Course Overview

What is the role of Effective Purchasing, Tendering & Supplier Selection Process in the supply chain? Each of these functions play distinctly critical roles in ensuring the successful delivery of goods to customers. One of the key steps for successful purchase is supplier selection, which is nothing but choosing two or more suitable suppliers based on performance, credibility, financial stability, efficiency, etc.

Purchasing decisions are extremely cost-conscious, with the main aim of maintaining or reducing costs for the organization while increasing efficiency and maintaining steady delivery of goods and/or services.

Officers credited to make purchase decisions often invite tenders to get the best and most competitive price from suppliers to select the best. A tender may thus be described as a submission by a prospective supplier with the most competitive pricing in response to services rendered.

This course will empower you with the complete skill set required for effective supplier selection and purchasing decisions for your organization.

Through this course, you will gain knowledge and exposure to not just effective purchase decision making but also effective tendering and supplier selection, thereby enhancing your success and potential to contribute to fruitful negotiations and purchasing for your organization, reducing costs, increasing profits and facilitating organizational growth and development.

Effective Purchasing, Tendering & Supplier Selection Process training will equip you to confidently and successfully handle higher roles and responsibilities related to purchasing for your organization.

Course Objectives

The main objective of this Effective Purchasing, Tendering & Supplier Selection Process training is to empower professionals with—

• complete knowledge of various aspects and important functions related to and contributing to effective purchasing
• the required knowledge and experience to make better decisions related to purchasing
• the ability to carry out detailed scrutiny and analyses of various aspects, including strengths and weaknesses, of suppliers to be able to decide the best to take forward operations in the most effective way
• the necessary knowledge and skill set to roll out tenders as well as analyze those received to choose the best supplier from a cost-effectiveness and dependability point of view
• the skills and capabilities to assume critical positions of purchasing decision making for the organization, leading to career growth and progression
• better negotiation skills to effectively decide the most friendly and fruitful clauses in supplier contracts
• the attention to detail and experience to identify gaps in supplier contracts and address these to mitigate risks and increase the credibility of the organization
• better stakeholder management skills and effective communication to maintain long-term, successful relationships with suppliers for consistent flow of goods to customers
• the required strategic skills to define purchasing plans to the benefit of the organization, increasing profits and contributing to growth and development
• the confidence and knowledge to train other professionals on best practices for purchasing, tendering and supplier selection

Training Methodology

Courses are framed, keeping in mind scope for minor changes as per the intended audience. Therefore, before each training session, a course is thoroughly reviewed and amended, if necessary, to suit the training audience.

Lectures are delivered by experienced professionals from the relevant domain, while trainee participation is facilitated through group activities and assignments. Role-plays and case study discussions aid in practical relevance to the theoretical content.

Organizational Benefits

By professionals enrolling for this Effective Purchasing, Tendering & Supplier Selection Process course, organizations will derive the following benefits:

• Better purchasing decisions and effective supplier selection because of these handled by trained and experienced professionals
• More objective and calculated selection of suppliers to handle critical processes of the supply chain
• Effective negotiation to achieve the best costs and most fruitful agreements or contracts with suppliers
• Regular training of all employees on best practices for effective purchasing, tendering and supplier selection
• Better cost management resulting in increased profits, which in turn contribute to organizational growth
• Increased credibility because of the continuous supply of goods and services, leading to greater investments, organizational growth and client satisfaction
• Better risk assessment and management
• Better stakeholder and supplier relationships for long-term stability and sustainability

Personal Benefits

Professionals enrolling for this Effective Purchasing, Tendering & Supplier Selection Process course will benefit in the following ways:

• Complete understanding of purchasing, tendering and supplier selection for one’s organization
• Better understanding, confidence, and capabilities to successfully negotiate agreements or contracts with suppliers
• Better decision-making skills with regard to purchasing
• Increased skill and experience to scrutinize tenders and choose the best supplier based on credibility, stability, etc
• Greater ability to contribute to organizational growth through reduced costs, increased profits, and long-term supplier relationships
• Enhanced perspective and foresight to identify or forecasts gaps in supplier relations and agreements and negotiate and resolve these to prevent risks to the organization
• Increased ability to objectively track and measure supplier credibility for long-term sustenance of key functions of the supply chain
• Greater confidence and experience to handle and check tenders to make the most effective and fruitful decisions for the organization
• Better negotiation skills to discuss and decide the best price and offers with the most credible suppliers, thereby reducing organizational costs and increasing profits
• Increased confidence and knowledge to train other professionals on best practices of purchasing, tendering and supplier selection

Who Should Attend?

• All professionals, including managers and supervisors, involved in various stages of the supply chain in an organization
• Senior members of an organization responsible for critical decision making
• Investors who should understand the credibility of suppliers and purchasing decisions of the organization to make effective investment decisions
• Vendors and suppliers involved at some stage or the other in the supply chain
• Professionals involved in rolling out and scrutinizing tenders received from prospective suppliers
• Contract managers and legal officers responsible for drafting and executing contracts, in adherence with the law
• Any other professional interested in knowing more about purchasing, tendering and supplier selection

Course Outline

The course covers the following topics for understanding purchasing, tendering and supplier selection:

Critical Components of a Purchasing Strategy

• Vendor consolidation
• Product standardization
• Compliance communication
• Group purchasing organization

Essential Steps in the Purchasing Process

• Requisition
• Supplier selection
• Purchase order
• Fulfillment
• Good receipt
• Supplier invoice/payment

Developing Negotiation Strategies and Principles

• SWOT analysis
• Negotiation approaches
  • Distributive negotiation
  • Lose-lose approach
  • Compromise approach
  • Integrative negotiation
• Negotiation Styles
  • Competitive
  • Collaborative
  • Compromising
  • Avoiding
  • Accommodating

Types of Tendering

• Open tendering
• Selective tendering
• Negotiation tendering

Steps in the Tender Process

• Determination of tender process
• Preparation of tender request
• Invitation of tenders
• Response of suppliers
• Evaluation and selection
• Notification and debriefing
• Contract establishment and management

Criteria for Supplier Selection

• Cost
• Quality and safety
• Delivery
• Service
• Social responsibility
• Convenience
• Risk
• Agility

Supplier Selection Process

• Conduct internal needs analysis
• Conduct supplier market assessment
• Collect supplier information
• Develop a sourcing/outsourcing strategy
• Negotiate with suppliers and select winning bid
• Implement transition plan

Carter’s 10 ‘C’s for Supplier Selection

• Competency
• Capacity
• Consistency
• Control of process
• Cost/Price
• Commitment to quality
• Cash/Finances
• Clean
• Culture and relationships
• Communication