Negotiating, Implementing and Managing Successful Contracts: NIMSC™
Improving your Contractual Relationships and Delivering Successful Projects
Supply Chain Management (SCM) is now a fact of life and presents a phenomenal opportunity to bring value to your organization.
According to ISM-The Institute of Supply Management, the experts in Supply Management, has stated that every 1% that you reduce cost or achieve efficiency, this equates to 5% in additional sales.
One of the key ways that the procurement and supply management professional can optimize this value is in the contracting process. In contrast to your contracts and supplier agreements merely addressing what either party can’t do (based on violating key laws), what if your contracts also addressed what both parties can do (such as mutual cost-reductions and value-added programs)?
This NIMSC™ course explores the latest methodologies in contracting based on both academic research and actual practice in Fortune 100 firms which can both protect you legally, as well as add maximum value to your firm.
Benefits of Attending
- Evaluate various contract frameworks extensively
- Apply cost analytical techniques to your contracts
- Enhance contract drafting, safeguard interests and avoid disputes
- Communicate effectively with suppliers
- Deliver a successful project
- Develop a strategic negotiation plan which will set the pace for a successful contract
- Host a supplier conference to clearly roll-out the solicitation/contracting program
- Understand the various contract types and which one works best for your potential procurement
- Move from simply boilerplate (reactive language) to proactive language with “teeth,” such as how to drive volume rebates and cost savings
- Determine the best underlying contract law, be it the Shari’a, CISG or Unidroit.
- Strategically perform contract administration duties to ensure that the supplier is continuing to provide value initially defined in the contract
Suitability - Who should attend?
This highly practical and interactive course has been specifically designed for:
Procurement Heads, Directors and Managers
CEO’s/COO’s,
Chief Procurement Officers, Heads, Directors,
Managers, Senior Managers and Team Leaders from the following departments:
- Procurement (Direct and Indirect)
- Contracts
- Category Management
- Sourcing
- Purchasing
- Supply Chain
- Commodity
- Production
- Marketing & Operations
- Materials Management
- Legal
PLUS anyone who is responsible for / involved in supplier contract development, implementation or management, or anticipates being involved with the above in the future.
Outcome / Qualification etc.
Certification
This Negotiating, Implementing and Managing Successful Contracts (NIMSC™) course is certified by the Missouri State University International Leadership and Training Center (ILTC) who provide customized, non-credit training and vocational programs for international students and professionals.
The International Leadership and Training Center has a cooperative relationship to provide validation and certification for over fifty professional development programs.
These programs are available at leading professional training centers globally including BMTG (UK) Ltd
Training Course Content
Introduction to NIMSC
- Program purpose, objectives & why these best practices were selected
- Participant objectives
- Icebreaker: what are the type five challenges that your firm faces in contracting?
Module 1: Negotiation as a Prelude to Effective Contracting
- Overview of the negotiation process
- Establishing key objectives
- What is your power position? (Review the Porter Five Forces Model and the SWOTT v analysis)
- Achieving a Win-Win contract
Module 2: Developing the Negotiation Plan
- Understanding the key elements
- Laying the preparatory groundwork
- Developing strategies and tactics
- Analyzing buying and selling positions
- Incorporating the BAFO (Best and Final Offer) and BATNA (Best Alternative to a Negotiated Agreement)
- Documenting the Negotiation
Module 3: Precursor to Successful Contracts – The Procurement Process
- Review step 1 – communication of need
- Review step 2 – understanding requirements
- Review step 3 – selecting suppliers
- Review step 4 – determining price
- Review step 5 – placing orders
- Review step 6 – follow through
- Review step 7 – reconciling issues
- Review step 8 – maintaining records
Module 4: Precursor to Successful Contracts – The Solicitation Process
- The types of communication methods
- The types of solicitations/bids
- Understanding solicitation procedures/ concepts
- Bonds and other types of surety
- Complexities in the bidding process
- Utilizing a supplier conference (prior to a major bid/contract program)
Module 5: Contract Implementation – The Key Elements
- Comparing the offer and acceptance
- What constitutes a counter-offer
- The difference between bi-lateral and uni-lateral agreements
- The other key elements inc. consideration, competent parties and legal purpose
Module 6: Contract Implementation – Types of Obligation Documents
- The difference between the contract and the purchase order
- The difference between written and oral agreements
- What is a Letter of Intent?
- What is a Trading Partner Agreement?
Module 7: Contract Implementation – Contracts for Products
- The key types of fixed-price contracts
- Utilizing indexes to control price changes
- Review of sample fixed-price contract language
Module 8: Contract Implementation – Contracts for Services
- Understanding the SOW (Statement of Work) as a precursor to services procurement
- The key types of cost-based contracts
- Utilizing indexes to control price changes
- Review of sample cost-based contract language
- When to use a SLA – Service Level Agreement
- Review of Leasing agreements
Module 9: Contract Implementation – Understanding the Key Boilerplate Clauses
- The key intellectual property clauses
- The Indemnification clause
- The Confidentiality clause
- The key clauses addressing damages
- The Reservation of Rights clause
- The Force Majeure clause
- The key clauses addressing claims and protesting
- The clause addressing contract stoppage
- Other key clauses as applicable
Module 10: Contract Implementation – Putting “Teeth” in the Contract
- Develop the teeth clause: Price Change
- Develop the teeth clause: Volume Rebates Based On Business Growth
- Develop the teeth clause: Mutual Cost Reduction Programs
Module 11: Contract Management – Incorporating Price/Cost Analysis
- What is Cost Modeling?
- Comparing & contrasting cost types, cost behaviors & cost decisions
- Defining & reviewing examples of both Should Cost & Target Cost
- Understanding the elements & application of TCO- Total Cost of Ownership
Module 12: Contract Management – Incorporating Applicable Laws and Regulations
- Introduction to the CISG (Convention on Contracts for the Int’l Sale of Goods)
- The need for understanding the implementation of the CISG in Islamic countries
- The emergence and success of the CISG How the CISG relates to the Shari’a
- Utilizing the Unidroit as a simpler alternative to both the CISG and the Shari’a
Module 13: Contract Management – The Role of the Successful Contract Administrator
- Review of the five key objectives of contract administration
- Understanding the concept of Work Control
- Ensuring contract compliance
- Key supplier management concepts
- Conflict/dispute resolution
VAPNS™ Assessment and Certification
Only those who successfully complete the examination and participate effectively in the course case studies will receive the Missouri State University certificate in Negotiating, Implementing and Manging Successful Contracts: NIMSC™
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Reviews by course attendees
Average rating 4.4
Great Course. Information and application exercizes.
Great content and engaging instructor.
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