies
- Litigation or Arbitration?
- Enforcement Measures