Introductory Workshop on Purchasing and Supply Chain Management

Course Objectives

This programme aims to provide delegates with an in-depth appreciation of the current best practice tools and techniques used in the set up and management of the procurement process and supply chain management. Its highly practical content aims to develop the commercial thinking of delegates about how to manage the process for strategic goals and as well as day to day tactical needs.

Course Contents

Day One
 
Globalisation
Changing role of procurement in a globalising world economy
What is happening to different economic sectors
The use of off-shoring and sourcing from Low Cost Countries
The impact on procurement practice
 
The procurement cycle
From need to satisfaction of need
Role of procurement in the cycle
How we add value in the cycle
 
The supply chain concept
Defining supply chain management
Designing supply chains
Supply chain mapping
Tiering in supply chains
Seeing supply chains as competing networks
 
Day Two
 
Managing the process
 
Types of specification
Conformance or performance specifications?
The use of international standards
Specifying capital assets
Specifying services
 
Deciding on contract strategy
Single or dual or multiple sources?
Long term or short term?
Turnkey
Design, build, finance and operate
 
Supplier research
Researching for suppliers
Moving supplier selection from reacting to management
Types of research tools available - Internet, databases, advertising.
The use of market research for gaining in-depth information
Market index tracking
Financial performance
Benchmarking clubs, vertical portals as sources of supplier information
 
Appraising supply
Models of supplier appraisal
The use of third party appraisal
Appraising quality and the importance of ISO 9000
Financial evaluation
Supplier appraisal for strategic supplies
Addressing commitment and company culture when dealing with critical supply items
 
Day Three
 
Setting up the relationship
The business context
The importance of relationship management in supply chains
Supply positioning and procurement targeting
Developing contract strategies - leverage, routine and bottleneck products and sourcing strategies
Using Product / service portfolio analysis to decide on the relationship style
Analytical tools for assessing internally and externally imposed supply risk
 
Managing the competition
Competitive strategy
Tendering processes
E-Auctions
Pre-qualification of tenders and calls for expression of interest
Supplier short-listing, using weighted criteria for short listing and bid lists
Bid evaluation; setting and using weighted criteria
Financial appraisal - using and understanding financial data
 
The structure the contract
Developing objectives
Contractual terms
Specifications
Service levels
Key clauses
Contract Schedules
 
Day Four
 
Managing the relationship
Approaches to managing Long-term supply relationships
Using tiered relationship management to improve reliability and commitment in the supply chain
 
Mitigating risk in the supply chain
Structured relationship management working together to avoid waste - value engineering, value analysis
Applying the techniques
Sharing productivity gains with suppliers
Using the learning curve to reduce total cost
 
Incentivisation of contracts
The learning curve
Sharing the benefits of learning
Designing incentive based contract formula
 
Managing volatile cost elements
Materials
Precious metals
Currency fluctuation
Currency risk
Price variation clauses

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Who Should Attend

Teams of purchasers that aspire to re-positioning procurement in their business whilst at the same time boosting its level of performance and raising its profile and impact within the organisation.

Duration

A 5-day single manned course.
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