Vendor Management

Description

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 important aspect of doing business. Participants are given a complete overview on the procurement team’s scope emphasizing on why a proactive approach in managing vendors can be crucial to the organizations business strategy.

At the end of this course, the participant should be able to:

• Describe the scope of vendor management and the procurement team’s responsibility
• Apply Porter’s Five Force Framework in understanding his/her 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 categorical method or the weighted-point plan
• Perform a Post-Evaluation of Suppliers using a Cost-Ratio plan
• Describe the various supplier classifications
• Describe the various vendor management strategies
• Describe the advantages and disadvantages of the various types of supplier relationships

Course Outline

• Introduction
  • The true scope of Vendor Management
  • Procurement Responsibility
  • Porter’s Five Forces Framework
  • Activity: Porter’s Five Forces
• 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
  • Activity: Post-Evaluation of Suppliers
  • Cost-Ratio Plan
  • Activity: Cost-Ratio Plan
• Supplier Classification
  • Conditional
  • Approved
  • Preferred
  • Certified
• Vendor Management Strategies
  • Supplier Certification
  • JIT Purchasing
  • Supplier Base Management
  • Early Supplier Involvement
  • Preferred Supplier Relationships
• Supplier Relationships
  • Supplier Relationship Model
  • Supplier Relationship Continuum
• Summary and Wrap-Up

Course Duration

• 1 day (8 hours)

Delivery Methodologies

• Lecture
• Plenary Discussions
• Activity