Course duration: 5 Days

Course running order

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 P’s, 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

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

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 / Fees

A 5-day single manned course

Can be run over a two or three week cycle – simply ask when booking