Course Objectives:

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

Course Outlines:

Introduction

• 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
• Standards of ethics in purchasing and contracting conduct

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
• Process mapping to eliminate low value activities

Strategic Sourcing

• Commodity Coding
• 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

Price Justification

• Model for selecting analysis methods

Methods of Price Analysis

• Competition
• Historical Prices
• Use of Price Indexes

Methods of Cost Analysis

• Breaking down the elements of cost
• Developing "Should Cost" Exercise

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
• Cost reduction reporting procedure
• Value Analysis
• Target Costing
• Activity Based Costing
• Supply Chain Management

Who Can Benefit?

• Materials or Purchasing Managers
•  Contracts and Purchasing professionals

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