Procurement Strategy and Advanced Contract Management
London Business Training & Consulting
Key Information
Campus location
London, United Kingdom
Languages
English
Study format
On-Campus
Duration
3 weeks
Pace
Full time
Tuition fees
Request info
Application deadline
Request info
Earliest start date
Request info
Introduction
The management of the procurement function itself – as opposed to the management by procurement staff of contractors and suppliers – can make the difference between having a purely administrative, internal service provider team that operates in the background, or a strategically important function that can help shape the success of the enterprise. If the head of procurement is a mid-ranking manager he or she may not have the ear of the chief executive. But if the company has a Chief Procurement Officer in the "C Suite", working alongside his or her peers from Finance, Operations and Technology, then it's fair to assume procurement is seen as key to delivering the corporate strategy. This course looks at aspects of procurement at its most influential and value-adding.
This course addresses three important areas of responsibility for the contract manager: Firstly the key issue of managing contractor performance – a process of measurement against deliverables or KPIs in order to achieve the contract objectives. Secondly the complex areas of contract negotiation and contract drafting – two topics that often go hand in hand. Thirdly the questions about what happens when things go wrong, leading to claims for compensation, damages, and early termination, as well as the disputes that may follow.
This course also addresses three important areas of responsibility for the contract manager: Firstly the key issue of managing contractor performance – a process of measurement against deliverables or KPIs in order to achieve the contract objectives. Secondly the complex areas of contract negotiation and contract drafting – two topics that often go hand in hand. Thirdly the questions about what happens when things go wrong, leading to claims for compensation, damages, and early termination, as well as the disputes that may follow.
The course will wrap with a summary of the key learning points, followed by an action planning exercise with a view to apply the acquired knowledge and skills immediately upon your return to work. Post-course support is also available in relation to the implementation of your action plan, up to six (6) months following course completion.
Agenda
Procurement and Business Strategy
The development path for procurement from transactional to value chain management
Procurement Organization, structure and job functions
Managing Procurement Risk
What risks should procurement be considering?
A process to identify, analyse and respond to priority risks
Important supply chain risks – case study
How to manage risks that turn into reality
Procurement – Performance Measurement and Governance
Benefits of measuring the performance of procurement
Assessing Purchasing Effectiveness and Purchasing Efficiency
KPIs for measuring performance
Procurement Information systems
Procurement Benchmarking
Identifying cost savings potential
Spend analysis
Category management
Procurement Portfolio analysis
Developing a Sourcing strategy
Managing the Contractual Relationship
Contract Law basics
Contract Types
Contract risks
Managing the Contract Financials
Cost & Price analysis
Bonds, Guarantees and warranties
Managing payments
Managing claims
Managing the Contract in a Dynamic World
Managing contractual liabilities and indemnities
Managing contract variations
Contract documentation
Contract administration
Letters of Credit
Contract Model terms
Why industry standard contracts are so popular
Benefits of working with templates
Case study of a model agreement – NEC3 / FIDIC Red Book
Managing the Contract to get Results
Managing contractor performance
SLAs and KPIs
Managing stakeholders
Target Costing and Value engineering
Negotiation and Preparation of Contract Documents
Contract Negotiation
Contract Drafting
Organizing for Contract management
Simplifying the complex construction contract
Planning and Implementing an Effective Contract Structure
Contract Remedies for Default
Managing contract disputes
Contract termination
IT Tools to facilitate contract communication
Incoterms® 2020
Managing a sustainable supply chain
Local Content and In-country value
Public Private Partnerships
Course Review
Summary and recap of key learning objectives
Action Planning
Target Audience
This course is suitable for:
- Procurement Officers, analysts and managers.
- Contract Engineers and analysts.
- Quantity Surveyors
- Commercial advisers
- Procurement team members
- General managers
- Executives tasked with managing contracts.
- Contract Administrators
- Anyone who wishes to have a good understanding and involvement in purchasing activities.
- Inhouse legal advisers
- Company Secretaries
- Anyone who wishes to have a good understanding and develop the ability to apply the terms and conditions of a contract.
Learning Outcomes
Upon completion of this course, you will understand:
- The value Procurement can bring to delivering the corporate strategy.
- How to structure the procurement function, to make the biggest difference inside organizations.
- The skills required in important procurement activities, such as value chain analysis, purchasing portfolio management and category management.
- Techniques in benchmarking the performance of the procurement team.
- How to create and manage the relationship with a contractor, with a legally enforceable agreement.
- Prices and the costs that underpin prices, and the different pricing models that contractors use.
- Contract security, including bonds and guarantees.
- Managing contracts dynamically, including changing agreements and creating appropriate contract documentation.
- How to get the performance you require from your contracts and your contractors.
- How to get to contract through a process of good negotiating and good drafting.
- What to do when things go wrong, contract breaches occur or disputes arise.
- What to look for when it comes to the sustainable, social and environmental aspects of contracts.
- How to implement an Action Plan at your workplace using the knowledge and skills acquired through the course.