Strategic Sourcing: The Optimum Approach to Buying
Overview:
Introduction
Best-in-class businesses understand the value that strategic sourcing creates and see it as essential to their overall growth goals. A company needs a variety of competencies to implement strategic sourcing and transfer value from supplier to customer along the supply chain in order to become a world-class procurement organization in the twenty-first century.
More than just the purchasing function's straightforward assignment of business to suppliers is strategic sourcing. It is a multifaceted process that results in an action plan spanning several years. The foundation of effective sourcing strategies is a thorough examination of the buy, the supply sector, and the core value drivers.
Course objectives
At the end of this course, participants will be able to:
- Create a strategic sourcing plan that produces measurable results.
- To maximize overall cost savings, put the strategic sourcing plan into practice.
- Analyze and rank the available savings opportunities.
- Create procedures to oversee the strategic sourcing contract's performance.
- Utilize best practices and knowledge gained from strategic sourcing initiatives.
Targeted Audience
- Procurement Officers
- Contracting Officers
- Supply Chain Professionals
- Program Managers
- Those who are involved in the planning, evaluation, preparation and management of purchasing, tenders, contracts that cover the acquisition of materials, equipment, and services
Course outline
Unit 1: Creating and Applying Successful Sourcing Strategies
- What is a Sourcing Strategy?
- How to Measure Procurement Excellence
- Strategic vs. Tactical Sourcing
- Benefits of Strategic Sourcing
- Strategic Sourcing and Industry
- The Methodology of Strategic Sourcing
Unit 2: Strategy Development and Commodity Management
- Develop a Strategic Sourcing Plan
- Evaluate and Prioritize Commodities
- Analyze The Supply Market
- Develop a Commodity Strategy
- Develop The Acquisition Strategy
- Develop a Transition Plan
Unit 3: Sourcing Path Selection (Competition or Collaborative Supplier Development)
- Selection of Implementation Path
- Identification of Preferred Supplier(s)
- Supplier Development and The Strategic Sourcing Process
- Supplier Development Constraints
- Negotiation Strategy – Competitive vs. Collaborative
- Proposal Solicitation and Evaluation
Unit 4: Making Use of Supply Management Tools and Methods to Enhance Performance Classification and Analysis in Procurement
- Principles of Cost and Value Management for Strategic Cost Management
- Being aware of total cost of ownership
- Purchase Evaluation Instruments and Methods
- Performance Evaluation and Measuring
Unit 5: Supplier Performance Management, Quality Management, and Supply Base Integration
- The Importance of Supplier Performance Management
- Developing and Maintaining Long-term Supplier Relationships
- Performance Measurement and Evaluation
- Quality Management for Strategic Sourcing
- Supply Base Integration and Development
- Pursuing Global Supply Management Excellence