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Course: Effective Purchasing, Tendering and Supplier Selection

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A five day intensive programme aimed at developing / strengthening the understanding of the crucial role played by the supplier in delivering customer satisfaction through an effective supply chain.

Participants will learn how to evaluate the performance of both potential and current suppliers. Asses the factors that comprise and effective tender and   conduct effective negotiations that bring long term value to the organisation.


The key highlights of the seminar are:

  • Planning

  • Tendering

  • Negotiation

  • Supplier Management

  • Measuring Performance

  • Communication


Seminar Objectives

  • Identify and reduce procurement risk through development of a plan of action

  • Enable improved performance from your existing suppliers through evaluation and performance measurement

  • Understand and strengthen your supply chain

  • Improve operating relationships within your organisation

  • Award contracts on the basis of measured performance / criteria

  • Provide a working understanding of the Negotiation process


Training Methodology

Combines interactive presentations, case studies, participant activities and exercises to maximise the impact of the learning experience. Delegates will have ample time to consider the ideas and apply the skills discussed. The Seminar will cover both practical and theoretical aspects of Purchasing.

Organisational Impact    

The organisation will benefit by :

  • Raise the profile of purchasing within the company

  • Improve the performance of established suppliers

  • Deliver materials and services at reduced cost and increased value

  • Retain money within the company through more productive negotiation

  • Improve the professionalism of those within the purchasing function

  • Drive improvement through identifying current problems and weaknesses


Personal Impact

 As a result of this programme the attendee will:

  • Understand the fundamental tools of effective purchasing

  • Operate with increased confidence when dealing with suppliers

  • Manage internal relationships more effectively

  • Better deliver improved negotiated outcomes

  • Use measurement as a key tool in driving supplier improvement

  • Understand the key elements of a well structured tender


Who Should Attend?

  • Purchasing professionals

    • Those involved in defining the specification and evaluating supplier performance

    • Those involved in preparing and analysing bids

    • Those with an involvement in supplier relationships

  • Those whose role involves negotiation with outside agencies


Programme Outline


Day 1 – What is the Role of Purchasing in the Company?

  • Introduction to Purchasing and its contribution to the organisation

  • What is the purpose of a business

  • Dealing with the problem of being a “ go between “

  • Purchasing process and cycle of procurement

  • Positioning purchasing within the company

  • Vision,  Mission and Value of Purchasing

  • Purchasing Structure

  • Where to find performance improvement


Day 2 – Developing the Purchasing Strategy

  • How to reach the internal customer

  • Developing Purchase agreements

  • Importance of being involved in creating the specification

  • Supplier selection methodology

  • Criteria for pre qualifying suppliers

  • Integrating the supplier selection process

  • Positioning your need and you value against the market

  • The role of ISO 9000


Day 3 – Selecting the Right Supplier & Evaluating Performance

  • Conditioning the supplier to meet your requirement

  • The total cost approach to purchasing

  • Analysing Cost

  • Analysing Value

  • Hidden costs

  • Life cycle costing

  • Using Price indices

  • Performance evaluation


Day 4 – Tendering and Analysing the Bid

  • Process needs

  • Types of tender

  • Electronic commerce /  E Auctions

  • Evaluating a bid objectively

  • Terms and Conditions of contract

  • Standard contract clauses

  • Methods of Payment

  • Expediting the agreement

  • What if the contract fails to deliver – legal issues


Day 5 – Negotiating the Contract and Preparing a Plan of Improvement Action for Purchasing

  • Defining negotiation

  • Obstacles to effective negotiation

  • Different styles of negotiation

  • The tools of the process

  • Phases of a negotiation

  • What to do and what not to do

  • Focus on four key areas of world class performance

  • Evaluating performance gaps


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