Understanding the role of Procurement within the Organisation

• Procurement’s role in delivering the organisation's vision
• The changing global landscape and the changing role of the CPO in the midst of a 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 company's 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 an 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 with the 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 an FTSE100 company.
• The supplier selection process: Routes to identifying suppliers for commodities and services
• Leveraging the organisation's 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 the 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 a 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 are 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 on 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 dos and don’ts when negotiating
• Achieving a successful close-out of 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 is 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