Effective Procurement (Part 1)

 

Managing in a rapidly changing, dynamic environment requires discipline and skill. Nowadays, the field of procurement requires professionals to be adaptable and knowledgeable. It is also important to stay up to date with current best practices. If your staff need a refresher on fundamental procurement practices, this course will prove to be helpful.


Procurement basics

-          Review of procurement processes and key terminologies

-          Tools to ensure procurement requirements are understood and conveyed effectively (including linking to organizational needs)

-          Developing specifications and formats - statement of work, time of performance, price and payment terms, shipping destination and methods, performance requirements

 

Common procurement practices

-          Review of sourcing strategies (supplier identification, selection and contracting)

-          Request for proposal (RFP) processes versus Request for Quotation process

-          Evaluating technical capability and operational capacity

-          Conducting financial analysis (use of financial statement ratios such as current ratio, quick ratio, receivable turnover ratio, payables turnover ratio, debt to equity ratio)

 

Readings:

Why Investing in Procurement Makes Organizations More Resilient by Ramirez, McGinley, Churchhouse

https://hbr.org/2020/06/why-investing-in-procurement-makes-organizations-more-resilient

 

Leaders Can No Longer Afford to Downplay Procurement by Matthew Eatough

“If you were asked to identify the most strategic and valued unit in your corporation, the procurement department would probably not come to mind. ….”

 

https://hbr.org/2014/03/leaders-can-no-longer-afford-to-downplay-procurement?ab=at_art_art_1x4_s01

 

This is one of many training sessions prepared by AllaVolodina York University. They cover a variety of topics including finance, procurement, accounting, management, strategy. You can also read other articles suggested by AllaVolodina (York University) here: www.allavolodina.com

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