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Value Added Procurement, Negotiation And SRM: VAPNS™

Transforming Procurement into a Strategic Arm

Course Summary

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 2 day 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.
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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

  • Create a Strategic Supply Plan and an Operations Plan to implement it

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

  • Establish an Ethics Policy for Procurement based on the Institute for Supply Management and the United Nations

  • Implement the 9-Step Acquisition Process and develop three key documents: the requisition, the solicitation and the purchase order

  • Create a Strategic Negotiations plan and customize negotiation strategies based on Goods vs. Services

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

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

  • Understand and apply the underlying contract law, be it local, CISG or other 

  • 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

Business Consultation
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Who should attend this VAPNS™ course?

This highly practical and interactive course has been specifically designed for:​​

  • Procurement Heads, Directors and Managers

  • Supply Chain Heads, Directors and Managers

  • Purchasing Heads, Directors and Managers

  • Buyers / Senior Buyers

  • Manufacturing Directors and Managers

  • Inventory Directors and Managers

  • Warehousing Directors and Managers

  • Transportation Directors Managers

  • Heads of Logistics

  • PLUS anyone who is responsible for / involved in supplier relationships, procurement, tenders or anticipates being involved with the above in the future

Course Contents

Introduction to VAPNS

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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: Maintaining Good Ethical Conduct

  • What are Ethics in relation to Procurement?

  • Analyzing the Supply Management: Principles and Standards of Ethical Supply Management Conduct

  • Establishing the Correct View of Gifts and Gratuities

  • Understanding Social Responsibility

  • The United Nations Ten Principles of the Global Compact

 

Module 4: The Nine Step Acquisition Process

  • Step One - Determining Need

  • Step Two - Communicating the Need

  • Step Three - Identifying Sources

  • Step Four - Soliciting and Evaluating Bids (i.e., RFI’s, RFQ’s, RFP’s)

  • Step Five - Preparing the Purchase Order

  • Step Six - Following up and Expediting

  • Step Seven - Receipt and Inspection

  • Step Eight - Invoicing and Paying

  • Step Nine - Retaining Records

 

Module 5: 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 6: Analyzing and Applying 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 7: 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 8: Negotiating the Contract – Contracts for Products & Services, Understanding the Key Clauses and The Applicable Laws

  • Understanding the SOW (Statement of Work) as a precursor to services procurement

  • The Key types of Cost-Based Contracts

  • Utilizing indexes to Control Price Changes

  • The Key Intellectual Property Clauses

  • The Indemnification Clause

  • The Confidentiality Clause

  • The Key Clauses addressing Damages

  • The Reservation of Rights Clause

  • The Force Majeure Clause

  • The Key Clauses addressing Claims and Protesting

  • The Clause addressing Contract Stoppage

  • Clauses with Teeth

  • Understanding Key regional and Local Laws

  • Understanding the CISG - Convention on Contracts for the International Sale of Goods

  • Reviewing and applying other local laws

  • Utilizing INCOTERMS

 

Module 9: Project Management as the Precursor to GOOD SRM

  • How does Project Management relate to Supply Management?

  • Reviewing the Eight Project Characteristics

  • Determining pre-project factors (to get to “square one”)

  • The Project Life Cycle – Phase One – Planning

  • The Project Life Cycle – Phase Two – Execution

  • The Project Life Cycle – Phase Three – Monitoring & Controlling

  • The Project Life Cycle – Phase Four – Closing Out

  • What is the Global Focus on Environmental & Safety Issues?

 

Module 10: Implementing Strategic Sourcing

  • Understanding and Supporting our Organization’s Key Strategies

  • Reviewing the Three Strategic Sourcing Factors

  • The Seven Step Strategic Sourcing Process 

 

Module 11: 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

  • Differentiating between “Voice” vs. “Exit”

  • Incorporating Internal and External Factors as well as Risk

  • Determining the best e-solution

  • Utilizing technology - Spend Analysis

  • Utilizing technology - Reverse Auctions

  • Utilizing technology - Performance ratings

 

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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