Strategic and Tactical Procurement

Strategic Procurement
• Definition: strategic procurement
• Objectives and organizational aspects
• Overview: elements of strategic procurement

The Process to Develop Procurement Strategy
• The 7 steps to formulate procurement strategy
• Analysis, formulation and implementation
• Definition: internal and external analysis
• Porter’s 5 forces model
• Scope model for supplier selection
• 9 steps for a successful supply strategy presentation

Portfolio Strategy
• Theoretical introduction to the concept
• Materials portfolio
• Supplier portfolio
• Group exercise with selected materials groups
• Group presentation
• Definition of norm strategies
• Objectives of materials group management

Procurement Levers
• 7 methods to reduce procurement costs
• Allocation of selected levers to norm strategies
• Overview of common levers and characteristics
• Introduction to management by cockpits
• 10 top saving initiatives

Supplier Relation Management
• Definition and objectives
• Supplier identification and selection
• Supplier evaluation
• Supplier development principle
• Supplier integration
• Supplier innovation management
• Supplier Balanced Scorecard

Measuring Procurement Success
• Savings vs. cost avoidance
• Contribution of procurement cost & value
• KPI definition
• Reporting requirements
• Performance level tracking
• Balanced Scorecard principle
• Dupont model