Value Added Procurement, Negotiations and Supplier Relationship Management: VAPNS™

This VAPNS™ masterclass will be a blend of key concepts, group exercises and case studies with audience participation. 

Our trainer has coined the term and utilizes the concept of “Edutainment” where he blends light humor with key educational points.  Accompanying this course will be detailed and robust supplemental materials that will allow you to refer back to the key points long after the programs ends so that you can take concept to reality.

Module 1: Moving from Simply Purchasing to Procurement/Supply Management

• Program purpose, objectives & why these best practices were selected
• Participant objectives
• Icebreaker –what are the top five challenges that your firm faces with regards to procurement?
• Definition of a Supply Manager as a Leader including the four facets of Leadership
• Determine Supply Management’s Mission (where), Processes (how) and Capabilities(what)
• Review the 14 focus areas

Module 2: Supply Management – Stakeholders & The Strategic Supply Plan

• Understand Internal Customer  Interfacing (what is Senior Management's perception of you?)
• Define our Internal Customers
• Differentiate the key  stakeholder groups
• Achieve both trust and credibility
• Engage in ESI/EPI – Early  Supplier / Procurement  Involvement
• What do we have in common with  an architect?
• Establish the Plan’s elements
• Define the roles of the  Procurement Professional
• Case Study: Are the Savings Brewing with the Coffee?
• Engage in SMI – Supply Market  Intelligence
• Develop the Operating Plan  including forecasts, budgets and  staffing
• Determine key metrics – how are  we doing?
• TEAM – Together Everyone  Accomplishes More!
• Differentiate the various roles that Procurement can have on cross- functional teams
• Understand the four stages of  team development
• Define key teams involving SM

Module 3: Develop the Negotiation Plan

• Understand the key elements
• Lay the preparatory groundwork
• Develop strategies and tactics
• Analyze buying and selling positions
• Incorporate: BAFO (Best and Final  Offer) and BATNA (Best Alternative to  a Negotiated Agreement)
• Document the negotiation
• Plan for the type of  negotiation (i.e.  goods, services, engineering, works)

• Exercise -The Mock Negotiation: The Ideal Contract – Participants will form key  groups of buyers & sellers & negotiate  with/against each other to end up with  the ideal contract (will it be win-win, win-lose or lose-lose?).

Module 4: Apply Total Cost Modeling

• Compare and contrast cost: types,  behaviors and decisions
• Define and review examples of both Should Cost and Target Cost
• Understand the Elements of T C O
• Exercise: Develop a TCO model for your company

• Roll out a best practice – negotiating Volume Rebates based on the  Relevant/Irrelevant cost principle

Module 5: Negotiate the Contract  – Key Elements &Types of Obligation Docs.

• The difference between the contract  and the purchase order
• The difference between written vs. oral agreements
• What is a Letter of Intent?
• What is a Trading Partner Agreement?
• Utilize indexes to control price changes 

Module 6: Negotiate the Contract Products & Services, Key Clauses

• The key types of Fixed Price contracts
• The key types of Cost contracts
• Understand the SOW
• Review key clauses - boilerplate
• Review key clauses – with teeth
• Utilize indexes to control price  changes 

Module 7:Implementing Strategic Sourcing

• Support your organization’s key strategies
• EXERCISE: The participants will design a  four-quadrant Risk/Value matrix leading  o the development of supply/supplier strategies

• Utilize the seven-step process 1.Database 2.Supplier strategy 3.Financial impact 4.Supply sources 5.Partners 6.Supplier inputs 7.Metrics

Module 8: Moving Toward SRM - Supplier Relationship Management

• Practice Supply Base Rationalization (Optimization)
• Manage supplier relationships from win-lose to win-win
• Case Study: CAPS Study on Types of Supplier Relationships
• Understand the difference between Alliances vs. Partnerships
• What is Supply Base Innovation?
• Utilize the S C O R – Supply Chain Operations Reference Model

Assessment Tool Review the Supplier Evaluation Audit Tool used in a Fortune 100 company.

• Develop supplier exit strategies
• Assess risk in an exit scenario

Program Close

• Masterclass summary
• Q&A -
• Each participant will be granted access to the VAPNS™ Online Assessment in the BMTG e-Learning Academy.
• Course evaluation
• MSU Certificate to follow.