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Strategic Purchasing Management

Over the years purchasing has become a very strategic focus for companies since a good portion of the product costs are in purchased goods or services. If you are unaware of the latest tools and techniques in purchasing, you may be in a big surprise since your suppliers are well equipped with the latest tools and techniques.
Course: PUM001
 PDU: 14
Duration: 2 days
 Check the Training Schedule

Apollo Strategic Purchasing Management Workshop

Benefits for purchasing leaders:

The motivation of training is from both the purchasing leader and for the individuals. If you are a purchasing leader (supervisor, manager, director, VP, CPO), you need a strong team in your organization's to build your success. But sometimes, the skill levels of your purchasing team members can hold you back. Your cost savings are lower than they could be, your internal customers have a negative perception of the purchasing department, and you find yourself being dragged into many problems that buyers should be able to solve on their own.

Build your team to deliver better results and have senior management recognize the purchasing department as a strategic contributor to the organization's success. Not only would you improve your reputation as a great leader, you'd probably be rewarded and experience less struggle and stress. And, yes, you can improve your results with the existing purchasing team. No severance letters or new candidate recruiting is required.

Benefits for individuals:

As an individual, you deserve getting the optimal results from your hard work. This is not only from working hard, working smart with proper methodologies are important to get results. You will find that this training has opened up many doors for you in getting your job done right. You will instantly deliver better results after the training, you will get noticed from your outstanding contribution to the corporate bottom line. This can become a fast track in moving up your career.

When leaders like you working in a purchasing training plan, they are relieved to know that transforming their teams for improved results doesn't have to be an insurmountable task. If you have a team of five or more, you can qualify for a group discount on our purchasing training.

Topics Covered:

Through an immersive, simulated case study, you gain practical experience evaluating the development and implementation of a complex purchasing and supplier management technique

Day 1

Strategic purchasing and purchasing strategy

  • Selection of the subfamilies that will be sourced in priority
  • Setting up of efficient project team to achieve target saving
  • Planning & Communication

Supplier market analysis

  • Characterization of your organization’s needs
  • Understanding of the supplier market
  • Evaluation of your organization’s position on the
    supplier market
  • Synthesis of first elements defining the sourcing strategy

Effective cost reduction process in purchasing

  • Definition of the most appropriate approach to deliver the targeted savings
  • Sourcing levers
  • Target procurement policy
  • Buy in of the sourcing approach by project team and stakeholders

Luncheon

Cost reduction tools in purchasing

  • Identify the purchase category for purchasing
  • Example use of Cost Reduction tools
  • Calculate potential saving using the cost reduction tool

Supplier selection and evaluation

  • Identify selection criteria for your organization’s basic Requirements
  • Review suppliers' database and select suppliers for RFP
  • Prepare and follow up RFP
  • Analyze and list recommendations
  • Prepare and formalize RFP
  • Analyze RFP and select suppliers
  • Run negotiations
  • Simulate negotiated savings
  • Select suppliers to whom a contract will be sent

Day 2

Cost analysis

  • Cost breakdown analysis to identify cost reduction
    levers
  • Method of a cost breakdown
  • Example of a cost breakdown in a purchased items
  • Exercise: determine the component cost of a system
Total cost of ownership
  • Define the process of TCO – Total Cost of Ownership
  • Generic uses for TCO approach in Procurement
  • What TCO for procurement strategy definition its
    whole life cycle
  • TCO focus for investment
  • TCO focus for routine purchase
  • TCO focus for new product & service deployment
  • TCO exercise

Luncheon

Negotiation for purchasing

  • Difference between « to buy » and « to negotiate »
  • First negotiation case study
  • Purchasing Negotiation’s best practices
  • Concession / counterpart exchange step
  • Concession / counterpart workshop
  • Preparing the negotiation: the planner
  • Second negotiation case study
 Stakeholder analysis and management
  • Performing stakeholder analysis
  • Develop the stakeholder management plan
  • Balancing typical challenges of project management
  • Selecting and applying best practices
  • Manage project success – Case Study

Workshop Summary & Closure

Course Format:

Trainer will use practical examples and case studies to reinforce and expand the scope to cover applicable concepts in this training.

Who should attend:

Anyone who is currently involved directly or indirectly in the company purchasing and supplier management will be benefited to this training. People in the following categories will find this workshop particularly useful:

  • Purchasing Manager
  • Lead buyer
  • Buyer
  • General manager
  • Program managers
  • Sponsors
  • Finance
  • Anyone who is involved in purchasing and budgeting

Partial Client List

  • Air Liquide
  • Clariant
  • Oracle
  • AXA Insurance
  • Hong Kong Jockey Club
  • PCCW Cascade

Apollo Experience

Beijing Olympics
►Support and enhance the Program Management Office to deliver projects in 3 areas: TV Broadcasting, International Sponsorship & Ticketing

Shanghai F1 Championship
►Set up a Program Management Office to manage the deployment of F1 properties in TV broadcasting and magazine publishing

Guangdong Nortel
►Set up a Program Management Office in the JV Guangdong Nortel in China for cost reductions projects

BUPT Nortel R&D Center
►Start up the first Nortel R&D Center in China for Wireless network development programs

About your facilitator

Your International Facilitator:
Francis Hung, Managing Director – Apollo Consulting Group

Francis Hung, P. Eng, MBA, PMP, PRINCE2, ITIL, EIPM is a bilingual professional specializing in portfolio, project and program management and purchasing management. For the past 30 years he has worked with large companies in project and project office managements from the US, Canada and Asia. In particular, his work in the adaptation of project management processes and his creation of earned value management tool to assist business to manage their projects more effectively. Thanks to his years of experience with Nortel, Systek and North America aerospace industries, he brings practical information, an insider’s view of the corporate world, and many live stories (both from his own experience and from her co-workers, vendors, and friends in the corporate community) to match the theory to reality. Francis was a Nortel program manager and senior VP of Systek directing multiple projects simultaneously following the Nortel corporate project management process, which he now applies to his own independent project management consulting business.

Specialization

  • Project Management Consulting & Training
  • Setting up project management office (PMO)
  • Strategic program management and purchasing management

Sector & Industry Experience:
Manufacturing, Telecom, Information Technology, Finance, Call Center operation

Major Projects
Shanghai 168 Internet Call Center, SYWG security Bshare trading system, Nortel digital cross connect program manager, NASA space shuttle EMI component reliability program, Greatwall CDMA service and billing syste

 

About Francis Hung

Manufacturing:

  • Chemical Process Engineering in developing a manufacturing line for military electronic ceramic production,
    using statistical quality control technique.
  • Electronic assembly Engineering: in production of military power supply modules meeting extreme environmental requirements at Murata Erie.
  • Circuit pack manufacturing support for Nortel high volume telephone line circuit pack production. Achieving high yield and production capacity (7million units/year) objectives.
  • Project manager on a joint program with Motorola in manufacturing a high volume solid-state over voltage silicon
    chip module at 300K units per week
Telecom:
  • Silicon chip designer for Nortel first digital telephone system.
  • Program manager for Nortel’s data cross connect system.
  • First internet enabled call center for Shanghai 168 call center.
  • China Mobile network management system.
  • Program manager for China Greatwall CDMA mobile network billing and roaming control (HLR) system.
Finance:
  • Project director for China largest B-share security trading system.
Standards:
  • US Military-standard 202 and 28861 implementation for EMI program
  • North America Bell Telephone system spec on LSSGR standard development
  • ISO-9001 certification for first R&D lab in China.
Leadership:
  • Started the first Nortel R&D center in Beijing in 2004.
  • Senior VP of Hong Kong Systek Information Technology (a listed company).
  • President of Canadian Ceramic Society

Testimonials

“One of the best course I ever recevied, Francis is absolutely a trainer’s trainer.” Helen Liu, VP & Associate, Adfaith Management Consultant, Beijing, China.

Testimonials

“Francis is an experienced and well organized trainer with good understanding of the subject. His unique Project Management tool that is so useful and covers all important aspects of project management.” – Oonagh Chan, Head of Broadcast Division, Hong Kong Jockey Club.

 

 

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Earn credits from PMI
Apollo course participants can earn professional development units (PDUs) for attending the PMI courses through our partner Protrain China for all Project Management Program courses.