Understanding the role of Procurement within the Organisation

 

•       Procurement’s role in delivering the Organisations vision
•       The changing global landscape and the changing role of the CPO in the midst of tough, volatile new world

 

 

Successfully Building, Developing and Managing the Procurement Function

 

• The core focus areas of the procurement function
• The procurement cycle and the role of the CPO in managing the cycle
• The evolution from ‘just a buyer’ to CPO
• The importance of building effective procurement processes
• The key essentials and basic ‘rights’ of procurement
• The importance of Employing the right people
• The importance of Technology in Procurement
• The boundaryless organization and supplier coordination & integration: Why integrating your suppliers into your value chain is so important for the modern CPO (supply chain management as an organization-spanning activity)
• Turning the Supply Chain into a Value Chain Procurement Strategies for the Modern Supply Chain

 

 

Managing Cost not Price

 

•       The Total Cost of Acquisition
•       Lifecycle costing and the total cost of ownership
•       Engineering Cost out of the Procurement Process

 

 

Personality Profiling Exercise

 

•       Discovery Profiling Individual Exercise
•       Understanding different personalities and their approach to Procurement
•       Adapting our approach by understanding others drivers Identification of areas for self-development and understanding
•       Building the right Procurement Team
•       Practical Application: Delegates will individually complete a personality profiling questionnaire.

Commodity / Category based Procurement – What is it?

 

•       Gathering, Categorizing and Managing Supplier Data Effectively

 

 

Spend Profiling: How to assess your companies spend.

 

•       How to identify the organisation’s overall expenditure
•       How a proper and thorough spend analysis can work for you
•       Profiling spends into supply market aligned categories
•       Categorising the expenditure to a suitably granular level
•       How to use market information to select categories
•       Building and completing commodity maps
•       How to analyse and identify key expenditure areas
•       How to present complex data
•       Using your Procurement Team most effectively and most appropriately based on your spend analysis and portfolio analysis (to save costs, improve quality & leverage best results for the organization/ company)

 

 

Existing Supplier Profiling: How to assess your company’s existing Suppliers.

 

•       Includes a real-life case study from a FTSE 100 company.
•       Identifying Suppliers by Commodity / Category Building assessment tools for the objective and transparent profiling of Suppliers
•       Understanding Assessment Categories
•       Understanding Assessment Questions
•       How to make the assessments objective and repeatable
•       Obtaining buy-in and support from the wider organisation
•       Comparison of Suppliers at a detailed and granular level
•       Presenting large amounts of complex data in an easy-to-understand format

 

 

Supply Market Profiling: Developing a complete understanding of the supply market and knowledge of where the power lies.

 

•       Understanding the Market Dynamics for the Commodity
•       Using tools to help structured assessment of the Market;
•       What risks occur in the supply chain from start to finish and how can we mitigate and control these risks?
•       Leveraging supply market intelligence to mitigate and manage risk
•       Supply chain risk management in a risky, volatile world
•       Understanding supplier risk categories and how these risks can impact your organization and its performance (both positively or negatively)

 

 

Building High Level Commodity Strategies

 

•       Identifying and documenting requirements for a commodity solution
•       Identifying and managing priority requirements
•       Strengths and weaknesses of global / low cost sourcing
•       Mitigating risks in global / low cost sourcing
•       Identifying and understanding the right distribution channels for different requirements

Identification of Suppliers for the Tender List: Selecting the right Suppliers for the tender.

 

•       Includes a real life case study from a FTSE100 company.
•       The supplier selection process Routes to identifying suppliers for commodities and services
•       Leveraging the organisations knowledge
•       Objective, structured and transparent assessment of suppliers (pre-qualification)
•       Global vs. local supply – what to select and the key drivers
•       Building a position of power when dealing with suppliers
•       Building the right relationship with the supplier (supplier or partner)

 

 

The Tender Process

 

•       The key elements of tendering
•       Managing the tender process
•       Building the ITB (Instructions to Bidders) documentation
•       Putting the business into context for the supplier and ‘selling’ the buyer
•       The key category areas for assessment
•       Building the right assessment models to objectively score, understand and compare supplier submissions
•       Providing unsuccessful suppliers with objective feedback to help them improve their business
•       Maintaining competition during the bidding process

Pricing – Understanding, selecting and building the correct pricing model for the products or services being purchased.

 

•       Understanding the difference between ‘price’ and ‘cost’ T.C.O – Total Cost of Ownership and lifecycle costing
•       Identifying different areas in which to reduce cost, not just purchase price
•       Understanding the different pricing methods including: cost plus; fixed; fixed and firm; schedules of rates
•       Fixing prices to indices for long term arrangements
•       Generating competition in the supply base
•       Using global sourcing to gain competitive advantage
•       Improving processes to reduce overall organisational costs
•       Automating processes to allow the buyers to ‘buy’ not administer transactional processes
•       Understanding the impact of inventory on the organisation
•       Working with the supplier to manage inventory: VMI (Vendor Managed Inventory) and consignment stocking
•       Identifying what adds ‘value’ and what adds ‘cost’ LEAN principles applied to procurement practices
•       Using standardisation to reduce costs / variables
•       Controlling costs on long term agreements
•       Understanding INCOTERMS and selecting the best terms for the buyer

 

 

Key Performance Indicators and Appropriate SLA’s

 

•       Using KPI’s, Key Performance Indicators, to manage suppliers’ performance
•       Using KPI’s to manage the procurement function
•       Using the S.M.A.R.T (Specific; Measurable; Aligned; Realistic; Time Bound) principles when building KPI’s
•       The impact of frequency on delivering improvements
•       Using KPI’s to form the basis of the regular supplier review meetings
•       The importance of agreeing service levels prior to contract award

 

 

Negotiation – Building a position of strength for effective negotiation

 

•       The key stages of negotiation: Scope, plan and conduct
•       Defining the scope of the negotiation – seldom is this a mono issue
•       Selecting the correct team for the negotiation
•       Roles and responsibilities of the team during the negotiation
•       Controlling the team in the heat of the negotiation
•       The importance of planning for the negotiation
•       Understanding internal and external influences
•       Understanding the power of the supplier and buyer
•       The bargaining zone and impact of strong negotiators
•       Different approaches to negotiation
•       Using effective questioning to gather data and force agreement
•       Building the correct negotiating environment – aggressive vs. passive
•       Key do’s and don’ts when negotiating
•       Achieving a successful close out to the negotiation and post negotiation follow up
•       Closing the deal

Supply Chain Management Discussion – the importance of procurement to the success of the organisation as a whole

 

•       The supply chain as a multi-faceted network of multiple upstream and downstream activities
•       Procurement maturity within the organisation
•       The difference between inward and outward facing roles
•       Value generation within the organisation through the procurement function
•       Using KPI’s to manage and monitor the supply chain
•       How to get the most from performance review meetings

 

 

Supplier Development Discussion – once the supply chain is performing optimally, supplier development will allow the organisation to further improve and develop

 

•       Identifying and understanding the areas for investment
•       The supplier’s role and rewards in the process
•       Value analysis and value engineering to remove non-value-added activity
•       Improving the performance of the supply chain as a whole through metrics
•       Motivating suppliers through awards and recognition

 

 

Personality Profiling - Group Feedback Session

 

•       Presentation detailing the different personality profiles of the CIPP group
•       How to deal / manage different people and personalities
•       Building the right procurement team for your organisation