Who can benefit?

•  Senior buyers, purchasing agents, managers, directors, materials managers and executives who are responsible for supply management and purchasing.

Course object

• The importance of performing purchasing gap analysis.
• Advanced practices in key areas of organization, performance measurements, supplier relations, planning and specifying, procurement process, and supplier performance.
• Knowledge of Continuous Improvement Programs
• How to Develop Commodity Plans
• Methods of Price and Cost analysis
• Procedure for reporting total cost savings
• Negotiation Planning and Strategies
• How to develop a purchasing strategic plan

 Course outline

• Introduction

• Introduction
•  Winning and Purchasing as a core competency
• Change and becoming more strategic
• Purchasing Gap Analysis

• Relations with other functions

• How do other functions view Purchasing
• Purchasing impact on the bottom line
•  How does Senior Management measure Purchasing
• Purchasing accountability
• Measuring purchasing performance

• Price Indexes

• Using published Commodity Price Indexes
• Developing a company Purchase Price Index

• Purchasing Skill Sets

• Purchasing personnel required skill sets
• Skill Set assessment process
• Training programs
• Professionalism
• Time Spent on various tasks

• Advanced Practices in Planning & Specifying

• Benchmarking
• Mission statement
• RFQs/RFPs/Tenders
•  Purchasing and supplier involvement in early stages

• Degree of automation

•  Developing an effective Electronic Procurement Strategy
•  Commodity coding
•   Process mapping to eliminate low value activities

• Strategic Sourcing

•   Developing Spend Profiles
• ABC analysis
•  Demonstration of using MS Excel Pivot tables
•  Strategic Planning for Repetitive Purchases
•   Tools for understanding commodity markets
• Model Commodity/Service Plan

• Global sourcing

•  The Global sourcing process
•  International labor rates comparison
•   Basic approaches to Global Sourcing

• Advancing Supplier Relationships

•   Supplier categories
• Strategic alliances
•  Supplier performance measurement
•   Supplier qualification and supplier recognition
•  Extended Enterprise Supply Management

• Advanced Practices in Procurement Process

•   Eliminating low value added processes
•   Long-term agreements
• Model agreements
•  Supplier reduction programs
•  Inventory reduction programs

• Cost Reduction Initiatives

• Total Cost of Ownership concepts
• Determining supplier value added
• Cost reduction reporting procedure
•  Value Analysis
• Target Costing
• Activity Based Costing

• Price and Cost Analysis

•  Model for selecting analysis methods
•  Methods of Price analysis
• Methods of Cost Analysis
• Total Cost Modeling of the Supply Chain Concepts

• Advanced Negotiation Planning and Strategies

•  Holding competitive discussions before final negotiations
•  Identifying negotiation Issues and objectives
•  Preparing a negotiation plan
•  Bargaining techniques
• Bargaining Tactics and their Countermeasures