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

Procurement & Logistics