Procurement & Contract Management

27-28 Oct, 2021, Virtual Classroom Training

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MANO HAARAN has more than 21 years of practical work experience in contracts administration, supplier management, procurement, project management, supply chain and logistics, etc. He specializes in training, facilitation and consulting to both the public and private sector in areas like Procurement Efficiencies including addressing issues of contracts administration, fraud, cost management and product life cycle management, Warehouse Management, Operations Management, Total Cost Management, Supply Chain Management, Total Logistics management, Stock Taking and Auditing,

 

His landmark consulting experience was designing of materials part numbering and coding systems, preparation of standards, policies and procedures for a large rail network. He was also involved as a consultant for the development of an automated business solution for a wholesale/retail stationery business with off shore branches where he was instrumental in business process analysis, process improvement, project management and eventual successful completion and commission of the system.

 

Mr. Haaran’s sample of illustrious clients list for training include Shell, UMW Toyota Motor, Celcom, Samsung, Proton, Colgate-Palmolive, Eon Finance, Philips, Hicom- Yamaha, Malaysian Oxygen, NEC, Petronas, General Electrics, Gamuda, Johnson & Johnson Medical, JVC, Kontena Nasional, Glaxo Wellcome, Hitachi, Hong Leong Lurssen Shipyard, National Heart Institute (IJN), Kenwood, Macfood Service, Nestle, Mattel, Matsushita Industrial Corporation, Maybank, Minolta Precision Engineering, MISC, Perwaja Steel, Seagate, Canon, BASF and UPS, Petronas Carigali, Sidel, Western Digital, Perodua, Sharp, Panasonic

 

He holds Masters in Business Administration (MBA) USA.

Venue Details

Virtual Classroom Training

Contact us

Juliany,
M - 012 2281 247
juliany@ipa.com.my

Michelle,
M - 019 363 7822
michelle@ipa.com.my 

FOR CUSTOMISED IN-HOUSE TRAINING
Yvonne,
M - 012 201 1247
yvonne@ipa.com.my

ADDRESS 
A-28-5, 28th Floor, Menara UOA Bangsar, 
No.5, Jalan Bangsar Utama 1, 
59000 Kuala Lumpur
www.ipa.com.my

FOCUSING ON
PROCUREMENT
  • Module 1 – Analyzing The Procurement Process
  • Module 2 – Supplier Selection And Creating An Effective Database
  • Module 3 – Supplier Risk Analysis
  • Module 4 – Life Cycle Costing, Total Cost Of Ownership & Cost Analysis
  • Module 5 – Technology For Cost Efficiency

CONTRACTS

  • Module 6 – Understanding The Fundamentals Of Procurement Contracts
  • Module 7 – Contracts Risk Management
  • Module 8 – The Contract Drafting
  • Module 9 – Contract Performance And Progress Monitoring
INTRODUCTION

Many companies are now spending a larger percentage of their revenue on products and services than they were thirty years ago. Most manufacturers spend around 60% to 70% of their revenue on the supplies that are necessary to keep their business running.

 

As such companies are now looking for ways to boost their bottom line through non-traditional approaches. Cutting cost and cringing on spending is no longer the only way out of the morass. New ways have to be found, tested and implemented.

 

A strategic approach to procurement with a win-win solution looks at cost as a responsibility of all parties involved. Identifying cost drivers in the buyer-seller relationships, reducing non-value adding activities, eliminating arbitrary costing and seeking value adding activities would result in a stronger and longer-term business relationships.

 

To make a significant impact to the organization’s future success, procurement’s contribution has to be reviewed for process improvement and cost efficiencies by transforming ad hoc spending into a more structured approach through contracting initiatives.

 

Contract management and the outsourcing of goods and services, though provides benefits, is complicated and needs close attention and scrutiny.

Business organizations are embarking on airtight agreements to eliminate risks that could be managed. A written document that precisely spells out commitments and obligations of each party in a business relationship is the norm now. This written document – a contract, is a complicated, disciplined approach to outline, identify, manage and control the business relationship for mutual benefits of all parties involved.

 

The document is written in precise language to avoid ambiguity and misinterpretations. Any business relationship will encounter challenging situations that may need immediate solutions. However, not all solutions will benefit everyone involved. A contract, then, has to address these and minimize risks and assign responsibilities.

AFTER ATTENDING THIS COURSE YOU WILL RETURN TO YOUR JOB…
  1. Having A Better Understanding Of Cost Drivers That Determine The Total Cost Of Procurement & Supply Chain.
  2. Having A Better Understanding Of Supplier Performance Measurement, Aggregation Of Demand, Supplier Rationalization, Strategic Sourcing, And Enhanced Supplier Relationships.
  3. Understanding How Technology Can Help In Improvement
    Efforts Including Reducing Cost And Improving Communications Such As E-Procurement, And E-Commerce Portals.
  4. Knowing What Is Category Management And How It Helps In Contracting.
  5. Learning How The Tender Process Works And Understanding Tender Related Jargons.
  6. Understanding What Is Contracting And The Need For It.
  7. Learning The Contribution Of The SOW And RFP In A Contract, Etc.
WHO SHOULD ATTEND
  • Procurement Managers & Executives
  • Contract & Client Managers & Executives
  • Project Managers/Leaders
  • Finance & Admin Officers
  • GLC And Government Contract Officers
  • Entrepreneurs, etc.
METHODOLOGY
  • Interactive Lectures
  • Group Discussions
  • Exercises/Cases
  • Questions & Answers

PARTICIPANTS WILL RECEIVE

  • Sample Contract
  • Risk Analysis Template – MS Excel & Word Based
  • Hard Copy Of Power Point Presentation & Hand-Outs
  • Procurement Best Practice Guide
DAY 1 PROCUREMENT
9:00

MODULE 1 – ANALYZING THE PROCUREMENT PROCESS

  • Understanding – Procurement, Buying And Sourcing
  • Process Analysis – The Purchasing Cycle
  • Company Policies On Procurement – Single Source Or Multiple Suppliers, Price Or Cost Based, Supplier Relationship, Probity, Supplier Selection, Quality And Price Related
  • Procurement Constraints – Policies, Customers And Suppliers
 

MODULE 2 – SUPPLIER SELECTION AND CREATING AN EFFECTIVE DATABASE

  • Selection Process – Setting Selection Criteria
  • Objective Evaluation Of Suppliers – Desk Research And Field Research
  • Supplier Database – Approved, Qualified And Preferred Suppliers
  • Monitoring Supplier Performance To Ensure Unbiased Supplier Ratings
  • Supplier Development – Relationship Building Effort
10.45

MODULE 3 – SUPPLIER RISK ANALYSIS

  • Supplier Risk Analysis Using The Kraljic Matrix
  • Supplier Risk Profile – Mitigating Risks Using Risk Matrix
  • Skills Set Required To Manage Suppliers And Risks
  • Risks And Service Levels – Minimizing Risk Exposure In Critical Areas
  • Dealing With Sole Source Suppliers – How To Minimize Risks
1:00 Lunch
2:00

Exercise on Life Cycle Costing & Cost Analysis

 

MODULE 4 – LIFE CYCLE COSTING, TOTAL COST OF OWNERSHIP & COST ANALYSIS

  • Supplier Rationalization & Reduction
  • Internal Cost Drivers – Company Related
  • External Cost Drivers – Supplier And Supply Chain Related
  • How LCC & TCO Will Help In Strategic Sourcing?
  • Price/Cost Analysis
  • Saving Purchasing Costs – Process Improvements, Technology – EDI, E-Procurement, Etc.
  • Inventory Management Constraints – Costs And Options
3:45

MODULE 5 – TECHNOLOGY FOR COST EFFICIENCY

  • Identifying Current Skill Sets - Existing Skills And The Gap To Fulfill
  • Procurement Skills Required To Make The Difference – The Individual And The Department
  • The Stage Of Technology Penetration In The Organization
  • Does Technology Help In Procurement – How Businesses Use Technology To Create The Difference
  • Types Of Technology For The Procurement Environment – EDI, E-Procurement, Portal, SaaS And Big Data Analytics
5:00 End of Day 1
DAY 2 CONTRACTS
9:00

MODULE 6 – UNDERSTANDING THE FUNDAMENTALS OF PROCUREMENT CONTRACTS

  • The Importance Of Contracts – Why Contracts, The Essentials, How It Affects Performance
  • The Need For Contracts – A Paradigm Shift That Looks At Contracts For Cost Efficiency And Consistency
  • Specification – Looks At Why Specification Is Important To Ensure The Contracts Begin On The Right Footing
  • Preparation Of SOW & RFP – What Is A SOW & RFP; The Difference And Importance Of It, How It Helps Determine The Course Of The Contract
  • Tenders & Quotations – Looks At The Process, Fundamental Differences And Usage In Business Such As Open And Closed Tenders, PQQ & ITT, LI & LA, And Bank Guarantee
  • Rights – Conditions And Rights Of Buyers And Sellers
  • Legal Aspects To Consider – Essential Laws That Need To Be Understood And How The Legal Aspects Determine The Drafting Of Contracts
10.45

MODULE 7 – CONTRACTS RISK MANAGEMENT

  • Types Of Risks In Contracts – Defining Risks And The Various Types Of Risks That Should Be Considered In Contracts
  • Transfer Of Risks In International Business – INCOTERMS 2020, How International Trading Addresses Risk By Understanding Risk Transfer And Responsibilities
  • Identifying Risks – Acknowledging Risks And Its Sources
  • Responsibilities – Looks At Responsibilities Of All Parties Of A Contract In Addressing Risk
  • Managing Risks – Looks At The Various Stages Of Managing Risks In A Contract
1:00 Lunch
2:00

Case Study on Services Contract

 

MODULE 8 – THE CONTRACT DRAFTING

  • The Essentials Of Contract Drafting And The Traps To Look Out For
  • Key Contract Provisions – The Opportunities A Contract Provides In Ensuring Fairness And Setting Obligations
  • Key Elements Of A Contract – Ensuring Essential Requirements Are Included With Clarity
  • Determine The Applicability Of Other Contract Terms To A Particular Contract Like Dispute Resolution, Etc.
  • Contentious Clauses In Contracts - The Need To Understand Contentious Clauses And How To Include Them In The Contract
3.45

MODULE 9 – CONTRACT PERFORMANCE AND PROGRESS MONITORING

  • The Experience Stage – Understanding How Relationships Are Developed And Addressing Key Contract Issues While Contracts Are On Going
  • Monitoring Techniques – Setting Key Performance Indicators And Making The Contract Performance Based
  • Change Control – Changes May Happen Periodically In The Life A Contract And How Changes Can Be Addressed Without Derailing The Contract
  • Contract Closure – All Contracts Will Come To An End And Needs To Be Closed Effectively
5:00 End of Course