By the end of this programme, participants will be able to:
- Apply advanced purchasing management techniques to enhance efficiency, reduce costs, and improve productivity in the buying process.
- Strengthen supplier relationships and improve service delivery by utilizing effective negotiation strategies and careful planning.
- Understand the ethical and legal considerations of purchasing, managing risks, and ensuring compliance with regulations to minimize potential liabilities.
- Assess the methodology behind standard contracts and understand their benefits and practical applications for effective contract management.
- Develop strategies for minimizing organizational risk through comprehensive risk portfolio management and risk mitigation techniques.
- Recognize and manage key differences in contracts for products, services, and solutions to make informed, strategic procurement decisions.
DAY 1
Contract Risks in the Oil, Gas, and Petrochemical Industry
- Defining risk and understanding its impact on contracts
- Categories of risks: Identification from both parties’ perspectives
- Conducting a thorough risk assessment process
- Managing and mitigating risk across multiple contracts
- Addressing cross-cultural contracting challenges
- Qualifying and vetting suppliers: Key considerations
- Defining internal controls and determining their effectiveness
- Ensuring proportionality in risk and control allocation
DAY 2
Minimizing and Transferring Risk
- Transferring risk effectively through contract types
- Evaluating the pros and cons of firm fixed price vs. lump sum contracts
- Understanding award-fee pricing arrangements in risk management
- Managing indemnities and cross-indemnities in agreements
- The role of insurance in mitigating risks
- Exploring risk-sharing strategies and mechanisms in contracts
DAY 3
Risk-Related Terms and Conditions
- Understanding external events and their impact on contracts
- Force majeure clauses and their implications
- Addressing strikes and labour disputes in contract risk management
- Evaluating risk and title transfer clauses
- The use of ICC Incoterms in managing delivery-related risks
- Addressing assignment and novation clauses in contracts
- Risks associated with subcontractors and third-party relationships
- Resolving contract disputes between operators and contractors
DAY 4
Purchase Agreements and Contracting Methods
- Understanding crude and product distribution agreements
- Managing blanket orders and blanket purchasing agreements
- Master purchasing agreements: Benefits and considerations
- Exploring national, system, and option contracts in procurement
- Managing risks in purchasing/procurement card agreements
- Handling service contracts: Key elements and risk management practices
DAY 5
Negotiating Skills and Controlling Risk in Payments
- Negotiation strategies and tactics in purchasing management
- Enhancing negotiation skills for effective risk management
- Identifying and addressing fraud and corruption risks in agreements
- Remedies for addressing breaches and mitigating risks
- Managing warranties and post-agreement risk
- Final case study: Applying learned concepts to real-world scenarios
