Procurement & Contract Management

15-16 Jan, 2025, 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.

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

THE MAJESTIC HOTEL KUALA LUMPUR
5 Jalan Sultan Hishamuddin, 50000 Kuala Lumpur, Malaysia,
Phone : 03 2785 8000

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

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.

COURSE LEARNING OUTCOMES (CLO)

Display the ability to interpret what life cycle costing and total cost of ownership is
Explain what supplier risk analysis is and classify risk categories
Construct a supplier selection process
Analyze and interpret procurement contracts and its legal obligations
Comply to tender requirements

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