Creating Procurement Policies, Processes, and SLAs

Supply Chain Management and Procurement October 25, 2025
Enquire About This Course

Introduction

This foundational course equips procurement leaders and specialists with the essential skills to design, document, and implement effective **Procurement Policies and Processes**. A robust policy framework ensures compliance, controls spending, and mitigates risks such as fraud and maverick spending. We will guide participants through the creation of a Procurement Policy Manual, the standardization of the Purchase-to-Pay (P2P) process, and the development of clear Service Level Agreements (SLAs) for internal and external customers. The focus is on establishing a standardized, auditable, and high-governance environment for all organizational spend.

Objectives

Upon completion of this course, participants will be able to:

  • Develop and structure a comprehensive **Procurement Policy Manual** and Code of Conduct.
  • Design and map a standardized, end-to-end Purchase-to-Pay (P2P) process flow.
  • Establish clear **Delegation of Authority (DoA)** rules and spending limits.
  • Draft and implement effective **Service Level Agreements (SLAs)** for internal business units.
  • Define control points and segregation of duties (SoD) to prevent fraud and maverick spending.
  • Create clear, auditable documentation and record-keeping requirements for all procurement activities.
  • Develop a continuous improvement cycle for policy review and process enforcement.
  • Design a communication and training plan to ensure organizational adoption of new policies.

Target Audience

  • Procurement Directors and Heads of Function
  • Compliance and Internal Audit Officers
  • Process Improvement and Transformation Managers
  • Senior Managers responsible for Governance and Risk
  • Finance and Accounts Payable Managers
  • ERP/P2P System Implementation Leads

Methodology

  • Group activity: mapping and redesigning a high-risk P2P sub-process (e.g., emergency purchasing).
  • Individual exercise: drafting key sections of a Procurement Policy Manual (e.g., DoA matrix).
  • Case study analysis of a major fraud event due to poor control design.
  • Workshop on developing measurable KPIs for an internal procurement SLA.
  • Discussions on the political challenges of enforcing policies across business units.

Personal Impact

  • Expertise in designing legally compliant and auditable procurement processes.
  • Enhanced ability to define and enforce organizational spending controls.
  • Confidence in leading policy implementation and change management initiatives.
  • Recognition as a specialist in governance, risk, and compliance (GRC) for procurement.
  • Skills to measure and report on procurement's service delivery via SLAs.

Organizational Impact

  • Substantial reduction in maverick spending and increased cost control.
  • Minimized risk of fraud, corruption, and regulatory non-compliance.
  • Improved operational efficiency through standardized P2P process flows.
  • Clearer expectations and service delivery between procurement and internal customers.
  • A robust, auditable framework that supports financial governance.

Course Outline

Unit 1: Foundations of Procurement Governance

Policy Development
  • The strategic imperative for formal procurement policies and procedures
  • Key components of a Procurement Policy Manual (Purpose, Scope, Ethics)
  • Aligning procurement policy with corporate governance and financial controls
Controlling Spend
  • Establishing and communicating the **Delegation of Authority (DoA)** matrix
  • Defining and controlling maverick spending and ensuring mandatory PO usage

Unit 2: Designing the P2P Process

Process Mapping and Standardization
  • Mapping the "As-Is" vs. "To-Be" Purchase-to-Pay (P2P) process flow
  • Standardizing documents: Requisitions, POs, Contracts, and Payment Vouchers
  • Designing an efficient competitive bidding process (RFX lifecycle)
Internal Controls
  • Defining and enforcing Segregation of Duties (SoD) to mitigate fraud risk
  • Establishing control points for contract approval and invoice processing (3-way match)

Unit 3: Creating and Managing Service Level Agreements (SLAs)

Internal Customer SLAs
  • Defining the procurement value proposition to internal business units (stakeholders)
  • Developing and measuring SLAs for key internal services (e.g., PO creation time, RFX cycle time)
  • Techniques for negotiating realistic and measurable service targets with stakeholders
External Supplier SLAs
  • Integrating supplier Service Level Agreements (SLAs) into master contracts
  • Defining performance metrics and financial penalties/rewards for meeting SLAs

Unit 4: Compliance and Documentation

Ethical Compliance and Code of Conduct
  • Drafting clauses on anti-bribery, conflicts of interest, and supplier gifts
  • Establishing a robust supplier Code of Conduct for ethical sourcing
Audit and Record-Keeping
  • Defining mandatory documentation requirements for the procurement file
  • Ensuring all processes are auditable and comply with financial regulations
  • Managing document retention policies (physical and digital)

Unit 5: Implementation and Continuous Improvement

Change Management
  • Developing a communication plan for rolling out new policies and procedures
  • Designing training programs tailored to different user groups (buyers, requesters, AP)
Review and Enforcement
  • Establishing a regular review cycle for policies and DoA (e.g., annual review)
  • Monitoring process compliance through internal audit and system checks

Ready to Learn More?

Have questions about this course? Get in touch with our training consultants.

Submit Your Enquiry