Workshop on Strategic Sourcing

Program overview:

Strategic sourcing is an approach to supply chain management that formalizes the way information is gathered and used so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace.

This requires analysis of what an organization buys, from whom, at what price and at what volume. Strategic sourcing differs from conventional purchasing because it places emphasis on the entire life-cycle of a product, not just its initial purchase price. This role requires procurement teams to assess procurement spend, analyze complex market segments, engage suppliers, develop sophisticated go-to-market strategies and lead make-or-buy decisions.

This course is designed to help procurement professionals acquire the competencies required to excel in today’s business environment.

For whom:

This program is designed for purchasing and supply chain management professionals at all levels of the organization, as well as other company personnel involved in the purchasing process.

Learning objectives:

At the end of the course, participants will be able to: 

• recognize trends and modern practices in supply chain management;
• analyze internal spend and supply market dynamics to provide a foundation for strategic sourcing plan;
• apply different sourcing strategies to optimize savings and ensure supply security;
• utilize supplier integration techniques for sustainable supplier relations; and
• apply supply chain operations reference (SCOR) framework for management of supply chain performance.

Course outline:

Day 1: Fundamentals of supply chain management

• Supply chain overview
• Sustainability in supply chains and logistics
• Supply chain configuration
• The 3 Vs of supply chain management
• The role of procurement in supply chain
• Introducing the purchasing decision matrix

Day 2: Analysis of spend groups

• 7 steps to strategic sourcing
• Analyzing spend categories
• Profiling spend categories
• Analyzing financial impact
• Assessing market risks
• Consolidating category reports
• Operating the strategic sourcing toolkit
• Segmentation and analysis of suppliers
• Calculating Total Cost of Ownership (TCO)

Day 3: Identification and utilization of sourcing strategies

• Mapping spend categories using purchasing strategy matrix
• Routine items, Bottleneck items
• Tactical items, Strategic items
• Managing balance of power in buyer-supplier relations
• 6 sourcing strategies
• Applying sourcing strategies effectively

Day 4: Supplier Integration Strategies

• Prequalifying suppliers
• Managing supplier certification programs
• Partnering with suppliers
• Managing Supplier Level Agreements (SLAs)

Day 5: Supply Chain Operations Reference (SCOR)

framework for performance management

• SCOR framework overview
• Identifying level 1, 2 and 3 SCOR metrics
• Customizing level 4 SCOR metrics
• Setting performance targets
• Continuous performance improvement

Training Methodology

Lectures, discussions, exercises, case studies, audio-visual aids will be used to reinforce these teaching/learning methods.