Beginner Courses

Procurement Essentials

This intensive one-day workshop provides a high level overview of the end-to-end sourcing process.

Introduction

This workshop aims to equip participants with an overview of the strategic sourcing process. It explores roles, key activities and methods used to drive value from the procurement process.

This course is designed for:

The workshop will benefit those who are involved in the procurement/sourcing process and who perform activities that are part of the sourcing process. In particular this course will benefit people who are new to procurement or sourcing or who may require a ‘refresher’.

Course structure

There will be pre- and post-workshop activities totalling about 90 minutes additional workload, as the workshop is founded upon 70/20/10 principles. The pre-workshop activity will stimulate thought about the role of a category manager in contributing to organisational results. The workshop will be led by an experienced facilitator, and will include nine sessions involving exercises, case studies, presentations and facilitated discussions. The post-workshop activity will seek to reinforce the learning and to maximise the transfer of knowledge from the workshop to the workplace.

Benefits of attending:

Attendance will help raise awareness of the sourcing process and the tools that may be used.

As well as this, delegates will gain three key benefits from attending:

  • More appreciation of the importance of planning to deliver better outcomes.
  • More appreciation of the tools and other resources available to support strategic sourcing.
  • Awareness of ‘tips and traps’ of how to deliver a procurement process that drives outcomes and value for money.

Key learning outcomes

  • Describe the strategic sourcing process and identify the ways in which value may be created (or lost) through effective (or ineffective) management of the sourcing process.
  • Identify the relationships that the sourcing team need to establish with internal and external stakeholders, including category managers.
  • Identify the tools and resources that are appropriate at each phase of the strategic sourcing process.
  • Relate strategic sourcing and category management to the end-to-end procurement process.

 

Course Content

 

What is ‘sourcing’?

  • Overview of the procurement process; sourcing and procurement compared
  • The strategic sourcing process in overview

Why planning is key to achieving better outcomes

  • Why sourcing projects (sometimes) fail
  • How planning supports better outcomes from sourcing
  • Data, information, knowledge and intelligence; making sense of data

Understanding the customer’s needs and outcomes

  • Source of spend data
  • Who are our stakeholders?
  • What are the outcomes/objectives we want to achieve?
  • How can the procurement process create value?

Understanding the supply market

  • Understanding suppliers and supply markets
  • Appraising potential suppliers
  • Motivating suppliers to take part

How can we drive value for money outcomes?

  • What options do we have to release value?
  • What performance measures should be included in the contract to drive good performance and outcomes?
  • Types of benefits from strategic sourcing

Engaging the market – selecting a sourcing strategy

  • The sourcing process and the sales process; how they differ
  • How do market approaches differ; EOI, RFI, RFQ, ITO/RFP etc.
  • Pro’s and con’s of different sourcing strategies (e.g. direct negotiations, closed tender, open tender)
  • Selecting the most appropriate sourcing strategy using a value risk approach – factors to consider
  • Types of specification

Evaluating suppliers

  • Probity considerations Why good governance matters
  • Importance of ‘smart’ evaluation criteria
  • Tips, tricks and traps in selecting the best supplier

Why contracts matter

  • Why contracts matter
  • What can go wrong in transition

Key sourcing challenges

  • Remaining focused on the outcomes we are seeking to achieve
  • How do we keep track of potential benefits
  • Reducing the number of different solutions
  • Matching the solution to the customer needs and outcomes
  • Engaging with stakeholders and aligning different priorities
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