Endorsed Strategic Sourcing: 7 Steps for Better Procurement Value

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 Registration

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
Develop 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. Target Competencies

Integrating vendors
Managing vendor performance
Applying sourcing strategies
Analyzing markets
Thinking strategically

Improving performance

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
Applying Total Cost of Ownership (TCO)

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
Rules governing use of flowchart symbols
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 templates

Step 6: Integrate suppliers

Prequalifying suppliers
Managing supplier certification programs
Partnering with suppliers
Managing Supplier Level Agreements (SLAs)
Typical SLA table of contents

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
Bringing it all together

Endorsed Strategic Sourcing: 7 Steps for Better Procurement Value

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