Tender procedures and management

Overview

In any organisation, a significant element of procurement and supply activity is based around decisions to source from a supplier. Hence, the selection of the correct suppliers is a vital contributor to overall organisational success.

The sourcing of projects, goods and services is both complex and highly risky. Large sums of money can be wasted through poorly designed tender processes. This course is designed to apply current thinking in a both practical and thought-provoking fashion to improve the tender process.

During the course we will consider the various procedures in place and ensure all processes are fit for purpose, whilst working within the restrictions of any tender law.

This course enables personnel with roles in procurement and supply to formulate selection criteria and sourcing strategies to ensure that the organisation will make the correct choice of suppliers. It explains options for sourcing and examines the key processes that can be applied to the analysis of potential suppliers and to ensure the development of ethically and socially responsible sourcing agreements

Who is it for:

Strategic Procurement Manager, Senior Category Manager, Supply Chain Manager, Head of Logistics and Operations Manager.

Senior Buyer, Chief Buyer, Category Manager, Contract Manager, Contract Officer, Logistics Manager and Supply Chain Executive. Expeditors, Buyers, and Procurement Executives

Pre- course activities

As we will be referring to case studies during the course it is important to read these before attending.

Method:

Training will be facilitated through a mixture of tutor lead discussions and syndicate work, particular reference to the case study provided in advance. Post training delegates will receive handbook highlighting the key models, tools and techniques refer to during the sessions

Equipment required:

Delegates would benefit from access to calculators and Microsoft Excel for use in day 2

Duration:

3 Days ( 24 hrs.)

The indicative content supplied below have been broken down into a series of two-hour sessions, whilst each session is timed at 2 hours this is minimum and overruns should be expected depending on the level of interactivity and time to complete the exercises.

Learning Outcomes

On completion of these workshops, delegates will be able to:

Understand options for sourcing requirements from suppliers
Analyse commonly used sources of information on market data that can impact on the sourcing of requirements from suppliers
Differentiate between approaches to the tender process
Identify methods commonly used to obtain information about potential supplies
Identify the criteria that can be commonly applied to the selection of supplies
Identify the criteria that can be commonly applied to the assessment of tenders
Understand compliance issues when sourcing from suppliers
Analyse how electronic systems can be used to help the sourcing of requirements from suppliers

Program Content

Day one

Session 1 (2 hours)

Identify the sourcing process in relation to procurement

Definitions of sourcing and tendering
The tender process and the procurement cycle
The difference between strategic and tactical sourcing and how they impact on the tender process
The importance of specifications for tender including the options available
The use of procurement objectives as a key element in the tendering process.
Implications of international sourcing and regulations affecting sourcing in a global marketplace
Risks in sourcing

Session 2 (2 hours)

Differentiate between approaches to the tender process

The use of competitive tendering processes
Single, dual, and multiple sourcing arrangements
The use of tendering approaches to tendering
Single stage vs two stage tendering
Direct negotiations with suppliers

Session 3 (2 hours)

Define selection criteria that can be commonly applied when sourcing requirements from suppliers

Typical selection criteria such as quality assurance, environmental and sustainability, technical capabilities, systems capabilities, labour standards, financial capabilities, and credit rating agencies
The importance of supplier financial stability and due diligence checks
Ratio analysis to make conclusions on profitability, liquidity, gearing and investment
The limitations of ratio analysis
Define award criteria that can be commonly applied when sourcing requirements from suppliers
Typical award criteria such as price, total life cycle costs, technical merit, added value solutions, systems, and resources
Balancing commercial and technical award criteria
Vendor or supplier performance management overview

Day Two

Session 4 (2 hours)

Identify methods commonly used to obtain information about potential supplies

Typical tender documentation & their uses
Confidentiality statements
conflict of interest statements
EOI, RFI, RFP, RFT/RFQ
Compiling data on expenditures on suppliers
Indices that measure economic data
Secondary data on markets and suppliers
Commodity pricing impacts
Analysing potential sales
Financial reports and supplier financial stability
The role of credit rating agencies
Identify the key processes used for obtaining quotations and tenders
Advertising requirements
Requests for information
The operation of tendering
Formalised arrangements for tendering
Decision criteria for dispensing with tendering
Response time
Use of bid bonds

Session 5 (2 hours)

Identify the criteria that can be commonly applied to the assessment of tenders

Supplier pre-qualification or criteria for supplier appraisal
Financial statements such as the profit and loss, balance sheet and cash flow statements
Measures and ratios of profitability, liquidity, gearing and investment
The limitations of ratio analysis
Added value issues
Developing selection criteria and communicating with all impacted stakeholder groups
LCB V MEAT criteria

Session 6 (2 hours)

Identify the criteria that can be commonly applied to the selection of supplies

Procedures for receiving, processing, and reviewing tenders
Assessment of supplier’s proposals
The use of weighted points systems for assessment
Recommending sources of supply
Tender boards

Day Three

Session 7 (2 hours)

The key legislative, regulatory, and organisational requirements when sourcing

The impact of timescales on tendering processes
Typical tender documentation their legal status.
Procedures for contract award
Regulatory bodies that impact on the private sector
Regulations that impact on product and safety standards

Session 8 (2 hours)

Compare the key legislative, regulatory, and organisational requirements when sourcing from international suppliers

Documentation relating to imports
Import duties and tariffs
Payment mechanisms
The use of INCOTERMS
Customs control and clearance
Currency regulations
Applicable law

Session 9 (2 hours)

Analyse how electronic systems can be used to help the sourcing of requirements from suppliers

E-requisitioning and purchase ordering systems
E-catalogues on intranets and the internet
The use of e-auctions and reverse auctions
E-tendering systems