Supply Chain Management & Strategic Purchasing

Recent years have been vital changes in the purchasing and supply chain function. The suitability of long established principles and practices are being questioned by practicing professionals. In order for you to stay competitive in the marketplace, you, as a practicing professional, need to examine your role and develop strategies and systems that support the quest for competitive advantage.

Purchasing account covers nearly 50% of an organisation's annual expenditure - therefore almost all purchasing decision will affect the performance and profitability of a company.

This course has been specially structured to ensure all purchasing personnel are kept up-to-date with the latest information and on the right track in their purchasing strategies.

Upon completion of this 2-day Supply Chain Management training, participants should be able to:

• Develop practical skills to increase your purchasing and supply chain effectiveness
• Demonstrate how professional purchasing and supply chain management contributes to sustainable competitive advantage
• Explore different techniques and strategies for maximum effectiveness
• Establish a framework for assessing and measuring performance which can be applied to your organisation

STRATEGIC PURCHASING AND SUPPLY CHAIN MANAGEMENT

• Integration of functional business and corporate strategy
• Managing change and changing ideas of management
• Role of purchasing and supply management
• Sourcing strategy
• Organisation of the functions
• Human resource issues
• Application of IT in purchasing

SUPPLY CHAIN MANAGEMENT IN A PORT

• Process Model - Logistics pipeline concepts
• Scope of analysis - 3 phases in the supply chain
• Group Discussion

BUILDING A STRATEGIC ALLIANCE WITH SUPPLIERS FROM SCRATCH

• Forging lasting partnerships: factors for success
• Why strategic alliances is crucial for success in the new age of business
• Framework towards implementation of a strategic alliance both big and small vendors
• Case Study and Exercise

OPERATION PHASE: PLANNING & CONTROL SYSTEMS

• Pond - drainage systems
• Push systems & Pull systems
• Technology Breakthrough (Implications of IT)
• Internet - the World Wide Web - anything you can digitize and you can customize
• Product Flow variances (demand variances amplify down the supply chain)
• Efficient supply chain inventory level
• "BULL WHIP LOOP"
• Help to minimize the demand variances down the Supply chain

DISTRIBUTION PHASE: DISTRIBUTION CHANNELS & CUSTOMER SERVICE

• Channels of distribution
• Conventional Channel vs Vertical marketing System
• Definition of Customer Service & its elements

SUPPLY CHAIN MANAGEMENT STRATEGY

• Strategy trend of the future
• Exercise : Work out a Strategy for your Company

INVENTORY DECISION MAKING

• Dependent vs independent demand
• JIT approach to inventory management
• Evaluating effectiveness of inventory management
  • cost saving and low inventories.
  • Manage suppliers more efficiently.
  • Measure key processes and benchmark them against the best of the best.
  • Build the right kind of supply chain management for your organisation.
• Case Study & Ideas for Implementation

INTERNATIONAL PURCHASING

• Reasons for seeking supplies abroad
• Locating sources of foreign supply
• Evaluating possible foreign suppliers
• Preparing and issuing an adequate enquiry
• Evaluating the tender appraisal
• Currency fluctuations
• Price and currency to be paid
• Terms of payment
• Customs and excise requirements
• Import regulations and restrictions
• Terms and conditions of purchase

TECHNIQUES FOR MANAGING COST

• Changes in costing
• Forward and exchange cover, currency fluctuations
• Purchase price analysis
• Fixed and variable contract pricing
• Life cycle costing and total cost ownership
• Group Discussion and Suggestions

DEVELOP A STRATEGIC PURCHASING APPROACH: THE BENEFITS & RISKS

• Purchasing revolution changing role of purchasing
• Concept of strategic purchasing: do we plan for our customers, developing the focus
• Performance measurement & benchmarking

COST REDUCTION AND PROFIT IMPROVEMENT TECHNIQUES

• Establishing profit leverage
• Competitive bidding
• Effective negotiation skill
• Make or buy decision
• Subcontracting
• Single vs multiple sources
• Forward/speculative buying
• Pareto/ABC analysis
• Synergistic purchasing

IMPROVING PROFIT THROUGH VALUE ANALYSIS

• Value analysis/value engineering
• How to measure value in use
• Considering the objectives of buyer & management policies
• Purpose of value analysis and value engineering
• Application of value analysis / engineering and its functions
• Contribution of purchasing to value analysis

• Understanding Incoterms 2010
• Inventory Management in the Supply & Demand Chains
• Effective Store and Warehouse Management
• Contract & Vendor Management
• Procurement Contract Management
• More other Manufacturing Operations related courses