Strategic Procurement
Overview
Procurement shapes cost, quality and risk across the whole organisation. This course shows how to move from transactional buying to strategic procurement: analysing spend, segmenting categories, building sourcing strategies, negotiating value and managing suppliers for long-term results.
Who should attend
Procurement and purchasing managers, category managers, buyers, contracts staff and managers who own significant budgets.
Training methodology
Interactive presentations, practical exercises, case studies, group discussions, role-plays where relevant, and a personal action plan that participants apply in their own work.
Objectives
By the end of this course, participants will be able to:
- Explain the strategic role of procurement and its value levers
- Analyse spend and segment categories
- Develop a category sourcing strategy
- Evaluate total cost of ownership and supplier markets
- Plan negotiations and supplier management approaches
Course outline
Day 1Procurement as a Strategic Function
- From purchasing to strategic procurement
- Procurement's contribution to strategy
- Value levers beyond price
- Procurement policy and governance
- Ethics and integrity in procurement
- Maturity self-assessment
Day 2Spend and Category Analysis
- Collecting and cleaning spend data
- Spend cube analysis
- Category segmentation and the Kraljic matrix
- Demand management
- Identifying savings opportunities
- Workshop: analyse a spend file
Day 3Sourcing Strategy
- Market and supplier analysis
- Make or buy decisions
- Single, dual and multiple sourcing
- Total cost of ownership
- Local content and sustainability
- Exercise: build a category strategy
Day 4Negotiation and Contracting
- Preparing for negotiation
- Positions, interests and BATNA
- Negotiation tactics with suppliers
- Pricing models and price adjustment
- Key contract terms for buyers
- Negotiation role-play
Day 5Supplier Management and Performance
- Supplier segmentation
- Performance measurement and scorecards
- Supplier development
- Procurement KPIs
- Digital procurement tools
- Procurement improvement plan
