Procurement Best Practices

This two-day intensive course is designed to impart knowledge on procurement best practices that are achievable and practicable to most companies. It addresses essential factors that are prerequisites to successfully developing and deploying procurement best practices.

In this course, you will learn the most important factors necessary for procurement best practices such as;

• Active Support From Top Management
• A Thorough Understanding Of Cost Drivers That Determine The Total Cost Of Supply Chain
• Supplier Performance Measurement, Aggregation Of Demand, Supplier Rationalization, Strategic Sourcing, And Enhanced Supplier Relationships
• A Culture Of Continuous Improvement And Elimination Of Non - Value Adding Processes
• Cycle Time Improvement - Reduction Of Time From Order To Receipt Of Materials
• Appreciation Of Technology, Electronically Enabling The Supply Chain, Use Of Paperless E-Procurement Tools And E-Commerce Portals
• Investment In Procurement And Supply Management Training
• Reduction Of Carrying Costs, Warehousing, Movement, Obsolescence And Shrinkage,
• Spend Management.

Focusing on

• Module 1 Procurement Overview
• Module 2 Concept Of Supply Management & Supply Chain Management
• Module 3 Situation Analysis And Capability Audit
• Module 4 Understanding Cost Drivers
• Module 5 Strategic Sourcing And Supplier Selection
• Module 6 Supplier Performance Evaluation, Relations And Measurement
• Module 7 Continuous Improvement And The Culture Of Efficiency
• Module 8 Effect Of Technology On Best Practices
• Module 9 Top Management Involvement & Support

Plus

• Case Study: Value For Money Or The Cheapest?
• Analysis: Cost Savings Through Technology In The Procurement Environment

Many companies are now spending a larger percentage of their revenue on products and services than they were thirty years ago. Most manufacturers spend around 60% to 70% of their revenue on the supplies that are necessary to keep their business running. As a result of these changes, more companies need to put in place some best practices that can guide their purchasing decisions and that can help them make their business a success. Procurement best practices often depend on people, suppliers, processes or other business elements that are specific to a certain situation.

Developing and achieving procurement best practices is never easy. It consumes a lot of time, entails breaking down barriers between internal groups, demands a new approach to suppliers, and requires significant investment in resources like people, training, analysis, measurement, technology, and suppliers.

Who should attend

• Procurement Managers & Executives
• Purchasing Managers & Executives
• Distribution & Supply Chain Managers & Executives
• Warehousing Managers & Executives
• Inventory Control Managers & Executives
• Materials Planning & Control Managers & Executives
• Logistics Professionals
• Professional Buyers
• Vendor Development Professionals
• Suppliers
• Contract & Client Managers & Executives
• GLC And Government Contract Officers
• Finance & Admin Managers & Officers
• Contractors, etc.

Methodology

• Interactive Lectures
• Group Discussions
• Exercises/Cases
• Class Participation
• Questions & Answers

Day One
Module 1 - Procurement Overview

• The procurement functions
• Roles and responsibilities
• Procurement in the supply chain environment

Module 2 - Concept of supply management & supply chain management

• What is supply management?
• Cost drivers and best practices of supply management
• The supply chain management
• Success fundamentals of supply chain management - communication, materials, systems integration and eliminating non-value adding costs
• Addressing inventory issues and costs - the warehouse, inventory management, alternative inventory ownership agreements

Module 3 - Situation analysis and capability audit

• Mapping our current procurement methodologies and processes
• Identifying gaps in processes, assess effectiveness
• Spend analysis - where does the money go?
• Does it make any difference knowing the spending pattern?
• Suppliers, contractors and just about everybody else - stakeholders conflicting needs

Module 4 - Understanding cost drivers

• The cost of inefficiency
• Process costs
• Cost benefit analysis
• Life cycle costing & Total cost of ownership
• How to initiate a change process that transforms traditional thinking?

Case Study: 

• Value For Money Or The Cheapest?

Module 5 - Strategic sourcing and supplier selection

• What is strategic sourcing and how it works?
• Understanding risk and mitigating risk with supplier participation
• The role of suppliers in making our business a success
• Understanding supplier constraints
• Supplier selection process - rating, short-listing and evaluating
• ISO Standards and selection of suppliers

Day Two
Module 6 - Supplier Performance Evaluation, Relations And Measurement

• Setting standards of performance and measurement methods
• Monitoring performance and meeting stringent buying fundamentals
• Establishing a win-win relationship with suppliers
• Supplier development initiatives - how to ensure good suppliers stay and grow with us

Module 7 - Continuous Improvement And The Culture Of Efficiency

• Understanding Kaizen & total quality management in procurement
• Understanding processes and eliminating wastes
• Seeking alternative solutions - technology, outsourcing, streamlining activities

Module 8 - Effect Of Technology On Best Practices

• Identifying current skill sets - existing skills and the gap to fulfill
• Procurement skills required to make the difference - the individual and the department
• The stage of technology penetration in the organization
• Does technology help in procurement - how businesses use technology to create the difference
• Types of technology for the procurement environment - EDI, e-Procurement, portal, SaaS Analysis: Cost savings through technology in the procurement environment

Module 9 - Top Management Involvement & Support

• Training and development of staff and suppliers
• A paradigm shift from arms length approach to participation and cooperation
• Funding and monitoring supply management initiatives
• Support for cross functional initiatives