CIPP™

Certified International Procurement Professional LVT

The supplier selection process Routes to identifying uppliers for commodities and services Leveraging the organisations knowledge Objective, structured and transparent assessment of suppliers (pre-qualification) Global vs. local supply – what to select and the key drivers Building a position of power when dealing with suppliers Building the right relationship with the supplier (supplier or partner)

The key elements of tendering Managing the tender process Building the ITB (Instructions to Bidders) documentation Putting the business into context for the supplier and ‘selling’ the buyer The key category areas for assessment Building the right assessment models to objectively score, understand and compare supplier submissions Providing unsuccessful suppliers with objective feedback to help them improve their business Maintaining competition during the bidding process

Understanding the difference between ‘price’ and ‘cost’ T.C.O – Total Cost of Ownership and lifecycle costing Identifying different areas in which to reduce cost, not just purchase price Understanding the different pricing methods including: cost plus; fixed; fixed and firm; schedules of rates Fixing prices to indices for long term arrangements Generating competition in the supply base Using global sourcing to gain competitive advantage Improving processes to reduce overall organisational costs Automating processes to allow the buyers to ‘buy’ not administer transactional processes Understanding the impact of inventory on the organisation Working with the supplier to manage inventory: VMI (Vendor Managed Inventory) and consignment stocking Identifying what adds ‘value’ and what adds ‘cost’ LEAN principles applied to procurement practices Using standardisation to reduce costs / variables Controlling costs on long term agreements Understanding INCOTERMS and selecting the best terms for the buyer

Using KPI’s, Key Performance Indicators, to manage suppliers performance Using KPI’s to manage the procurement function Using the S.M.A.R.T (Specific; Measurable; Aligned; Realistic; Time Bound) principles when building KPI’s The impact of frequency on delivering improvements Using KPI’s to form the basis of the regular supplier review meetings The importance of agreeing service levels prior to contract award

The key stages of negotiation: Scope, plan and conduct Defining the scope of the negotiation – seldom is this a mono issue Selecting the correct team for the negotiation Roles and responsibilities of the team during the negotiation Controlling the team in the heat of the negotiation The importance of planning for the negotiation Understanding internal and external influences Understanding the power of the supplier and buyer The bargaining zone and impact of strong negotiators Different approaches to negotiation Using effective questioning to gather data and force agreement Building the correct negotiating environment – aggressive vs. passive Key do’s and don’ts when negotiating Achieving a successful close out to the negotiation and post negotiation follow up Closing the deal

Detailed review of all sections covered above Questions and answers session for detailed clarification Group discussion around all key areas covered

The supply chain as a multi-faceted network of multiple upstream and downstream activities Procurement maturity within the organisation The difference between inward and outward facing roles Value generation within the organisation through the procurement function Using KPI’s to manage and monitor the supply chain How to get the most from performance review meetings

Identifying and understanding the areas for investment The suppliers role and rewards in the process Value analysis and value engineering to remove non value added activity Improving the performance of the supply chain as a whole through metrics Motivating suppliers through awards and recognition

Presentation detailing the different personality profiles of the CIPP group How to deal / manage different people and personalities Building the right procurement team for your organisation

The end of the team work! All delegates will individually sit a two hour exam to demonstrate understanding of the topics and subjects covered during the week.