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Value Added Procurement, Negotiation And SRM: VAPNS™

Transforming Procurement into a Strategic Arm

Course Summary

We offer two options for your convenience: a 2.5 day classroom event or an online course consisting of 6 sessions, each lasting 3 hours. Choose the option that suits you best and get ready to enhance your skills and knowledge! According to ISM – The Institute for Supply Management, every 1% that you reduce costs equates to 5% in additional sales, As such, many organizations are becoming aware that the Procurement function is no longer just an operational cost center but one of strategic importance to their supply chain. In addition, inefficiencies along the procurement process can cascade down the supply chain and adversely impact the bottomline. As prices of commodities become more volatile, it is crucial for the Procurement professional to proactively assess and review how to plan and implement value-added procurement strategies, perform successful win-win negotiations without leaving money on the table, and develop effective and sustainable relationships with key suppliers. This Certified VAPNS™ Masterclass explores the latest methodologies and practices such that your organization can move from simply a reactive, tactical (cost center) department to a value-add, strategic (profit center). The presenter will give you the best of his experience in presenting this workshop, not only in the formal subjects to be presented but through networking and discussions, before, during and after the program.
VAPNS™ is certified by the Missouri State University International Leadership and Training Center (ILTC) who provide customized, non-credit training and vocational programs for international students and professionals. VAPNS™ has been analyzed by Missouri State University ILTC and it had the proper content and quality to get the university’s quality seal, that means that you’re going to get a top of the line course. Delegates attending all 8 modules and passing an online examination will receive the BMTG Advanced Certificate in Optimizing Warehousing and Logistics (ACOWL™) endorsed by Missouri State University. Delegates who elect only to attend individual modules of their choice will receive a module specific Certificate of Attendance endorsed by the Missouri State University.

Benefits of Attending

  • Engage essential stakeholders through Early Supplier Involvement & Early Procurement Involvement

  • Create a Strategic Negotiations Plan

  • Apply the Total Cost of Ownership model to Analyze Prices/Costs in Negotiations

  • Move from boilerplate to proactive language with “teeth,” such as how to drive volume rebates and cost savings

  • Develop key Supply and Supplier Strategies based on the Risk/Benefit Matrix

  • Assess your Supply Base using a Supplier Evaluation and Audit Tool used in a Fortune 500 company

  • Engage in Supply Market Intelligence

  • Implement Strategic Sourcing

Business Consultation

Learning Outcomes

  • How to transform procurement function into a strategic arm

  • Gain a thorough understanding of the entire procurement cycle and acquisition process

  • Be able to successfully prepare for negotiations

  • Be able to adapt effective strategies to achieve win-win negotiation outcomes

  • How to develop effective and sustainable supplier relationships

Who should attend this VAPNS™ course?

This masterclass is tailored specifically for Directors, Heads, Managers, Officers, and other Leaders from various industries, encompassing roles in:

  • Supply Chain

  • Procurement

  • Purchasing

  • Sourcing

  • Logistics

  • Inventory Management

  • Risk Management

  • Contracts

  • Warehousing

  • Finance

  • Sales & Marketing


Course Contents

Introduction to VAPNS

Module 1: Moving from Simply Purchasing to Procurement/Supply Management

  • Program purpose, objectives & why these best practices were selected

  • Participant objectives

  • Icebreaker: what are the top five challenges that your firm faces with regards to Procurement?

  • Definition of a Supply Manager as a Leader (the four facets of leadership)

  • Determining Procurement/Supply Management’s Mission (where), Processes (how) and Capabilities (what)

  • Reviewing the fourteen focus areas


Module 2: Supply Management – Stakeholders & The Strategic Supply Plan

  • Understanding Internal Customer Interfacing (what is senior management’s perception of you?)

  • Defining our Internal Customers

  • Differentiating the key stakeholder groups

  • Achieving both Trust and Credibility

  • Engaging in both ESI – Early Supplier Involvement & EPI – Early Procurement Involvement

  • What do we have in common with an architect?

  • Establishing the Plan’s Elements

  • Defining the roles of the Procurement Professional

  • Engaging in SMI – Supply Market Intelligence

  • Developing the Operating Plan (including forecasts, budgets and staffing)

  • Determining Key metrics – how are we doing?

  • TEAM – Together Everyone Accomplishes More

  • Differentiating the various roles that Procurement can have on cross-functional teams;             

  • Understanding the four stages of team development

  • The various types of teams that should be in place – with application to your company   


Module 3: Developing the Negotiation Plan

  • Understanding the Key Elements

  • Laying the Preparatory Groundwork

  • Developing Strategies and Tactics

  • Analyzing Buying and Selling positions

  • Incorporating the BAFO (Best and Final Offer) and BATNA (Best Alternative to a Negotiated Agreement)

  • Documenting the Negotiation

  • Planning for the Type of Negotiation (i.e. goods, services, engineering, works) 


Module 4: Apply Total Cost Modeling

  • Comparing & Contrasting Cost Types, Cost Behaviors & Cost Decisions

  • Defining & Reviewing examples of both Should Cost & Target Cost

  • Understanding the Elements & Application of TCO – Total Cost of Ownership

  • Role out a Best Practice – Negotiating Volume Rebates based on Relevant Cost

Module 5: Negotiating the Contract – Key Elements & Types of Obligation Documents

  • The difference between the Contract and the Purchase Order

  • The difference between Written and Oral Agreements

  • What is a Letter of Intent?

  • What is a Trading Partner Agreement?

  • The Key types of Fixed-Price Contracts

  • Utilizing indexes to Control Price Changes


Module 6: Negotiate the Contract Products & Services, Key Clauses

  • The key types of Fixed Price contracts

  • The key types of Cost contracts

  • Understand the SOW

  • Review key clauses - boilerplate

  • Review key clauses – with teeth

  • Utilize indexes to control price  changes 


Module 7: Implementing Strategic Sourcing

  • Support your organization’s key strategies

  • EXERCISE: The participants will design a  four-quadrant Risk/Value matrix leading  o the development of supply/supplier strategies

  • Utilize the seven-step process 1.Database 2.Supplier strategy 3.Financial impact 4.Supply sources 5.Partners 6.Supplier inputs 7.Metrics


Module 8: Moving Toward SRM and Technology as an Enabler

  • Practicing Supply Base Rationalization (Optimization)

  • Managing Supplier Relationships: from Win-Lose to Win-Win

  • Understanding the difference between Alliances and Partnerships

  • What is Supply Base Innovation?

  • Utilizing the SCOR - Supply Chain Operations Reference Model


Free ASSESSMENT TOOL: All Participants will be provided with the Supplier Evaluation and Audit Tool based on its use in a Fortune 500 company.


  • Developing Supplier Exit Strategies

  • Assess risk in an exit scenario

Program Close

  • Masterclass summary

  • Q&A -

  • Each participant will be granted access to the VAPNS™ Online Assessment in the BMTG e-Learning Academy.

  • Course evaluation

  • MSU Certificate to follow


VAPNS™ Assessment and Certification

Only those who successfully complete the examination and participate effectively in the course case studies will receive the certificate in value Added Procurement, Negotiation and SRM: VAPNS™.



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