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Managing Procurement as a Profit Centre

29-30 Apr, 2024, Armada Hotel

IPA Training is Registered with

Venue Details

Armada Hotel
Lot 6, Lorong Utara C, Section 52 46200 Petaling Jaya,

https://www.armada.com.my/


Phone : 03-7954 6888

Contact us

FOR COURSE DETAILS

Juliany,

Office: 03 2283 6109

Mobile: +60 122281247

juliany@ipa.com.my

Phoebe,

Office: 03 2283 6100

Mobile: +60 193637822

phoebe@ipa.com.my

Bee Teng,

Office: 03 2282 6112

Mobile: +60 172566121

beeteng@ipa.com.my

FOR CUSTOMISED IN-HOUSE TRAINING

Jane,

Office: 03 2283 6101

Mobile: +60 129418251

jane@ipa.com.my

Keith,

Office: 03 2283 0000

Mobile: +60 162272735

keith@ipa.com.my

ADDRESS

A-28-5, 28th Floor, Menara UOA Bangsar,
No.5, Jalan Bangsar Utama 1,
59000 Kuala Lumpur

FOCUSING ON
  • Module 1: Procurement As Profit Centre
  • Module 2: Understanding Proper Procurement Structure And The Objective Of
    Procurement
  • Module 3: Developing & Increasing Value Chain In Procurement System
  • Module 4: Strategic Sourcing And Tendering And Bidding System To Increase Competitiveness And Profit
  • Module 5: Choosing Your Partner In Procurement For Better Profitability
  • Module 6: Managing Orders And Delivery Management
  • Module 7: Strategic Supplier And Vendor Management
  • Module 8: Managing Cost Saving As Profit Generator
  • Module 9: Procurement Role In Inventory Management
  • Module 10: Reporting For Procurement Accountability
OBJECTIVES

With the greater globalization of the marketplace very often companies need to sell at the lowest cost possible due to competition and one of the key area profits can be generated are via efficient and effective sourcing and purchasing of material and services, allowing companies to produce the same quality standards at lower cost.

Procurement centers are now becoming more like a profit center to companies around the world as they are being viewed as the “trading arm” of the company with efficient and effective procuring of material and converting these materials into high quality product and create a higher value and this profit for the company.

This course is designed by an experienced professional consultant and trainer with over 30 years of experience to help participants to achieve the goal stated above.

This course is highly recommended for all levels of Employees, including those in Clerical, Supervisory, Executives and Managerial Positions responsible for Procurement and Purchasing, Supply Chain And General Management.

AFTER ATTENDING THIS COURSE YOU WILL RETURN TO YOUR JOB…
  1. LEARNING The Strategic Role Of Procurement In Business Operation.
  2. UNDERSTANDING The Concept Of Procurement As A Profit Center.
  3. IDENTIFYING The Types Of Strategies That Need To Be In Place To Manage Suppliers And Vendor For Performance.
  4. DEVELOPING Action Plans To Implement Suppliers And Vendor Management Strategies.
  5. EXECUTING Risk Assessment And Taking Action To Overcome To Ensure Supplies Are Not Disrupted.
  6. KNOWING How To Produce Profit-Oriented Report For Procurement.
  7. MASTERING Key Processes To Turn Procurement Into Profit Center.
WHO SHOULD ATTEND
Managers/Executives/Supervisors/Officers from:
• Purchasing/Procurement
• Distribution & Supply Chain
• Materials Planning & Control, Logistics
• Vendor Development
• Suppliers
• Finance
• IT/MIS
• Business Development
• Merchandizing
• Sourcing
• Operations
• Buyers
METHODOLOGY
  • Interactive Lectures And Facilitating To Increase Understanding Of Subject Matter
  • Power Point Presentation
  • Case Studies & Brainstorming Session
  • Discussions
  • Exercises To Evaluate Participants Understanding
DAY 1
9:00

Module 1: Procurement as Profit Centre

  • The definition of Cost Centre
  • The definition of Profit Centre
  • Evolution of Procurement from Cost Centre to Profit Centre
10.45

Module 2: Understanding proper Procurement structure and the Objective of Procurement

  • Suppliers versus Vendor
  • Key Objectives of Procurement
  • Procurement organizational structure
  • Definition of Strategic and Tactical
  • Key Procurement Analysis using PQR
  • Strategic Role of Procurement
  • Tactical Role of Procurement
  • Procurement Quality and System Procedure
12:00

Module 3: Developing & Increasing Value Chain in Procurement system

  • Key Element of Value chain creation
  • Value chain Frameworks
  • Area of value chain creation
  • Competitiveness model for Value chain creation
  • Case study
1:00 Lunch
2:00

Module 4: Strategic Sourcing and Tendering and Bidding System to increase competitiveness and profit

  • Traditional sourcing – understand the history
  • Strategic sourcing – creating competitiveness advantage
  • Understanding tendering and bidding system
  • Reverse bidding
  • Strategic Tendering process and procedure
  • Case study
3:45

Module 5: Choosing your Partner in Procurement for better profitability

  • 11 key elements of supplier and vendor selection
  • Positive supplier trait and negative supplier trait
  • Cost and Price evaluation strategies
  • Financial analysis, ratio analysis
  • Review the Balance sheet
  • Audit and risk management
  • Case study
5:00 End of Day 1
DAY 2
9:00

Module 6: Managing Orders and Delivery Management

  • Effective Purchase ordering system
  • Type of Purchase order
  • Purchase order – a legal document perspective
  • Expediting management
  • Case study
10.45

Module 7: Strategic Supplier and Vendor Management

  • Key element of supplier relationship management
  • Cycle of Supplier Management, from selection to off boarding
  • Supplier traits, knowing how to deal with them
  • Soft strategies in supplier management
  • Hard strategies in supplier management
  • Contract management
  • Reviewing system - Setting objectives
  • Reviewing system - Measurement
  • Reviewing system – creating competitive advantage and off boarding
  • Quiz
12:00

Module 8: Managing Cost Saving as Profit Generator

  • Cost Reduction versus Cost Avoidance
  • Cost saving process cycle
  • Cost saving measurement strategies
  • Cost saving strategies
  • Understand ERRANT concept
  • Cost saving organizational structure
  • Case study
1:00 Lunch
2:00

Module 9: Procurement Role in Inventory Management

  • Type of Inventory Cost
  • Inventory forecasting
  • Impact of Excess Inventory
  • Implementing Pull Kanban system
  • Inventory turnover ratio
  • Reorder and Safety stock
  • Demand Planning
  • Consignment stock
  • Vendor Management Inventory
  • Measuring Inventory cost performance
3:45

Module 10: Reporting for Procurement Accountability

  • Cost Variance management
  • Key Performances Indices
  • Inventory performances
  • Profit analysis contribution from procurement activities
5:00 End of Course