Procurement Optimization

Procurement Objectves and Strategies

Procurement objectives and strategies provide procurement with the framework for their action. Procurement objectives can be differentiated between cost optimization objectives and general interest objectives (e.g. sustainability). The procurement strategies provide strategic sourcing procedures to achieve these objectives. Defining procurement objectives based on corporate targets, specification of procurement objectives and strategies, tracking of target achievement and the alignment of all task fields of procurement to the new procurement objectives/strategies are practiced in the training based on real-life practical examples. The training is especially geared towards managing directors/executive board members who are in charge of procurement and procurement managers.

Procurement Organization

Without the optimal procurement organization and the right personnel, a procurement department will never be able to "play in the premier league." Not only does the training program deal with existing organizational forms such as the lead buyer model, but it also presents the smart procurement organizations as a newly designed, one-of-a-kind organizational model for procurement. Prerequisites for implementing a smart procurement organization, role profiles, requirements on procuremet staff and the working method are conveyed in the training. The training is especially geared towards managing directors/executive board members who are in charge of procurement and the procurement managers.

Strategic Sourcing Process

Strategic sourcing forms the heart of every procurement department. Only by conducting an error-free strategic sourcing process can procurement realize the highest possible savings. All five steps (demand analysis, procurement market analysis, definition of the procurement strategy, supplier analysis and selection as well as implementation) of the strategic sourcing process are explained in detail in the training. During the training, we answer questions based on practical examples and with the aid of game theory such as:

• How does an ABC-XYZ analysis work?
• What pitfalls are there when conducting global sourcing initiatives?
• How is the optimal commodity group strategy defined?
• Which price/process costs and volume levers are there to optimize costs?
• How do you negotiate successfully with 'difficult' suppliers?
   

Tactical Procurement

For some time now, the term "tactical procurement" has increasingly been appearing in specialized media. But what exactly makes up a tactical procurement? Task fields of tactical procurement, requirements profile on tactical purchasers, differentiation from strategic sourcing and project procurement as well as "rapid sourcing" as a tactical procurement process are some of the topics covered during the training. 

Operational Procurement

In many companies, potential for optimization is hidden in operational procurement, the conducting of the order-to-pay process. Not only does an optimally configured ordering process provide auditing integrity, but it also often creates free resources thanks to a lean design. At the same time, savings can be achieved through the intelligent bundling of internal demand requests (BANF). Designing and optimizing the ordering process, optimal ordering processes for different forms of demand (e.g. constant demand versus one-time "emergency purchase") and the adjustment of order quantities and call-off quantities are covered in the training.

Supplier Management

Partnership-based relationships with suppliers do not develop on their own. The key to success is a structured approach for supplier management. The scope of the training includes, among other things, the three phases of successful supplier management (classification, evaluation and development), the establishment of key figure-based supplier reporting and the conducting of professional visits to and audits of suppliers.

Procurement Controlling

"Where did the savings go?" Quite often, savings do not appear in a company’s P&L statement. The training on procurement controlling explains the difference between cost reduction and avoidance, different hardness levels of savings, different types of baseline levels (= yardstick against which savings are measured), and the approach for P&L-oriented measurement of savings. The fundamentals for setting up a key figure system (procurement balanced scorecard) are explained, too. 

IT Support

e-Sourcing has been established in procurement for more than 15 years now. In the process, the systematic use of e-sourcing tools does not only lead to higher savings, but also to a reduced workload for the purchasers. The use of eRFI and eRFP tools, conducting of e-auctions, taking into account commodity group specifics, intelligently designing tenders and best practices to link pool suppliers to sourcing cockpits comprise the contents of this training module.

Development of Methods

Methods used in procurement must be tailored to the commodity groups to be purchased. Methods for in-house procurement can be developed in workshops with experienced procurement consultants. The training gives insights into the suitability of methods developed, the use of tailor-made methods, and quality assurance during application.