LEARN & PUT IN PRACTICE BEST-IN-CLASS PROCUREMENT STRATEGIES & TACTICS WITH THE OPTIMIZED PROCUREMENT METHODOLOGY
With the Optimized Procurement Methodology you will receive step by step guidance and all the necessary trainings, tools and templates to enhance your Procurement practice.
THE OPTIMIZED PROCUREMENT METHODOLOGY
The Optimized Procurement Methodology is a 1-on-1 coaching carefully designed to help Procurement managers with limited resources reduce costs, control spending and become a strategic function within their organization.
We believe that there is a set of soft and hard skills necessary for every Procurement professional. But the problem is that most of these skills are not taught at universities or business schools. And most organisations don’t have the time and resources to build and deliver a complete Procurement training that can save millions to your organization.
The best thing is that you don’t need to hire an army of consultants or an expensive software to make this happen.
With the Optimized Procurement Methodology you will learn to implement best-in-class Procurement strategies through the following 5 phases and 19 modules:
Learn how to establish the right Procurement structure and strategies based on real purchasing data. It provides an exhaustive diagnosis of the current spend situation.
The Foundations phase includes 3 essential modules:
1.1 Spend Analysis:
1.1.1 Spend Data Collection: The first step is to collect data on all direct and indirect expenses. We must ensure that we include all supplier purchased expenses, whether they are managed by Procurement or not. We obtain this information from the ERP, purchase orders, contracts and other internal systems. The goal is to collect all the information in a central repository, which we will have to cleanse.
1.1.2 Classification by Category: We look at the range of products purchased and break them down into groups of similar products or services. The objective is to find categories with similar use, suppliers and characteristics.
1.1.3 Spend Analysis & Visibility: The last step is a thorough analysis of the data obtained. We should be able to visualize a lot of information, including categories, prices, quantities, suppliers, buyers and delivery performance. This information will help us define the best Procurement strategies based on facts.
1.2 Category Management:
Category management is a concept in which the range of products purchased is broken down into groups of similar or related products known as categories. It is a systematic and disciplined approach to managing categories as strategic business units based on market supply capacity rather than organizational boundaries. This approach brings with it the figure of the Category Manager, a professional who is responsible for defining the purchasing strategy. His specialization makes him/her an expert in the category sourced, being the one who best knows the market and its cost structure.
1.3 Category Strategy:
For each category we must define a strategy. Our Category Strategy template will guide you step by step through its 4 phases: context, internal and external analysis, goal settings and implementation of the action plan.
1.4 Procurement Policies:
Definition of Procurement Policies to ensure internal and external stakeholders are aware of our processes and requirements.
2. THE RIGHT PARTNERS
To implement category strategies its important to partner with the right partners, internally and externally. To ensure this, we must follow these 5 modules:
2.1 Internal Business Partnering:
To become a strategic function, as Procurement managers we need to partner with internal stakeholders to obtain their commitment and support. Acknowledge, assess and define action plans with our Internal Business Partnering template.
2.2 Sourcing Strategy:
In line with the Category Strategy, we also need to define a Sourcing Strategy for each project. Our Sourcing Strategy template will guide you step by step through the Requirements Management, Supply Strategy and Tender (RFx) Implementation.
2.3 Total Cost of Ownership:
When evaluating external partners (suppliers) its important to calculate the total cost of ownership of any given purchase. Although it might seem obvious, its common to calculate only the cost of acquisition; ignoring operation, maintenance or disposal costs. Applying the Total Cost of Ownership methodology and template to calculate all associated costs is of vital importance to avoid “extra” costs during the life-time of any purchased product or service.
2.4 Supplier Evaluation:
Suppliers must meet a number of requirements in order to work with us. As Procurement professionals, we must be able to evaluate and qualify suppliers with the involvement of the right internal partners.
2.5 Strategic Negotiation:
Learn how to optimize the results of your negotiations with suppliers by applying the best strategic negotiation techniques. These are often soft skills and include abilities such as communication, persuasion, planning, strategizing and cooperating. Make the right Preparation, Interaction and Agreement Execution by using our Strategic Negotiation template.
3. SECURING SUPPLY & PERFORMANCE
Ensuring the supply and performance of suppliers is a key aspect of the Procurement practice. There is no point in having the best strategies if suppliers don’t comply with the agreed terms and specifications. There are 4 modules in this section:
3.1 Contract Management:
Learn when and how to put in place a contract with key suppliers. Our Contract template will help you include key clauses, KPIs and SLAs to ensure supply and supplier perfomance.
3.2 Supplier Performance Monitoring:
Learn the importance of defining a workflow with internal stakeholders to share information about supplier performance. Visualizing and managing aspects like quality, delivery, cost and innovation levels is key to enhance supplier value.
3.3 Supplier Risk Management:
Learn how to allocate and monitor different kind of the risks in the supply chain to ensure business continuity. Our Risk Management template will help you through the process with the objective of having all possible risks under control
3.4 Supplier Crisis Management:
Learn how to respond quickly and effectively to any supply chain crisis and ensure business continuity. Our Crisis Management Template will provide you guidance on how to respond to these kind of situations.
4. DAILY MANAGEMENT & LEARNINGS
In the 4th phase of the Optimized Procurement Methodology we put our focus on how to increase efficiency and eliminate (or reduce) daily operational burden. There are 3 modules in this phase:
4.1 Supplier Relationship Management:
The goal in this module is to understand and prioritize our supplier portfolio by creating closer and more collaborative relationships with selected suppliers in order to provide more value.
4.2 Procure to Pay Process:
Learn how to improve Procurement processes from the moment there is a requirement until the supplier is paid. The aim is to make the purchasing process easier for internal users, control spending and reduce the burden of administrative tasks.
To achieve continuous improvement assessment and reflection of sourcing results is extremely important. Learn how to measure suppliers effectively to make optimal decisions.
5. IGNITING PRO SKILLS
The last phase focuses on 3 key trainings for the development of every buyer:
5.1 Lean Principles & Continuous Improvement:
Lean was born out of manufacturing practices but in recent time has transformed the world of knowledge work and management. Learn how to apply Lean to your organisation effectively with the right tools and templates.
5.2 Problem Solving:
Learn the 8-step process methodology to find solutions to any business problem. Our Problem Solving Template will guide you through all the steps to make it as easy as possible for you to put it into practice.
5.3 Project Management:
Learn how to initiate, plan, execute, control and close any kind of project to achieve your goals at the specified time.
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✔ Proven methodology
Multinational companies have already implemented our strategies successfully
✔ Ready-to-use templates
The training includes templates that will make it super easy for you to follow the process thoroughly
✔ Expert mentorship on demand
Get personalized mentorship, we will troubleshoot your problems and provide direction at any time.
✔ Fast implementation
Roll-out the OP Methodology in your organization today.
✔ For all sizes & sectors
Whether you’re brand new to business or a fully established player with hundreds of staff Optimized Procurement has you covered!