Long Term Price Agreement - A Practical Guide

Introduction

In today competitive environment, managing procurement and purchasing activities requires efficient time and while meet the end user needs in all functions such as production, operations, maintenance and facilities management. Once the Long Term Price Agreement (LTPA), other name "blanket agreement", or "framework agreementis available and being applied, half of the jobs have been conducted during execution periods. This is highly effective way to manage and control the requirement and service that required by end-user, both internally and externally.

Aims

This training course will ensure that participants understand how to decide rationally what materials and services to be contracted in the long terms periods and what not, how to select the best vendors starting from prequalification and execution of contracts and how to evaluate the delivered performance of all parties involved.

Objectives

Upon completion of this training participants will:

• Improve the understand basic long terms sourcing considerations
• Recognize the features, functions and benefits of Long Terms Price Agreement for their business.
• Understand how to monitor the vendor performance and relate the performance to penalties and rewards.Ensure that participants will get the most benefits from the result of establishment of Long Terms Price Agreement
• Improve Profit for the company time and money from irritation

Training Outline

Long Term Price Agreement (LTPA) Overview

• Introduction to program
• Introduction delegates
• The Concept of Purchasing
• The Concept of holding inventory
• Better way to manage requirement through LTPA

Basic Elements of LTPA

• Introduction to different contract types - when to apply what contract type?
• What is LTPA
• Parties involved
• Assessment of LTPA - current & required
• Defining Key Performance Indicators to monitor the performance of all parties involved in LTPA
• Reduce Risks by Multiple LTPAs
• How to relate payments and rewards to Vendor performance

Developing the LTPA

• The contracting cycle
• The tendering process - modern ways of tendering
• Costing the Materials and Services
• Choosing the right Vendors
• Writing the LTPA - LTPA templates
• Review the draft LTPA documents
• Implementing contract management & delivery - how to make it work
• Interactive exercise regarding review of existing contracts

Negotiating for the Long Term Price Agreement

• Everything is about expectations
• Defining the negotiation objective
• Determine your primary, alternative and elegant currencies
• Negotiation ploys and tactics - tips and tricks
• Interactive exercise and role play regarding negotiating

Final Workshop

• Development of a LTPA in an extensive workshop
• Wrap-up

Participants:

• Purchasing and Procurement Management professionals
• Inventory Staff, Operations Staff, Maintenance Staff, and Supply Chain staff
• Other employees in corporate or governmental organizations who have a responsibility for the Long Term Price Agreement

Course Leader :

Expert Trainer

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