Procurement Planning and Bid Management Course

Procurement management or planning is an integral part of overall project management. It entails a detailed plan around methods to procure raw materials and goods necessary for the entire manufacturing process and strategies to maintain good supplier relationships for continuous supply of goods at nominal prices. Bid management involves management around two key concepts—knowledge flow and people. It revolves around management of the bidding process and often involves use of bid management tools to automate the process and make it smarter and more defined. 

Course Objectives

By the end of the course, participants will be able to:

• Write strategic procurement objectives and initiatives to support long term directions
• Arrange 'spend items' into categories that support planning of go-to-market strategies
• Apply demand forecasting techniques to improve planning of procurement activities
• Generate vendor integration strategies to ensure supply security
• Evaluate vendor bids in a scientific manner to support selection decision making

Day One

Strategic Procurement Planning

• Setting procurement mission and objectives
• Selection of improvement initiatives
• Structure-related initiatives
• Systems-related initiatives
• Workstreams-related initiatives
• Culture-related initiatives
• Performance measures and targets
• Communication of procurement plan
• Stakeholder engagement

Spend Category Planning

• Spend category profiling
• Spend impact analysis
• Financial impact
• Vendor segmentation

Market Risk Analysis

• Value chain analysis
• SWOT analysis
• Porter’s five forces
• Risk heat maps
• Vendor risk scores
• Category report consolidation

Day Two

Forecasting and Demand Planning

• The soft side of forecasting
• Tetlock’s foxes and hedgehogs
• Taleb’s black swan
• Principles of demand planning
• Quantitative forecasting techniques
• Qualitative forecasting techniques

Vendor Integration

• Vendor prequalification process
• Vendor prequalification criteria
• Legal criteria
• Financial criteria
• Technical criteria
• Staff criteria
• HSE criteria

Day Three

Vendor Integration

• Service Level Agreements (SLAs)
• Strategic partnering
• Supplier diversity programs

Bid Evaluation and Selection

• Bid management process
• Bid evaluation criteria
• Scoring systems and protocols
• Selection and award
• Total Cost of Ownership (TCO) for complex purchases