Course Methodology
This course uses a variety of individual and team exercises, case studies, questionnaires and videos.
Course Objectives
By the end of the course, participants will be able to:
- Analyze internal spend and supply market dynamics to provide a foundation for sourcing plans
- Execute different sourcing strategies to optimize savings and ensure supply security
- Identify appropriate suppliers for effective execution of sourcing plans
- Develop operational and strategic procurement processes for better value
- Implement different purchasing methods to streamline procurement operations
- Apply supplier integration techniques for sustainable supplier relations
- Manage performance of procurement processes for continuous improvement
Target Audience
Purchasing and supply chain professionals at all levels of the organization as well as other company personnel who are involved in the purchasing process.
Target Competencies
- Integrating vendors
- Managing vendor performance
- Applying sourcing strategies
- Analyzing markets
- Thinking strategically
- Improving performance
Step 1: Analyze spend categories
- Recognizing strategic role of procurement
- Strategic sourcing in supply chain context
- 7 steps to strategic sourcing
- Analyzing spend categories
- Profiling spend categories
- Analyzing financial impact
- Assessing market risks
- Consolidating category reports
- Applying Total Cost of Ownership (TCO)
Step 2: Develop sourcing strategies
- Mapping spend categories using purchasing strategy matrix
- Routine items
- Bottleneck items
- Leverage items
- Strategic items
- Managing balance of power in buyer-supplier relations
- 6 key sourcing strategies
- Applying sourcing strategies effectively
Step 3: Identify suppliers
- Locating suppliers
- Registering suppliers
- Assessing suppliers
- Sourcing locally
- Describing vendor diversity programs
Step 4: Develop procurement processes
- Scoping procurement processes
- Describing strategic and operational processes
- Developing procurement processes
- Rules governing use of flowchart symbols
- Integrating ethical principles
Step 5: Implement procurement processes
- Managing RFI, RFQ and RFP processes
- Defining bid evaluation criteria
- Implementing innovative purchasing methods
- Using purchasing decision matrix
- Employing purchasing templates
Step 6: Integrate suppliers
- Prequalifying suppliers
- Managing supplier certification programs
- Partnering with suppliers
- Managing Supplier Level Agreements (SLAs)
- Typical SLA table of contents
Step 7: Manage procurement performance for continuous improvement
- Managing a strategic sourcing plan
- Measuring, analyzing and reporting on performance
- Developing improvement initiatives
- Institutionalizing supplier report cards
- Bringing it all together
