Procurement Best Practices

The development and implementation of carefully crafted strategies for the acquisition of all goods, equipment, and services has become a critical issue in all organizations wishing to reduce operating cost while improving quality and productivity. This program explores key concepts forming the basis of strategic procurement and the management of the supply chain and moves though leading edge issues that confront the purchasing organization today.

Course Objectives

• Developing high performance purchasing organizations
• Best Procurement Practices
• Applying Technology to Strategic Procurement
• Supplier Relationship Management
• Developing Strategic Purchasing Plans
• What supply chain management involves
• The Rules for Effective Supply Chain Management

Course Outline

It Is Time For Procurement To Become Strategic

• Defining Supply Management
• Strategic Sourcing
• Identifying Competencies And Weaknesses
• Benchmarks For Purchasing

Developing the Procurement Vision & Mission

• Developing The Strategic Plan
• Supplier Classification Systems
• Supplier Qualification Methods
• Developing Quantitative Evaluations
• Supply Chain Management
• Defining Strategic Supplier Alliances

The Steps to Strategic Procurement

• Developing Spend Analysis
• Excel Tools For Analysis
• Methods Of Commodity Coding
• Commodity Management
• Developing Key Performance Indicators (KPI) For Procurement
• Supplier Performance Metrics

The Demand for Continuous Improvement in Total Cost of Ownership

• Driving Down Prices Through Cost/Price Analysis
• Determining And Tracking Cost Drivers
• Supplier Collaboration Technologies
• The E-Reverse Auction-What Is The Future?

Understanding what the Supply Chain is

• Definitions of Supply Chain management
• The interrelations and connections of Buying, Making, Moving, and Selling activities
• History and the development
• A view of the future.

Impacts to the Supplier/Customer relationships

• Practical effects on lot sizes/order quantities
• Reducing costs
• Sharing developments
• Eliminating internal and external barriers
• Interfacing versus integrating relationships
• Manufacturing and Retailer case studies
• The major lessons and key aspects from experience

Course Methodology

A variety of methodologies will be used during the course that includes:

• (30%) Based on Case Studies
• (30%) Techniques
• (30%) Role Play
• (10%) Concepts
• Pre-test and Post-test
• Variety of Learning Methods
• Lectures
• Case Studies and Self Questionaires
• Group Work
• Discussion
• Presentation