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

Contact us for more Information or to Book Training