PROCUREMENT ETHICS, ROLES, RESPONSIBILITIES, SUPPLIER SOURCING, TAXATIONS, AND LEGALITIES

INTRODUCTION PROCUREMENT ETHICS, ROLES, RESPONSIBILITIES, SUPPLIER SOURCING, TAXATIONS, AND LEGALITIES

Procurement Ethics, Roles, Responsibilities, Supplier Sourcing, Taxation, and Legalities is a comprehensive course designed to equip procurement professionals with the knowledge and skills to conduct procurement activities ethically, legally, and effectively. 

The course covers the full spectrum from ethical procurement principles to practical supplier sourcing strategies, taxation implications, and legal frameworks governing procurement.

COURSE OBJECTIVES

1. To develop a deep understanding of ethical procurement practices and their importance in organizational success.
2. To clarify the roles and responsibilities of procurement professionals in managing supplier relationships and sourcing.
3. To provide practical knowledge on supplier sourcing strategies aligned with organizational goals.
4. To explain taxation and legal considerations relevant to procurement activities.
5. To enhance participants’ ability to make informed, compliant, and ethical procurement decisions.

LEARNING OUTCOMES

1. Apply ethical principles and transparency in all procurement processes.
2. Understand and execute the roles and responsibilities of procurement professionals effectively.
3. Develop and implement supplier sourcing strategies that ensure fairness and value for money.
4. Navigate taxation requirements and legal issues impacting procurement contracts and transactions.
5. Manage supplier relationships with compliance to legal and ethical standards.
6. Recognize and mitigate risks related to procurement ethics and legal issues.

METHODOLOGY

• Interactive Lectures: Engaging presentations to introduce key concepts.
• Case Studies: Real-world examples to illustrate ethical dilemmas and best practices.
• Group Discussions: Collaborative sessions to encourage sharing of experiences and insights.
• Role-Playing Exercises: Simulations to practice negotiation and decision-making skills.
• Quizzes and Assessments: Tools to evaluate understanding and retention of course material.

WHO SHOULD ATTEND?

• Procurement and supply chain professionals seeking to enhance ethical and legal procurement skills.
• Managers and team leaders responsible for supplier sourcing and contract management.
• Compliance officers and legal advisors involved in procurement oversight.
• Anyone involved in purchasing, supplier evaluation, or contract negotiation.
• Professionals aiming to align procurement practices with organizational governance and sustainability goals. 

EVENT TAGLINE

“Navigating the Procurement Landscape with Integrity and Expertise”

COURSE OUTLINE

DAY 1: FOUNDATIONS OF ETHICAL PROCUREMENT & ROLES

Module 1: Introduction to Modern Procurement & its Strategic Importance

• Defining Procurement: Beyond Purchasing
• The Evolving Role of Procurement in Organizational Strategy
• Value Creation through Strategic Procurement
• Key Trends in Global Procurement (e.g., digitalization, sustainability)

Module 2: Procurement Ethics: Principles and Best Practices

• Understanding Procurement Ethics: Core Values & Principles (Integrity, Transparency, Fairness, Accountability)
• Malaysian Anti-Corruption Commission Act 2009 (MACC Act) and its implications for procurement.
• Common Ethical Dilemmas in Procurement:
  1. Conflicts of Interest (personal, organizational)
  2. Bribery and Kickbacks (Public vs. Private Sector)
  3. Gifts and Hospitality Policies
  4. Confidentiality and Information Sharing
  5. Collusion and Bid Rigging
• Developing and Implementing a Procurement Code of Conduct
• Establishing a Culture of Integrity: Reporting Mechanisms, Whistleblower Protection

Module 3: Roles and Responsibilities of Procurement Professionals

• Defining the Procurement Professional: Competencies and Attributes
• Key Roles in the Procurement Lifecycle: Needs Identification, Sourcing, Negotiation, Contracting, Supplier Management
• Internal Stakeholder Management: Aligning with User Departments, Finance, Legal, and Management
• External Stakeholder Management: Building Trust with Suppliers and Partners
• Accountability and Performance Measurement in Procurement

DAY 2: STRATEGIC SUPPLIER SOURCING & TAXATION IN PROCUREMENT

Module 4: Strategic Supplier Sourcing

• The Strategic Sourcing Process: From Needs Assessment to Contract Award
• Market Research and Supplier Identification
• Supplier Pre-Qualification and Vetting:
• Financial Health Assessment
• Capacity and Capability Analysis
• Reputation and Ethical Track Record (Due Diligence)
• Sourcing Methodologies:
  1. Request for Information (RFI)
  2. Request for Proposal (RFP) / Tender
  3. Request for Quotation (RFQ)
  4. Direct Negotiation
  5. E-Procurement Platforms and Reverse Auctions
• Developing Effective Evaluation Criteria (Cost, Quality, Delivery, Sustainability, Innovation, Risk)
• Supplier Relationship Management (SRM): Building Collaborative Partnerships
  1. Supplier Segmentation
  2. Performance Monitoring and Feedback
  3. Joint Value Creation Initiatives

Module 5: Taxation in Procurement (Malaysian Focus with International Considerations)

• Introduction to Malaysian Tax Landscape Relevant to Procurement
• Service Tax (SST) Act 2018:
  1. Understanding Taxable Services and Exemptions
  2. Impact on Domestic and Imported Services
  3. Registration Requirements for Service Providers
  4. Compliance and Documentation for SST
• Stamp Duty Act 1949:
  1. Applicability to Procurement Contracts and Agreements (e.g., Sale & Purchase Agreements, Loan Agreements)
  2. Rates and Calculation Methods
  3. Importance of Proper Stamping for Legal Enforceability
• Income Tax Implications on Supplier Payments (e.g., Withholding Tax for non-residents)
• Understanding Tax Invoices and Their Importance
• Cross-Border Procurement and Customs Duties (Brief Overview)
• Tax Considerations in International Procurement Contracts

Module 6: Legal Aspects of Procurement Contracts

• Fundamentals of Contract Law in Malaysia (Contracts Act 1950): Offer, Acceptance, Consideration, Intention to Create Legal Relations
• Key Elements of a Procurement Contract:
  1. Scope of Work/Goods
  2. Pricing and Payment Terms
  3. Delivery and Performance Schedules
  4. Warranties and Guarantees
  5. Intellectual Property Rights
  6. Confidentiality Clauses
  7. Indemnity and Limitation of Liability
  8. Force Majeure
  9. Governing Law and Jurisdiction (Malaysian and International)
  10. Termination Clauses
• Tender Documents and Legal Bindingness (ITB, RFP, RFQ)
• Variations and Amendments to Contracts
• Contract Management Best Practices: Monitoring, Compliance, and Dispute Resolution

Module 7: Legalities in International Procurement

• Understanding Incoterms 2020: Roles, Responsibilities, and Risk Transfer in International Trade
• Cross-Border Contractual Considerations: Governing Law, Dispute Resolution Mechanisms (Arbitration, Litigation)
• International Anti-Bribery and Corruption Legislation (e.g., UK Bribery Act, FCPA)
• Trade Compliance: Sanctions, Export Controls, and Dual-Use Goods
• Introduction to International Procurement Frameworks (e.g., UNCITRAL Model Law on Public Procurement, World Bank Procurement Framework – where relevant to private sector best practices)

Module 8: Risk Management in Procurement

• Identifying and Assessing Procurement Risks:
  1. Supplier Risk (Financial instability, performance issues, ethical breaches)
  2. Market Risk (Price volatility, supply shortages)
  3. Operational Risk (Delivery delays, quality control)
  4. Legal & Compliance Risk (Contractual disputes, regulatory changes)
  5. Reputational Risk
• Strategies for Mitigating Procurement Risks:
  1. Diversification of Suppliers
  2. Robust Contractual Clauses
  3. Contingency Planning
  4. Insurance
  5. Technology and Data Analytics for Risk Monitoring
• Building a Resilient Supply Chain