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Purchasing function and purchaser skills
- Situating the purchasing function within the company.
- Discovering the purchasing mission and its impacts on profitability.
- Understanding the purchaser’s role and challenges and risks that person faces.
- Identifying the purchaser’s skills: Knowledge, hard skills, soft skills.
- Setting up the 5 steps of the purchasing approach.
Role-playing
Discovering the different dimensions of the purchasing function.
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Step 1: Defining and analyzing the need
- Classifying and segmenting the various purchases.
- Identifying the characteristics to be analyzed.
- Identifying challenges and risks.
- Defining accurate needs with the procurement matrix.
- Express the need: Use technical specifications or functional specifications.
Hands-on work
Build a Pareto chart and classify product families. Write technical/functional specifications for purchasing a common product.
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Step 2: Identifying and selecting suppliers
- Understanding the dynamics of a market with Porter's forces.
- Identifying the right supplier: The funnel principle.
- Collecting and analyzing information: RFI, RFP, RFQ.
- Analyzing and selecting suppliers: The most important criteria.
- Implementing effective sourcing to find new suppliers.
Case study
Building a preselection questionnaire for two companies that have the same need but different purchasing policies.
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Step 3: Perusing and analyzing the bids
- Knowing the contents of a consultation and an RFP.
- Building bid analysis tools.
- Thinking in terms of total cost.
Hands-on work
Creating awaited analysis grid for purchasing a product.
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Step 4: Negotiating
- Implementing the negotiation process.
- Establishing the interest/power matrix and determining your strategy.
- Setting goals and preparing your arguments.
- Mastering the steps of the meeting.
Hands-on work
Preparing a meeting grid.
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Step 5: Getting into contract
- The features of a purchasing contract.
- The essential clauses to master in order to cover major risks.
Exercise
General conditions of sale or purchase: How to decide?
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Tracking and improving performance.
- Knowing the key measurement indicators.
- Understanding the notion of continual improvement: PDCA, progress plan.
- Implementing the Responsible Supplier Relations Charter.