The document outlines the essential components of global procurement management, including contract management, supplier relationship management, and customer relationship management. It emphasizes the importance of clear contracts, effective communication, and the use of technology to enhance efficiency and transparency. Additionally, best practices and numerical examples illustrate the impact of strategies on procurement outcomes.

1. Global Procurement
Management
Teaching Content for MBA Graduates

2. Contract Management in Global
Procurement
• Introduction:
• - Importance of contract management in global procurement.
• Key Components:
• - Contract lifecycle management.
• - Legal and compliance considerations in international contracts.
• - Negotiation strategies.
• Example:
• - A U.S.-based company sources raw materials from an Asian supplier. The contract includes clauses for price adjustments
based on currency exchange rates.
• Numerical Example:
• - A contract breach leads to a penalty of $50,000.
• - Annual contract value: $500,000.
• - Penalty as a percentage of contract value: 10%.
• Best Practices:
• - Clearly define terms and conditions.
• - Regularly review contracts for relevance and compliance.
• - Utilize contract management software.

3. Supplier Relationship Management
(SRM)
• Introduction:
• - Building and maintaining mutually beneficial relationships with suppliers.
• Key Elements:
• - Supplier segmentation.
• - Performance monitoring and collaboration.
• Example:
• - An electronics manufacturer works closely with a supplier to co-develop a new component, reducing
production time by 20%.
• Numerical Example:
• - Total procurement spend: $10M.
• - Spend with strategic suppliers: $6M.
• - Percentage of strategic spend: 60%.
• Tools and Techniques:
• - Implementing SRM software for better communication and analytics.

4. Managing Customer Relationships
in Procurement
• Introduction:
• - Balancing customer requirements with procurement objectives.
• Strategies:
• - Communication, Transparency, Trust Building.
• Example:
• - A retailer ensures its suppliers meet delivery timelines to stock seasonal products,
enhancing customer satisfaction.
• Numerical Example:
• - Customer complaints about late deliveries: 30.
• - Total deliveries: 1,000.
• - Late delivery percentage: 3%.

5. Managing Contractors and
Subcontractors in Procurement
• Introduction:
• - Effective management of contractors and subcontractors.
• Best Practices:
• - Define clear roles and responsibilities.
• - Set measurable performance targets.
• - Conduct regular audits.
• Example:
• - A construction firm manages subcontractors for a skyscraper project.
• Numerical Example:
• - Project delay costs: $10,000/day.
• - Total delay: 5 days.
• - Total additional cost: $50,000.

6. Challenges in Global Procurement
Management
• Introduction:
• - Overview of key challenges.
• Key Challenges:
• - Cultural differences, Logistics, Regulatory compliance.
• Example:
• - A company importing goods from multiple countries deals with delays caused by
customs regulations.
• Numerical Example:
• - Transportation cost increase due to fuel price surge: 15%.
• - Original cost: $200,000.
• - New cost: $230,000.

7. Best Practices in Global
Procurement
• Frameworks:
• - Ethical procurement and risk management frameworks.
• Example:
• - A company implements a supplier code of conduct.
• Numerical Example:
• - Annual procurement spend: $5M.
• - Savings from ethical sourcing: 10%.
• - Total savings: $500,000.

8. Role of Technology in Global
Procurement
• Technologies:
• - AI and Machine Learning for forecasting.
• - Blockchain for transparency.
• - Automation for efficiency.
• Examples:
• - A company reduces procurement cycle time by 30% using robotic process
automation (RPA).
• Numerical Example:
• - Original procurement cycle: 10 days.
• - Reduced cycle: 7 days.
• - Time saved: 3 days.