Selecting Vendors

Contract Management Courses

You will learn to:

  • Identify and quantify the factors that help define the most appropriate vendor relationship
  • Conduct a make-buy analysis
  • Perform market research to identify an appropriate vendor
  • Determine the appropriate contract type to facilitate success
  • Negotiate and structure a contract to establish a win-win relationship

Course Synopsis

Determining when to use and how to select a vendor effectively can make or break even the most carefully planned project. Understanding the factors that determine the most appropriate vendor relationship is crucial to success. Proactive involvement in establishing the right requirements, developing the vendor relationship, selecting the supplier/vendor, determining the appropriate type of contract, maintaining the right performance oversight and establishing the contract terms are all essential ingredients of an effective sourcing process.

In this course, participants will be introduced to a unique model to help determine the most appropriate vendor relationship to address your various project needs. The course covers what project managers need to know to influence the contracting process to establish more effective, long-term, win-win relationships with capable, compatible ‘partners’. It explores activities that are essential to effective vendor selection: articulating the right requirement, building the right relationship, finding the right partner, structuring the right contract and maintaining the right attitude between the parties.

The course will examine the pros and cons of three alternative contractual relationships: arms-length, collaborative and alliance. Emphasis is placed on the first three phases of the Collaborative Sourcing Model: Strategy and Planning, Search and Select, and Negotiations and Contracts. A case study and appropriate exercises are used throughout the course to apply the lessons learned to real-world scenarios.

Course Topics

  • Strategy and Planning: Business Imperatives
    • Business needs analysis 
    • Requirements development
    • Stakeholder identification
    • Make-or-buy decision
    • Risk in strategy and planning
    • Sourcing strategy
  • Strategy and Planning: Types of Relationships
    • Traditional sourcing
    • Formal business alliance
    • Collaborative
      • Benefits
      • Foundation
      • Damaging behaviours
    • Vendor relationship model
  • Search and Select: Finding Qualified Sources
    • Prerequisites
    • Characteristics
    • Where to look
  • Search and Select: Best Value Source Selection Process
    • Best-value source selection
    • Presolicitation phase
      • Fairness
      • Redefining requirements
      • Validate sourcing strategy
      • Evaluation criteria
      • Develop request for proposal
    • Solicitation phase
      • Clarify requirements
      • Evaluate proposals
      • Conduct discussions
    • Award phase
      • Evaluate revised proposals
      • Cost-vs.-technical trade-off
      • Assess risk 
  • Search and Select: Qualifying Vendors
    • Prerequisite for successful partnering
    • Due diligence in source qualification
    • Qualities of successful relationships
      • Combined strength and synergy
      • Compatibility
      • Commitment
      • Capacity and expertise
      • Performance and management systems
      • Integrity
      • Financial soundness
  • Contract and Negotiations: Finalising Contract Financial Structure 
  • Uncertainty and risk in contracting
    • Categories and types of contracts
    • Distribution of risk by contract type
    • Effective incentives
    • Factors in selecting contract types
  • Contract and Negotiations: Ts, Cs, and Master Agreements
    • Terms and conditions
    • Proprietary and confidential information
    • Taxes and duties
    • Master agreements
      • Types
      • Common elements
      • Specific requirements
  • Contract and Negotiations: Negotiating and Closing the Deal
    • Negotiations and business need
    • Negotiation approaches
    • Phases of the negotiation process
    • Getting to yes (win-win negotiations)
    • Negotiation planning
    • Objectives
      • Strategy
      • Preparation
  • Startup and Transition: Maintaining the Collaborative Relationship
    • The right performance/oversight—from adversaries to partners
    • Performance/oversight management process
      • Contract performance plan
      • Outsourcing contracts
    • Transition phase—key activities
    • Requirements for success

   Download course description

Strategy Execution’s Course Materials Go DIGITAL!

This new and exciting move has been carefully designed to help enhance your learning experience.

Click HERE to learn more about our digital materials’ special features and benefits.


Open enrolment course information

Professional Development Units (PDUs): 22.5

Duration: 3 days

Course Dates (click on a date to register) :

Expression of Interest
No dates for this course are currently scheduled.
Please contact us at +61 2 8999 9162 or email for more information or to register your interest.

This course is available as an in-house corporate training. To find out more about corporate training for your organisation, contact us.