Strategic Procurement: Partnering with Core Suppliers for Sustainable Value Creation

28-29 Aug, 2024, THE MAJESTIC HOTEL KUALA LUMPUR

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DR MANOHARAN MURUGESON 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 offshore branches where he was instrumental in business process analysis, process improvement, project management and eventual successful completion and commission of the system.

Dr Manoharan’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 a Doctorate In Business Administration (Ph.D.) from (OUM) and a Masters In Business Administration (MBA) from the USA.

Venue Details

THE MAJESTIC HOTEL KUALA LUMPUR
5 Jalan Sultan Hishamuddin, 50000 Kuala Lumpur, Malaysia,
Phone : 03 2785 8000

https://www.majestickl.com/

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

Module 1 – Procurement Fundamentals
Module 2 – Introduction to Spend Management and Spend Analysis
Module 3 – Introduction to Procurement Category Management
Module 4 – Life Cycle Costing, Total Cost of Ownership & Cost Analysis
Module 5 – Strategic Sourcing & Supplier Selection
Module 6 – Analysing Supplier & Supply Risk – Strategic/Core Suppliers
Module 7 – Working with And Managing Suppliers (Vendor Management)
Module 8 – Procurement Technology and Data Analysis

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.

AFTER ATTENDING THIS COURSE YOU WILL RETURN TO YOUR JOB…

Gaining A Comprehensive Understanding Of Strategic Procurement, Enabling You To Align Procurement Strategies With Organizational Goals For Increased Overall Performance.
Managing Vendors More Cost-Effectively, Ensuring Better Negotiation Outcomes
And Stronger Supplier Relationships That Contribute To Your Company’s Bottom Line.
Understanding And Implementing Life Cycle Costing To Evaluate The Total Cost Of
Ownership, Optimizing Procurement Decisions Over The Entire Lifespan Of Products And Services.
Performing And Practicing Advanced Spend Analysis And Category Management,
Empowering You To Identify Savings Opportunities, Streamlining Procurement
Processes, And Driving Strategic Sourcing Initiatives.
Equipping You With The Practical Skills And Knowledge To Elevate Your Procurement
Function, Adding Significant Value To Your Organization.

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

METHODOLOGY

Interactive Lectures
Class Participation and Exercises

DAY 1

9:00	MODULE 1 – PROCUREMENT FUNDAMENTALS Understanding – Procurement, Buying And Sourcing Process Analysis – The Purchasing Cycle Company Policies On Procurement Procurement Constraints – Policies, Customers, And Suppliers

10.45

MODULE 2 – INTRODUCTION TO SPEND MANAGEMENT AND SPEND
ANALYSIS

Importance Of Spend Analysis
Cost Reduction And Efficiency
How To Collect, Clean, And Analyse Spend Data Effectively
Basic Tools Used For Analysis

1:00

Lunch

2:00	MODULE 3 – INTRODUCTION TO PROCUREMENT CATEGORY MANAGEMENT Significance Of Category Management Core Principles Of Category Management Model Used Creating Comprehensive Strategies For Category Management

3:45

MODULE 4 – 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

5:00	End of Day 1

DAY 2

9:00

MODULE 5 – STRATEGIC SOURCING & SUPPLIER SELECTION

Understanding Strategic Sourcing
Strategic Sourcing Objectives
Pre-Qualifying Suppliers – Company Criteria
Develop Tender/Quotation Documents And Rules
Sow & Specifications – Important Qualifying Criteria
Develop Evaluation Models
Maintaining An Effective Supplier Database

10.45

MODULE 6 – ANALYSING 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

1:00

Lunch

2:00

MODULE 7 – WORKING WITH AND MANAGING SUPPLIERS
(VENDOR MANAGEMENT)

Performance Metrics & Supplier Performance Measurement
Reward Systems Based On Performance.
Contracts
Managing Supplier Database
Supplier Relationship Management – Working With Difficult Suppliers And Supply Situations
Paradigm Shift From Adversarial To Alliance – Different Approaches To Supplier Management
Supplier Performance Improvement

3:45	MODULE 8 – PROCUREMENT TECHNOLOGY AND DATA ANALYSIS SWOT Analysis Porter’s Five Forces Model Value Chain Analysis Data Analysis Technology E-Bidding, E-Sourcing, SaaS, ERP, EDI And Cloud Computing

5:00	End of Course