EVENT DETAILS

You Will Learn

- Major Elements of Cost that Make Up the Price
- Stages To World Class Supply Management
- Increased Skill Sets In Supply Management
- Classifying The Spend Profile
- How To Develop A “Purchasing Coding System”
- The Value of Producer Price Indexes
- How To Become More Effective
- Price VS. Total Cost Of Ownership
- Understand Methods Of Price And Cost Analysis
- 30 Categories That Should Be Included In A Purchased Materials/Services Strategic Plan Outline

 
Organizational Impact:

The organization will benefit by:

- The reduced total cost of purchased goods and services
- Greater focus on strategic sourcing issues
- Better analytics to support procurement decisions and strategies
- Defining the expectations for World Class Supply Management
- A greater level of professionalism and skills in those involved in the  procurement and contracting process

Training Methodology

Participants will increase competencies through various instructional methods, including lectures by an experienced practitioner and consultant, exercises, and group discussions covering current practices and their relationship to implementing new concepts.

Who Should Attend:

- Contracts, Purchasing, Procurement, and Supply Management Professionals and Managers
- And all others involved in the planning, evaluation, preparation, and management of purchasing, tenders, and contracts that cover the acquisition of indirect materials, equipment, and services and who are in organizations whose leadership want high levels of competency in those involved in these activities. 

Course Summary-Key Learning Objectives 

Session 1:  Setting World-Class Expectations

 As most professionals in Supply Management are aware, procurement operations can range from simple tactical support competencies to world-class expertise.    

- Stages To World Class Supply Management
- Change And Becoming More Strategic
- Procurement Impact On The Bottom Line
- Supply Management Skill Sets
- Job Description For Purchasing

Session 2:  Spend Analysis

An essential process to reduce total costs and improve operational performance in Supply Management is aggregating, classifying, and leveraging spend data.

- Developing The Spend Profile
- The ABC Analysis
- Purchasing Hierarchical Coding Development
- Where Do You Rank As A Customer

Session 3: Segmentation of the Spend

It has long been considered that a best practice in sourcing is to classify suppliers (or materials and services) into meaningful categories based on their sourcing risk and the impact on the organization if procurement needs are not met when required.

- Segmentation Model
- Developing Strategies For Each Segment 

Session 4: Increasing Supply Management Skill Sets

It is the responsibility of professionals in supply management to ensure a fair and reasonable price in accordance with procurement best practices.

- Difference Between Cost And Price Analysis
- Producer Price Indexes
- Major Elements Of Cost That Make Up The Price
- What And How Important Are Supplier Indirect Cost
- Developing “Should Costs”
- Requesting Supplier Cost Info
- Tips To Get The Supplier Cost Breakdown

Session 5:  Total Cost of Ownership and Strategic Sourcing Plans

An often cited best practice in supply management is the development of formal short and long-range Strategic Sourcing Plans for spending categories. 

- Total Cost Of Ownership
- Reengineering The Processes
- Developing Strategic Sourcing Plans
- A Strategic Sourcing Plan Template