Strategic Procurement, Negotiation & Contract Management

16-17 Oct, 2024, THE MAJESTIC HOTEL KUALA LUMPUR

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DR MANOHARAN MURUGESON 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.

 

Dr Manoharan’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 a Doctorate In Business Administration (Ph.D.) from (OUM) and a Masters In Business Administration

(MBA) from the USA.

Venue Details

THE MAJESTIC HOTEL KUALA LUMPUR
5 Jalan Sultan Hishamuddin, 50000 Kuala Lumpur, Malaysia,

https://www.majestickl.com/

Contact us

Juliany,
03 2283 6109
juliany@ipa.com.my

Phoebe,
03 2283 6100
phoebe@ipa.com.my 

FOR CUSTOMISED IN-HOUSE TRAINING
Jane,
03 2283 6101
Jane@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
  • Module 1: Analyzing The Procurement Process
  • Module 2: Strategic Sourcing & Supplier Selection
  • Module 3: Supplier Risk Analysis
  • Module 4: Life Cycle Costing, Total Cost Of Ownership & Cost Analysis
  • Module 5: Components Of A Successful Negotiation
  • Module 6: Let The Rubber Meet The Road – Get Down To The Job At Hand
  • Module 7: You Are Dealing With People – Are You Communicating?
  • Module 8: Understanding The Fundamentals Of Procurement Contracts
  • Module 9: The Contract Drafting
INTRODUCTION

Strategic Procurement is the alignment between sourcing options and the business objectives that lead to more significant and sustainable benefits to the company. It looks at long term sustainable value creation as opposed to a series of tactical operating models that may deliver short term cost benefits that lock in existing inefficiencies and fail to address the root causes of poor performance. It encompasses sourcing and purchasing (buying) besides other fundamental activities such as risk analysis, data analysis, category management, cost management, etc.

 

Negotiation is an integral part of the job functions of a procurement professional. As buyers, they seldom have a choice of whether to negotiate, but they do have a choice in when and how well they do it. Having to negotiate is inevitable; doing it well is more so. They cannot go through a day without negotiating items such as on-time delivery, quantity, quality, differences between departments, technical support, priorities, price, specification changes, etc.

 

Successful negotiation culminates in a contract. A contract is a written document that precisely spells out commitments and obligations of each party in a business relationship. Contracts are a complicated and 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, must address these and minimize risks and assign responsibilities.

OBJECTIVES
This 2-day course is designed to provide a deeper understanding of:
• Strategic Procurement Functions
• Cost Data And Analysis For Better Negotiation
• Contracting For The Overall Management Of Strategic Procurement
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
DAY 1
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
  • Spend Analysis And Category Management
10.45

MODULE 2: STRATEGIC SOURCING & SUPPLIER SELECTION

  • Understanding Strategic Sourcing
  • Supplier 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
1:00 Lunch
2:00

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
3:45

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
5:00 End of Day 1
DAY 2
9:00

MODULE 5: COMPONENTS OF A SUCCESSFUL NEGOTIATION

  • The Different Faces Of Negotiation – Styles And Techniques
  • A Different Approach To Negotiation – The PICO Method
  • The Components And How It Works
  • The Fundamental Requirements – A Level Playing Field
  • The Negotiation Matrix That Emphasis
    On Long Term Relationship Building
10.45

MODULE 6: LET THE RUBBER MEET THE ROAD – GET DOWN TO
THE JOB AT HAND

  • Planning Your Negotiation – The Planning Model
  • Preparation – Knowing Your Limits; Your WATNA & BATNA
  • Keeping Your Objectives Focused – Reality Of Targets
  • The Negotiation Steps And Missteps
  • Problems Commonly Encountered In Highly Stressed Negotiations
  • Dealing With Hardball Negotiators (Dealing With Difficult Issues)
12.00

MODULE 7: YOU ARE DEALING WITH PEOPLE – ARE YOU
COMMUNICATING?

  • The Difference Between Written And Oral Communications – How It Works And Why You Must Be Good At Both?
  • Do You Listen Or Do You Hear? – Active
    Listening Or Astral Travelling?
  • Verbal And Non-Verbal Communication
    – Body Language May Give You The Hint
  • People Are Emotional Beings – How Do We Take This Into Consideration?
  • Being Aggressive Or Assertive? – How Others View Your Approach?
1:00 Lunch
2:00

MODULE 8: UNDERSTANDING THE FUNDAMENTALS OF
PROCUREMENT CONTRACTS

  • The Importance Of Contracts – Why Contracts, The Essentials, How It
    Affects Performance
  • 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
3:45

MODULE 9: 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
  • Contentious Clauses In Contracts -
    The Need To Understand Contentious Clauses And How To Include Them In
    The Contract
5:00 End of Course