Procurement Management

$ 1 Trillion?  The Amount Annually Lost to Fraud and Corruption Globally!!!!!! Of this Figure 71.8% is Procurement Fraud. The course is wholly interactive, combining theory with role play, team exercises, and group interaction. Evaluation happens through participation and group discussion

Course Objectives:

• To introduce the issues facing the procurement functions (i.e. segregation of duties, fraud, cost, delivery etc.)
• To understand what is involved in supplier selection
• To implement a structured buying process
• To apply basic contracting principals to purchasing
• To enable teams preparing tenders to have a structured approach to the process
• To have an understanding of the legal aspects regarding tenders and contracts
• To enable companies that tender to provide a clear understanding of the important issues to address
• To understand the impact of purchasing and tendering on the operations

Course Outline:

Module 1: Introduction

• Procurement fraud
  • Current position
  • Types of fraud
• Board responsibility
• Executive management responsibility
• Segregation of duties in the procurement function
• The role procurement plays in the organisations success
• Practical exercise covering the procurement process and policies

Module 2: Supplier Negotiation

• Contract basics that needs to be understood in the negotiation process
• Defining the correct requirements by the business units for procurement to action
• The Five rights of buying
  • Price
  • Place
  • Time
  • Quantity
  • Quality
• Supplier qualification
• Why do supplier selection
  • Assess their ability and sustainability to support the organisation
  • Supplier stability to ensure supply
  • Impact of suppliers on organisations reputation
• Compiling the selection criteria
• Advertising
• Evaluation suppliers using scoring
• Practical exercise on how to compile a supplier selection invitation

Module 3: Purchasing (Buying) and Tendering

• Negotiation with suppliers
• Buying
• Service level agreements
• Practical exercise on SLA

Module 4: Supplier Appointment

• Rules regarding the submission of tender documents
• Transparent tender opening procedures
• Evaluation and adjudication of tenders

Module 5: Supplier Management

• Contracting
  • What should be covered in the contract
    • Parties involved
    • Deliverables
    • Conditions
    • Waivers
  • Ordering best practice
    • What to include when placing orders on suppliers
  • Service level agreements
    • When to enter into service level agreements
    • What is important to include in service level agreements
    • Practical exercise on compiling Service level agreements
  • Managing supplier performance
    • Converting the contract into daily works instructions
    • Data collection from all the affected parties
    • Providing a dashboard
    • Practical exercise on what to include in supplier management dashboard

Course Duration:

2 days

• The course is offered in-house and can be custom made to include specific examples and exercises based on the organisation’s activities.
• The course is wholly interactive combining theory with role play, team exercises and group interaction.
• Evaluation happens through participation and group discussion

Who should attend:

• Procurement managers
• Financial managers
• Operational managers
• Procurement staff
• Project teams
• Tender evaluators
• Staff involved in tendering
• Supply chain staff in Government institutions