Tactical Procurement Cycle

Module 1: from sourcing to contract

This 4-day course provides you as a purchaser with the necessary knowledge, practical tools and resources to function successfully and efficiently in a professional procurement department. You will learn to situate the task of procurement within your company. You will learn to analyse the market and your own procurement portfolio, define clear specifications, evaluate and select suppliers, analyse cost prices, draw up a procurement budget and report on your results. Thanks to numerous practical examples, exercises and checklists, you can also immediately make the link to daily practice.

Target group

Purchasers with 3 to 5 years’ experience, sourcing specialists, procurement analysts, category buyers, contract buyers.

PROGRAM

Situation of procurement

• Procurement in the value chain
• Procurement tasks and responsibilities
• Procurement maturity
• Essential skills for purchasers

Analysis and planning

• Spend analysis
• Procurement portfolio (Kraljic) + quadrant approach
• Stakeholder and supplier mapping
• Market analysis
• Cost/benefit analysis
• Risks and dependencies

Cost price analysis and price reduction

• Create a procurement budget (building blocks, Capex and Opex, starting position, revisions)
• Cost price and price structure - PPCA
• From value pricing to target pricing – price versus value
• Total Cost of Ownership – life cycle cost – cost modelling
• Cost versus cash

The sourcing process

• The phases of the sourcing process
• Preparation
• Technical and functional specifications
• Searching via the internet
• Sourcing and supplier selection (RFI, RFP, RFQ)
• Measuring supplier performance (SLA and KPIs)

Measuring and reporting Procurement results

• Internal relations/Sales versus procurement
• External: cost savings, cost avoidance
• What to measure? – Balanced Scorecard
• Procurement dashboard – SMART

Recap

• Cost reduction techniques
• Case