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Training Services
Supply Market Analysis
It has often been repeated that "knowledge is power" in a negotiation. This holds true not only for negotiations but also for sourcing decisions. In order to conduct effective negotiation and sourcing exercises, it is imperative that teams understand and evaluate the supplier/s, suppliers' competition and the industry in which they operate.
This workshop provides participants with hands-on training to quickly gather and evaluate critical industry information and create a Supply Market Analysis report. This data can later be rolled into a broader commodity strategy.
The workshop provides participants with an opportunity to reinforce some of the concepts learned in the Strategic Cost Management class through practical application. In addition, it introduces them to a variety of data sources from where they can learn more about their respective supply markets. The techniques taught and practiced in this course are a must for any sourcing effort and for any team preparing for supplier negotiations. Participants can expect the following benefits:
Short-Term
The class equips participants with techniques to effectively make sourcing decisions and/or prepare for supplier negotiations. Participants can quickly develop written Supply Market Analysis reports for their critical commodities.
Long-Term
The information contained in the Supply Market Analysis reports leads to the development of a substantial database of industry information. This leads to a much deeper understanding of the supply market, the key players and the industry trends. It also allows supply management personnel who are newly assigned to a specific commodity to obtain necessary information to operate effectively. This makes personnel transitions much smoother.
| Learning Objectives |
- To provide hands-on training in gathering industry cost information
- To leverage the power of Strategic Cost Management through practical application
- To prepare a Supply Market Analysis report for use in successful sourcing and negotiation activities by:
- Identifying and using industry data sources
- Understanding the cost structure of the product/service
- Identifying and evaluating key players
- Understanding the dynamics of the supply market
- Conducting competitive analysis
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| Target Audience |
Participants of the SCM class, Procurement Managers, Sourcing team leaders, Buyers and Business Analysts supporting the Sourcing Teams
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| Pre-class Requirement |
Participants must select a product/service as the topic for the Supply Market Analysis report and send basic information (product/service description, list of suppliers, identified data sources, if any, etc.) to AGI.
AGI will use its discretion to select 3-4 topics for the working session based on complexity. Data on some suggested topics may not be as readily available and the analytical requirements too demanding to complete within the timeframe of the workshop. The objective of the working session is to provide participants with a few real-life case studies.
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| Class Time |
2 days (16 hours)
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| Class Size |
15-20 participants from 4-5 commodity teams
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| Class Structure Requirements |
This workshop is a combination of lecture and hands on application.
Participants will be walked through the steps involved in developing a Supply Market Analysis report. The class will be divided into 3-4 groups and given an assignment of developing a real Supply Market Analysis report. The groups then reconvene to present their reports to the class.
For the workshop, each team will require a computer and access to the internet. The instructor will also need internet access.
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| Certification |
This course is worth 16 Continuing Education Hours toward ISM's C.P.M. Recertification
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| Program Outline |
Module 1 - Supply Market Overview
- Identify key questions
- Obtain industry data
- Identify industry codes
- Understand industry cost structure
- Identify key players
- Obtain company information
Working Session 1
- During this session, each team will apply Module 1 to a selected product/service
Module 2 - Evaluation of Major Players
- Types of analysis for financial health
- Reading financial statements
- Ratio analysis
- Trend analysis
- Overall financial health evaluation
- SWOT analysis
Working Session 2
- During this session, each team will apply Module 2 to a selected product/service
Module 3 - Evaluation of Industry Trends and Forces
- Using indices
- Analyzing price drivers
- Market MeterT
- Analysis of market forces
- Country risk analysis
Working Session 3
- During this session, each team will apply Module 3 to a selected product/service and prepare the report
Working Session 4
- Presentation and critique of report
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