Course Description

INTRODUCTION

Effective buyers should understand how to bring about change. They must understand the impact and value they can make by having a deep understanding of how to capture the real requirements of the business; select those suppliers who are a strategic match through a robust qualification and tender process; and negotiate and prepare viable and sustainable supply contracts that add real and tangible value.

By attending this bespoke, The Effective Buyer training course, participants will develop a thorough understanding of the need to initiate processes, systems and best practice procedures to make sure that effective purchasing does not only concentrate on cost reductions; rather it focuses on supplier collaboration and the absolute requirement to enter into a contract that is deemed innovative, sustainable and will deliver efficiencies and cost saving initiatives throughout the life cycle of the contract.

Objectives

By the end of this The Effective Buyer training course, participants will be able to:

Achieve Operational Efficiency in Purchasing

Select and Managing Suppliers

Develop a Balanced Performance Measurement Framework that is value driven

Evaluate Suppliers - developing key measures for a total cost and value approach

Understand the Stages of Effective Contract and Supplier Management.

The benefit of this course:

Procurement Spend Analysis

Stakeholder Engagement

Decision Analysis

Effective Tendering and Evaluating responses

The Contract Award Process.

Understand the role and objectives of procurement within the organization

Understand whole life costing

Defining the differences between scope statements, scope of work and statement of work

Developing a supplier engagement strategy

Understand collaborative and effective specification development

Defining the essential elements of forming a legal contract.

Course Outline

Day 1

The Procurement Process and the Financial Impact on its Outcomes

The Importance of Effective Purchasing

Understanding the Procurement Strategy

The Five Steps of the Procurement Process

Implementing Strategies for Cost-effective Purchasing and Procurement

Strategic Cost Management as opposed to Ad-hoc Cost Reduction

Measuring the Impact of Cost Management initiatives on Profitability

Day 2

The Critical Elements of the Statement of Work, Scope and Specifications

Capturing the Real Requirement of the End Users

What a Good Specification for goods and services looks like?

Defining Needs and Wants - Essential vs. ‘nice to have’

Who Needs to Develop and Contribute to the Specification?

Important Questions to ask When Developing a Specification

Understand the Total Cost of Ownership in Relationship to the Actual Requirements.

Day 3

Supplier Selection and Developing Robust Criteria for Supplier Evaluation

Creating a Supplier Development Plan

Developing the Criteria for Pre-Qualification

Selecting Suppliers - A Balanced Judgment

Price and Long Term Cost Considerations

Analyzing Cost vs. Value.

Day 4

Developing the Relevant Tender Process and Awarding the Contract to the Most Suitable Supplier

Determining the Key Principles Underpinning all Tendering and Procurement

The Competitive Bidding Process

Understanding the Full Tender Process from Notice to Award

Evidencing Capability, Reliability and Quality

Qualitative and Quantitative Assessment, Review and Continual Improvement

Negotiating the Deal.

Day 5

Fundamentals of Contract Management

The Importance of Contract Management

Principles and Concepts around Contract Management

The Contract Management Process

Contractual Risk - How it is created?

Critical Success Factors for Effective Contract Delivery

Managing Contract Performance