Overview
The training course is designed to develop the key competencies necessary to efficiently manage and grow the suppliers’ performance and optimize the relationship with buyers and other procurement stakeholders. Moreover, participants will benefit from a powerful learning experience mixing practical information delivery with well-designed practical activities and study cases, constantly stimulating the interaction between participants and knowledge sharing.
Learning objectives
- Develop and implement a supplier selection process based on company competitive advantage;
- Use different supplier segmentation models;
- Identify risks and develop response strategies related to the management of suppliers’ relationships;
- Select relevant KPIs to monitor and improve your supply chain performance;
- Implement a rigorous supplier relationship strategy capable to generate added value at the entire organizational level.
Course Outline
Understanding supplier performance
- The importance of performance in managing suppliers;
- The purchasing life cycle;
- Elements of performance architecture in suppliers management;
- The role of procurement in the organizational context – Stakeholders buy-in process.
Supplier Selection
- Supplier selection process;
- Suppliers selection requirements and criteria development based on company competitive advantage;
- Supplier selection methods and tools;
- Proposals evaluation;
- Success factors in supplier selection process;
- Activity: Develop suppliers’ selection criteria.
- Activity: Develop proposal evaluation form
Supplier relationship design
- Key elements of purchasing – procurement – strategic sourcing;
- Strategic sourcing approach of suppliers;
- Supplier panel development and management;
- Supplier segmentation models;
- Activity: Apply supplier segmentation in practice.
Contracting and performance monitoring - Supplier contracting
- Challenges in drafting contracts;
- Risk identification in the contracting process;
- Positioning strategies when negotiating with suppliers;
- Contract management: key tasks and responsibilities;
- Steps to set up successful contracts;
- Activity: Apply in practice the contract development checklist.
Performance through Service Level Agreements (SLAs)
- SLA success factors (service and management);
- SLAs requirements setting;
- SLAs objectives;
- Building the SLA based on company competitive advantage;
- Activity: Develop a SLA architecture
Sourcing KPIs to generate suppliers’ performance
- Definition and usability of KPIs;
- KPIs and metrics selection;
- KPI selection sources;
- KPI selection techniques;
- KPI target setting;
- KPI documentation as a key success factor;
- Activity: Apply a KPI documentation form in practice.
- Activity: Select the relevant KPIs for contracts and SLAs
Supplier performance monitoring
- Scorecards and Dashboards development process;
- Data visualization best practices;
- Perfect Order Index and its impact over supplier performance;
- Activity: Creating a performance scorecard.
Supplier Relationship Management (SRM)
- The reasons for supplier performance management
- Challenges in SRM: cost of poor quality
- Collaborative approach in developing strategic partnerships
- SRM Governance
- Krause and Handfield Model of SRM
- Assessing the SRM maturity level of an organization
- Activity: SRM Best practice Case Study
Supplier performance evaluation
- Internal capability for managing supplier evaluation;
- Key aspects of supplier performance evaluation;
- Performance evaluation criteria development;
- Evaluation methods;
- Managing non-conformances;
- Supplier performance reviews
- Activity: Developing a supplier performance evaluation form
- Activity: Using a supplier performance review checklist
Risks and communication management with suppliers
- Risk management process
- Risk analysis
- Key Risk Indicators
- Risk management plan
- Supplier communication framework
- Activity: Develop a risk management plan for improving suppliers’ performance