Procurement, Logistics and Supply Chain Management (LPSM)

Course Title: Procurement, Logistics and Supply Chain Management
Course Overview
The development and implementation of carefully crafted strategies for the acquisition of all materials, goods, equipment and services has become a critical issue in all organizations wishing to reduce operating cost while improving quality and productivity. This training seminar explores key concepts forming the basis of procurement and supply chain management and moves through leading edge issues that confront organizations today.
This course will cover the principles of procurement management, which is acquiring products and services needed for the project from outside the project team. The Procurement Management processes from the PMBOK® Guide will be reviewed including inputs, key tools and techniques, and outputs. Typical procurement activities will be described from the make-or-buy decision to contract award to contract closure. The key elements that should be included in a procurement management plan will be presented. The stages of a contract negotiation will also be reviewed. This course will review key contract terminology, selection criteria and the key elements of a contract. The types of contracts that can be used will be reviewed including variations of fixed price, cost reimbursable, time and material. Selecting the correct contract type and dealing with contract risks will also be covered. This course includes multiple exercises to allow delegates to practice the course concepts.

Training Objective.
The overall goal of the training is to increase effectiveness, efficiency and transparency in the procurement process of participants in their daily work and – in general – at their place of work. Specifically, the delegates are expected at the end to be able to:
Participants attending the training will:
 Understand the evolution in Procurement
 Discuss the inputs, outputs and processes of the system
 Develop meaningful performance measurements
 Learn the necessary conditions to be taken on all four levels
 Gather new insights into developing logistics and supply chain to achieve competitive advantage
 An increased understanding of the impact of logistics and supply chain management on costs and financial performance
 Appreciation of approaches and frameworks that can be applied to different market segments
 Reviews of the latest thinking on supply chain strategy, planning and execution

Who Should Attend?
The course is recommended for the following;
 Buyers, Procurement/Purchasing Managers and Supply Chain Analysts
 Junior Buyers wanting to take the next step in their career.
 Professionals in Procurement/Supply Chain management.
 Anyone who frequently handles Procurement functions.
 Also suppliers, service providers, logistics, consultants and those in finance departments with an interest in procurement.

Course Main Modules.
Seeing Procurement as a Dynamic, Interactive System
 The System Approach vs. the traditional Functional Approach
 What is the goal of Procurement?
 Developing the Strategic Procurement Plan
 An overview of the procurement process
 Procurement as part of the Supply Chain
Developing the Strategic Procurement Decisions
 Make/buy decision
 Vertical integration
 Alliances and partnerships
 Inter-company trade
 Reciprocity and counter trade
 Supplier strategy
 The coordination strategy
 The Purchasing organization

Implementing the Tactical Procurement Decisions
 Supplier involvement
 Value analysis
 Quality Assurance
 Supplier selection
 Supplier rating and ranking
 Contract management
 IT systems and e-Procurement
 Policies and procedures
 Staffing the Procurement Department
Dealing with Operational Procurement Decisions
 Selecting the most appropriate ordering process
 Addressing quality issues
 Follow up
 Overdue orders
 Expediting
 The payment process
 Reducing the cost of procurement: small value purchase orders
Contingency Procurement Decisions
 The different contingency situations
 Contingency management
Procurement Performance Measurement
 Spend analysis
 Total cost of ownership
 Supplier performance measurement
Understanding Logistics and the Supply Chain
 Definitions of Logistics and Supply Chain Management
 History and the Development
 Understanding the Supply Chain dynamics
 International and Global Logistics
 Supply Chain Operations Reference Models (SCOR)
 The Theory of Constraints (TOC)

Transportation Economics
 The Role of Transportation in Logistics
 Management Key Decisions
 Types of Mode or Intermodal System
 International Commercial Terms in Transportation and the Liabilities
 Documentation in Transportation
 Hazardous Materials Transportation
Performance, Risk and Warehouse Management
Key Performance Indicators (KPI)
Warehouse Management:
 Role in the Supply Chain
 Flows
 Equipment Selection
Supply Chain Risks:
 Operational
 Inventory
 Exchange Rates
 Financial
 Disruption
 Security
Procurement in Supply Chain
 The Difference between Procurement and Purchasing
 What is the role of Procurement and Purchasing?
 Support Operational Requirements
 Manage the Procurement Process and the Supply Base
 Develop Strong Relationships with Other Functional Groups
 Team Roles and Responsibilities
Inventory Management
 Statistics in Inventory Management
 Financial in Inventory Management
 Selective Inventory Control Management
 Understanding Inventory Status
 Reducing Excess and Obsolete Inventory
 Improving the Organization’s Logistics and Supply Chain

Other Key Modules.
Project Management Cycle
The course aims to provide delegates with basic concepts and systematic approaches for effective project management. Delegates will be trained to apply the concepts and methods of project management with the use of case exercises and case studies.
At the completion of the course, delegates will be equipped with quantitative techniques for effective project planning, scheduling, cost control and estimation. Prevalent industrial software package on project management will be used for the teaching and learning.

Logistics & Supply Chain Management
This module aims to provide delegates with both an overview and in-depth knowledge about the implementation issues, major challenges, and the best and the local practices of logistics and supply chain management.

E-logistics and Enterprise Resource Planning
This course is designed to provide delegates with an understanding of the processes in logistics and supply chain management. In particular, delegates will study E-logistics and Enterprise Resource Planning. E-logistics provides a means to coordinating information, materials, equipment and money flows across the supply chain, which enables organizations to shop, commit, execute and settle their logistics transactions electronically. Enterprise Resource Planning is a large computer system that integrates application programs in accounting, sales, manufacturing, and other functions in a firm. Enterprise Resource Planning is the backbone for E-logistics. The integration is accomplished through a database shared by all the application programs.

Transportation Logistics
This course is designed to provide delegates with an understanding of the enterprise- crossing transportation logistics interrelated with supply chain management under a unified principle of winning-before-doing, which can explain the so-called Wal-Mart model in which a “factory” is a virtual logistics network of multiple production firms.

Strategic Sourcing and Procurement
This course is designed to provide delegates with concepts, principles and methods for procurement and develop delegates’ ability to perform the strategic sourcing and procurement. With real world situations of strategic sourcing and procurement through the use of practical examples and case studies, it provides delegates with the latest development of procurement discipline. The topics include purchasing function, quality management for goods and services, controlling prices and costs, vendor selection, sourcing & market analysis, competitive bidding and negotiation, commodity buying, capital buying, service buying, strategic sourcing and procurement, and e-procurement.
Competitive Bidding and the Tendering Process
This interactive module will provide delegates with an all-encompassing understanding of the competitive bid process.
Supplier Management/Sourcing
This module will introduce delegates to concepts around supplier selection, management and evaluation. Selecting and managing suppliers is a fundamental role for buyers and procurement professionals across all industries. Conducting research and carefully evaluating your suppliers prior to developing relationships with them is the key to minimizing risk and forming long-lasting partnerships.

Financial & Grants Management
Most organizations & NGOs do not consider financial management a priority. Therefore, it is often the case that many of them entirely lack systems of financial planning and monitoring, which has a very adverse impact on their viability. To achieve sustainable development in the tough actuality of today organizations & NGO all project staff and especially the procurement team should develop understanding and confidence that are necessary to use funds effectively.

Way forward After the Training
Participants will develop a work plan through the help of facilitators that stipulates application of skills acquired in improving their organizations. ASPM will monitor implementation progress after the training.

Training Evaluation:
Participants will undertake a simple assessment before the training to gauge knowledge and skills acquired and another assessment will be done after the training in-order to demonstrate knowledge gained through the training.

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