Course Overview

This Strategic Procurement and Inventory Management System with Introduction to Contract Management 2-day hybrid programme provides a practical understanding of Strategic Procurement, Supplier Management, Inventory Management and Contract Management. Participants will learn how these functions integrate to achieve cost competitiveness, operational efficiency, supply continuity and sustainable business performance, supported by practical tools, case studies, calculations, simulations and real-world supply chain examples.

Course Objectives

• Understand the strategic role of procurement, sourcing and the Procure-to-Pay process.
• Develop effective procurement strategies, spend analysis, supplier segmentation and category management.
• Apply supplier selection, evaluation, relationship management and performance KPIs.
• Understand Total Cost of Ownership (TCO) and procurement cost-management techniques.
• Apply key inventory management and classification techniques, including ABC, FSN, EOQ, reorder levels, safety stock and inventory turnover.
• Identify and manage overstock, stock-outs, excess inventory and supply risks.
• Improve collaboration between Procurement, Planning, Warehouse, Logistics, Finance and Suppliers.
• Understand the fundamentals of contract management, contractual obligations, KPIs, SLAs and compliance.
• Recognise and manage contract risks, variations, disputes and claims.
• Integrate procurement, inventory and contract management to improve cost, service, efficiency and business continuity.

Methodology

• The Procurement programme uses a practical and interactive hybrid learning approach combining:
• Instructor-Led Presentation
• Clear explanation of procurement, inventory and contract management concepts.
• Case Studies
• Realistic business scenarios based on common procurement and supply chain challenges.
• Practical Exercises
• Participants perform calculations and analyse procurement/inventory data.
• Group Discussions
• Participants share experiences and identify solutions to workplace challenges.
• Simulations
• Participants experience procurement decision-making, supplier evaluation and inventory control situations.

Who Should Attend

• Procurement Managers
• Purchasing Managers
• Procurement Executives
• Purchasing Executives
• Buyers
• Procurement Officers
• Sourcing Executives
• Procurement Specialists
• Supply Chain Managers & Executives
• Materials Managers & Planners
• Inventory Controllers
• Warehouse Managers & Supervisors
• Logistics Personnel
• Contract / Commercial Personnel
• Junior Procurement Managers
• Professionals involved in Supplier & Inventory Management
• Personnel newly assigned to Procurement responsibilities

Course Content

Day 1 – Strategic Procurement & Inventory Management

Module 1 – Strategic Procurement Fundamentals

1.1 Understanding Strategic Procurement

• Procurement vs Purchasing Vs Sourcing
• Tactical vs Strategic Procurement
• Role Of Procurement In Supply Chain Management
• Procurement’s Contribution To Business Profitability
• Procurement Objectives: Cost, Quality, Delivery, Service And Risk

1.2 The End-to-end Procurement Process

• Purchase Requisition
• Sourcing
• RFQ / RFP / Tender
• Supplier Evaluation
• Negotiation
• Purchase Order
• Order Fulfilment
• Goods Receipt
• Invoice Verification
• Payment
• Supplier Performance Review

Module 2 – Procurement Strategy And Sourcing

2.1 Developing A Procurement Strategy

• Spend Analysis
• Demand Analysis
• Supply Market Analysis
• Make-or-buy Considerations
• Local Vs International Sourcing
• Single Vs Multiple Sourcing
• Strategic Sourcing Principles

2.2 Supplier Segmentation

• Supplier Categorisation
• Strategic Suppliers
• Critical Suppliers
• Leverage Suppliers
• Routine Suppliers
• Supplier Risk Assessment

2.3 Category Management Introduction

• What Is Category Management?
• Category Spend Analysis
• Market Intelligence
• Category Strategy
• Supplier Strategy

Module 3 – Supplier Selection And Supplier Relationship Management

3.1 Supplier Evaluation

• Supplier Qualification
• Technical Evaluation
• Commercial Evaluation
• Quality Evaluation
• Delivery Capability
• Financial And Operational Capability

3.2 Supplier Evaluation Matrix

• Quality
• Cost
• Delivery
• Service
• Capacity
• Compliance
• Risk

3.3 Supplier Relationship Management

• Transactional vs Strategic Relationships
• Supplier Collaboration
• Supplier Development
• Supplier Performance Review
• Supplier Escalation

Module 4 – Procurement Cost Management

4.1 Understanding Procurement Cost

• Purchase Price Vs Total Cost
• Direct And Indirect Procurement Costs
• Hidden Procurement Costs
• Logistics And Transportation Costs
• Quality-related Costs
• Inventory Carrying Costs

4.2 Total Cost Of Ownership – TCO

• Purchase Price
• Freight
• Duties And Taxes
• Handling
• Quality Costs
• Inventory Costs
• Administration Costs
• Disposal / End-of-life Costs

4.3 Procurement Savings

• Price Reduction
• Volume Consolidation
• Supplier Negotiation
• Specification Optimisation
• Process Improvement
• Demand Management

Module 5 – Inventory Management Fundamentals

5.1 Understanding Inventory

• Raw Materials
• Packaging Materials
• Work-in-progress
• Finished Goods
• MRO / Spare Parts
• Safety Stock

5.2 Inventory Management Objectives

• Availability
• Working Capital Optimisation
• Service Level
• Inventory Accuracy
• Minimising Obsolete And Slow-moving Stock

5.3 Inventory Costs

• Ordering Cost
• Holding / Carrying Cost
• Shortage Cost
• Obsolescence Cost
• Warehouse Cost

5.4 Inventory Performance Kpis

• Inventory Turnover
• Days Inventory Outstanding
• Stock Accuracy
• Service Level
• Stock-out Rate
• Excess Inventory
• Slow-moving Inventory
• Obsolete Inventory

Module 6 – Inventory Classification And Control Techniques

6.1 ABC Analysis

• Annual Consumption Value
• A, B And C Classification
• Different Control Strategies

6.2 FSN Analysis

• Fast-moving
• Slow-moving
• Non-moving Inventory
• Identifying Obsolete Inventory
• Combining ABC + FSN

6.3 Other Classification Techniques

• Ved
• Hml
• Sde
• Criticality Analysis

Day 2  Inventory System, Planning & Introduction To Contract Management

Module 7 – Inventory Planning And Replenishment

7.1 Inventory Replenishment Concepts

• Reorder Point
• Minimum Stock
• Maximum Stock
• Safety Stock
• Lead Time
• Demand Variability

7.2 Economic Order Quantity – EOQ

• EOQ Concept
• Ordering Cost
• Holding Cost
• EOQ Calculation
• Practical Application

7.3 Reorder Level

• Average Demand
• Lead Time
• Safety Stock
• Reorder Point Calculation

Module 8 – Inventory Management System And Digitalisation

8.1 Inventory Management System

• Master Data
• SKU Management
• Purchase Orders
• Goods Receipt
• Inventory Transactions
• Stock Adjustments
• Cycle Counting
• Inventory Reconciliation

8.2 ERP / Inventory System Concepts

• Procurement Integration
• Warehouse Integration
• Finance Integration
• Planning Integration
• Supplier Data

8.3 Inventory Accuracy

• Physical Stock Vs System Stock
• Root Causes Of Discrepancies
• Cycle Counting
• Stock Reconciliation
• Inventory Controls

8.4 Digital Inventory Management

• Barcode
• Rfid
• Warehouse Management Systems
• Automated Replenishment
• Inventory Dashboards
• Data Analytics

Module 9 – Demand, Supply And Inventory Planning

9.1 Demand And Supply Alignment

• Demand Forecasting
• Forecast Accuracy
• Supply Planning
• Lead-time Management
• Supplier Capacity

9.2 Managing Inventory Risks

• Supply Disruption
• Long Lead Time
• Supplier Dependency
• Demand Fluctuations
• Quality Issues
• Transportation Disruption

9.3 Preventing Stock-outs And Excess Inventory

• Root Cause Analysis
• Safety Stock Optimisation
• Supplier Collaboration
• Forecast Sharing
• Inventory Visibility

Module 10 – Introduction To Contract Management

10.1 Fundamentals Of Contract Management

• What Is A Contract?
• Procurement Contract Vs Purchase Order
• Contract Lifecycle
• Pre-contract, Execution And Post-contract Stages

10.2 Key Contract Components

• Scope Of Supply/Services
• Price And Payment Terms
• Delivery Requirements
• Quality Requirements
• Service Levels
• Kpis
• Warranty
• Liability
• Insurance
• Confidentiality
• Termination
• Dispute Resolution
• Force Majeure

10.3 Contract Types – Introduction

• Fixed-price Contracts
• Cost-reimbursable Contracts
• Time And Material Contracts
• Framework Agreements
• Long-term Supply Agreements

Module 11 – Contract Performance And Supplier Compliance

11.1 Managing Contract Deliverables

• Scope Compliance
• Delivery Performance
• Quality Compliance
• Service Performance
• Documentation

11.2 Contract Kpis And Slas

• On-time Delivery
• Quality Performance
• Response Time
• Fill Rate
• Service Level
• Cost Performance

11.3 Contract Monitoring

• Contract Review Meetings
• Performance Dashboards
• Supplier Scorecards
• Non-conformance
• Corrective Actions

Module 12 – Contract Risks, Variations And Disputes

12.1 Common Contract Risks

• Price Escalation
• Supply Disruption
• Specification Changes
• Delivery Delays
• Quality Failures
• Non-performance
• Regulatory Changes

12.2 Contract Variations

• Change Requests
• Price Changes
• Scope Changes
• Quantity Changes
• Delivery Changes
• Approval Process

12.3 Claims And Disputes

• Identifying Contractual Obligations
• Documentation And Evidence
• Communication And Escalation
• Corrective Actions
• Dispute Resolution Mechanisms

Module 13 – Integrating Procurement, Inventory & Contract Management

Participants Will Work On A Simulated Procurement And Inventory Scenario Involving:

• Multiple Suppliers
• Different Purchase Prices
• Different Lead Times
• Minimum Order Quantities
• Supplier Quality Issues
• Inventory Holding Costs
• Safety Stock Requirements
• Stock-out Risks
• Contractual Delivery Requirements