Effective Purchasing, Tendering & Supplier Selection

DAY 1

What is the Role of Purchasing in the Company

• Introduction to Purchasing and its contribution to the organization
• What is the purpose of a business
• Dealing with the problem of being a “ go-between “
• The purchasing process and a cycle of procurement
• Positioning purchasing within the company
• Vision, Mission, and Value of Purchasing
• Purchasing Structure
• Where to find performance improvement

DAY 2

Developing the Purchasing Strategy

• How to reach the internal customer
• Developing Purchase agreements
• Importance of being involved in creating the specification
• Supplier selection methodology
• Criteria for pre-qualifying suppliers
• Integrating the supplier selection process
• Positioning your need and you value against the market
• The role of ISO 9000

DAY 3

Selecting the Right Supplier & Evaluating Performance

• Conditioning the supplier to meet your requirement
• The total cost approach to purchasing
• Analyzing Cost
• Analyzing Value
• Hidden costs
• Life cycle costing
• Using Price indices
• Performance evaluation

DAY 4

Tendering and Analysing The Bid

• Process needs
• Types of tender
• Electronic commerce / E Auctions
• Evaluating a bid objectively
• Terms and Conditions of contract
• Standard contract clauses
• Methods of Payment
• Expediting the agreement
• What if the contractor fails to deliver – legal issues

DAY 5

Negotiating the Contract and Preparing a Plan of Improvement Action for Purchasing

• Defining negotiation
• Obstacles to effective negotiation
• Different styles of negotiation
• The tools of the process
• Phases of a negotiation
• What to do and what not to do
• Focus on four key areas of world-class performance
• Evaluating performance gaps