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Training Services
Strategic Sourcing
A major deliverable within any Supply Chain/Procurement organization's value proposition is the development and execution of sound sourcing strategies. For a sourcing team to be able to deliver value consistently it must have a comprehensive structured process to create and implement these strategies.
From this workshop, participants can expect to obtain the following benefits:
Short-Term
The class equips participants with an effective sourcing process that can be immediately applied in their jobs. Application begins during the class where participants work on a real-life project to develop a sourcing strategy for a selected commodity/category.
Long-Term
A sourcing strategy provides the framework for managing individual supplier relationships. Having a structured process to source products and services ensures the creation of a winning supply base that will provide a sustainable long-term competitive advantage. This is accomplished by thoroughly understanding internal requirements, knowing the supply market, selecting the 'right' suppliers, and determining appropriate negotiation and relationship management strategies. Documented sourcing strategies also ensure continuity of the business process and make personnel transitions easier.
| Learning Objectives |
- Implement a structured process to strategically source products/ services/capital equipment
- Create sourcing teams
- Evaluate spend and assess internal requirements
- Analyze the supply market
- Develop and evaluate sourcing options
- Identify, evaluate and select suppliers
- Measure performance and manage supplier relationships
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| Target Audience |
The course in intended for all stakeholders in the sourcing process. This includes Procurement Managers, Commodity Managers, Sourcing Team Leaders, Procurement Engineers, Buyers, Business Analysts supporting the Sourcing Teams and members from the Internal User community such as engineering, manufacturing and operations. Participants may attend as commodity teams (if such teams are formally recognized) or as individuals.
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| Pre-class Requirement |
Participants select a commodity (product/service/capital equipment) as the topic for their sourcing strategy. Participants e-mail their topics in to AGI.
For each topic, participants should bring the following, if available:
- Specifications/SOW's
- Current contract/s
- Current spend information
- Current supplier information
Note: The class will be divided into teams with each team working on one topic. If the list of topics exceeds 5, AGI will contact teams to reduce the list to 5.
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| Class Time |
2 days (16 hours)
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| Class Size |
15-20 participants addressing 4-5 commodities
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| Class Structure Requirements |
This workshop is a combination of lecture and hands on application.
Participants will be guided through the Strategic Sourcing process. The class will be divided into groups by topic. Each group will work on developing a strategy for its topic. 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 - Internal Assessment
- Spend Breakdown
- Sourcing Categories
- Total Cost Of Ownership
- Sourcing Goals
Working Session 1
- Each team conducts an internal assessment of its category
Module 2 - Supply Market Analysis
- Market profiling
- Key Player profiling
- Price Driver mapping
- Market trends and forces
- Country risk
Working Session 2
- Each team conducts a Supply Market Analysis for its category
Module 3 - Strategy Development
- Category Attributes and Positioning
- Sourcing Options
- Strategy Selection
Working Session 3
- Each team develops and evaluates sourcing options
Module 4 - Supplier Selection
- Selection criteria
- RFI/RFQ development
- Negotiation strategy
Module 5 - Relationship Management
- Performance Management
- Relationship Strategy
Working Session 4
- Each team will develop its supplier selection criteria and relationship management strategy
Presentation and critique of sourcing strategy
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