Workshop on Fundamentals of Supply Chain Management

Program overview:
This course will walk participants through the basics of supply management and procurement operations and the role of procurement within an organization’s overall supply chain system. You will discover the key elements of sourcing and procurement, including strategic sourcing, supplier management, negotiations, contract development, and supplier identification and evaluation, as well as the importance of cross-functional collaboration.

For whom:
This program is designed for new procurement and supply management professionals, as well as more experienced professionals who want to refresh and update their skills. Also, any company employee who interacts with supply chain management and suppliers will equally benefit from this program.

Learning objectives:
At the end of the program, participants will be able to:
• explain key supply management terms and definitions;
• explain the key contributions supply chain management makes to corporate strategy and value creation;
• evaluate and design supply chain management processes;
• use technology to enhance procurement’s contribution;
• design sourcing strategies for various categories, sourcing analysis and commodity and category management;
• apply variety of supplier management skills and techniques;
• apply key negotiating elements and tools for successful negotiations;
• list and explain steps in cost management, cost analysis and price/cost issues; and
• apply good ethics and legal requirements to supply chain management.

Course outline:

Day 1: Developments in purchasing and supply chain management
• Key terms and definitions;
• Purchasing’s contribution to corporate strategy and value creation;
• Sustainability and social responsibility;
• The essential role of purchasing and supply; How to identify objectives for effectiveness

Day 2: Perspectives on evaluating and redesigning the supply chain management process
• Streamlining tasks to focus on value-adding activities;
• Using technology tools to enhance procurement’s contribution;
• Tools for increasing acquisition process efficiency and value;
• Managing small buys;
• Supply Chain Risk Management

Day 3: Strategic sourcing and sourcing analysis methods
• Sourcing strategies for different categories of purchases;
• Sourcing analysis methods;
• Commodity and category management
• 6 sourcing strategies
• Applying sourcing strategies effectively
Day 4: Suppliers management skills
• When, where and how to use;
RFIs, RFQs, RFPs and competitive bidding;
• Approaches to supplier identification, evaluation,
and selection and performance measurement;
• Managing supplier relations;
Implications for quality and cost management
• Key elements of negotiation:
The what, when and why of negotiations;
• Negotiation philosophies and styles;
– Preparing for and conducting negotiations;
– Strategy development and tactics of negotiation
Day 5: Essential cost management techniques
• Steps in price and cost analysis;
– Identifying and estimating cost elements;
– Basic cost analysis applications;
– Market and pricing issues;
– Process mapping to locate cost drivers
• Ethical and legal aspects of supply chain management
o Ethics and ethical behavior defined;
o Contract law and Basic types of contracts;
o Elements of contract formation
Training Methodology
Lectures, discussions, exercises, case studies, audio-visual aids will be used to reinforce these teaching/learning methods.