Leading companies throughout the world are looking to formulate integrated supply strategies on both a local geographical and a global basis. This includes strategically sourcing materials and components worldwide and selecting global locations for key supply and distribution centers. The growth in global trade will continue to have a major impact on supply chains and requires firms to practice professional strategic supply management in order to help ensure continuity of supply and to contain and reduce costs.

Strategic sourcing enhances value, ultimately impacting the profitability of an entire organization. In this essential course, you’ll learn how to develop and implement a sourcing strategy that aligns with overall competitive strategy. The course and the associated case studies, activities and discussions provide the context and a framework for making effective sourcing decisions including a comprehensive approach to strategic sourcing.

HOW YOU WILL BENEFIT

Upon completion of this course, you will be able to:

• Select the most appropriate sourcing strategy for a given commodity or service
• Create and execute effective sourcing strategies
• Optimize sourcing initiatives
• Reduce sourcing costs
• Make a significant contribution to overall organizational performance

WHAT IS COVERED

The Role and Nature of Procurement and Supply Management in a Supply Chain Context

• Overview of the supply chain and the role of procurement in the supply chain
• The role of procurement process in linking members in the supply chain and assuring the quality of suppliers in the supply chain
• Effective procurement of goods and services and its contribution to the competitive advantage of an organization
• Global supply chains and opportunities and challenges for procurement

Supply Management and Strategy Development

• Concepts and definition of supply strategy
• The segmentation approach to supply strategy development
• The development of a spend analysis and categorization of purchases
• Supply management goals and the supply management strategy development process
• Selection of the appropriate strategy for a commodity purchase
• Tools and techniques for supply management
• Case studies & best practical examples

Types of Supply Strategies

• Insourcing vs. outsourcing
• Global sourcing & risk management
• Supplier optimization
• Early supplier involvement
• Supplier development/quality management
• Supplier relationship management
• Total cost of ownership

Procurement Analysis and Classification

• The key demand drivers and the assessment of specifications/requirements for purchased items/services
• Identification and elimination of waste in purchasing
• Outline of process and tools for specification gap analysis
• Identification of cost drivers
• Process for evaluation of current procurement process and procedures
• Identifying process cost savings opportunities
• Process for determining total costs
• Benchmarking review

Assessing Supply Markets

• The process for identifying potential suppliers including current, alternative and non-traditional suppliers
• Process for purchasing research including evaluation of key commodity markets and market trends and influences
• Sourcing from international markets
• Minority and woman owned business enterprises
• Organizing and performing supplier analysis
• Strategies for effective supplier/vendor evaluation, comparison and selection

Developing a Sourcing Strategy

• Objectives & desired outcomes from strategy
• Developing the sourcing strategy based on positioning of items into categories
• Developing alternative approaches to suppliers based on sourcing strategy
• Procedures for developing and communicating sourcing strategies
• Aligning purchasing and supply operations with the strategic sourcing plan
• Supply chain strategies and sourcing

Implementing the Strategy

• Supplier solicitation strategy development
• The RFP process
• Overview of negotiation for purchasing
• Supplier relationship strategy formulation and agreement
• Converting the sourcing strategy into practice
• Contracting and contract price agreement processes and procedures
• Transition plan-timeline-tools for implementation

Institutionalizing the Strategy

• Ongoing supplier evaluation
• Operating the procurement function
• Methods for controlling procurement function, including monitoring and performance review procedures
• Periodic contract price adjustment processes and procedures
• Post implementation audit and development of action plans to correct deviations

Trends & Future Directions in Sourcing

• Future trends in supply chain management and the impact on sourcing
• The role and application of technology in the sourcing process

ON-CAMPUS COURSE MATERIALS

Required

• Laptop
• Calculator

Provided

• Memory stick
• Book: Strategic Supply Management by Dr. Robert Trent

COURSE PREREQUISITES

None.

CERTIFICATE INFORMATION

No prerequisites. This course is part of the Supply Chain Management (SCM) Certificate.