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CILT Endorsed Strategic Sourcing: 7 Steps for Better Procurement Value - Virtual Learning

CILT Endorsed Strategic Sourcing: 7 Steps for Better Procurement Value - Virtual Learning

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.

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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 
  • Describe 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
  • Vendor integration
  • Vendor performance management
  • Sourcing strategies
  • Market analysis
  • Strategic thinking
  • Continuous performance improvement
Course Outline
  • 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
Chartered Institute of Logistics and Transport (CILT)

Meirc is an Approved Training Provider (ATP) in the region for the Chartered Institute of Logistics and Transport (CILT). Established in 1919, CILT is the world’s leading supply chain, logistics and transport professional body with over 33,000 members across the globe. CILT seeks to add value to individual and corporate members by enhancing their knowledge, careers, and businesses by setting, supporting and delivering professional standards and education in the fields of logistics, transport and supply chain. By attending Meirc’s CILT accredited courses, participants can earn CPD units as well as attain modular unit award courses that can be combined for international certification

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