About

With up to 70% of an organisation’s turnover being spent by the Procurement/Purchasing Team, it makes sense to manage that spend well.  A small percentage improvement can equate to lots of dollars on the bottom line.

 This course covers many of the procurement and purchasing tools that can be used to provide better share holder value.

 Key Learning Objectives

Upon completion of this course, participants will know how to:

• Align spend to organisational strategy
• Broadly how to ascertain purchasing goals and plans
• Select suppliers in tune with strategies
• Manage suppliers to maximise return – including KPI management
• Basic negotiation skills
• Implementation and Management of Cost Reduction Programmes
• Reduce the risk to their supply chains

 
 Learning Methodology

The focus of the course is to enable participants to return to work with a clear strategy for the products that they are involved with. 

 Presentations, Videos, Team Work, Practical Sessions and Personal Time are all utilised to identify opportunities and develop real plans to improve the situation of their organisations.

 All course participants will receive a certificate of attendance and a hard copy workbook outlining Category Management tools and techniques.

 You can expect to meet, interact and share experiences with peers from other companies and you will get to practice using some of the core tools for real in breakout sessions.

 Who Should Attend?

• Purchasing and Procurement Managers
• Category Managers
• Contract Managers
• Accounts Managers
• Supply Chain Managers
• Office Managers
• Company Secretaries
• Corporate Performance Managers
• Stakeholders who work closely with purchasing/procurement
• Sales staff who want to better understand the approaches buyers use

Outline

DAY ONE

Establishing the critical success factors for your operation
• What is your organisation expecting from its purchasing and supply chain performance?
• Using performance reporting as a business improvement tool
• Determining appropriate key performance indicators to measure improvement
• What do the top performers do best and how can you emulate their strategies?
• Creating a sustainable procurement management framework for your organisation

Implementing strategies for cost-effective purchasing and procurement
• Strategic cost management as opposed to ad-hoc cost reduction
• Aligning cost management strategies to those of the business
• Practical tips to manage your expenditure and reduce costs
• Measuring the impact of cost management initiatives on profitability

Supplier selection and management
• What are the roles and responsibilities of a procurement manager in the supplier relationship?
• Creating a supplier development plan
• What are the key phases of supplier management?
• Developing strategic supplier management skills
• Analysis of the practical tools available for effective supplier management
• Analysing the different levels of relationships with suppliers
• Developing tools and techniques that can be applied to any supplier relationship

Evaluating your suppliers - developing key measures for a total cost and value approach
• How can you measure supplier performance?
• The future of supplier relationships in the electronic age
• Assessing the value of moving to a partnership agreement
• Examining the different types of purchasing and procurement contracts and service level agreements
• How to move towards a total cost value partnership

DAY TWO

Identifying and managing key risks for improved procurement and purchase practice
• Looking at risks in each stage of the supply chain
• Developing a framework to manage these risks
• Balancing risk with the need to maximise your purchasing power
• How to monitor the risk reporting of the department
• How to take a vulnerability analysis to assess your exposure to risks

E-procurement: Customising a solution to fit your organisation
• Key factors in the decision to move towards Internet based purchasing
• Managing the impact of change in the purchasing department
• The role of integrated systems (ERP)
• Examining the hidden costs
• Why should you integrate your business and Internet strategy
• Integrating suppliers to an e-commerce platform
• Assessing the true cost of traditional purchasing costs vs e-commerce
• Preparing your organisation for the implementation of a practical e-procurement strategy

Essential negotiation skills for the procurement function
• Understanding the various styles of negotiation
• Determining the most appropriate style for you
• Setting the scene: What preparation is needed?
• Understanding the impact of non-verbal communication on your relationship
• Wrapping up the negotiation process - things you must do

Purchasing processes: How to become operationally efficient in purchasing
• Understanding your processes - how to map effectively
• How to cost your $ per transaction and then how to reduce it
• 90 day payback tools for optimising purchasing processes
• It’s not just about procurement strategies but payment strategies as well
• Kanban, consignment stocking, purchasing cards, and vendor managed inventory
• Other useful improvement ideas for reducing your cost of transaction

Developing a balanced performance measurement framework that is value driven
• Choosing the most effective measures and standards for your organisation
• Finding and locating appropriate organisations to benchmark with
• Integrating new performance standards into your own purchasing processes
• Setting up and managing the processes
• Using the system
• What happens to the information?
• Who should be involved?
• How is it linked to management incentives?
• Linking it to continuous improvement
• Supplier performance overview and assessing your status as a customer

Facilitator

In-house Training