International business means carrying on business activities beyond national boundaries. These activities normally include the transactions of economic resources such as goods, capital, services & international production. In the present day world it has become indispensable for any country.

To promote international trade, many development organizations such as WTO (World Trade Organization), IMF, WB & UN, UNCTAD are playing a key role. To support the growth & mitigate conflict in the region, various types of Regional Integration have been set up.

Most of the multilateral development organizations listed above is part of the UN system of Organizations. Multilateral Development Banks such as WB, ADB etc. provide concessional finance to developing countries for development projects.

In addition UN system of organizations undertakes wide range of development projects worldwide. This leads to procuring goods and services in the amount of nearly $50 billion every year. These organizations follow their procurement processes which act as a model for many of the countries.

International Business especially importing goods call for understanding the selection of an overseas supplier, preparing the Import Contract, establishing Letter of Credit and custom clearance including shipping documents.

15-25% of GDP in developing countries is spent each year buying goods and services for public projects. From schools and hospitals, to power plants and dams, this means big budgets and complex plans. It also means ideal opportunities for corruption.

This increases the cost of services to the public. But corruption in public procurement isn’t just about money. It also reduces the quality of work or services. And it can cost lives. People in many countries have paid a terrible personal price for collapsed buildings and counterfeit medicines.

To mitigate above risks, there is an urgent need to address various governance risk issues. In addition, professionalizing the procurement function will go a long way in building the highest standard of ethics during procurement or execution of such projects. Leveraging technology to make the system more transparent will also help in prevention of corruption.

Contract Management is the process of systematically and efficiently managing contract development, implementation, and administration for maximizing financial and operational performance and managing inherent risk.

Contract management encompasses the life cycle of a contract and involves many stakeholders including, but not limited to the contracting officer, the client department and the supplier.

Contract management can be divided into four distinct phases:

• Pre-contractual (planning)
• Contracting (bidding and awarding of contract)
• Contract Administration (after the contract is awarded)
• Post-Contractual (close out, warranty and audit)

In general, the level of effort required for contract management will vary depending on the value and complexity of the procurement. During this webinar, We will cover various issues in Contract Management including Amendment of Contract, Breach of Contract & Dispute Resolution.

In addition the emphasis will be placed on receipt, storage and issuance of materials. The last link of Contract Management chain is payment to suppliers. Under this we will cover Payment Terms and Mode of Payment.

Strategic sourcing is an institutional procurement process that continuously improves and re-evaluates the purchasing activities of a company. Across the world, there is a significant pressure on Procurement Professionals to deliver cost savings irrespective of external market conditions.Strategic Sourcing presents a methodical process-based approach to maximize internal Procurement efficiency as well as deliver incremental cost savings.

At ISM India, we understand that our member organizations are at various stages in their Strategic Sourcing endeavours. Irrespective of the size and maturity of the Procurement function in your organization, this represents an opportunity to reflect and re-calibrate or to understand and implement the Strategic Sourcing process.

This will be the first in a series of monthly Webinars on Strategic Sourcing.The first webinar will introduce the concept and benefits of Strategic Sourcing. We will then proceed to delve deeper into each of the individual areas (Spend Analysis, Supply Market Analysis, Sourcing Event and Negotiation, Contracting & Supplier On-boarding and Supplier Performance Management) in future webinars.