Course Objectives:

• The importance of performing purchasing gap analysis.
• Advanced practices in key areas of organization, performance measurements, supplier relations, planning and specifying, procurement process, and supplier performance.
• Knowledge of Continuous Improvement Programs
• How to Develop Commodity Plans
• Methods of Price and Cost analysis
• Procedure for reporting total cost savings
• Negotiation Planning and Strategies
• How to develop a purchasing strategic plan

Course Outlines:

Introduction

• Winning and Purchasing as a core competency
• Change and becoming more strategic
• Purchasing Gap Analysis

Relations with other functions

• How do other functions view Purchasing
• Purchasing impact on the bottom line
• How does Senior Management measure Purchasing
• Purchasing accountability
• Measuring purchasing performance

Price Indexes

• Using published Commodity Price Indexes
• Developing a company Purchase Price Index

Purchasing Skill Sets

• Purchasing personnel required skill sets
• Skill Set assessment process
• Training programs
• Professionalism
• Time Spent on various tasks

Advanced Practices in Planning & Specifying

• Benchmarking
• Mission statement
• RFQs/RFPs/Tenders
• Purchasing and supplier involvement in early stages

Degree of automation

• Developing an effective Electronic Procurement Strategy
• Commodity coding
• Process mapping to eliminate low value activities

Strategic Sourcing

• Developing Spend Profiles
• ABC analysis
• Demonstration of using MS Excel Pivot tables
• Strategic Planning for Repetitive Purchases
• Tools for understanding commodity markets
• Model Commodity/Service Plan

Global sourcing

• The Global sourcing process
• International labor rates comparison
• Basic approaches to Global Sourcing

Advancing Supplier Relationships

• Supplier categories
• Strategic alliances
• Supplier performance measurement
• Supplier qualification and supplier recognition
• Extended Enterprise Supply Management

Advanced Practices in Procurement Process

• Eliminating low value added processes
• Long-term agreements
• Model agreements
• Supplier reduction programs
• Inventory reduction programs

Cost Reduction Initiatives

• Total Cost of Ownership concepts
• Determining supplier value added
• Cost reduction reporting procedure
• Value Analysis
• Target Costing
• Activity Based Costing

Price and Cost Analysis

• Model for selecting analysis methods
• Methods of Price analysis
• Methods of Cost Analysis
• Total Cost Modeling of the Supply Chain Concepts

Advanced Negotiation Planning and Strategies

• Holding competitive discussions before final negotiations
• Identifying negotiation Issues and objectives
• Preparing a negotiation plan
• Bargaining techniques
• Bargaining Tactics and their Countermeasures

Who Can Benefit?

• Managers with direct financial responsibilities
• Cost and management accountant
• Financial and budget controllers who are moving to wider responsibilities
• Managers who need to know more about business budgeting, costing terms and techniques.
• Managers who have to plan, cost and budget new business ventures.

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