Most Purchasing Operations have the objective of becoming or maintaining World-Class status. World-Class Purchasing operations target significant annual cost improvement, bringing significant strategic value to their organizations and strong recognition to the function and those in it. Yet according to many studies most organizations must significantly improve their purchasing operations in order to provide the continuous improvements needed to win and earn profits in today’s very competitive market place. This course provides more comprehensive guide to the principles and techniques of buying. It is of particular relevance to staff members involved in the running of tenders.

Course Goal

This is a Course for enthusiasts wishing to push Procurement into undertaking a leading strategic role as an upstream, proactive operation capable of delivering massive financial and quality benefits to any organization.

Course Objectives

By the end of this program, the participants will be able to understand:

1. The Importance of Performing Purchasing Gap Analysis.
2. Practices In Key Areas of Organization, Performance Measurements,.
3. Methods of Price And Cost Analysis
4. Process of Developing “Should Cost”
5. How to Use Purchase Price Indexes
6. Best Practices In Supplier Relations, Planning And Specifying, Procurement Process, And Supplier Performance
7. The tendering process and the major steps that should be followed
8. Pre-tender Checklist
9. Methods of selection and qualifying contractors
10. The criticality of the Statement of Work
11. Structure and application of incentive arrangements
12. How to evaluate the proposals using price analysis and/or cost analysis
13. Terms & Conditions for economic price adjustments

Course Outline:

• Specification writing
• Evaluating tenders
• Legal aspects of purchasing
• De-briefing unsuccessful suppliers
• Rules and regulations applying to public sector procurement
• Definition of Negotiation
• Mandate, Interests, Knowledge – preparing for the Negotiation
• Phases of the Negotiation process
• Negotiation Tactics and strategies
• Successful Closing
• The Tendering Process
  1. Major Steps and flow of the Tendering Process
  2. Objectives of the Parties
     • Owners Objectives
     • Elements of Reasonable Pricing
     • Contractor’s Objectives
     • Reviewing the Tender Request
     • Reviewing the Price Estimate
     • Identify Basic Planning Assumptions

• Defining the Scope
  1. Types of Statement of Work
  2. Work Breakdown Structure
• Suppliers
  1. Qualifying Suppliers
  2. Performance Evaluation Criteria
  3. Obtaining Financial Information
• Price Analysis
  1. Selecting Prices for Comparison
  2. Factors that Affect Comparability

Who Can Benefit?

Procurement and technical staff that have a role in specifying and procuring services and supplies