Procurement & Supplier Contract Management

All businesses depend on third party expertise, so supplier selection and contract management skills are critically important to avoid supply chain failure.

If supplier selection and contractual risks are not managed, supply chain failure can cost millions of pounds in compensation and damage to a business reputation.  We explain how this can be avoided.

We turn theory into practice using interactive exercises as you explore what supplier selection and contract management is and how to use it within a business.  You will learn the procurement manager’s roles and responsibilities and how to manage suppliers and stakeholders to get the best results for your business that keep costs under control.

This course is open to everyone involved in selecting and working with external suppliers.  It will benefit procurement, purchasing teams, project managers, buyers, commercial, contract managers, auditors and supply chain professionals.

6 Modules on Procurement & Supplier Contract Management
Including interactive videos, questions and answers and exercises

Module 1. How Procurement adds value

• What Procurement does and how it works?
• Which functions do Procurement interact with?
• What can a business expect from Procurement?
• What are the 5 rights of Procurement?
• Explaining the 8 step Procurement cycle
• Tendering your requirements with suppliers

Module 2. How to run tenders

• What is a form of tender?
• The schedule of Requirements explained in a working model
• Defining the selection criteria for a supplier
• Analysis of the selection criteria using a score card
• Scoring suppliers in a selection process
• Pre qualification and due diligence of a potential supplier

Module 3. Controlling Costs

• Understanding the total cost of ownership for goods and services
• How do Procurement influence the price that is paid for goods and services?
• How to produce efficiency in the supply chain
• Applying the 5 forces to improve your supply base

Module 4. Price analysis

• Cost estimations
• Budgeting and approval process
• Using governance to control costs
• Baselining the cost of ownership
• Open book pricing arrangements
• Different pricing applications

Module 5. Supplier contractual terms and conditions

• What are incoterms?
• Terms and conditions
• Formalities of contracts and law
• Formation of contracts
• What are offers and acceptance?
• What is SRM?

Module 5. Legal Agreements

• Different types of agreements
• Payments
• Performance Guarantees and bonds
• Steps in dispute resolution

This course will: