Advanced Procurement Strategies

Introduction:

This course aims to improve the skills of the Procurement Professional and Senior Buyers in organizations. Advanced negotiation and procurement techniques, business continuity and contingency planning for procurement are discussed and practiced in simulations. The course examines the strategic importance of procurement departments by using concepts and ideas to maximize the procurement department’s effectiveness and thereby reducing costs throughout the supply chain.

The program is an opportunity to develop leadership skills that will assist in working better together, learning to handle conflict situations, implementing time management techniques, and understanding the need to have an attitude that is accepting of change. This program is designed to provide Purchasing Professionals with not only the best practices generally viewed as leading to World-Class performance in procurement activities, but also to provide practical tools and guidance. 

Targeted Groups:

• Procurement Managers & Senior Managers
• Procurement Professionals
• Purchasing Manager
• Senior Buyers
• Buyer

Course Objectives:

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

• Review critical supply strategies
• Be provided the concepts of activity-based costing
• Discuss current forces of change
• Learn how to create rapport, build trust and establish credibility in a workgroup
• Understand that communication is vital to successful, productive workgroups
• Learn the skills required for good supplier relationships
• Study business continuity and contingency planning for procurement
• Be taught a category segmentation process
• Learn how to plan in successful negotiations
• Study different approaches in negotiations
• Examine standards of ethics
• Learn how to rate a supplier
• Evaluate the strengths and weaknesses of suppliers
• Increase recognition by the organization due to improved performance
• Increase the skill sets in advanced phases of strategic procurement
• Develop skills in procurement professionals which will raise capability, skill, and morale

Targeted Competencies:

• Supply risk mitigation
• Critical supply strategies for the future
• Performance-Based Service Contracts
• Advanced negotiation techniques
• Shrinking the supply base
• Transforming the supplier relationship
• Activity-Based Costing
• Change Leadership
• Communication Leadership
• Negotiation Countermeasures
• Advance ways of controlling negotiations

Course Content:

Unit 1: Performance Purchasing:

• Purchasing and its contribution to the organization
• The Supply Chain and its influence
• Influence of the External Environment
• Purchasing Organisations
• The Procurement Cycle
• Purchasing Systems
• Critical Supply Strategies
• Category Segmentation Process

Unit 2: The Supplier Relationship:

• Transforming the Supplier Relationship
• Specifications
• Working with End-users
• Supplier Evaluation Criteria
• Appropriate Supplier Methodologies
• Total Cost Approach
• Defining the Organization’s Mission In Building Supplier Relationship
• How to be A Good Customer
• Communication, Trust, and Credibility as Key Elements
• Shrinking the Supplier Base

Unit 3: Advanced Negotiation Skills:

• Avoiding Confrontational Negotiating
• Developing Active Listening Skills
• Negotiating with an Angry Person
• Dealing with Back Door Selling
• Power Closes that are used on the Buyer
• Understanding the other Negotiator’s Power
• Negotiating Pressure Points
• Negotiating with Untrustworthy Counterpart
• Negotiation Tactics and Countermeasures

Unit 4: Leadership Skills for Procurement Personnel:

• Communication techniques of verbal, non-verbal and written
• Methods of communication lead to more productive work and minimize stress
• Communication and interaction openness develops trust
• Identification of interpersonal interaction methods
• Recognizing response to and perceptions of change
• Analyzing and preparing for the human reaction to change

Unit 5: Advancing Procurement Contribution:

• Attract And Retain Supply Management Talent
• Supplier Measurement
• Vendor Rating
• Steps In Developing Performance-Based Contracts
• Action Planning
• Business Continuity and Contingency Planning for Procurement
• What Is Activity-Based Costing?
• Price Cost and Value
• Ways that Advanced Procurement can Improve the Organisation’s Finances

Unit 6: Strategic Sourcing and Category Management

• Introduction to strategic sourcing: Definition, process, and benefits.
• Category management in procurement: Approach, benefits, and challenges.
• Cross-functional teams in strategic sourcing and category management.
• Role of market intelligence in strategic sourcing and category management.

Unit 7: Negotiation and Contract Management

• Negotiation strategies in procurement: Preparation, techniques, and closing.
• Developing and managing contracts: Types of contracts, key components, and legal considerations.
• Performance-based contracting: Objectives, implementation, and challenges.
• Conflict resolution in contract management: Techniques and best practices.