CPPM
CERTIFIED PURCHASING PROFESSIONAL MANAGER
AIMS AND OVERVIEW: To define procurement broadly, “Procurement” is the overarching function that describes the activities and processes to acquire goods and services. Importantly, and distinct from “purchasing”, procurement involves the activities involved in establishing fundamental requirements, sourcing activities such as market research and vendor evaluation and negotiation of contracts. It can also include the purchasing activities required to order and receive goods The Process Sourcing Analysis Model should be used by companies who are planning to outsource processes to one or more suppliers. This model allows buyers to understand which of their processes they should source and which would be best managed by their internal training organization. A sourcing team has two sets of internal stakeholders: the people who use the things that are bought, and the executives who manage overall costs. The people who consume the spend category will accept cost reductions as long as the process is: started in another department; doesn’t mean a change in suppliers; and doesn’t jeopardize a good relationship with the supply base, generate complaints or affect issues such as delivery reliability, service or payments. If a competitive approach to sourcing isn’t a viable option, it’s worth considering what the alternatives are, such as collaborating with suppliers: • To reduce complexity and in turn increase productivity; • To create corroborative process improvements that reduce the cost of doing business; • To change the way the relationship is structured. For example, firms may invest in supplier operations to guarantee access to supply, new technology or process improvements. The term “Purchasing” refers to the process of ordering and receiving goods and services. It is a subset of the wider procurement process. Generally, purchasing refers to the process involved in ordering goods such as request, approval, creation of a purchase order record (a Purchase Order or P.O.) and the receipting of goods.
HOW YOU WILL BENEFIT • The criticality of preparation and planning in successful price negotiations • Understand the practices that Master Negotiators use successfully • Learn how to negotiate in a competitive multiparty environment • Understand the dynamics and challenges of team negotiation • About cost drivers and market changes that can reduce price • Combining Price Negotiations with other important issues • Advanced negotiation skills sets
• Methods in preparing to negotiate price
• Seller’s pricing objectives
• Total Cost of Ownership Concepts
• How to work with Cost Estimating Relationships
• How Best to Negotiate in a Volatile Market
• The elements of cost that make up the price
• Defining The Negotiation Objectives
• Establishing initial positions
• Important elements of final preparation
• Thru the negotiation of actual sample cases gence
• Recognize the traps to effective due dili-
• Learn to prepare and plan strategically
• Master the strategies of value creation
• Recognize the complexities of multiparty negotiation
• Identify your negotiation style
WHAT WILL WE ADDRESS? • What will be the procurement approach in different types of market situations? • Understanding the value addition of Procurement in the Supply chain? • Understanding the expectation of the internal requestors? • How to carry about Price Negotiations with suppliers • What are the importance of having signed contracts? • What are the various ways we conduct sourcing? • Knowing the Rights of Procurement?
WHO SHOULD ATTEND? • Buyers, Purchasing Planners, Commodity Specialists/Managers, Supplier Managers, Purchasing Supervisors/Managers, Purchasing Directors, Supply Line Managers, Contract Managers, Supply Chain Specialists/Managers • PLUS anyone who is responsible for / involved in procurement of goods and services serving any industry under any vertical • Sales professionals who wish to better understand purchasing strategies of their customers • Business partners of the purchasing department (customers, finance, etc) • Procurement / Sourcing / Category Managers / Supply chain Managers • Supply Chain / Logistics Executives / Snr Executive
• Buyers / Junior & Senior Buyers
• Supplier Managers
• Engineer – Sourcing / Procurement
• Operations Directors / Managers
• Logistic companies and freight forwarders
PROGRAM OUTLINE 1. Procurement and Supply Chain Management • Understanding the various terms to differentiate Product and Service Procurement • Understanding the Importance of Procurement in the Organization • Supply chain Management and connection with Procurement • Role of Procurement in the Organization
• The Operational objectives of Procurement
• Materials Management and Logistics
• Understanding the Right of Procurements
• Payment terms explained
• Inco terms
• Delivery terms
• Shipping terms
2. Stakeholders of Procurement or Supply chain function • Stakeholders of a Procurement or Supply Chain Function • Stake Holder Management • Introduction to Stake holders
• Corporate Social responsibility
3. Procurement Process • Different type of Local Purchase Orders – STO , CPO , BPO • Difference between Local and International Orders • Developing Corporate Policy and Procedures
• Categories in Procurement
• Supplier selection process
• E- Process and Tools
• Sourcing Strategy
• Selection of Award Criteria
• Surveying the supply market
• Quotation and Tender
• Important things in Purchase Order
• Order Acceptance
PROGRAM OUTLINE 4. The Procurement Function in an Organization • Learn and use effectively a step-by-step- preparation and planning process • Determine your negotiation thesis
• Analyze the negotiation situation
• Identify all the direct and indirect “players”
• Determine the deal elements
• Understand the negotiation context
• Develop & implement a negotiation strategy
5. Value addition role of Procurement to the organization • How does procurement add value to an organization
• Open & closed process of accepting bids
• Understanding the need of Procurement to support the Business • Differentiation between Conformance and Performance Specification • Understanding KPI’s and SLA’s in defining Service specifications • Earlier Buyer Involvement and Earlier Supplier Involvement • Understanding the various way how we source product and service • Importance of Supplier evaluation and Pre-Qualification steps • Important elements in a Tender Process – DMU and RACI models • Evaluation of Price and Non Price matrix used in final selection of the product / service
6. Centralized and Decentralized Procurement concepts •
Advantages and Disadvantages of Centralized and Decentralized Procurements
• Organizing control over Centralized Procurements • Benefits to Organization on adopting to various procurement methodologies
PROGRAM OUTLINE 7. Developing Effective Specifications • Understanding the need of creating effective Product / Service Specifications • Differentiation between Conformance and Performance Specification • Understanding KPI’s and SLA’s in defining Service specifications
8. Estimating Cost and Price & Budgets • Differentiation between Capex , Opex and Cog’s and various budgets considered • Understanding the importance of Budgets in planning required to achieve the targets • Understanding break-up of Cost of Product & Services • Various elements of Pricing of Goods & Services
9. Different Types of Market Competition • Understanding the various types of market situations
• Concepts of Monopolistic competitions
• Difference between Perfect and Imperfect competitions • How does competition have an influence over Procurement decisions
PROGRAM OUTLINE 10. Procurement & Supply position Matrix & Negotiation process • Understanding the need to understand the Buyers prospective of evaluating suppliers • Understanding the Suppliers Prospective how they view their customers • Different approaches towards planned negotiation process • How does this positions matrix helps to plan negotiation • Developing Negotiation Performance • The Role of Negotiation in Procurement and Supply
• The Negotiation Outcomes and Approach
• Power and Relationship
• Cost and Price Analysis
• Economic Factors
• Strategies of Negotiation
• Influencing and Persuasion
• Communication Skills in Negotiation
11. Managing Outsourcing in Procurement • Prioritizing the task based on core and non-core activities Things to consider before outsourcing
•
• Understanding the difference between Core and Non-core activities of the organization • Understanding the expectation on KPI’s and SLA’s in defining Outsource service • Relationship and dependency in Outsource relationship
12. Risk and Compliance • Understanding the various sources of Risk
• Methods and tools to Identify Risk
• Risk Management Plan – Allocation and Mitigation
• Types of Risk Factors
PROGRAM OUTLINE 13. Understanding Contract Terms and Contract Management • Understanding the expectations out of contract and contract management process • Understanding of the Key terms used in Contracts for procurement of Product and Service • Need & importance of having contracts in Procurements • The basic elements of a signed contract • Managing Existing Contract
• Role of the Contract Management
• How to resolve conflicts in Contract Management
14. Supplier Relationship Management & Performance Management • Commercial relationship
• Planning the relationship Portfolio
• The Competitive Environment
• Value adding supply chain relationship
• Managing Performance – Balanced Score Card
• Supplier Relationship Management
SPECIAL FEATURE: Today's most successful business leaders rely upon influence and negotiation skills at every turn—whether to close a major business deal, recruit a key team member, or obtain scarce resources in a highly interdependent environment. This program teaches you effective influence tactics and negotiation strategies for every business situation and helps you to analyze the ethical issues that arise as you negotiate to achieve your objectives. The comprehensive curriculum in the Influence and Negotiation Strategies Program covers negotiation skills and tactics, and also methods of dispute resolution that can be applied when negotiations break down. Topics range from the use of influence strategies in the everyday work environment to complex deal negotiations involving cultural differences, coalitions, and ethical challenges.
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SHARJAH
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ME12, Near Model School
RAS AL KHAIMAH
Nakheel, Arab Bank Buliding