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Onsite Seminar

Strategic Supply Management

Outsourcing - Competitive Bidding and Contracting: Developing Critical Process Competencies


What and how to outsource is one of the most important decisions that an organization makes. It is a major cost containment strategy that is being applied across all business activities. As a result supply and contracting organizations are increasing their bidding and contracting skill sets to gain maximum advantage and reduced risk when outsourcing activities. This program focuses on the areas of expertise needed by those involved in the outsourcing process so that the primary objectives of outsourcing will be met.

Learning Objectives
  • Increased skill sets in outsourcing
  • Criteria for outsourcing
  • Outsourcing Options
  • Elements of a good outsourcing process
  • Important contract clauses
  • The meaning of fair and reasonable pricing
  • Types of Statement of Work
  • About Performance Based Service Contracts
  • Contract types to transfer risk
  • New techniques in bid evaluation
  • Payment methods
  • Economic Price Adjustments for Long Term Agreements
Seminar Outline
  1. Why outsource, criteria for outsourcing, what can be outsourced, International labor rates, outsourcing options,
  2. Political implications of outsourcing, sustainability and social responsibility, intelligent customer capability
  3. Dealing with the "Come- to- Knows", the critical statement of work, types of statement of work, performance based service contracts
  4. Major objectives of the contract, risk assessment, contract types to transfer risk, economic price adjustments for long term agreements
  5. Identifying contract clauses, the integration clause, the critical acceptance clause, liquidated damages clause, warranties
  6. Elements of a best practices outsourcing & competitive bidding process, developing tender evaluation criteria, expressive bidding
  7. Fair and reasonable pricing, total cost of ownership, what does your force majeure clause cover, dealing with contract changes
  8. Payment methods, advance and progress payments, ways in which contracts end types of bonds & guarantees

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