Strategic Procurement

Strategic Procurement

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Course Overview

The Course is Designed for the processionals working in Procurement or Supply Chain Department or those who would like to start their career in Procurement or Supply Chain Department.

The course is equally fruitful for the professionals working in Local / International Sales / Export Sales departments as the Sales Department of one organization is linked with the Procurement department of other organization.

Whether we call it Procurement, Purchasing, Supply Management, Sourcing or Buying – these all belong to one operation and the activities, tactics and strategies associated with these jobs titles are of great importance to organizations.

This course provide learners the in-depth knowledge about the procurement from the identification of need, invitation of the budgetary proposals to the placement of purchase orders including General terms and conditions, Shipping terms and conditions, Financial terms and conditions and much more which will help to understand the function of procurement to the fresh learners and may provide the diverse ideas to the professionals presently working in procurement department.

In addition to standard procurement procedures the learners will have the knowledge and techniques of strategic procurement covering all important segments such as Internal Aspects, Sourcing Strategies, Supplier Relations and Contract Management, Purchasing Professionalism, Services Purchasing and Sustainability this will help learners to enhance their experience in this field and promote themselves from Executives to Managers, General Managers and Senior General Managers of Online Course and Certificate of Procurement / Purchasing / Supply Chain department.

Course Outline

Chapter 0) Introduction to Procurement Job

  • What is Procurement?
  • General Job Description / Responsibilities to be Performed by Procurement Executive / Officer
  • Identification of Need or Requirement
  • Invitation of Budgetary Proposals
  • Request for Quotation (RFQ)
  • Quotation
  • Purchase Order
  • Terms and Conditions (RFQ, Quotation and Ultimately for the Purchase Order / Contract)
    • Delivery Period
    • Delivery Terms
      • Incoterms
        • Ex Works (EXW)
        • Free Carrier (FCA)
        • Carriage Paid To (CPT)
        • Carriage and Insurance Paid (CIP)
        • Delivered At Place (DAP)
        • Delivered at Place Unloaded (DPU) , Formerly Deliver at Termina (DAT)
        • Delivered Duty Paid (DDP)
        • Free Alongside Ship (FAS)
        • Free on Board (FOB)
        • Cost and Freight (CFR)
        • Cost, Insurance, and Freight (CIF)

3) Payment Terms

  • Payment in Advance:
  • Cash against Documents or Documentary Collection:
  • Open Account:
  • Letter of Credit:
  • Usance Letter of Credit or Deferred Payment Letter of Credit:

4) Validity

5) Late Delivery (LD)

  • Force Majeure

 Chapter 1) Introduction to Strategic Procurement

  • What is Strategic Procurement?
  • The Changing Role of Procurement
  • Strategic Procurement Process
  • Procurement Function / Procurement Process Model

> Specification Phase

                       > Selecting Phase

> Contracting Phase

> Ordering and Expediting Phase

> Evaluating Phase

  • Globalization and Strategic Purchasing  

Chapter 2) Internal Aspects  

  • Strategic Alignment & Internal Alignment
  • Vertical Internal Alignment
  • Organizational Strategies
  • Aligning Strategies
  • Make or Buy´ – Decision
  • Centralized or Decentralized Purchasing
  • Horizontal Internal Alignment
  • Introduction to the value chain and the position of the purchasing department
  • Horizontal Integration and the Role of Procurement
  • Cross-functional Integration
  • Internal drivers of the purchasing department
  • Performance Management
  • Organizational Performance and the Purchasing Department
  • Preventing a Misalignment
  • Barriers to Horizontal Integration and Purchasing Involvement
  • Maverick Buying

Chapter 3) Sourcing Strategies

  • Introduction to Sourcing Strategy
  • Place Sourcing Strategy in the Corporation
  • Global Sourcing
  • Category Management
  • Portfolio Model
  • Kraljic Matrix
  • Strategic Implementation Kraljic Matrix
  • Diversify Strategy
  • Balance Strategy
  • Effects of Globalization
  • Negative aspects Kraljic Matrix
  • Best Value Procurement
  • Movements inside Kraljic Matrix
  • Supplier Selection
  • Sourcing & Scouting for Suppliers
  • Supplier Base
  • Single VS Multiple Sourcing
  • Selection Criteria

Chapter 4) Supplier Relations & Contract Management

  • Introduction to Supplier Relationship Management
  • Supplier Relationship Management
  • Dyadic Relationship
  • Supplier Classification
  • Supply Chain Networks
  • Supplier Involvement
  • Joint Problem Solving
  • Relative Power
  • Supplier Integrative Capability
  • Supplier Relationship Portfolios
  • Contract Management
  • Supplier Evaluation and Relationship Models
  • Drivers and Barriers

> Trust

> Culture

> Communication

> Top Management Involvement

> Long-term commitment & Relation-specific Investments

> Shared Strategic Goals & Mutual benefits 

Chapter 5) Purchasing Professionalism

  • Purchasing Profession
  • Skills
  • Development of Skills for a Purchasing Department
  • Identifying necessary skills
  • Developing Professional Purchasing Skills with Human Resource Management
  • Alignment with Strategy through Performance Measurement
  • Going Global
  • Cultural Differences and Consequent Skills Needed

Chapter 6) Purchasing Services

  • Introduction to Services
  • The Process of Purchasing Services
  • Importance of Purchasing Services
  • Make or Buy Decision in Services
  • Value of Service Purchasing
  • Key Challenges
  • Globalization Process
  • Sourcing Strategies
  • Relationship Management
  • Contract Management
  • Evaluation and Monitoring
  • Cultural Aspects of the Dimensions
  • Skills required for Purchasing Services
  • Relevant trends in Purchasing Services
  • Globalization and Its Impact on Purchasing Service Skills  

Chapter 7) Sustainability

  • Introduction to Sustainability
  • Definition and Principles of Sustainability
  • Sustainability and the Triple Bottom Line
  • Definition and Principles of Sustainability
  • Environmental Issues
  • Economic Issues
  • Social Issues
  • TBL’s Measurement
  • Relationship Suitability and the Strategic Procurement Function
  • Ethical Sourcing and Corporate Social Responsibility
  • The Effect and role of CSR on Purchasing
  • Principles of CSR and links to Ethical Sourcing
  • Relationship with Suppliers and Sustainable Purchasing Portfolio Model
  • Supplier Selection
  • Reputational Impact
  • Product Origin
  • Working Environment
  • Sustainable and Ethical Sourcing
  • Implications Sustainable Purchasing
  • Limitations

At the End)

  • References
  • Glossary
  • Concepts