Course Description

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 organisation by delivering products and services that contributes to the well-being of the organisation.

In order to do this, best practices have to be implemented on four levels:

Strategic

Tactical

Operational

Contingency

Objectives

Participants attending this Procurement Best Practices training course will:

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

The benefit of this course

Increased skill sets in all phases of strategic procurement

Greater ability to lead, plan, and manage the procurement process

A greater sense of professionalism and being able to contribute to the organisation's strategic objectives

Increased Knowledge about Key Performance Indicators

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.

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 the Strategic Procurement Decisions

Make / Buy Decision

Vertical Integration

Alliances and Partnerships

Inter-company Trade

Reciprocity and Counter Trade

Supplier Strategy

The Coordination Strategy

The Purchasing Organisation

Day 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

Day 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

Day 5

Contingency Procurement Decisions

The Different Contingency Situations

Contingency Management

Procurement Performance Measurement

Spend Analysis

Total Cost of Ownership

Supplier Performance Measurement.