October 3 2019 PROCUREMENT PLANNING AND BID MANAGEMENT 0 Strategic procurement planning Setting procurement mission and objectives Selection of improvement initiatives Structure-related initiatives Systems-related initiatives Workstreams-related initiatives Culture-related initiatives Performance measures and targets Communication of procurement plan Stakeholder engagement Spend category planning Spend category profiling Spend impact analysis Financial impact Vendor segmentation Market risk analysis Value chain analysis SWOT analysis Porter’s five forces Risk heat maps Vendor risk scores Category report consolidation Forecasting and demand planning The soft side of forecasting Tetlock’s foxes and hedgehogs Taleb’s black swan Principles of demand planning Quantitative forecasting techniques Qualitative forecasting techniques Vendor integration Vendor prequalification process Vendor prequalification criteria Legal criteria Financial criteria Technical criteria Staff criteria HSE criteria Service Level Agreements (SLAs) Strategic partnering Supplier diversity programs Bid evaluation and selection Bid management process Bid evaluation criteria Scoring systems and protocols Selection and award Total Cost of Ownership (TCO) for complex purchases
October 2 2019 MAINTENANCE CONTRACTING & OUTSOURCING 0 Module 1: Outsourcing Considerations IntroductionAsset management – The business impact of maintenanceConsiderations in outsourcing maintenance – what to outsource and what not?Activity on asset matrixRisks involvedOutsourcing maintenance activities – case study Module 2: Maintenance Contracts Maintenance contract typesParties involvedThe tendering process – modern ways of tenderingChoosing the right contractorCosting the serviceDefining Key Performance Indicators to monitor the performance of all parties involvedUse of Balanced Scorecard with performance contractsInteractive exercise and examples Module 3: Developing the Maintenance Contract Vendor managementThe contracting cycleAssemble a teamAssess, determine and specify the required service levelsWriting the contract – contents of a maintenance contractInteractive exercise: review some existing contractsImplementing contract management – how to make it work (performance management)Periodic evaluation & improvement Module 4: Grounding and Negotiating the Contract Expectations about availability, reliability and costsThe extensive preventive maintenance schedule – “tricks” of maintenance contractorsThe seven steps to develop a risk based maintenance conceptUsing the maintenance concept to negotiate more effectively lean maintenance contractsNegotiating the contract – negotiation ploysNegotiating the contract – negotiation tacticsNegotiating tipsInteractive exercise and role play regarding negotiating Module 5: Final Workshop Development of a maintenance contract in groupsDefining the requirements and service levelsDevelop the offerSelection criteriaPresenting the bidClosing the contractEvaluation of resultsWrap-up
September 30 2019 DEVELOPING PURCHASING POLICIES, PROCESSES AND SLAS 0 The strategic role of purchasing Purchasing terms and definitionsEvolution of purchasing into a strategic functionPurchasing relationships within the organizationPurchasing processEthical principles governing the purchasing function Using an appropriate writing style Writing in an impersonal styleOrganizing paragraphs and sentencesWriting applicationsSimple languageSpecific languagePositive languageUsing active verbsApplying easy and effective grammatical rulesGunning fog index for writing complexity Writing purchasing policies Purchasing policies: what are they and why do we need them?Guidelines for writing purchasing policiesPurchasing policy scopePolicy contents and exclusionsDeveloping purchasing policies – practical application Designing purchasing processes and procedures Defining processes and proceduresConsiderations in developing processes and proceduresProcess developmentArtistic processesScientific processesProcess hierarchyAbstract processesStrategic processesOperational processesMeasuring and improving process performanceRules governing the use of flowchart symbolsMapping your processes using swim lane flowchartsWriting detailed procedures to support process maps Developing service level agreements The role of SLAsUnderstanding departmental inter-dependenciesPrinciples for developing SLAs that add real valueTypical SLA table of contentsWriting SLA practical applicationsService level managementInternal SLAsExternal SLAsMeasuring the purchasing function performance against SLAs
September 30 2019 PROCUREMENT PLANNING AND BID MANAGEMENT 0 Strategic procurement planning Setting procurement mission and objectivesSelection of improvement initiativesStructure-related initiativesSystems-related initiativesWorkstreams-related initiativesCulture-related initiativesPerformance measures and targetsCommunication of procurement planStakeholder engagement Spend category planning Spend category profilingSpend impact analysisFinancial impactVendor segmentationMarket risk analysisValue chain analysisSWOT analysisPorter’s five forcesRisk heat mapsVendor risk scoresCategory report consolidation Forecasting and demand planning The soft side of forecastingTetlock’s foxes and hedgehogsTaleb’s black swanPrinciples of demand planningQuantitative forecasting techniquesQualitative forecasting techniques Vendor integration Vendor prequalification processVendor prequalification criteriaLegal criteriaFinancial criteriaTechnical criteriaStaff criteriaHSE criteriaService Level Agreements (SLAs)Strategic partneringSupplier diversity programs Bid evaluation and selection Bid management processBid evaluation criteriaScoring systems and protocolsSelection and awardTotal Cost of Ownership (TCO) for complex purchases
September 30 2019 LOGISTICS MANAGEMENT 0 Course Outline Logistics trends and practices Logistics overviewLogistics, supply chain and the organizationStrategic, tactical and operational elements of logisticsSustainable logisticsConcepts in logistics3rd Party Logistics (3PL)4th Party Logistics (4PL) Transport management Objectives of transport managementCosts associated with transport managementTransportation modes and typesEfficient and effective transportationMatching the strategic service levelDrawing transportation routesManaging cubing of cargoConsiderations for international transportationWorking with Incoterms 2010 Warehousing operations Warehousing network designConfiguration of warehousing spaceValue adding activitiesStockpiling, spot stocking and assortmentsCross docking, break bulking and consolidationMixing, postponement and assembly-to-orderWarehouse activity profilingWarehousing cost calculationSustainable warehousing practices Inventory management Materials management scopeObjectives of materials managementInventory types and classificationMaterials management challengesMaterial replenishment strategiesMake-to-stockMake-to-orderAssemble-to-orderDesign-to-orderDesign for the supply chainDesign for the environment Logistics and performance management The SCOR frameworkIdentifying high level SCOR metricsCustomizing low level SCOR metricsManaging targetsInitiative for performance improvement
September 30 2019 LEADING AND MANAGING VENDOR RELATIONS 0 Course Outline Vendor validation process Words of wisdom on managing vendor relationshipsSources for gathering informationVendor statusprequalification questionnairesVendor risk assessmentsSustainable vendor relationsTriple bottom lineEconomic successSocial developmentEnvironmental sustainability Vendor development and integration Vendor developmentVendor diversity programsSupplier certificationElectronic Data Interchange (EDI)Partnering typologies Managing vendor performance Vendor performance objectivesPerformance targetsContinuous improvement initiativesService level agreements Go-to-market strategies Purchasing strategy matrixSix sourcing strategiesVolume concentrationBest price evaluationGlobal sourcingProduct specification improvementJoint process improvementRelationship restructuringGroup buying and bulk pricingJust-in-Time (JIT) buying Soft skills and vendor relations etiquette Effective communication as a pillar for successApplication of leadership and management skills in vendor relationsCialdini’s six powerful persuasion techniquesReciprocation techniqueAuthority techniqueSocial proof techniqueCommitment techniqueLiking techniqueScarcity techniqueVendor relations etiquetteCommunicating with foreign vendors
September 30 2019 PURCHASING MANAGEMENT AND COST SAVING TECHNIQUES 0 Course Outline The strategic function of purchasing The link between the purchasing function and organizational strategyCreating a purchasing mission statementMatching the purchasing mission with the company\’s missionWriting the department\’s objectivesBalancing quality, service and priceThings purchasing should strive forType O purchasing managerType S purchasing manager Supplier evaluation and negotiation Negotiating with suppliersPower in negotiationPlanning for negotiationThe 13 powers of negotiationAchieving the right agreements with suppliersFactors used to evaluate suppliers on total performanceWays of promoting good supplier relationsCreating suppliers as good partnersChoosing the right suppliers Value analysis 16 key strategic questions to askApplying the 16 strategic questionsHow these 16 questions will reduce total costOptimizing purchasing productivityAdding value as a purchasing managerThe 21st century purchasing managerFrom pushing papers to strategic thinking Managing and evaluating the department performance Centralization versus decentralizationReasons for departmental performance appraisalManaging other buyersManagement by objectivesContinuous development for the buyersKey Performance Indicators for purchasingChoosing the right KPIs for purchasingThe right number of departmental KPIs Improving purchasing efficiency Evaluating service to end usersConducting the right surveysCommunicating better with end usersEthical behavior with suppliersEthical behavior with end usersEthical behavior within the departmentPurchasing policies and proceduresTraining the staff
September 30 2019 STOCK MANAGEMENT, FORECASTING AND DEMAND PLANNING 0 Course Outline Introduction to stock management Supply chain management scopeFunctions and objectives of supply chain managementObjectives of inventory planning and stock controlReasons to hold inventoryInventory information system considerationsInventory push versus pull systemsIdentifying inventory costsCustomer service in inventory management Description and classification of inventory Types of inventoryThe inventory ABC classification ranking modelUses of the ABC ranking Forecasting demand and lead time The inventory order cycleDependent versus independent demandFactors affecting demandFactors impacting demand forecast accuracyDemand patternsTime series forecasting methodsSeasonal demandMoving averageExponential smoothingMeasuring the accuracy of the forecastSetting lead time and methods to control it Inventory costs Inventory cost elementsCost of itemPurchasing costCarrying or holding costStock-out cost Inventory systems The Economic Order Quantity (EOQ) modelDealing with quantity discountsObjectives of safety stocksSetting safety stocksDetermining the Reorder Point (ROP)
September 30 2019 NEGOTIATION STRATEGIES FOR BETTER PURCHASING VALUE 1 Course Outline Preparation strategies Developing buyer needs and requirementsUnderstanding the buyer positionUnderstanding the supplier positionThe number of suppliers in the marketEconomic analysis of the marketForming a pre-negotiation checklistForming the negotiation strategyForming the purchasing negotiation teamProper planning and preparation Implementing the negotiation strategy Making the purchasing plan operationalThe best time to negotiateTime is power in purchasing and negotiationInformation is power in purchasing and negotiationThe other types of power in negotiationThe best place to negotiateUnderstanding supplier expectationsThe 80/20 rule of negotiation Developing a negotiating style Attributes of a good negotiatorDeveloping those attributes by the buyerExpressing your purchasing needs effectivelyKnowing your products and commoditiesKnowing the supplier products and servicesActive listening techniquesTypes of questioning stylesPreparing the right list of questions Dealing with complex negotiations Sole source suppliersSingle source suppliersWin/Win meets Win/LoseWin/Win meets Lose/LoseBackdoor buying tacticsControlling emotions during a negotiationFriends and relatives as suppliersEthical behavior and negotiation Preparing and conducting individual and team negotiations Practical role playsPlaying the role of the buyerPlaying the role of the supplierPlaying the role of the evaluatorSupplier strong pointsBuyer strong pointsBeing aware of supplier hidden tactics and tricks
September 30 2019 THE SUCCESSFUL BUYER 0 Course Outline Modern purchasing Definition of purchasingPurchasing stepsThe role of the purchasing functionCentralized versus decentralized purchasing Buyer roles and responsibilities Buyer roles and responsibilities Specific duties of a buyerThe right job description of a buyerSkills and qualities of a successful buyerReactive versus creative buyerLimitation of authoritiesAdding value as a modern buyer Purchasing methods and strategies Conventional purchase blanket ordersForward buyingThe outsourcing processStockless BuyingLeasing versus buyingE-procurementEvolution in strategies for purchasing The purchasing processes Request for Information, Quotation and Proposal (RFI, RFQ, RFP)Purchase requisitionPurchase orderTotal cost of ownershipLocal sourcing versus international sourcingSupplier selectionProblems with suppliersTotal purchasing cycle Optimizing the communication cycle Communicating better with suppliersCommunicating better with end usersCommunicating better within the purchasing departmentSpeaking techniquesActive listening techniquesNon-verbal behaviorReducing misunderstanding throughout the purchasing cycle Partnership and negotiation Partnership with suppliersPartnership requirementsBuilding good relationships with suppliersNegotiating with suppliersQualities of negotiatorsNegotiation principlesStrategies for negotiation