Advanced Procurement Specialist Training

Introduction:

This advanced procurement specialist course aims to improve the skills of Procurement Professionals and Senior Buyers in organizations. Advanced negotiation and procurement techniques, business continuity, and contingency planning are discussed and practiced in simulations.

The advanced procurement specialist course examines the strategic importance of procurement departments. It uses concepts and ideas to maximize the department's effectiveness and reduce costs throughout the supply chain.

The advanced procurement specialist training seminar further focuses on how your organization can minimize risk exposure, reduce costs, and the potential for disputes by discussing the critical aspects of understanding, drafting, and negotiating contracts.

Targeted Groups:

• Procurement Managers and Senior Managers.
• Procurement Professionals.
• Contract administrators and claims handlers.

Course Objectives:

At the end of this advanced procurement specialist 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 department's performance 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 with the concepts of activity-based costing.
• Learn the skills required for good supplier relationships.
• Review how to obtain the best pricing.
• Understand how contracts manage risk.
• Identify and avoid drafting pitfalls.
• Compare ways of dealing with performance failures.
• Negotiate deals, contracts, and disputes successfully.

Targeted Competencies:

Upon the end of this advanced procurement specialist training, the target competencies will be able to:

• Strategic Sourcing.
• Supplier Relationship Management.
• Contract Negotiation.
• Cost Reduction Techniques.
• Risk Management.
• Market Analysis.
• Category Management.
• Procurement Analytics.
• Ethical Procurement Practices.
• Technology Utilization in Procurement.
• Regulatory Compliance.
• Supply Chain Management.
• Stakeholder Communication.
• Project Management.
• Performance Metrics and KPIs.

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 Relationships.
• 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) and Vendor Managed Inventory (VMI).
  • 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 and 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 (KPIs):
  • 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 and Analysis.
  • Stakeholder Risk Tolerances and Risk Attitudes.
  • Defining the Prices and Price Management Plan.
  • Scope Management.
  • Cost Management.
  • Quality Management.
• Risk Management Planning:
  • Critical Success Factors.
  • Risk Identification.
  • Project Resource Risks.
  • Tools and Techniques.
• Qualitative and Quantitative Risk Analysis:
  • Qualitative Risk Analysis.
  • Tools and Techniques.
  • Quantitative Risk Analysis.
  • Semi-Quantitative Risk Analysis.
  • Tools and Techniques.
• Risk Responses and Controlling:
  • Risk Response Planning.
  • Negative and Positive Risk Responses.
  • Measuring Results.
  • Risk Monitoring and Controlling.

Unit 4: Negotiation:

• Avoiding Confrontational Negotiating.
• Developing Active Listening Skills.
• Negotiating with an Angry Person.
• Dealing with Back Door Selling.
• Power Closes 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 proper agreements with suppliers.
  • Factors used to evaluate suppliers on total performance.
  • Ways of promoting good supplier relations.
  • Creating suppliers as good partners.
  • Choosing the suitable 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 seven 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.