Effective Purchasing, Tendering and Supplier Selection

Effective Purchasing, Tendering and Supplier Selection


Date & Location: (08-12/Jan) Amman– ( 23-27/Apr) Kuala Lumpur

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Course Overview


A five day intensive course aimed at developing/strengthening the understanding of the crucial role played by the supplier in delivering customer satisfaction through an effective supply chain.

Participants will learn how to evaluate the performance of both potential and current suppliers. Asses the factors that comprise and effective tender and conduct effective negotiations that bring long term value to the organisation.

The key highlights of the course are:

  • Planning
  • Tendering
  • Negotiation
  • Supplier Management
  • Measuring Performance
  • Communication


Program Objectives:

  • Identify and reduce procurement risk through development of a plan of action
  • Enable improved performance from your existing suppliers through evaluation and performance measurement
  • Understand and strengthen your supply chain
  • Improve operating relationships within your organisation
  • Award contracts on the basis of measured performance/criteria
  • Provide a working understanding of the Negotiation process


Who Should Attend?

  • Purchasing professionals
  • Those involved in defining the specification and evaluating supplier performance
  • Those involved in preparing and analysing bids
  • Those with an involvement in supplier relationships
  • Those whose role involves negotiation with outside agencies


Program Outline:


What is the Role of Purchasing in the Company

  • Introduction to Purchasing and its contribution to the organisation
  • What is the purpose of a business
  • Dealing with the problem of being a “go between“
  • Purchasing process and cycle of procurement
  • Positioning purchasing within the company
  • Vision, Mission and Value of Purchasing
  • Purchasing Structure
  • Where to find performance improvement


Developing the Purchasing Strategy

  • How to reach the internal customer
  • Developing Purchase agreements
  • Importance of being involved in creating the specification
  • Supplier selection methodology
  • Criteria for pre-qualifying suppliers
  • Integrating the supplier selection process
  • Positioning your need and you value against the market
  • The role of ISO 9000


Selecting the Right Supplier & Evaluating Performance

  • Conditioning the supplier to meet your requirement
  • The total cost approach to purchasing
  • Analysing Cost
  • Analysing Value
  • Hidden costs
  • Life cycle costing
  • Using Price indices
  • Performance evaluation


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 of Improvement Action for Purchasing

  • 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
  • Focus on four key areas of world class performance
  • Evaluating performance gaps