Description

This training course helps you understand the underlying concepts and methodologies that link stakeholder expectations and requirements with supplier delivery and performance. Learn how to optimize the value from your suppliers and contracts with specific actionable improvements and measurable value.

Key Learning Outcomes:

• Align spend to organisational strategy
• Broadly how to ascertain purchasing goals and plans
• Select suppliers in tune with strategies
• Negotiate and monitor complex deals and relationships with suppliers to meet quality, cost and delivery requirements
• Know how to implement and manage Cost Reduction Programmes
• Reduce the risk to your supply chains

COURSE OUTLINE

Establishing the critical success factors for your operation

• Understand the scope and opportunities from effective procurement management
• How can you deliver new kinds of value to your organisation?

• What does your organisation need and expect from its purchasing and supply chain performance?

• What do the top performers do best and how can you emulate their strategies?
• Positioning, RAQSCI and cost drivers

Creating a procurement management framework for your organisation

• Assessing where your organisation is on the procurement management maturity scale
• The five phases of Category Management
• Understanding the complexity of your organisation’s contracts
• Developing and implementing procurement strategies, policies and processes
• Gathering and using demand data to enable better purchasing decisions
• Determining appropriate KPIs to measure improvement
• Examine the different types of purchasing and procurement contracts and service level agreements
• Is the new move towards collaborative procurement right for your organisation?

Strategic cost management

• Aligning cost management strategies to organisational goals
• Avoiding ad-hoc cost reduction
• Practical tips to manage your expenditure and reduce costs
• Spend and category analysi
• Measuring the impact of cost management initiatives on profitability
• P2P – purchase to pay options

Developing strategic supplier management skills

• Articulate the benefits of managing supplier performance on an ongoing basis
• What are the key phases of supplier management?
• Create a supplier development plan
• Practical tools available for effective supplier management
• Analysing the different levels of relationships with suppliers
• What are the roles and responsibilities of the procurement manager in the supplier relationship?
• Supplier performance overview and assessing your status as a customer

Evaluating your suppliers - key measures for a total cost and value approach

• Understand the supplier evaluation process
• Know how to evaluate base on pricing, quality, service and support
• Measure the performance of a supplier based on specified criteria
• Identify actions that can deliver value to your organisation
• Assess the value of moving to a partnership agreement

Identifying and managing key risks for improved procurement and purchase practice

• Looking at risks in each stage of the supply chain
• The impact of the new Health & Safety in Work legislation
• Developing a framework to manage these risks
• Balancing risk with the need to maximise your purchasing power
• How to monitor the risk reporting of the department
• How to take a vulnerability analysis to assess your exposure to risks

Essential negotiation skills for the procurement manager

• Understanding the various styles of negotiation
• Determining the most appropriate style for you
• Setting the scene: What preparation is needed?
• Understanding the impact of non-verbal communication on your relationship
• Wrapping up the negotiation process - things you must do

Purchasing processes: How to become operationally efficient in purchasing

• Value Stream Mapping to identify improvement opportunities
• Managing forecasting and forecast accuracy
• How to cost your $ per transaction and then how to reduce it
• 90 day payback tools for optimising purchasing processes
• Kanban, consignment stock, direct to line, VMI, 3PLSs v 4PLs, vendor managed inventory
• Implementing 5s in your Inwards and Warehouse areas
• Other useful improvement ideas to reduce your cost of transaction

Developing a balanced performance measurement framework that is value driven

• Using performance reporting as a business improvement tool
• Choosing the most effective measures and standards for your organisation
• Finding appropriate organisations to benchmark with
• Integrating new performance standards into your own purchasing processes
• Setting up and managing the processes
• Who should be involved?
• How is it linked to management incentives?
• Linking it to continuous improvement