Procurement Best Practice and Logistics Management

Introduction

The development and implementation of carefully crafted strategies for the acquisition of all materials, goods, equipment, and services has become a critical issue in all organizations wishing to reduce operating costs while improving quality and productivity. This program explores key concepts forming the basis of procurement and supply chain management and moves through leading-edge issues that confront organizations today.

This fast-paced program is designed for those wanting to develop high-performance purchasing and supply chain organizations as we will in this seminar:

• Achieve a thorough understanding of what is the best practice.
• Establish the mission, vision, and knowledge needed to successfully implement the processes and methods needed to reach world-class performance.
• Provide an overview of the key drivers involved when viewing supply chains from a logistics/demand point of view.
• Explain what procurement and supply chain management are fundamentally about so that delegates are able to apply key techniques in controlling cost, time, and the movement of goods and materials to customers and users.
• Provide practical skills to take back to the workplace to enable delegates to change current methods and activities and work better with all supply chain players

Objectives

Participants attending the program will:

• Review the meaning of strategic procurement
• Be given examples of best practices in procurement and the supply chain
• Review how to obtain best pricing
• Be taught how to develop spend analysis
• Develop a functional and cross functional view  of the supply chain
• See that better working with all of the supply chain players pays
• Consider Key Performance Indicators (KPI’s)

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practice. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

This course is designed for:

• Contracts, Purchasing, and Procurement personnel
• Project, Engineering, Operational, and Maintenance, personnel who are involved in the planning, and execution of purchases and contracts
• Supply, Buying, Purchase, Logistics, Materials and Supply Chain Professionals
• All those 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
• Those who need to develop their limited understanding of Logistics and Supply Chain Management
• Those who are looking for business gains and benefits from managing their supply chains more effectively

Course Outline

Day 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

Day 2: Developing, Implementing 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
• 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

Day 3: 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 the procurement: small value purchase orders

Day 4: Understanding What Logistics and the Supply Chain Are About

• Definitions of logistics and Supply Chain management
• The interrelations and connections of Buying, Making, Moving, and Selling activities
• History and the development
• Understanding the Supply Chain dynamics
• Supply Chain Operations Reference Models (SCOR)
• The Theory of Constraints (TOC)

Day 5: Key Aspects and Rules of Supply Chain Management

• The cost/service balance
• Customer service principles
• Internal organizational structures
• Inventory principles
• Lead times throughout the supply chain
• Adding value
• Production options/changes
• Trade-off opportunities