Developing World Class Supply Chain Performance

Course Objectives

To deliver an in-depth rigorous and challenging but uniquely practical insight into how modern supply chain management is set up and managed in today’s tough commercial environment.

Course Contents

Day One
 
Designing supply chains
7 key steps in supply chain design
Supply chain mapping
Tiering in supply chains
Seeing supply chains as competing networks
 
Procurement Strategies
The strategic process
Analysis, Option development and selection, implementation
Understanding and applying the of tools of analysis
PEST, SWOT, Resource Audits, Benchmarks and norms of performance
Understanding Corporate Strategies
Selecting and setting appropriate strategic directions
 
Globalisation and its effect on corporate strategies
The link between Corporate, Operational, and Procurement strategies
Aligning suppliers to organisational objectives
The top down - bottom up approach to strategy development
Stakeholders in the process
 
Role of procurement in the development of corporate strategic thinking
The upstream supply chain and its impact on the organisations competitive advantage and operational efficiency
Organisational dependency on its supply chains for competitive advantage
 
Developing Procurement Strategies
Different models of the procurement function – a review of current thinking
People Selection and Development
Deciding on the mix of skills, competencies, attributes
Setting up and managing training and development programmes
Structures
Drivers and enablers for differing structures
Local or national or global, centralised, networked, decentralised, matrix, co-located, project procurement structures
Systems
Processes and Process mapping
 
Day Two
 
Supply Chain Management explored
Understanding the concept of supply and value chains
Porter’s value chain theory
Structuring modern supply chains
Tiers, intermediaries, logistics
Locations
Communication
Value chain
Technology and the modern supply chain
 
The nature of supply chains in different economic sectors
Pyramidal structure of the modern value chain
Understanding the differing echelons, tiers, types of supplier
The role of the systems integrator
The long-term nature of supply chain relationships
 
How procurement adds value in the supply chain management process
Cost management and reduction strategies
Risk reduction strategies
Technology collaboration strategies
Flexibility strategies
Quality strategies
Relationship styles
The relationship continuum
Relationship strategies
Selecting partners
 
E-commerce
Electronic procurement
E-markets and e-portals
E-tools for modern procurement
Workflow and task flow management
Auctions
E-tendering
 
Day Three
 
Managing relationships for supply chain performance
Segmenting the supplier base and selecting appropriate relationship strategies
Strategic fit with the value added required
Deciding on the appropriate form of relationship
 
Methods for developing and building trust
360 appraisals
Balanced scorecard systems
Relationship assessment
Facilitated review
The limitations of these approaches
 
The legal forms of relationship
How legal forms condition relationships
Using the legal contract
 
Structuring the contract to the need
Memorandum of Understanding, Heads of Agreement. Joint ventures
The structuring of partnership arrangements
Contract forms for design and development, manufacture and supply of goods and services, maintenance and support of fielded products
 
Day Four
 
Managing price and cost
The challenge of costing and pricing suppliers goods and services
Pricing and Costing methods
Breakeven, pay back, ROCE, Mark up,
ABC costing,
Overhead recovery costing systems
 
How sellers set a price
Sales and marketing strategies
How they fit with corporate strategies
The 4 Ps, customer segmentation, the product life cycle, the competitor landscape
Market competition and competitor rivalry
Product portfolio analysis and product strategy
The power of brand
How sellers determine their costs
How sellers set their selling prices
 
Understanding your suppliers financial data
Obtaining financial data
Use of financial bureaus
Sources of finance for public companies
 
Interpreting financial results
Constructing and reading the balance sheet
Constructing and reading the profit and loss account
Using ratio analysis to evaluate financial performance
Liquidity
Cash flow
Working capital
Return on investment and capital
Operational efficiency
 
Day Five
 
How buyers can manage price and cost
The use of should cost approaches to managing input costs
Estimating methods and approaches
Using parametric estimating
The concept of the cost driver
 
Total life costing approaches
Managing the purchase of assets
Payback, DCF and NPV, IRR
 
Different pricing mechanisms and when to use them
Fixed price
Variation of price
Escalations
Incentive pricing

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Who Should Attend

Teams that are looking to make a difference in the level of performance and recognition of the supply chain management function in their business.

Duration

A 5-day single manned course.
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