Advanced Purchasing Skills
· Identify and prioritize saving opportunities to get the biggest cost reduction as possible
· Tackle the different levers in order set priorities strategically
· Learn practical and tried-and-tested negotiation techniques that align your company’s interests with those of your customers
· Gain practical insight into opportunity analysis in light of understanding the customers’ needs and their priorities
· Follow a step-by-step guide outlining the issues, perceived constraints, related repercussions along with proposed solutions
Analytical approaches to purchasing
· Opportunity Analysis – a tool for identifying and ranking opportunities based on return, effort and probability of success
· Price history vs. market or formula
· Cost Models, price forecasting and margins
· Contract Model – legal & mathematical
· Price versus total cost
Strategy development
· Spend classification and Risk Management
· Spend Classification: Strategic, Critical, Tail spend
· Risk management
o Internal vs External Sourcing
o Hedging
o Global vs Regional
o Contract vs Spot
o Supplier viability & natural disasters
o Strategy alignment via supply/sales agreements
Strategic sourcing and improving supplier cooperation
· Strategic Sourcing to insure the lowest cost.
· Improving supplier cooperation
Execution
· Alignment with strategy
· Tracking to plan Purchasing procedures
· RFQ (Request for Quote) process
· Supplier development = competition; Supplier Score Cards with weighting that reflects impact on cost
· Quarterly supplier meetings – to provide feedback
· Negotiation
Evaluation – Performance metrics
· PPV – tracking to budget – short term performance
· YoY price inflation / deflation vs. index – longer term performance
· Price – volume – mix analysis
· Individual metrics aligned
Buyers, senior buyers, purchasing supervisors, purchasing managers and all other personnel who need to understand the purchasing function.