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

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