(MC) Strategic Procurement Management & Vendor Negotiation Skills

27-28 Jun, 2023, Remote Online Training - Public

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MANO HAARAN has more than 21 years of practical work experience in contracts administration, supplier management, procurement, project management, supply chain and logistics, etc. He specializes in training, facilitation and consulting to both the public and private sector in areas like Procurement Efficiencies including addressing issues of contracts administration, fraud, cost management and product life cycle management, Warehouse Management, Operations Management, Total Cost Management, Supply Chain Management, Total Logistics management, Stock Taking and Auditing,

 

His landmark consulting experience was designing of materials part numbering and coding systems, preparation of standards, policies and procedures for a large rail network. He was also involved as a consultant for the development of an automated business solution for a wholesale/retail stationery business with off shore branches where he was instrumental in business process analysis, process improvement, project management and eventual successful completion and commission of the system.

 

Mr. Haaran’s sample of illustrious clients list for training include Shell, UMW Toyota Motor, Celcom, Samsung, Proton, Colgate-Palmolive, Eon Finance, Philips, Hicom-Yamaha, Malaysian Oxygen, NEC, Petronas, General Electrics, Gamuda, Johnson & Johnson Medical, JVC, Kontena Nasional, Glaxo Wellcome, Hitachi, Hong Leong Lurssen Shipyard, National Heart Institute (IJN), Kenwood, Macfood Service, Nestle, Mattel, Matsushita Industrial Corporation, Maybank, Minolta Precision Engineering, MISC, Perwaja Steel, Seagate, Canon, BASF and UPS, Petronas Carigali, Sidel, Western Digital, Perodua, Sharp, Panasonic.

 

He holds Masters in Business Administration (MBA) USA.

Venue Details

Remote Online Training - Public

Contact us

Juliany,
03 2283 6109
juliany@ipa.com.my

Phoebe,
03 2283 6100
phoebe@ipa.com.my 

FOR CUSTOMISED IN-HOUSE TRAINING
Jane,
03 2283 6101
Jane@ipa.com.my

ADDRESS 
A-28-5, 28th Floor, Menara UOA Bangsar, 
No.5, Jalan Bangsar Utama 1, 
59000 Kuala Lumpur
www.ipa.com.my

FOCUSING ON
  • Understanding of Strategies & The Business Framework
  • Supplier Sourcing & Selection
  • Analyzing Supplier & Supply Risk – Strategic/Core Suppliers
  • Negotiating with Suppliers
  • Components of a Successful Negotiation
  • Getting The Job Done
  • Life Cycle Costing, Total Cost of Ownership & Cost Analysis
  • E-Procurement & Global Sourcing – A Strategic Approach
INTRODUCTION

Strategic procurement is the alignment between sourcing options and the business objectives that leads to more significant and sustainable benefits to the company. It looks at long term sustainable value creation as opposed to a series of tactical operating models that may deliver short term cost benefits that lock in existing inefficiencies and fail to address the root causes of poor performance.

 

A strategic approach to procurement connects the company’s operational base to its business aspirations. It ensures that the service delivery model is not only aligned with, but can also help to drive forward, the critical operational and information technology (IT) aspects of the business strategy. This approach means going back to the basics by considering the direction in which the business is heading and using sourcing options to help take it there.

 

A good procurement strategy should address three fundamental questions:

  • Where are we now? How effective and efficient are our current capabilities?
  • Where could we be? What are the incremental opportunities available?
  • How can we get there? What is the roadmap that will allow us to move forward?

 

Strategic sourcing is then the development of a true partnership between a company and suppliers of strategic value. It is about enabling the procurement organization to achieve reduced total cost of ownership through the effective use of best practices from product concept to product retirement. Strategic sourcing can result not only in leveraged cost savings, but also innovation in product design, JIT practices, etc. which can all result in improved quality and reduced lead times.


OBJECTIVES

At the end of this course, participants would be able to understand:

  1. The effect of the procurement process to the sourcing strategy
  2. How to negotiate with suppliers for mutual benefits
  3. How to select, retain and manage suppliers
  4. How to assess risk for effective contracts
  5. How to implement strategies and measure procurement performance
  6. How to capitalize on technology and e-procurement
COURSE LEARNING OUTCOMES (CLO)
  1. Know how to negotiate with suppliers for a win-win situation
  2. Identify total cost approach to procurement
  3. Discuss fact-based decision process
  4. Describe critical view of supply management
  5. Focuses on strategic approach
  6. Technology’s impact on strategies
METHODOLOGY
  • Interactive Lectures
  • Practical Case Studies
  • Class Participation and Exercises
WHO SHOULD ATTEND?

Managers/Executives/Officers from:

  • Purchasing/Procurement
  • Distribution & Supply Chain
  • Materials Planning & Control, Logistics
  • Vendor Development
  • Suppliers
  • Finance
  • IT/MIS
  • Business Development
  • Merchandizing
  • Sourcing
  • Operations
  • Buyers
DAY 1
9:00 A BRIEF UNDERSTANDING OF STRATEGIES & THE BUSINESS FRAMEWORK
  • Sales & Operations Planning (S&OP)
  • Sales & Demand Forecast
  • Operating Models of the company
  • Sourcing Model & Service Delivery Framework
  • Procurement Process Analysis
  • Spend Analysis & Big Data Analytics
10:45 SUPPLIER SOURCING & SELECTION
  • Develop detailed requirements specifications
  • Pre-qualifying suppliers – company criteria
  • Develop tender/quotation documents and rules
  • SOW & Specifications – important qualifying criteria
  • Develop evaluation models
  • Conduct detailed evaluation and compare with benchmarks
  • Maintaining and effective supplier database
1:00 Lunch

2:00

ANALYZING SUPPLIER & SUPPLY RISK – STRATEGIC/CORE SUPPLIERS

  • Categorizing core suppliers – single source, sole source and multiple suppliers
  • Supply category & risk assessment
  • Developing and implementing a risk management plan
  • Implementing contractual arrangements
  • Probity principles in procurement
  • Pricing mechanism and the risk profile
3:45 NEGOTIATING WITH SUPPLIERS
  • The seller’s perspective – sole source advantage or am I just another supplier?
  • The buyer’s perspective – do I have the clout to exert pressure?
  • The traditional time tested approach – business as usual – so why bother when everything is OK?
  • So how is the playing field determined – short term thinking or long-term strategies?
  • Is there efficiency in the traditional approach?
5:00 End of Day 1
DAY 2
9:00 COMPONENTS OF A SUCCESSFUL NEGOTIATION
  • A different approach to negotiation – the PICO method
  • The components and how it works – win-win negotiations
  • The fundamental requirements –a level playing field
  • The negotiation matrix that emphasis on long term relationship building
  • Meeting the objectives of strategic procurement
10:45 GETTING THE JOB DONE
  • Planning your negotiation – the planning model
  • Preparation – knowing your limits; your WATNA, BATNA, WAP & ZOPA
  • Keeping your objectives focused – reality of targets
  • The negotiation steps and missteps
  • Problems commonly encountered in highly stressed negotiations
  • Dealing with hardball negotiators (dealing with difficult issues)
  • Special procurement negotiation situations – sole source, single source, contracts, projects, warranties, conditions, guarantee, etc.
1:00 Lunch

2:00 LIFE CYCLE COSTING, TOTAL COST OF OWNERSHIP & COST ANALYSIS
  • Supplier rationalization & reduction
  • Internal cost drivers – company related
  • External cost drivers – supplier and supply chain related
  • How LCC & TCC will help in strategic sourcing?
  • Price/Cost Analysis
  • Saving purchasing costs – process improvements, technology – EDI, e-procurement, etc.
  • Inventory management constraints – costs and options
3:45 E-PROCUREMENT & GLOBAL SOURCING – A STRATEGIC APPROACH
  • Understanding e-procurement and other supporting technologies – cost/benefits
  • Process cost realities – internal & external
  • Develop an integrated vision and direction for sourcing and e-procurement strategies
  • Identify and implement the technologies required to support the global procurement strategy
  • Other e-enabled strategies e.g. sourcing, e-tendering, e-auction, reverse auction, etc.
5:00 End of Course