Procurement Best Practices

Introduction:

The Procurement function has developed from a simple administrative function to a fully-fledged strategic business unit. No longer is it sufficient to simply turn requisitions into orders and then await the delivery of the goods or services. It is therefore imperative for Procurement to constantly deliver value to the organization by delivering products and services that contribute to the well-being of the organization.

To do this, Best Practices have to be implemented on four levels: Strategic, Tactical, Operational, and Contingency

This seminar will address the necessary conditions at all four levels for those delegates who want to implement high-performing Procurement functions.

Targeted Groups:

• Contracts Personnel
• Purchasing Personnel
• Procurement Personnel
• Project, Engineering, Operational, and Maintenance, Personnel who are involved in the planning, and execution of purchases and contracts
• All involved in the acquisition of materials, equipment, and services and who are in organizations whose leadership want high levels of competency in those involved in these activities

Course Objectives:

At the end of this course the participants will be able to:

• Understand the evolution in Procurement
• Discuss the inputs, outputs, and processes of the system
• Develop meaningful performance measurements
• Learn the necessary conditions to be taken on all four levels
• Increase skill sets in all phases of strategic procurement
• Lead, plan, and manage the procurement process

Targeted Competencies:

• The ability to deliver real value in a shorter time
• Reduce the number of non-value adding activities
• Improved relations between personnel, customers and suppliers
• Reduction in total cost of ownership
• Improved supplier performance

Course Content:

Unit 1: Seeing Procurement as a Dynamic, Interactive System:

• The System Approach vs. the traditional Functional Approach
• What is the goal of Procurement?
• Developing the Strategic Procurement Plan
• An overview of the procurement process
• Procurement as part of the Supply Chain

Unit 2: Developing the Strategic Procurement Decisions:

• Make/buy decision
• Vertical integration
• Alliances and partnerships
• Inter-company trade
• Reciprocity and countertrade
• Supplier strategy
• The coordination strategy
• The Purchasing organization

Unit 3: Implementing the Tactical Procurement Decisions:

• Supplier involvement
• Value analysis
• Quality Assurance
• Supplier selection
• Supplier rating and ranking
• Contract management
• IT systems and e-Procurement
• Policies and procedures
• Staffing the Procurement Department

Unit 4: Dealing with Operational Procurement Decisions:

• Selecting the most appropriate ordering process
• Addressing quality issues
• Follow up
• Overdue orders
• Expediting
• The payment process
• Reducing the cost of procurement: small value purchase orders

Unit 5: Contingency Procurement Decisions:

• The different contingency situations
• Contingency management

Unit 6: Procurement Performance Measurement:

• Spend analysis
• Total cost of ownership
• Supplier performance measurement