PROCUREMENT TRAINING

Procurement training has evolved over the last decade both in publicly available courses and in-house corporate training. There are foundation courses available for entry level staff through to leadership skills training for Chief Procurement Officers. There are new competencies that are needed for future success and new task areas where additional skills will be needed. Training is available in these important areas:

• Supplier Relationship Management. Interaction between suppliers, your company and your customers is vital to a streamlined supply chain and building sustainable relationships will ensure continuity of supply.
• Cost reduction methodologies and Total Cost of Ownership (TCO). It is increasingly obvious that the first cost of an item is not fully reflective of the full cost over the useful life of the item. The ability to break down the “should-cost” of an item or commodity can be taught.
• Supplier Evaluation, Quality and Development. Supplier partnerships and relationship building will be key to keeping competitive. Evaluating suppliers on responsiveness to customer complaints, on-time delivery, rejected or substandard items, fulfilling warranties and other quality measures is a requirement which needs to be recorded and managed
• Setting Key Performance Indicators for Suppliers. Only events and activities that can be measured can be managed. Training on how to manage supplier performance through the setting of targets for the supplier is available and can be customized to the commodity being sourced.
• E-Procurement. Reverse auctions are being used extensively for repetitive items using an on-line bidding process on the internet. Courses are available to learn about the advantages of e-procurement and how to use the systems and methodologies that support it.
• Contract management. Often, this is an area that is poorly understood by procurement professionals and legal support is brought in to assist. Learning and understanding more about different contracting methods saves time and money for organizations.
• With the advert of low cost country sourcing and increasing trade across borders, training is needed on issues relating to language, currencies and cultural norms. In addition, financial literacy is increasingly needed as international trade financing and importing can be quite complex.

Programs can be designed for internal use within your company and customized to suit your company's needs with "tailor-made" training sessions. Advanced training can cover elements such as supplier selection, operational and sourcing key performance indicators, cost reduction methodologies, contract development and low cost country sourcing. Procurement training can cover both traditional procure-to-pay operations as well as strategic sourcing.

Supply Chain Training

Superior supply chain training is widely available internationally, either delivered in open public courses or customized specifically for corporate in-house use. You are advised to research carefully what is available making sure that the organization you select for training has the expertise in the functions that you require.

A vital element in the supply chain is purchasing, also called sourcing or procurement, where it is recommended that aspiring professionals study up to an advanced level. Training in this field covers the whole range of competencies in purchasing including supplier selection, cost reduction techniques, and contracting. New trends that are of topical interest can be structured into a course that will address specific issues for your company such as:

• Low cost country sourcing from China, India etc.
• Understanding Total Cost of Ownership (TCO) of a commodity
• Using e-procurement (on-line bidding) to create efficiencies
• New supplier evaluation and on-going supplier development
• Supplier management and performance monitoring (KPIs)

Many academies and universities supply educational opportunities in supply chain. However, to access the latest thinking and understand the up-to-date technologies available it is advisable to find an established and knowledgeable supply chain training consultancy that has specific experience and skill that it can apply to your industry or your geographic region. Some aspects of the supply chain are quite technical and need experts to explain certain applications and processes. In-house training can be developed to assist with value analysis and innovation within the entire supply chain, from the early stages of forecasting and planning through to manufacturing, warehouse management, inventory control and logistics.

Leadership training is as important in supply chain as any other business functional area. To be a supply chain manager or director means that you have to learn how to integrate all aspects of the supply chain to deliver optimum performance. Some of the competencies that will be sought after in the supply chain function in the future will be technology-based so I.T. skills will be key. People with experience in computer simulation, financial modeling and statistical analysis will attract a premium.

The global marketplace is changing rapidly and supply chain professionals need to understand their customers, both internal and external as well as their suppliers. Working across many countries and regions of the world using the new connectivity provides challenges not known a decade ago. Training can be structured to address cultural and language issues to enhance communication in your company. It is important to work with a professional and specialist supply chain training company that can fulfill your particular needs.

Looking to hire a Supply chain company? Read this first

Let’s assume you are looking to hire a Supply Chain company. What you need is assistance with cost reduction in sourcing materials and services, improving your operations and streamlining your processes rather than a complete systems re-fit which may be expensive and time consuming.

Usually supply chain companies have expertise in certain industry sectors and very often have an international footprint and experience in making improvements specific to that industry globally. Choose one that knows your sector. All the leading firms can assist you from A-Z in the supply chain: demand planning, purchase, store, move, and logistics. They may apply their own methods and systems and use their own proprietary technology. They are often protective of their intellectual property and will require you to sign confidentiality agreements.

If your need is to move into new markets, speed up your time-to-market, launch into low-cost country sourcing, choose a company that has experience in international trade and can provide testimonials in this functional area. There are quite a few pitfalls in foreign trade for a novice, you are not recommended to go it alone. Instead of paying too much for goods and services, ending up with too much inventory because of bulk-buying, and taking too long to implement logistical support, you can use the expertise of a supply chain company to avoid costly mistakes.

If your need is to face and counter the competition you most likely need to increase output whilst maintaining quality, eliminate waste, reduce inventory levels and manage your labor costs. All this has to be achieved without incurring any additional risks. Your company may have a lack of expertise and skilled staff challenges which limits your chances of developing and implementing the required improvements without assistance.

Areas that supply chain companies can assist with are:
• Integration of sub-processes
• Technology upgrades
• Talent management and alignment
• Risk mitigation• “Lean” manufacturing processes
• Sustainability and “green” issues

There are companies that specialize in environmental and related legal and governance rules. This may be an opportunity to pull ahead of competitors and become more compliant. Some companies are using their leadership in this area to their advantage in the market. Waste disposal and recycling is a business opportunity as well as good practice.

If your main objective is to serve the customer better whilst managing your operational costs, the intervention of an external expert may be the answer. Every organization has the same goals, to improve customer service, decrease operating costs and ensure continuity of operations. If you are looking to hire a supply chain company, read this first!