2 days’ workshop
INTRODUCTION
In order to be an effective, reduce cost for procuring, you will learn to formulate cost reduction strategies and position your organization to negotiate from strength. Risk modelling skills to reduce procurement cost will be analyzed and scenario solutions will be provided under the guidance of Dr. Steven Liew.
Course Objectives
By the end of this course you will be able to:
Identify Ways to Shave Procurement Costs
Ability to reduce Procurement Costs Through Direct Material Sourcing
Understand when to enhance your Negotiating Power
Identify Capex & Operational Expenditure for Saving
Formulating the Cost Reduction Strategies for Your Organization Costs
Applying Key Purchasing Costs Strategies
METHODOLOGY
Case Study & Group Discussion. Real-current problematic business cases will be analyzed and scenario solutions will be discussed within the workshop.
WHO SHOULD ATTEND
All Purchasing Professional - Officers, Supervisors, Executives. Managers, Engineers, Entrepreneur and People interested in Purchasing Productivity and Cost Improvement Skills
Special Feature:
NOTE: Please bring laptop along
PROGRAMME OUTLINE
Day 1
Module 1: Burning issues of Procurement Cost reduction
Lack of sourcing intelligence
Poor negotiation skills
Lack leverage with suppliers
Inefficient ordering procedures
Incomplete stock monitoring and control
Suppliers goods not on time delivery affected production
Over purchase which require additional space to keep"
Material planning not being followed by PIC
Last minute ordering
Module 2: Procurement Negotiation Strategy
The Supply Positioning Model
Understanding Negotiating Styles
Negotiation Tactics
Objectives & Variables
Set targets for your preferred option(s)
Module 3: Successful Procurement Negotiation
Developing the Negotiation Strategy
Win-Win versus Win-Lose
Negotiating by Telephone
Criteria of Successful Negotiators
Evaluating Your Negotiation Performance
Module 4: Discussion of Procurement Strategies
Ways to Shave Procurement Costs
Three Cs of Procurement Cost Reductions
Fundamental Skill for Senior Buyers
KPI for Procurement cost reduction
Day2:
Module 5: Cost Reduction Success Story
How to target saving for your organization
Module 6: Direct Material Cost
Procurement (Purchasing)
Inventory management
Design errors
Technical errors
Reject output
Re-work
Module 7: Reducing Indirect Material Cost
Assets Management
Customers
Financial resources
Human resources
Expenditures
Module 8: Factory - Cost Reduction Strategies
Bulk Buying
Opportunity Buying
Local Vendors
Partnership with Vendors
E-Procurement
Buying from Tax Exempted Area
Removing Intermediaries
Non – Branded Items
Recycling and Reuse of Packing Item
Conversions:
Economical Order Quantity
Make and Buy Decision
Negotiations
Inspection
Scrap Management