Procurement, Contract Management and Effective Negotiation

Procurement is an essential strategic function that enables the organization to improve its profitability through streamlining business processes, reducing material costs and identifying the most relevant sources of supply. Both for private and public sector, procurement plays a crucial role in maximizing the value for money when committing the certain expenditure. Deployment of Effective Procurement strategy relies significantly on long-term supplier relationships, contracting practices and constructive negotiation skills. All of these functions as a bundle can determine overall organizational cost effectiveness and seamless operational process.

Program Objectives

• Determine ways to boost the efficiency of Existing Procurement Practices
• Work Across various functions to improve all aspects of procurement service to the customers.
• constructive contracting practices and perform fruitful Negotiations.
• Understand the complexities of Procurement and Contract Management
• Set up and Manage the Procurement System Effectively
• Influence the Organizational Effectiveness through decreasing operating costs and enhancing productivity.
• Select Suppliers based on strict criteria and establish long-term relationships
• Use IT Systems to evaluate supplier performance.

Modules

Module 1: Good Contracting and Procurement Practice

• Elements of a Good Contracting and Procurement Process
• The role of procurement in the organization
• Developing supplier relationships & Performance
• Managing the tendering process
• Understanding the needs of the users of procurement services
• Rationalizing the supplier base
• IT systems in procurement
• Training needs of procurement personnel

Module 2: Risk and Financial Management

• Assessing risk
• Cost and Pricing
• Cost Analysis
• Allocating Overheads
• What is a Fair Profit?
• Developing “Should Cost”
• Pricing Models
• Risk Assessment
• Managing the Risks
• Detecting fraud

Module 3: Contract Types and Payments

• Contract Risk Sharing Continuum
• Types and Guidelines for progress payments
• Implications of Contract Types
• Fixed Price and Cost-Reimbursement Contracts
• Economic Price Adjustment Clauses
• Understanding and Using Producing Price Indexes
• Invoices and Payments
• Parties to Letter of Credit

Module 4: Source Selection and Contract Development

• Processes for Source Qualification
• Developing Prequalification and Tendering Criteria and Applying Standards for Final Selection
• Rules for drafting the Contract
• Terms & Conditions
• Forming the Contract
• Contract documentation.
• Essential Elements
• Use of Performance-Based Contracting

Certification

• Upon successful completion of the training, participants will be awarded Cynet East Africa consultancy certificate.

N/B

• Training will be facilitated by Cynet East Africa Consultancy seasoned trainers.