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Why Attend
The procurement department is often viewed and managed as an administrative function, with sourcing activities executed at arms length. Strategic sourcing addresses this issue by providing a strategic approach towards optimizing and continuously improving sourcing activities using a proven 7-step methodology. In this course, we describe the steps entailed in the strategic sourcing process. We outline an approach for developing product categories via an analysis of organizational spend. We then discover six go-to-market strategies and describe how each can be matched with different product categories. Finally, we identify the appropriate Key Performance Indicators (KPIs) required for the continuous improvement of sourcing activities.
Course Methodology
This course uses a variety of individual and team exercises, case studies, questionnaires and videos.
Course Objectives
By the end of the course, participants will be able to:
Analyze internal spend and supply market dynamics to provide a foundation for sourcing plans
Execute different sourcing strategies to optimize savings and ensure supply security
Identify appropriate suppliers for effective execution of sourcing plans
Describe operational and strategic procurement processes for better value
Implement different purchasing methods to streamline procurement operations
Apply supplier integration techniques for sustainable supplier relations
Manage performance of procurement processes for continuous improvement
Target Audience
Purchasing and supply chain professionals at all levels of the organization as well as other company personnel who are involved in the purchasing process.
Course Outline
Step 1: Analyze spend categories
Recognizing strategic role of procurement
Strategic sourcing in supply chain context
7 steps to strategic sourcing
Analyzing spend categories
Profiling spend categories
Analyzing financial impact
Assessing market risks
Consolidating category reports
Operating the strategic sourcing toolkit
Applying Total Cost of Ownership (TCO)
Segmentation and analysis of suppliers
Step 2: Develop sourcing strategies
Mapping spend categories using purchasing strategy matrix
Routine items
Bottleneck items
Leverage items
Strategic items
Managing balance of power in buyer-supplier relations
6 key sourcing strategies
Applying sourcing strategies effectively
Step 3: Identify suppliers
Locating suppliers
Registering suppliers
Assessing suppliers
Sourcing locally
Describing vendor diversity programs
Step 4: Develop procurement processes
Scoping procurement processes
Describing strategic and operational processes
Developing procurement processes
Integrating ethical principles
Step 5: Implement procurement processes
Managing RFI, RFQ and RFP processes
Defining bid evaluation criteria
Implementing innovative purchasing methods
Using purchasing decision matrix
Employing purchasing tools and templates
Step 6: Integrate suppliers
Prequalifying suppliers
Managing supplier certification programs
Partnering with suppliers
Managing Supplier Level Agreements (SLAs)
Step 7: Manage procurement performance for continuous improvement
Managing a strategic sourcing plan
Measuring, analyzing and reporting on performance
Developing improvement initiatives
Institutionalizing supplier report cards
Monitoring industry conditions
Bringing it all together
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