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Onsite Seminar

Strategic Supply Management

Supply Management Fitness Review II — Advancing the Supply Management Function to its True Importance


Leaders in Procurement and Contract functions are expected to be experts in running world-class buying organizations. Yet, according to many studies, most Purchasing Operations present significant "gaps" in performance that must be filled in order for Procurement to provide the continuous improvements needed to win and earn profits in today's very competitive market place.

This program is designed to explore additional best practices not coverer in the very popular "Supply Management Fitness Review I" seminar and to provide Purchasing Leaders with not only the best practices generally viewed as leading to World-Class performance in purchasing but also to provide practical tools and guidance in how to "make it happen".

By attending this event, YOU will

  • Receive a Savings Reporting procedure
  • Explore the elements of cost in supplier's price
  • Learn better ways to dealing with economic uncertainties
  • Work with Price-Volume-Profit relationships
  • Discuss Internal and External surveys to enhance purchasing performance
  • Understand how to develop a "Purchasing Coding System"
  • Learn an in depth method of supplier segmentation
  • Improve your ability to negotiate with colleagues
  • How to avoid price increases
  • Receive Tips on how to win the negotiation

What's in it for your organization?

The organization will benefit by:

  • Higher productivity of personnel involved in procurement activities
  • Reduced total cost of ownership for purchased materials, equipment, and services
  • Improved productivity of the entire organization by better on time delivery of high quality goods and services
  • Improved supplier performance and relations
  • Greater strategic focus of those involved in supply management

What's in it for you?

Attendees will gain by participation in this program as a result of:

  • Increased skill sets in purchasing
  • A greater sense of professionalism
  • Knowledge of world-class purchasing practices
  • Greater ability to lead continuous improvement programs
  • Increased recognition by the organization due to improved performance

Who Should Attend:

  • Purchasing, Procurement, and Supply Chain Managers and professionals,
  • Materials, Contracts, Projects, Maintenance, Operations, and Financial Managers and,
  • All other Managers and Professionals interested in lowering total cost and increasing productivity and profit contributions from better purchasing operations.

Seminar Outline

Day 1

Session 1: The Goal is Continuous Improvement

  • Creating time to be strategic
  • Cost containment methods
  • Savings reporting procedure
  • "Savings Improvement Opportunity" form
  • Cost reductions and cost avoidance—can and should we have both?

Small Group Exercise: Getting ride of the "C"s.

Session 1 focuses on the prime responsibility of purchasing in providing continuous improvement to the organization in total cost of ownership for goods and services purchased from suppliers.

Session 2: Increasing Purchasing Skill Sets

  • Statements of Work and Specifications
  • Requesting Suppliers Cost and Pricing Data
  • Elements of Cost that make up the price
  • What is a fair and reasonable profit?
  • Developing "Should Cost"

Individual Exercise: Develop "Should Cost" for a purchase.

Session 2 focuses on methods of determining did we get the right thing/service at the right price

Session 3: Purchasing Analytics

  • Dealing with economic uncertainties
  • When, where, and how to use "Economic Price Adjustment Clauses"
  • Types of Costs
  • Price Volume Relationships
  • Price-Volume-Profit Analysis

Individual Exercise: Calculate the adjusted contract price related to a change in the base price of material. Calculate the results using price-volume-profit-relationships.

Session 3 discusses and demonstrates uses of important purchasing analytic techniques that can provide significant cost savings.

Day 2

Session 4: Performance Enhancement, Relations, and Defining the Spend

  • How do suppliers evaluate us as a customer
  • Supplier Welcoming Booklet
  • Internal Surveys to Improve Purchasing Performance
  • Status checking and Expediting
  • Purchasing Code Development

Group Exercise: Structure an external survey to determine how your Suppliers rate your organization as a customer.

Session 4 identifies best practices that contribute to developing the spend profile, improving on time delivery performance, and supplier relationship management.

Session 5: Supplier Segmentation and Risk Assessment

  • A process for Supplier Segmentation
  • Reengineering the processes
  • Benefits of flow charting
  • SWOT Analysis
  • Risk Analysis

Individual Exercise: Develop a SWOT analysis for your purchasing department.

Session 5 focuses on strategic issues that enable procurement groups to demonstrate that they can be and are much more than just order placers.

Session 6: Apply Your Strengths

  • Asking for a lower Price
  • Resisting Price Increase
  • Negotiating with Colleagues
  • Negotiating in single and sole source situations
  • Tips for the actual negotiation

Role Play: Asking for a lower price and saying no to price increases.

Session 6 provides expanded individual skills sets in commonly experienced negotiation situations.