Integrating Purchasing, Logistics and Inventory With Suppliers

Introduction

World-class organizations view the application of best practices in purchasing as being essential skill sets needed by all employees involved in the procurement process. This course focuses on the common “gaps” in a performance that must be filled in order for Supply Management to provide the continuous improvements needed for organizations to meet their strategic objectives. This Course develops how to be proactive rather than reactive in procurement activities and how to be working on the “right” things that display Purchasing’s creativity, flexibility, and supply market knowledge. We establish how to provide and measure purchasing contributions to the organization so that this critical function and all those in it can be elevated to be seen as a core organization competency. A five-day intensive program aimed at developing/strengthening the understanding of the crucial role played by the supplier in delivering customer satisfaction through an effective supply chain. 

Participants will learn how to evaluate the performance of both potential and current suppliers. Assess the factors that comprise an effective tender and conduct effective negotiations that bring long term value to the organization.

Objectives

Participants attending the program will:

• Identify and reduce procurement risk through the development of a plan of action
• Enable improved performance from your existing suppliers through evaluation and performance measurement
• Understand and strengthen your supply chain
• Improve operating relationships within your organization
• Award contracts on the basis of measured performance/criteria
• Provide a working understanding of the Negotiation process
• Learn how to develop high-performance purchasing organizations
• Develop strategic purchasing plans
• Discuss how to improve internal customer service
• Determine how to eliminate low value-added processes
• Be taught how to develop spend profiles
• Will be show analytics that to guide procurement strategies
• Explore many ways of reporting key performance indicators (KPI)
• See how to apply past supplier performance for better selection
• Be presented with the most important competencies for purchasing personnel
• Having Expert Procurement Management leading and guiding the purchasing process
• Continuous improvement in the total cost of materials & services
• Higher productivity of personnel involved in procurement activities
• Improved performance of contractors and suppliers
• Better ways to measure purchasing performance
• Better integration between functions resulting in shorter cycle-times

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practice. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

The organization will benefit by:

• Contracts, Purchasing, and Project personnel
• Engineering, Operational, and Maintenance personnel

And all others who are involved in the planning, evaluation, preparation, and management of tenders, awards, contracts, and purchases that cover the acquisition of materials, equipment, and services and who are in organizations whose leadership want high levels of competency in those involved in contracts and purchasing activities. 

Course Outline

Day 1: What is the Role of Purchasing in the Company

• Introduction to Purchasing and its contribution to the organization
• What is the purpose of a business?
• Dealing with the problem of being a “ go-between “
• The purchasing process and cycle of procurement
• Positioning purchasing within the company
• Vision, Mission, and Value of Purchasing
• Purchasing Structure
• Where to find performance improvement

Day 2: Developing the Purchasing Strategy

• How to reach the internal customer
• Developing Purchase agreements
• Importance of being involved in creating the specification
• Supplier selection methodology
• Criteria for pre-qualifying suppliers
• Integrating the supplier selection process
• Positioning your need and you value against the market
• The role of ISO 9000

Day 3: Selecting the Right Supplier & Evaluating Performance

• Conditioning the supplier to meet your requirement
• The total cost approach to purchasing
• Analyzing Cost
• Analyzing Value
• Hidden costs
• Life cycle costing
• Using Price indices
• Performance evaluation

Day 4: Tendering and Analyzing the Bid

• Process needs
• Types of tender
• Electronic commerce / E Auctions
• Evaluating a bid objectively
• Terms and Conditions of contract
• Standard contract clauses
• Methods of Payment
• Expediting the agreement
• What if the contractor fails to deliver – legal issues

Day 5: Negotiating the Contract and Preparing a Plan of Improvement Action for Purchasing

• Defining negotiation
• Obstacles to effective negotiation
• Different styles of negotiation
• The tools of the process
• Phases of a negotiation
• What to do and what not to do
• Focus on four key areas of world-class performance
• Evaluating performance gaps