Strategic Supply Management

Supply Management Fitness Review I — Advancing the Supply Management Function

Introduction

Most Procurement Operations have the objective of becoming or maintaining World-Class status. World-Class Purchasing operations target significant annual cost improvement, bringing significant strategic value to their organizations and strong recognition to the function and those in it. Yet according to many studies most organizations must significantly improve their supply management operations in order to provide the continuous improvements needed to win and earn profits in today's very competitive market place. This seminar is designed to explore the practices generally viewed as leading to World-Class performance in purchasing so that participants can determine where they are now and begin immediate implementation of the steps needed to create maximum total value for their organization. This program combined with Supply Management Fitness Review II present excellent skill sets for dramatic improvement in Supply Management.

By attending this event, YOU will

• Discuss the importance off performing purchasing gap analysis.
• Review best practices in key areas of organization and performance measurements,.
• Explore methods of evaluating prices
• Discuss how to use purchase price indexes
• Learn best practices in supplier relations, planning and specifying, procurement process, and supplier performance
• Be able to develop a purchasing strategic plan

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: Setting the Direction for World Class Purchasing

• Procurement as a core competency
• Change and becoming more strategic
• Purchasing impact on the bottom line
• Determining the Gap
• Developing the Strategic Plan for the Procurement Activity
• Relations with other functions
• Defining the Procurement Mission

Small Group Exercise: Establishing the Procurement Mission.

Session 1 establishes the importance of the function and the need for it to emerge as a core competency of the organization.

Session 2: Purchasing Skill Sets

• Purchasing personnel required skill sets
• Skill Set assessment process
• Training programs
• Professionalism
• Standards Of Ethics In Purchasing And Contracting Conduct

Small Group Exercise: The group will discuss a case related to a ethics issue and formulate a recommendation.

Session 2 is focused of the realization that functions cannot perform better than their people and that world class performance in procurement activities requires highly trained competent professionals with high ethical standards.

Session 3: Measuring our Performance

• Measuring purchasing performance
• How does Senior Management measure Purchasing
• Benchmarks
• Using published Commodity Price Indexes
• Developing a Purchase Price Index

Individual Exercise: Develop a company Purchased Price Index.

Session 3 is in recognition of the often quoted fact that it is difficult to improve what is not measured.

Day 2

Session 4: Strategic Sourcing

• Commodity Coding
• Developing Spend Profiles
• ABC analysis
• Using Excel in Spend Analysis
• Time Spent on Various Tasks
• Strategic Planning for Repetitive Purchases

Group Discussion: How to better structure your time so that you grow from just being a "Getter" to a true procurement expert.

Session 4 identifies that purchasing personnel must move from the tactical focus of most purchasing operations to a much more strategic focus that brings continuous improvement to the bottom line of the organization.

Session 5: Advancing Supplier Relationships

• Supplier categories
• Strategic alliances
• Early Supplier Involvement
• Supplier performance measurement
• Supplier qualification and supplier recognition

Group Discussion: We will discuss the various ways the attendees currently measure supplier performance.

Session 6 explores the best practices in supplier selection, performance measurement, and developing and maintaining good supplier relationships.

Session 6: Best practices in Procurement Process

• Tendering & Contract Administration
• Degree of automation
• eProcurement
• Price Justification
• Supplier reduction programs
• Inventory reduction programs
• Total Cost of Ownership

Group Discussion: Where to go from here? — how to make it happen.

Session 6 looks at many of the steps in the procurement process and identifies the practices that generally lead to world class performance.