| FOCUSING ON |
- Procurement Overview & The Procurement Structure
- User Needs & Fullfillment – Process Analysis
- Situation Analysis & Spend Management – The Big Data Analytics
- Understanding Cost Drivers
- Models and Concepts To Think About
- Strategic Sourcing, Supplier Selection & Management
- Negotiating For Better Procurement – A Basic Run- Through Of Negotiation
- Effect Of Technology On Best Practices
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| OVERVIEW |
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Many companies are now spending a larger percentage of their revenue on products and services than they were thirty years ago. Most manufacturers spend around 60% to 70% of their revenue on the supplies that are necessary to keep their business running. Companies are now looking for ways to boost their bottom line through non-traditional approaches. Cutting cost and cringing on spending is no longer the only way out of the morass. New ways have to be found, tested and implemented.
Transforming the procurement function requires commitment of management, a rethinking of strategies, a changed approach to concepts, and adoption of new ideas. Challenging, as it may, the approach calls for a total rethink of our past and chart a new pathway to procurement success. It consumes a lot of time, entails breaking down barriers between internal groups, demands a new approach to suppliers, and requires significant investment in resources like people, training, analysis, measurement, technology, and suppliers.
To make a significant impact to the organization’s future success, procurement’s contribution has to be reviewed for lethargy, malaise and inefficient practices. In this course, we will look at some of these problems, understand how to resolve critical issues and pave new pathways to old problems.
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| COURSE OBJECTIVES |
| This 2-day course is designed to impart knowledge on how to transform the total procurement function by utilizing critical thinking processes and new ideas. The course challenges traditional thinking and introduces models and concepts that are now widely acclaimed to work for world class companies. |
| WHO SHOULD ATTEND |
- Procurement Staff
- Purchasing Staff
- Supply Chain Staff
- Warehousing Staff
- Inventory Control Staff
- Planning and Materials Professionals
- Suppliers
- Contractors, etc.
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| METHODOLOGY |
- Interactive Lectures
- Case studies
- Class participation and exercises involving calculations
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| COURSE LEARNING OUTCOMES (CLO) |
- Describe transforming procurement from a cost center to value creation
- Show deep understanding of cost drivers
- Explain supplier relationship and performance management
- Practice using technology in transforming procurement
- Begin understand spend management and data analytics
- Moving away from silo thinking to enterprise success.
- Engaging in progressive procurement practices and tools to drive results.
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| DAY 1 |
| 9:00 |
PROCUREMENT OVERVIEW & THE PROCUREMENT STRUCTURE | |
- The procurement functions
- The Structure – how it contributes to organizational efficiency
- A paradigm shift from arms length approach to participation and cooperation
- Funding and monitoring supply management initiatives
- Support for cross functional initiatives
- Discussion and analysis of the role of procurement in SCM
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| 10:45 |
USER NEEDS & FULFILLMENT – PROCESS ANALYSIS | |
- Normal – indent based
- Urgent – engineering, project, etc.
- S&OP – forecasting, reliability and reality
- Order triggering systems and manual modes
- Lead time constraints and buffering
Exercise on lead time and order triggering systems |
| 2:00 |
SITUATION ANALYSIS & SPEND MANAGEMENT – THE BIG DATA ANALYTICS | |
- Big data analytics – What is it and its relevance to procurement
- Spend analysis – where does the money go?
- Does it make any difference knowing the spending pattern?
- Suppliers, contractors and just about everybody else - stakeholders conflicting needs
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| 3:45 |
UNDERSTANDING COST DRIVERS | |
- The cost of inefficiency
- Process costs
- Cost benefit analysis
- Life cycle costing & Total cost of ownership
- How to initiate a change process that transforms traditional thinking?
Exercise on Life Cycle Costing
Case Study: Value for money or the cheapest? |
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| DAY 2 |
| 9:00 |
MODELS AND CONCEPTS TO THINK ABOUT | |
- Elon Musk’s First Principles thinking
- Supply Chain Maturity Models –
- Process Maturity Model
- Procurement MM
- NPD MM
- LMM
- S&OP MM
- Walk through exercise on Maturity Models
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| 10:45 |
STRATEGIC SOURCING, SUPPLIER SELECTION & MANAGEMENT | |
- What is strategic sourcing and how it works?
- Understanding risk and mitigating risk with supplier participation
- The role of suppliers in making our business a success
- Understanding supplier constraints
- Supplier selection process – rating, short-listing, evaluating and managing
- Linking big data analytics with sourcing strategies
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| 2:00 |
NEGOTIATING FOR BETTER PROCUREMENT – A BASIC RUN-THROUGH OF NEGOTIATION | |
- The current negotiation scenario
- Moving away from zero sum game
- Win-win negotiation – how to achieve it?
- Contract negotiation – sustaining a workable model
- Relationship in negotiation and contracts
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| 3:45 |
EFFECT OF TECHNOLOGY ON BEST PRACTICES | |
- Identifying current skill sets - existing skills and the gap to fulfill
- Procurement skills required to make the difference – the individual and the department
- The stage of technology penetration in the organization
- Does technology help in procurement – how businesses use technology to create the difference
- Types of technology for the procurement environment – EDI, e-Procurement, portal, SaaS
- Analysis: Cost savings through technology in the procurement environment
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