IMPLEMENTING STRATEGIC SOURCING
The course focuses on the 12 objectives supporting the 7 essential steps which consist on database, strategies, financial, sources, partnerships, inputs and metrics. The course is also covers 5 key Supply Strategies, the development of the Risk vs. Profit Matrix, utilizing technology, stakeholder buy-in and timely roll-out with exercises and case studies.
According to Jonathan Hughes and Elizabeth Rayer, consultants with Vantage Partners, a global management consulting firm that specializes in helping companies achieve breakthrough business results – “ Today’s business environment, fraught with volatility and uncertainty, confronts CPOS (Chief Purchasing Officers) and sourcing and supply chain executives with unprecedented challenges and opportunities. Companies are under pressures to reduce supply costs even as they need to leverage suppliers and to increase innovation.”
How can this be done? Primarily by moving from tactical (price-centered) to strategic (lowest total cost-centered) procurement and Supply Management. Keep in mind that Strategic Sourcing is an institutional procurement process that continuously improves and re-evaluates the purchasing activities of a company. A key starting factor is to develop a strategy and the type will depend on your stakeholders. Examples include the Operational strategy which ensures continuity of supply (“keeping the ship afloat”), the Financial strategy which provides for an accurate spend budget and the Marketing strategy which ensures that procured goods and services arrive on time and of good quality to meet customer demand.
Another key strategy is Supply and this course will show you how to develop a key approach based on both the value of the procurement as well as the outside market (buyer’s market or seller’s market). Additionally you will learn how to deploy Regression Analysis’ tools. Primarily used for forecasting (see our Applications In Demand And Forecasting course), this can also be applied to price modeling where the dependent variable – price is correlated with independent variables – cost drivers. Additional tools relate to the use of technology from Spend Analysis (how much we are spending and from whom), Reverse Auctions (competing suppliers lower their bids) and Performance Measurement (a “Balanced Scorecard” in real-time).
Lastly, this course will show you how to put it all together through 7-key steps which consist of (1) the database, (2) strategies, (3) financial, (4) sources, (5) partnerships, (6) inputs and (7) metrics and will show how to implement Strategic Sourcing as used by many of the Fortune 100 firms.
To support all of the above, this course will be featured in SCE’s virtual classroom with all of the functionality featured in our DEMO and based on our teams working with major corporations in BIC-Best-In-Class practices. It will be a blend of educational topics, pertinent case studies, and practical stories based on past practices. You will learn vital skill sets but also have fun!
Upon completion of the Implementing Strategic Sourcing course, the participant will:
- develop and implement the five (5) key strategies of Operational (continuity of supply), Financial (accurate budgeting), Marketing (correctly supplied goods and services to meet customer demand), Supply (commodity direction) and Technology (to drive optimization)
- roll out the Supply strategy by developing the Risk (sole, limited or perfect competition) vs. Profit (A, B or C procurement) matrix
- incorporate Econometric Models to determine the correlation between pricing (dependent variable) and cost (drivers)
- implement change management including an understanding of and solution to barriers for positive change in Strategic Sourcing
- make use of technology tools including Spend Analysis, Reverse Auctions and Performance Measurements as either module(s) of the current ERP system or as an add-on package
- form key stakeholders groups for buy-in including identification, importance, relationships and involvement
- achieve stakeholder alignment for buy-in including outcome(s), development/implantation of strategies (listed above) and results-tracking
- facilitate a “steering-committee” for both decision-making and carrying out action items
- effect spend/supplier leverage through process improvements, innovation and prioritization of projects
- participate in make-vs-buy decisions, primarily the outside supply justification for an outsourcing or offshoring move
- segregate supply chain focus in Strategic Sourcing per the target market, product features, customer service and/or customer selection
- develop an effective roll-out plan for Strategic Sourcing
Depending on the learning style of the participant, this course is designed to be approximately 15 hours in the e-Learning – virtual classroom. Additionally, at the end of the course – you will take an on-line quiz to make sure you have grasped the key points.
Upon completion of the Implementing Strategic Sourcing course, the participant will receive a certificate of completion with 15 ceus of credit.
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