Course Overview
Strategic Cost and Value Management in Procurement Course provides participants with the knowledge and skills to strategically manage costs and add value within procurement processes. It covers essential topics such as cost analysis, value engineering, supplier relationship management, and procurement strategies to optimize costs while maintaining or improving quality and service.
Course Duration
5 Days
Who Should Attend
- Procurement Managers
- Supply Chain Professionals
- Purchasing Agents
- Contract Managers
- Financial Analysts involved in procurement
- Operations Managers
- Business Analysts
Course Objectives
By the end of this course, participants will:
- Understand and apply cost management principles within procurement.
- Analyze procurement costs and identify cost-saving opportunities.
- Implement value management techniques to enhance procurement performance.
- Develop and execute cost-effective procurement strategies.
- Strengthen supplier relationships to optimize cost and value.
- Utilize various tools and methodologies for cost analysis and value engineering.
- Improve negotiation skills to achieve better procurement outcomes.
Course Outline:
Module 1: Understanding the Value Proposition of Procurement to a Corporate
- Linking Corporate and Procurement Objectives
- World-Class Procurement Performance Benchmarking
- KPIs to Measure Procurement Performance
- Typical Procurement Organizational Structures
- Common Requisition-To-Pay and Contract Management Systems
- Private and Public Procurement Policies
Module 2: Tools and Techniques in E2E Procurement Category Management
- Supply Market Analysis
- Market Approaches
- Best-Fit Contracting Strategy
- Contract Award
- Contract Performance Management
Module 3: Cost Management and Value Creation
- Understanding the Financial Statements
- Applying and Interpreting Present Net Value
- Supply Chain Cost Modelling
- Total Cost of Ownership and Total Lifecycle Cost
- Porter’s Five Forces
- Value in Post Contract Award Contract Management
- Tools and Techniques in Decision Making
- Decision Trees
- Root Cause Analysis
Module 4: Selling Strategic Procurement to Stakeholders
- Create the Vision and Mission Statement
- Quantify the Tangible Benefits and Cost to Implement the Strategies
- Introduce the Organization, Process and Systems to Realize the Strategic Procurement Benefits
- Specify the Deliverables and Milestones
- Estimate the Resources and Time Needed for Implementation
- Identify Stakeholders and Create Stakeholders Management Plan
- Create Risks Mitigation Plan for the Project
- Prepare Communication Plan
- Influencing Skills
Module 5: Create A Deep Dive Category Strategy
- Define the Deliverables of a Deep Dive Category Strategy
- Introduction of Three Categories for Teams to Choose From
- Organizations Expectation
- Category Spend Data
- Supply Market Profiles
- Stakeholders’ Positions
