We will begin Unit 4 with one of the most important dimensions of procurement, the process of obtaining, selecting and evaluating offers and preparing the contract. The second part of the unit explores the management of the unpleasant and difficult situations of contractual default and disputes. The unit completes with a brief look at the concept of logistics and their important role in procurement.
Unit 4 is made up of 3 sections:
This section explains briefly how to obtain and select offers from suppliers in a professional manner. It examines the criteria to evaluate offers and the essentials of a contract and legal commitment. INCOTERMS and the transfer of risks are explored. Techniques and how a well-prepared negotiation can substantially increase chances of success will also be discussed.
This section focuses on a set of issues that relate to unpleasant situations of contractual default and disputes. Risks and circumstances of defaults are examined. Basic types of dispute resolution methods will also be explored.
The section examines the involvement of Procurement in Logistics management. Evaluation and selection of transportation modes are discussed here. The section ends with terms and conditions of transportation.