Running a business is not just about taking care of your customers. It is also just as important to take care of your suppliers. This course introduces the participant to the concept of Vendor Management and why it is an essential aspect of doing business. Participants are given a complete overview of the procurement team’s scope, emphasizing why a proactive approach to managing vendors can be crucial to the organization’s business strategy.

At the end of this course, participants should be able to

• Describe the scope of vendor management and the procurement team’s responsibility
• Apply Porter’s Five Forces Framework to understand their organization
• Describe the current state of the sourcing environment both globally and locally
• Describe the different stages in Vendor Management
• Perform a Post-Evaluation of Suppliers using either the definite method or the weighted-point plan
• Perform a Post-Evaluation of Suppliers using a Cost-Ratio plan
• Describe the various supplier classifications
• Describe the different vendor management strategies
• Describe the advantages and disadvantages of the various types of supplier relationships

Course Outline

Session 1

Introduction

• The actual scope of Vendor Management
• Procurement Responsibility
• Porter’s Five Forces Framework
• Exercise: Porter’s Five Forces

Direct vs. Indirect Procurement

The Sourcing Environment

• The global shift to a buyer’s market
• The Philippine Procurement Law

The Vendor Management Process (Source Selection)

• Source Selection
• Survey Stage
• Inquiry Stage
• Negotiation and Selection Stage
• Experience Stage
• Post-Evaluation of Suppliers
• — Categorical Method
• — Weighted Point Plan
• Cost-Ratio Plan

Supplier Classification

• Conditional
• Approved
• Preferred
• Certified

Session 2

Vendor Management Strategies

• Supplier Certification
• JIT Purchasing
• Supplier Base Management
• Early Supplier Involvement
• Preferred Supplier Relationships

Supplier Relationships

• Supplier Relationship Model
• Supplier Relationship Continuum

Procurement KPI’s

• Quality KPI’s
• Delivery KPI’s
• Cost-Saving KPI’s

Future Trends in Purchasing

• Global Purchasing
• Purchasing
• Supplier Availability
• Agility in Purchasing

Summary and Wrap-Up

Course Duration

• One day

Delivery Methodologies

• Lecture and Discussion
• Activity

This course is recommended for

• Purchasing Officers, Purchasing Managers
• Project Managers dealing with subcontractors and suppliers
• Business owners and Entrepreneurs who would like to know how to improve their business through better management of suppliers.