General management of procurement & budget analysis

Introduction

This course aims to enhance the skills of procurement professionals and senior buyers within organizations. Advanced negotiation and purchasing techniques, business continuity, and emergency planning for procurement are discussed and practiced through simulations. The course explores the strategic importance of procurement departments using concepts and ideas to increase the effectiveness of the procurement department and consequently reduce costs throughout the supply chain.

Objectives 

• Review important procurement strategies.
• Provide concepts of activity-based cost estimation.
• Learn the necessary skills for good supplier relationships.
• Study business continuity and emergency planning for procurement.
• Learn how to plan for successful negotiations.
• Evaluate the strengths and weaknesses of suppliers.

Course Outlines 

Day 1

Procurement Performance

• Introduction to purchasing and its contribution to the organization
• Supply chain and its impact
• External environmental influences
• Purchasing organizations
• Purchasing cycle
• Purchasing systems
• Critical sourcing strategies
• Category breakdown process

Day 2

Supplier Relationship

• Transforming supplier relationships
• Specifications
• Working with end-users
• Appropriate supplier methodologies
• Total cost approach
• Defining the organization's mission in building supplier relationships
• How to be a good customer
• Communication, trust, and credibility as key elements
• Reducing the supplier base

Day 3

Advanced Negotiation Skills

• Avoiding confrontational negotiations
• Developing effective listening skills
• Negotiating with an angry person
• Dealing with backdoor selling
• Powerful phrases used by buyers
• Understanding the other negotiator's power
• Negotiating on pressure points
• Negotiating with an untrustworthy counterpart
• Negotiation tactics and countermeasures
• Leadership skills for procurement employees

Day 4

Verbal, Non-Verbal, and Written Communication Techniques

• Communication methods that lead to more productive work and reduced effort
• Open communication and interaction build trust
• Identifying interaction methods between individuals
• Recognizing responses and perceptions to change
• Analyzing and preparing for human reactions to change

Day 5

Budgeting from a Strategic Perspective for Procurement Management

• Formulating the company's strategy
• Analyzing the company's internal and external environment using SWOT analysis
• Translating the company's strategy into a strategy map and balanced scorecard
• Strategic objectives and their role in formulating long-term company goals
• Tactical objectives and their role in formulating short-term company goals
• The relationship between budgets, company strategy, and long and short-term company goals
• The role of the budget committee
• Basic guidelines for building the budget