Course duration: 5 Days

Course running order

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 explained

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 through 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

Open book costing approaches

When to use them
How?

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.

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 / Fees

A 5-day single manned course