Strategic Seven-Step Procurement Methodology for Improving Purchasing Value
- Utilizes a variety of exercises, case studies, videos, and questionnaires in the training course.
Participants will be able to:
- Analyze internal spending and market dynamics to establish a procurement plan foundation.
- Apply different procurement strategies to achieve cost savings and secure resource availability.
- Identify suitable suppliers for effective implementation of the procurement plan.
- Describe operational and strategic purchasing processes to achieve optimal value.
- Apply various methodologies for managing procurement and sourcing operations.
- Apply integrated techniques in supplier management to sustain supplier relationships.
- Manage procurement performance to achieve continuous improvements.
This training course targets procurement and supply chain management experts at all organizational levels, as well as those responsible for planning, resource provisioning, purchasing, and all employees involved in purchasing operations.
Step 1: Analyzing Spending Categories
- Understanding the strategic role of procurement management.
- Strategic procurement within the supply chain context.
- The seven steps of strategic procurement.
- Analyzing spending categories.
- Creating an expenditure category file.
- Analyzing financial impact.
- Assessing market risks.
- Consolidating category reports.
- Strategic procurement strategies toolkit.
- Applying Total Cost of Ownership (TCO).
- Supplier segmentation and analysis.
Step 2: Developing Procurement Strategies
- Planning expenditure categories using the procurement strategy matrix.
- Routine goods.
- Bottleneck goods.
- Leverage goods.
- Strategic goods.
- Balancing the buyer-supplier relationship.
- The six core procurement strategies.
- Effective application of procurement strategies.
Step 3: Supplier Identification
- Identifying supplier locations.
- Registering suppliers.
- Evaluating suppliers.
- Internal sourcing options.
- Supplier diversity description programs.
Step 4: Developing Purchasing Processes
- Defining the scope of purchasing operations.
- Describing operational and strategic processes.
- Developing purchasing processes.
- Integrating ethical principles.
Step 5: Applying Purchasing Operations
- Managing information request, quotation, and proposal processes (RFI, RFQ, RFP).
- Determining tender evaluation criteria.
- Applying innovative purchasing methodologies.
- Using decision-making matrices.
- Utilizing purchasing tools and templates.
Step 6: Supplier Relationships
- Supplier prequalification.
- Managing supplier accreditation programs.
- Partnering with suppliers.
- Managing Service Level Agreements (SLAs).
Step 7: Managing Purchasing Performance for Continuous Improvement
- Managing the strategic procurement plan.
- Measuring, analyzing, and reporting performance.
- Developing improvement initiatives.
- Institutional context of supplier scorecards.
- Monitoring industry trends.
- Integrated application of all steps.