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Onsite Seminar

Purchasing and Supply Management

Boot Camp for Buyers

Day one — Acquisition Processes and Strategies — 8:00 AM - 5:00 PM

Introductions and Seminar Overview

  • Class introductions, formation of teams
  • Review of pre-assigned readings

Synopsis of Modern Supply Management

  • Supply Chain Management (SCM) defined
  • Information, material, product, and financial flows
  • Purchasing's critical role in SCM
  • Examples of industry "Best Practices"
  • Team case analysis

SCM and Purchasing Terminology

  • Important Terms and acronyms defined and reviewed
  • Team Terminology exercise

Purchasing's Roles and Structure Within the Organization

  • Tactical and strategic applications
  • Individual roles — managers, buyers, clerical, other functions
  • Traditional organizational structures
  • Commodity teams
  • Centralized vs. decentralized
  • Strategic vs. tactical focus

The Purchasing Process

  • The traditional process
  • Process evaluation
  • Creating an efficient and effective process
  • Team process re-design exercise

Methods of Executing the Purchasing Process

  • Tactical vs. strategic considerations
  • Efficiency in small-dollar buys:
    • Deployment of the order release process
    • Electronic commerce enablers
    • Blanket orders
    • Systems agreements
    • Buying consortia
    • Procurement cards
    • Integrated supply systems

Strategic Sourcing Strategies (SSS)

  • The steps in the complete SSS process
  • Quadrant analysis and supplier relationship positioning
  • Strategy implementation: methods and alternatives
  • Electronic Commerce: Web enablers for maximizing the value of strategy
  • Sourcing and on-line E-commerce exercises (facilities permitting)

Evening case assignment 7:00 PM - 9:00 PM

Day two — Basic Management and Analysis Skills — 8:00 AM - 5:00 PM

Case Review and Analysis

Creating Value in the Definition of Requirements

  • The importance of specifications
  • Assuring cost-affectivity in acquisitions through design
  • Application of Value Engineering skills
  • Assuring a final customer focus
  • How supply managers add value
  • Assuring quality, price, delivery, and service

Critical Analysis Skills

  • Understanding a cost vs. price focus
  • Understanding the elements of both cost and price
  • Price and / or cost analysis: what they are and when to use them
  • Applying the elements of Total Cost of Ownership to acquisitions
  • Value analysis: key to assuring profits and final customer's satisfaction

Purchasing Law

  • Buyers as agents
  • Contract law
  • Common Law
  • U.S. and International laws of importance to supply managers
  • Article 2 of the Uniform Commercial Code
  • Elements of contract formation
  • Essential guidelines in contract development

Supplier Management Methods

  • Supplier identification, selection, and qualification
  • Metrics for supplier management
  • Supplier quality assurance — certification
  • Supplier alliances

Evening case assignment 7:00 PM - 9:00 PM

Day Three — Practical Applications — 8:00 AM - 3:30 PM

Case Review and Analysis

Critical Elements for Effective Supply Chain Negotiations

  • Negotiating on facts
  • The ability to avoiding games and tactics
  • The ability to achieving a really mutually beneficial outcome
  • Team exercise

Purchase of Capital Assets

  • Budget considerations
  • Cost characteristics and cost drivers
  • Decision-making process
  • Service agreements
  • Buy vs. lease
  • Buying used equipment
  • When, where and how to buy
  • Team case analysis exercise

Purchase of Services

  • Focus on process effectiveness and efficiency
  • Supply Chain Metrics
  • Organizational metrics
  • Functional metrics
  • Team metrics
  • Individual performance metrics
  • Purchasing's value-adding activities
  • How to identify non-value adding activity
  • The tasks which contribute to organizational profit

Course Summary and Close

  • Synthesis and summary of topics