Strategic Sourcing: The Optimum Approach to Buying

Building Superior Capabilities for Strategic Sourcing

Introduction

Best-in-class companies recognize strategic sourcing as a value creator and consider it integral to their overall strategies for growth. To become an excellent procurement organization in the 21st century, a company requires various competencies that will enable it to effect strategic sourcing and transfer value throughout the supply chain from supplier to customer.

Strategic sourcing is far more than a simple allocation of business to suppliers by the purchasing function. A multi-functional activity produces a plan of action for several years. Successful sourcing strategies are built on a rigorous analysis of the buy, the supply industry, and the fundamental drivers of value.

This LAKESHORE ISL training seminar will feature:

  • Strategic Sourcing: Critical Elements & Keys to Success
  • Strategic Sourcing as compared with Tactical or Transactional Sourcing
  • The Importance of Strategic Sourcing
  • The Transition Process from Tactical to Strategic Sourcing
  • Where e-Procurement Fits with Strategic Sourcing

Objectives

By the end of this LAKESHORE ISL training seminar, participants will be able to:

  • Develop a strategic sourcing strategy that achieves tangible results
  • Implement the strategic sourcing strategy to maximize total cost savings
  • Assess and prioritize opportunities for savings
  • Establish processes to manage performance of the strategic sourcing contract
  • Apply best practices and lessons learned in strategic sourcing efforts

Training Methodology

This LAKESHORE ISL Strategic Sourcing training seminar will utilise a variety of proven adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented. This LAKESHORE ISL training seminar will combine variety of instructional methods including lecture by an word-class subject matter expert in procurement and supply chain strategy. This is a highly interactive and competitive LAKESHORE ISL Strategic Sourcing training programme where the participants will work and compete in team exercises, group discussions covering current practices and their relationship to the implementation of new concepts.

Organizational Impact

  • Develop critical supply strategies
  • Understand the need for change to more strategic and innovative approaches
  • An understanding of how to delineate between what is considered “tactical” and what is genuinely “strategic” when sourcing
  • Evaluate how the strategies in place are delivering quantifiable value to the organization
  • Define the end-to-end sourcing process and explore the relation of value to each of those areas
  • Understand the 7 phases of the Strategic Sourcing Process

Personal Impact

  • Implement the strategic sourcing strategy to maximize total cost savings, value, vendor access, and socioeconomic participation
  • Understand the actual requirements of why a service or product is being procured
  • Confidence to develop strategy that will inform the approach to the supply market, factoring in the external environment and internal issues
  • The tools with which to develop a sourcing process that factors in complexity around supply market and the relevant category
  • Establish processes to track and manage performance of the strategic sourcing contract
  • Apply best practices and lessons learned in strategic sourcing efforts

Who Should Attend?

This LAKESHORE ISL Strategic Sourcing training seminar is designed for procurement professionals who need to understand the strategic sourcing process in order to participate on a strategic sourcing acquisition team.

This LAKESHORE ISL training seminar is suitable to a wide range of professionals but will greatly benefit:

  • Procurement Officers
  • Contracting Officers
  • Supply Chain Professionals
  • Program Managers
  • Those who are involved in the planning, evaluation, preparation and management of purchasing, tenders, contracts that cover the acquisition of materials, equipment, and services.

Seminar Outline

DAY 1

Defining and Implementing Effective Sourcing Strategies

  • Definition of Sourcing Strategy
  • Defining Procurement Excellence
  • Tactical vs. Strategic Sourcing
  • Strategic Sourcing Benefits
  • Industry and Strategic Sourcing
  • The Strategic Sourcing Process

DAY 2

Strategy Development and Commodity Management

  • Develop a Strategic Sourcing Plan
  • Evaluate and Prioritize Commodities
  • Analyze The Supply Market
  • Develop a Commodity Strategy
  • Develop The Acquisition Strategy
  • Develop a Transition Plan

DAY 3

Sourcing Path Selection (Competition or Collaborative Supplier Development)

  • Selection of Implementation Path
  • Identification of Preferred Supplier(s)
  • Supplier Development and The Strategic Sourcing Process
  • Supplier Development Constraints
  • Negotiation Strategy – Competitive vs. Collaborative
  • Proposal Solicitation and Evaluation

DAY 4

Leveraging Supply Management Tools and Techniques to Improve Performance

  • Procurement Analysis and Classification
  • Strategic Cost Management
  • Principles of Cost and Value Management
  • Understanding the Total Cost of Ownership
  • Purchasing Analysis Tools and Techniques
  • Performance Measurement and Evaluation

DAY 5

Supplier Performance Management, Quality Management, and Supply Base Integration

  • The Importance of Supplier Performance Management
  • Developing and Maintaining Long-term Supplier Relationships
  • Performance Measurement and Evaluation
  • Quality Management for Strategic Sourcing
  • Supply Base Integration and Development
  • Pursuing Global Supply Management Excellence