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Course Outline Day 1 CHARACTERISTICS OF EFFECTIVE PROCUREMENT Functions – understanding the basic functions Type of Buying Situations – how buying situations differ and the impact on procurement functions The Process – a typical process that ensures contract and company policy compliance Responsibilities – the role and responsibilities of procurement to ensure compliance, management and monitoring of contracts ADMINISTERING PROCUREMENTS THROUGH CONTRACTS Definition of contracts and what comprises contract Significance of contracts, the essentials, how it affects performance and cost benefits The Need for Contracts – a new model that looks at contracts through cost efficiency and consistency Type of Contracts – looks at various contracts that can be considered for businesses The legal elements of Contracts that should be thoroughly assess THE CONTRACT OUTLINE Pitfall to avoid during drafting of contracts The main contract provisions – the opportunities a contract provides in ensuring fairness and setting obligations Key elements of a contract – ensuring essential requirements are included with clarity Determine the relevance of other contract terms to a particular contract like dispute resolution, etc. Contentious clauses in contracts - the need to understand contentious clauses and how to include them in the contract THE ESSENTIAL PRELIMINARIES OF A CONTRACT Specification: Understanding the importance of specifications and ensure the contract takes off on the correct path Preparation of SOW & RFP : Understanding what is a SOW & RFP; the difference and importance of it, how it helps determine the course of the contract Steps in SOW : The importance of developing a good SOW to ensure the contract completes its terms successfully Importance of RFP – ensuring the important details are included to avoid inconsistencies and how a detailed RFP Various types of Risks Transfer of Risks – 13 INCOTERMS – how international trading addresses risk by understanding risk transfer and responsibilities Assessing and finding out the Sources of various types of Risks Responsibilities – looks at responsibilities of all parties of a contract in addressing risk Stages of Managing Risk in a contract t 60 88 731410/03-22831907 f 60 8 8 7 3157 3 /0322831906 w w w w . c f r o n t ier.com Course Outline Day2 HOW TO DO SELECTION OF SUPPLIER EFFECTIVELY Understanding and Performing Supplier Rating Managing and maintaining standards and expectations to ensure consistency in the delivery of job specifications Selection Process after meeting criteria Negotiating with supplier before accepting contract MANAGING & TRACKING PERFORMANCE OF CONTRACT Stage One-Setting Measurement Metrics and monitoring principles Stage Two-The Experience Stage: Understanding how relationships are developed and addressing key contract issues when serving contract Stage three- Monitoring Techniques : Setting KPIs and making the contract performance based Change Control – changes may happen periodically in the life cycle of a contract and how changes can be addressed without derailing the contract away from its objectives Contract Closure – all contracts will come to an end and needs to be closed effectively 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 contract fails to deliver – legal issues NEGOTIATING THE CONTRACT AND PREPARING A PLAN FOR IMPROVEMENT 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 5.00pm Program ends
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