Distinguishing between centralised and decentralised procurement, analysing the components and application of total cost of ownership (TCO) principles.

Distinguishing between centralised and decentralised procurement, analysing the components and application of total cost of ownership (TCO) principles, conducting a supply market analysis, and identifying the process of selecting and evaluating suppliers are key considerations in effective procurement and supplier management..

Course Content

  • The differences between centralised and decentralised procurement are reflected through a flow diagram of both approaches
  • The advantages/disadvantages of both centralised and decentralised procurement are listed to reflect their impact on supply chain
  • The different circumstances under which to purchase centrally and decentralily are indicated
  • Centralised and decentralised procurement are analysed in relation to their impact on supply chain management.
  • The TCO philosophy and principles are analysed to understand the true cost of doing business with a supplier, going well beyond price
  • Purchasing prices are analysed to reflect its influence on TCO
  • The process of purchasing cost analysis is analysed in order to reflect the cost elements
  • Potential areas of cost inefficiencies are evaluated to determine the effect on the bottom line and where spend can be optimised
  • Cost drivers are analysed to determine their impact on the TCO
  • Process recommendations are made that relate to sourcing in terms of TCO.
  • Supply market conditions are assessed to determine market segmentation that informs the sourcing strategy
  • Company spending is categorised in different supply market conditions
  • A model to do an industry/supply market analysis is used resulting in a sourcing strategy
  • The types of buyer-supplier relationships are evaluated to inform strategies for growing customer value and profitability.
  • The characteristics of a good supplier are assessed to determine their suitability against business needs and buyer specification
  • Sources of information for finding suppliers are determined using a variety of resources including supplier/buyer matching systems
  • A systematic process to select the right supplier is analysed for its capability to deliver against business and market needs
  • Various sourcing policies are evaluated to reflect their influence on the selection of suppliers
  • Various methods are used to evaluate the performance of suppliers
  • Key performance areas are identified for the evaluation of suppliers’ performance
  • Areas of ongoing development of suppliers are identified in order to create value for money and an awareness of the interdependency of the relationship.
  • Non-accredited: Short course only  
  • Duration: 1h 30m
  • Delivery: Classroom/Online/Blended
  • Access Period: 12 Months 
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