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Purchasing & Logistics

The Purchasing and Contracts Essentials


This unique course is for anyone involved in the purchasing and contracts function who wants the very latest in practical techniques.   It will specifically cover modern purchasing techniques, supplier management, determining the price, placing emphasis on the all-important contract administration phase occurring after the award.

Persons attending will have analysis tools and many worked examples that can be easily applied in the workplace. Specifically, Course Outcomes:

  • Developing the right strategies for your organization
  • Reducing costs and increasing Quality
  • Negotiating with suppliers
  • Measuring and Improving Purchasing Performance
  • Critical Elements of Contract Administration
  • Topics of Post Award Conferences
  • Maintaining Contract Schedules
  • Controlling Contract Changes
  • Important Legal Issues


By the end of this course participants will learn to:

  • The newest purchasing methods, including e-procurement
  • The concept of supplier partnering
  • Implementing Supply Chain Management
  • Examples of purchasing success
  • Measuring and Improving Purchasing Performance
  • Re-engineering Purchasing Operations
  • Providing better outcomes from contracts
  • Reviewing contract administration techniques
  • Exploring contract monitoring techniques
  • Learning how to get fair treatment in contract changes
  • Discussing contract termination issues
  • Preparing for claims and disputes
  • Reviewing acceptance and contract closeout issues

Target Audience

This course has been designed to enhance the purchasing and contract administration skills of:

  • Buyers, Purchasing Professional and Project Professional
  • Contract Administrators, Project Coordinators, Contracts Officers
  • Engineering Project Managers, Construction Managers, Tenders Professional
  • Maintenance Professionals and Systems Managers and all others in organizations whose leadership want world-class skills sets in all those involved in purchasing and contract administration activities of all types of materials, equipment, and services

Purchasing & Logistics Outline

The course covers the following topics:

Introduction to Modern Purchasing

  • We will consider the best practices being utilized by the best purchasing departments today
  • Purchasing Strategies
  • Early Supplier Involvement
  • Electronic Purchasing
  • consignment stocking
  • Long Term contracting and outsourcing

Supplier Management

  • This session focuses on locating, evaluating, selecting and appropriately managing the best available suppliers
  • Locating Global Suppliers
  • Evaluating Potential Suppliers
  • Supplier Selection
  • Supply Positioning
  • Spend Mapping
  • Quality

Determining Price

  • The use of competitive bidding processes, tenders and cost-value analysis in alliance relationships
  • Competitive Bidding
  • Tendering
  • Value Analysis
  • Cost analysis
  • Total Cost of Ownership
  • Capital Equipment Life Cycle Costing


  • In this session, we will examine the negotiation process, and practice appropriate tools and techniques
  • Negotiation preparation
  • Negotiation Strategy
  • Negotiation Tactics
  • Responding to negotiation ploys
  • Negotiation with other cultures
  • E-procurement

Purchasing Agreements and Contracts Implementing and Measuring Improvements

  • Purchasing Agreements and Contracts
    • The tools and techniques used in obtaining the best bids, and the legal issues involved in turning these into appropriate contracts
    • Formula pricing
    • Contract Clauses
    • Legal responsibilities of supplier and buyer
    • Formation of contracts
    • Warranties
  • Implementing and Measuring Improvements
    • The use of Key performance measures and Metric hierarchies to monitor and deliver improvements in purchasing improvements
    • Communications
    • Key Performance Measures
    • Purchasing Metrics
    • Implementing Change
    • Planning

Objectives of contract administration

  • Effective Contract Administration
  • The Most Critical Elements
  • Key Players in Contract Administration
  • Post-Award Conference
  • Analysis of The Contract
  • Establishing Major Deliverables
  • What Needs to Be Measured?

Outputs and contract types

  • Typical Outputs of Contract Administration
  • Monitoring Techniques
  • Identify the Risk
  • Responses to Risk
  • Contract Types
  • Administration in Cost Type Contracts
  • Economic Price Adjustments

Maintaining schedules and contract changes

  • Maintaining Contract Schedules
  • Expediting Techniques
  • Major Causes of Changes
  • Contract Price Changes
  • Evaluating Price Changes
  • Practical Considerations for Bonds and Guarantees
  • Types of Bonds and Guarantees

Issues in contract performance

  • Contract Terminations
  • Service Level Termination Event
  • What Constitutes a Breach?
  • Responding to A Breach
  • Right to Cover
  • Manuals and Drawings
  • Supplier Contractor Relations
  • Sub-contractor Issues

Acceptance and closeout

  • Warranties
  • Source Code Escrows
  • Forms of Payment
  • Progress Payments
  • Claims and Disputes
  • Negotiation of Claims and Disputes
  • Final Acceptance
  • Close-Out Procedures
  • Post Contract Review Meeting


Ref Location From To Cost
PL15 Kuwait 27-12-2020 31-12-2020