Strategic Purchasing and Supply Management

Introduction

This course leads delegates through the development and implementation of carefully crafted strategies for the acquisition of all goods, parts, equipment, and services.  This is a critical issue for all organizations wishing to reduce operating cost while improving quality and productivity.

This program explores key concepts of Strategic Cost/Price Analysis, Value Analysis, and Total Cost of Ownership that will move today’s supply management organization to the strategic focus needed to achieve world-class performance. Organisations sticking to out-dated procedural and tactical approaches will be outcompeted by leading organisations utilising the latest approaches and techniques to ensure that their supplier base matches their ambitions.

This course will feature:

• Setting strategies for world class procurement
• Maximising value for money
• Options for International supply chain sourcing
• Improving profitability by controlling total costs
• Understanding and managing supplier pricing models

Objectives

• Analyse the elements of cost In supplier’s price
• Understand differences in international labor rates
• Evaluate supplier’s different pricing models & analyse supplier’s price breakdowns
• Understand methods of price and cost analysis
• Create an approach to implementing TCO analysis

Content

Day One

Setting the Strategic Direction

• Defining the supply management mission and vision
• Stages to world class Supply Management
• Becoming more strategic in procurement
• Supply Management skill sets
• Developing the Spend analysis
• The ABC (Pareto) analysis

Day Two

How do you know that you got a Good Price?

• Supplier Pricing models
• Defining Cost and Price analysis
• Methods of Price analysis
• Working with Producer Price Indexes
• Developing the Organization’s purchase price index
• Estimating Cost  in relationships

Day Three

Getting a Better Price by Analysing Cost

• Methods of Cost analysis
• Major elements of Cost
• What and how important are Supplier overheads
• Sources of cost information
• Analysing Supplier cost breakdowns

Day Four

Using Price, Volume, International Labour, and Value Analysis

• Global Industrial Labour Rates
• Working with Currency Exchange Rates
• Cost Volume Profit Analysis
• Fixed and Variable Costs Defined
• Defining Value Analysis?
• Checking Supplier Value

Day Five

Total Cost of Ownership (TCO)

• Changing Supply Management
• Defining TCO
• Barriers to TCO
• Approaches to TCO
• Total Cost Modelling of the Supply Chain
• Implementing TCO