To deliver a full and rounded overview of current best practice in contract management.
DAY 1
Building the team
The Supplier
The end customer
The specifiers / engineers
The professional purchaser
The quality assurance function
The project manager
Role of the Professional Purchaser
Designing the contract
Deciding the contract strategy
Designing and managing competition strategies
Supply appraisal selection and negotiation
Contract award.
Quality assurance
Role of the quality assurance team
The cost of quality
Managing and measuring performance
Monitoring and tracking performance to plans
Tracking performance through service level agreements
Motivating suppliers
Managing disputes
Managing variations
Dealing with defaults and breaches
DAY 2
Measurement of performance
Why we need to measure - key concepts, efficiency, effectiveness and value for money.
Strategic v tactical measures
Relationships - measuring the quality of long term relationships
Vendor Rating - vendor rating systems
Total cost of ownership procurement
What is total cost of ownership procurement?
Why is it important to buy on a total cost of ownership basis?
Using performance specifications to increase our options
Designing tender documents to ensure we identify the total cost of ownership
The elements of total cost
Including for all operating costs
Differing approaches to maintenance
First line
Second line
Third line
What about technical support and consultation support
DAY 3
Evaluating competing options for our capital.
Cash flow forecasts
Discounted cash flows
Net present values
Internal rates of return
DAY 4
Managing Contracts
Selecting the right contract form
Capital Goods
Services
Spares
Software
Maintenance services
Consulting Services
Contract management tools
Project planning tools
Gannt and PERT charts
Setting up the contract management regime
Our team - who does what?
Their team - who does what
Points of contact
Management tools
Agreeing a timetable and plan
Agreeing a reporting process
Managing disputes - what approach should we take?
Deciding on a relationship style
Partnering styles
Distant arms length approaches
Visits
Use of visits - advantages, disadvantages
Who should we meet?
What should we look for?
What should we ask about?
Use of inspection
A third party or ours?
How do we manage third party inspectors?
Handling
Disputes
Variations
Amendments
DAY 5
Setting up the relationship
The business Context.
The importance of relationship management in long term contracting
Supply positioning and procurement targeting
Developing contract strategies - leverage, routine and bottleneck products and sourcing strategies
Using Product / service portfolio analysis to decide on the relationship style
Analytical tools for assessing internally and externally imposed supply risk
Managing the competition
Deciding on your competition strategy
Sealed Bids
Open competition
E-Auctions
Pre-qualification tenders and calls for Expression of interest
Vendor short-listing, absolute and relative criteria for short listing and bid lists
Bid evaluation; setting and using weighted criteria
Financial appraisal - using and understanding financial data
The structure the contract
Using Memorandum of understanding
Aims of both parties
Terms and conditions
Specifications
Service levels
Other duties
Information appendices
Managing the relationship
Contemporary approaches to managing long-term supply relationships
Using tiered relationship management to improve reliability and commitment in the supply chain
Mitigating risk in the supply chain through structured relationship management
