Strategic Purchasing and Supply Management
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Strategic Purchasing and Supply Management Course
Introduction:
This interactive training course guides participants in developing and implementing effective strategies for acquiring goods, parts, equipment, and services. It is crucial for organizations seeking to lower operating costs and enhance quality and productivity. The course covers strategic cost/price analysis, value analysis, and total cost of ownership, enabling supply management organizations to achieve world-class performance. Outdated procedural and tactical approaches will leave organizations at a disadvantage compared to those employing cutting-edge techniques to align their supplier base with their goals.
Course Objectives:
Upon the successful completion of this program, participants will be able to:
- Analyze the elements of cost in supplier’s price
- Understand differences in international labor rates
- Evaluate supplier’s different pricing models & analyze supplier’s price breakdowns
- Understand the methods of price and cost analysis
- Create an approach to implementing TCO analysis
Who Should Attend?
This training course is suitable for a wide range of professionals, but will greatly benefit:
- Purchasing, Procurement, Contracts, Contract Administration, Projects personnel
- All others who are involved in the planning, evaluation, preparation, and management of purchasing and contracts that cover the acquisition of materials, parts, equipment, and services, and who are in organizations whose leadership want high levels of excellence in those involved in these activities
Course Outlines:
Setting the Strategic Direction
- Defining the Supply Management Mission and Vision
- Stages to World Class Supply Management
- Change and Becoming More Strategic
- Supply Management Skill Sets
- Developing the Spend Analysis
- Creating Time to be Strategic
- The ABC (Pareto) Analysis
- Material/Services Purchasing Code Development
How Do You know that you obtained a Good Price
- Supplier Pricing Models
- Defining Cost and Price Analysis
- Difference Between Cost and Price Analysis
- Selection Tool
- Methods of Price Analysis
- Historical Analysis
- Working with Producer Price Indexes
- Developing the Organization’s Purchase Price Index
- Estimating Cost Relationships
Getting a Better Price by Analyzing Cost
- Methods of Cost Analysis
- Major Elements of Cost
- What and How Important Are Supplier Overheads
- Sources of Cost Information
- Developing “Should Costs”
- Requesting Supplier Cost Info
- Issues In Analyzing Supplier Cost Breakdown
Using Price Volume, International Labor, and Value Analysis
- Global Industrial Labor Rates
- Working With Currency Exchange Rates
- Cost Volume Profit Analysis
- Fixed and Variable Costs Defined
- Use of Cost Volume Relationships
- Calculating Fixed and Variable Cost Algebraically
- Defining Value Analysis?
- The Test for Value List
- The Supplier Value Check List
Total Cost of Ownership (TCO) Concepts
- Change in Supply Management
- Definitions of TCO
- Objectives of TCO
- Barriers to TCO
- Process Flow Diagrams
- Approaches to TCO
- Dollar Model
- Value Model
- Total Cost Modeling of the Supply Chain
- Implementing TCO