Certification

Standing out from the crowd

The EIPM Certification Programmes enable purchasing professionals to keep their knowledge and skills relevant, applicable and competitive, whilst being an industry standard that is recognised worldwide.

The courses are flexible and structured around 2 or 3 weeks of face-to-face sessions combined with up-front preparation and project implementation.

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A challenging & rewarding experience

EIPM has developed three Certification Programmes covering the full spectrum of purchasing functions:

Professional
Buyers
Expert
Buyers
Purchasing Managers

Professional Buyers

 

Objective

The Certification Programme for Buyers prepares participants to take charge of a purchasing portfolio. The training covers the fundamentals of the purchasing function, such as understanding the purchasing process, analysis of a portfolio, segmentation, understanding how to apply the best practices and building a purchasing strategy.

Target Group

The Certification Programme for Buyers is targeted to provide the fundamental purchasing process and tools to buyers with less than two years experience and mostly local purchasing responsibilities.

 
 

Week 1

Fundamentals of Purchasing

LEARNING GOALS

Following this module, participants will be able to:

  • Segment his Portfolio and define his priorities.
  • Structure his communication with his stakeholders and translate needs into quantifiable, measurable objectives.
  • Implement an objective, transparent supplier selection process.
  • Integrate cost drivers into his roadmap through the use of Functional Definition, TCO and Cost Breakdown tools.

TARGET GROUP

  • Buyers looking to acquire a broader perspective on Purchasing.
  • Newcomers to the profession.
  • Employees moving from other functions into purchasing.
  • Employees in regular contact with suppliers.
  • The course can also provide a purchasing culture to Purchasing Assistants as well as to “Internal customers”.

METHODS AND TOOLS

  • Numerous case studies, workshops and discussions are organised in order to facilitate exchange between participants and the EIPM experts.
  • The workshops are a key approach to practice the tools presented, using participants’ own environments.

DAY 1

  • Diagnosis of Purchasing Portfolio: Identify the main segments on which we will prioritise.
  • Buying Centre: how to identify the key stakeholders in the company and their needs in order to satisfy them and influence their future decisions to the common interest of the company and the individual stakeholder.
  • Functional definition of requirements: how to challenge internal customer needs using a structured approach to identify the “right need” in terms of functions desired and not solutions.
  • Consolidation of needs and suppliers (supplier base optimisation) and standardisation as common best practices to obtain cost reduction.

DAY 2

Prospecting potential suppliers – participants will learn how to:

  • Define selection criteria for potential suppliers.
  • Search potential suppliers.
  • Pre-qualify potential suppliers using a specific request for information – Participants will learn how to create one for their purchasing families.
  • Visit suppliers – Participants will learn how to prepare, to carry out and report on a supplier visit.

Supplier selection – participants will learn how to:

  • Prepare a Request for Quotation – Participants will learn what the main contents of a RFQ are and how to develop one for their business.
  • Implement a supplier selection process – Participants will learn how to formalise a selection grid and how to implement it through active involvement of the buying centre.

DAY 3

  • Cost breakdown analysis: use price breakdown analysis to prepare negotiation with suppliers and discuss improvement actions. Participants will learn how to build a cost breakdown structure adapted to their own purchasing needs, how to obtain detailed information from suppliers and analyse it for future negotiations.
  • Total cost of ownership: Participants will learn how to build a TCO model adapted to their specific needs in order to select suppliers or to identify cost improvement opportunities.

Inventory Management

LEARNING GOALS

Following this module, participants will be able to:

  • Recognize the different types of inventories.
  • Understand the basics of inventory management, when and how much to order, the safety stock, and the various operations related with inventory set-up, handling, maintenance.
  • Discover the key players and their roles & responsibilities.
  • Understand the flows related to inventory management, the demand types and the planning systems.
  • Define the meaningful KPI’s.
  • Know the main methods of stock valuation.
  • Select the appropriate options to optimize inventories.
  • Develop an inventory strategy for their supply chain.

TARGET GROUP

  • This course is suitable for buyers and sourcing personnel at all levels.
  • Particularly useful for purchasing professionals, supply chain managers, procurement managers, warehouse managers, and inventory managers who want to optimize the benefits of maintaining inventories along the supply chain, while reducing their costs.

METHODS AND TOOLS

  • A two-day programme using lectures, visual aids and case studies to give participants a substantial set of information and the opportunity to discuss matters with which they are particularly concerned.
  • The seminar explores the numerous practices and conceptual developments in the field of Inventory Management.

DAY 1

Environment

  • The reasons companies have inventories
  • Inventory as an enabler of sales
  • Inventory is on the balance sheet
  • Opportunities for Purchasing
  • Inventory management Challenge

Basics of inventory management

  • Stock profile
  • EOQ
  • Safety stock
  • Other reordering methods
  • Inventory handling
  • Receiving, storing, controlling, issuing

DAY 2

Advanced knowledge

  • Inventory flows
  • Demand types and planning systems
  • Demand
  • MRP, ERP, EDI
  • Bull Whip effect
  • Inventory valuations methods
  • FIFO, LIFO, Weighted average, Standard costing
  • Inventory management KPI’s

Inventory strategy

  • Inventory alternatives
  • JIT, Kanban, SMI/VMI
  • Forecast quality, Two bins, Supplier delivery
  • Creation of Inventory strategies
  • ABC Analysis
  • Kraljic approach for inventory management
  • Demand segmentation and inventory strategies

Week 2

Financial Risks / Opportunities in Supply Management

LEARNING GOALS

Following this module, participants will be able to:

  • Know the objective, content and presentation of the 3 main statements included in the financial reporting.
  • Calculate ratios and ask questions to obtain a picture of the financial health of a supplier.
  • Understand the impact of the cost structure on inventory valuation.
  • Assess the consequences of some procurement decisions on the financial statements presentation.
  • Identify the basic principles of risk assessment.

TARGET GROUP

  • Buyers, Lead Buyers and Commodity Managers;
  • People who need to evaluate the financial health of their suppliers or develop strategies to improve the financial performance of their own companies.

METHODS AND TOOLS

  • Presentation of the main financial statements.
  • Description of financial ratios and cost management principles.
  • Definition and use of net present value and internal rate of return.
  • Presentation of methodologies to manage risks and to profile suppliers.
  • Business game.

DAY 1

  • Introduction and expectations.
  • Financial analysis of 3 financial statements: balance sheet, income statement, cash flow statement.
  • Formation of groups to team up and play out “Bee Finance”, a board-based simulation game and roll-out quarter 1 under the control of the instructor.
  • Groups take charge of their own company and make decisions regarding strategic spendings, which will determine sales order, production and purchases.
  • Presentation and description of the most common financial ratios.
  • Groups produce their Q1 financial statements and ratios, and compare these to the objectives given by the instructor.

DAY 2

  • Review of points covered and those which need further clarification.
  • Roll-out Quarter 2, make decision from news given by the instructor.
  • Groups produce their Q2 financial statements and ratios, and compare them to the objectives given by the instructor.
  • Presentation of the impact of Costing on Inventory Valuation, of Procurement Finance drivers, of Net Present Value and Internal Rate of Return.
  • Roll-out Quarter 3, make decision from news given by the instructor, negotiate with instructor when needed.
  • Groups produce their Q3 financial statements and ratios, and compare them to the objectives given by the instructor.

DAY 3

  • Presentation of methodologies to manage risks and to profile suppliers.
  • Roll-out Quarter 4, make decision from news given by the instructor, negotiate with instructor when needed.
  • Groups produce their Q4 financial statements and ratios, and compare them to the objectives given by the instructor.
  • Instructor presents various documents to allow participants to use these in their daily operations.
  • Exercise to assess knowledge acquisition.
  • Participants provide conclusions.

Contract & Legal Aspects

LEARNING GOALS

Following this module, participants will be able to:

  • Understand the international legal framework.
  • Identify the risk linked to an “informal” interaction with suppliers.
  • List the necessary conditions to have a valid commercial contract.
  • Recognise and use some “standard” clauses in contracts.
  • Translate commercial needs into legal terms.
  • Engage better relation with legal teams.
  • Diagnose when and what to report to legal teams to avoid major risks to their company.

TARGET GROUP

  • This course is suitable for buyers and sourcing staff at all levels.

METHODS AND TOOLS

  • A two-day programme using lectures, visual aids and case studies to give participants a substantial body of information and the opportunity to discuss matters with which they are particularly concerned.
  • The seminar explores the numerous practices and conceptual developments in international operations, as well as risk allocation, constraints and opportunities in the contractual and legal areas.

DAY 1

Legal basics common to all contracts

  • Fundamental elements and formation of contracts.
  • Legal wording and contract terms.
  • Applicable law and concept of precedence.
  • Legal families, choice of governing law, ruling language.
  • What is a contract and what are contract stages?

Legal Terms - Definition and Interpretations

  • Object of contract.
  • Some contracts: Confidentiality agreement or nondisclosure agreement.
  • Licenses agreement, letter of intent or memorandum of understanding (M.O.U.), master agreement/application agreement.
  • Could other documents carry legal obligation?
  • General terms of sales/ General terms of purchase.

Formation of contracts

  • Misrepresentation.
  • Conflicting clauses/the battle of forms (general conditions of sale vs. general conditions of purchase).
  • The content of contracts.
  • Warning.

DAY 2

Life and Execution of contracts

  • Duties of the seller and the buyer.
  • Buyers’ & Sellers’ rights.
  • Description of goods.
  • Acceptance/rejection of goods.
  • Contract price/price revisions.
  • Delivery terms.
  • Transfer in ownership, passing of risks.
  • Payment terms (clean/documentary).
  • Severability clause/entire agreement.
  • Contract performance.
  • Assignment/subcontracting.
  • Defective/delayed performance.
  • Monetary compensations (penalties/liquidated damages).
  • Force majeure/frustration/hardship clause.
  • Rescission of the contract/anticipated termination.
  • Contractual documents/order of priority.
  • Dispute resolution (state courts/arbitration).

Supply of services

  • Specificities and points of attention.

Week 3

Cost Analysis

LEARNING GOALS

The objective of this module is to provide participants with the basic knowledge to understand how suppliers calculate their costs and their selling price.

The following topics will be discussed:

  • Functional analysis basics.
  • Fundamentals of product cost structure.
  • Should cost & cost breakdown analysis.
  • TCO principles.

TARGET GROUP

  • Buyers at any level who wish to learn how to use cost breakdown and TCO decision-making tool to better negotiate price reductions with suppliers.

METHODS AND TOOLS

  • A business case study is used.
  • Enables participants to analyse each major category of cost.
  • Participants constantly challenge the current paradigms and take innovative decisions.
  • The participants work in small teams of three.
  • They share experiences.
  • They learn by making smart decisions and some errors.

The first part of the two-day session will be based on a series of exercises to understand how suppliers build up their cost to generate their price to customers. This fundamental knowledge will provide buyers with the background to build-up the cost structure of a supplier.

Secondly, a TCO model will be presented - which is a decision-making tool to help buyers to identify cost improvement opportunities that go beyond supplier price.

At the end of the training course the participant should be able to:

  • Conduct simple product functional analysis.
  • Develop should cost & negotiation strategy.
  • Create a TCO for a given product or service.

DAY 1

  • Functional analysis principles.
  • Functional specification.
  • Introduction to VA / VE.
  • Redesign to cost.

DAY 2

  • Fundamentals of cost and financial approach.
  • Product and services cost drivers.
  • What should be the true cost and comparison.
  • TCO basics and principles.
  • TCO case study.

Practicing Negotiation Techniques

LEARNING GOALS

Following this module, participants will be able to:

  • Define negotiation objectives, including different options.
  • Develop negotiation scenarios.
  • Built alternative solutions (BATNA) to avoid deadlock situations.
  • Organise their negotiation plan, taking into account their company constraints, the supplier’s expectations and the market situation.
  • Deliver the highest results possible, while maintaining long term relationship with suppliers.

TARGET GROUP

  • Buyers and internal customers who need to conduct or assist in commercial negotiations.

METHODS AND TOOLS

  • Pedagogical approach : Workshops, Case studies, Video training.
  • Tools : Behavioural Pattern, Negotiation Planner, Concessions / Counterparts Matrix.

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Certification Programme – Professional Buyers

DAY 1

Method for preparing a negotiation

Introducing the check-list

  • Outlining my objectives
  • Evaluating the balance of power
  • Analysing the mutual interest in negotiating
  • Defining my strategy

Workshop: the suppliers’ strategies and tactics

  • Elaborating my behavioural pattern
  • Laying out my control panel.

Practical case study

DAY 2

Purchasing Negotiation best practices and behaviours

  • Presentation of the negotiation stages.
  • Stakes, objectives.
  • Best practices.
  • Negotiation behaviours.
  • Intercultural aspects.

DAY 3

Real cases coaching

  • Workshops: each buyer gives a briefing about a real contemporary or future negotiation situation, and the problems it raises. The other participants and the trainer then help preparing the negotiation by applying the method.
  • The most sensitive cases will then be acted out, using the behavioural pattern, the steps of a buying negotiation, and the best practices for each step. The trainer will focus on the behavioural aspects.
 

Expert Buyers

 

Objective

The Certification Programme for Expert Buyers prepares participants to have an active role in the definition and implementation of the company’s business and purchasing strategy. The programme also focuses on cross-functional and cross-cultural environments which require specific interpersonal skills.

Target Group

The Certification Programme for Expert Buyers is targeted for Lead buyers, Category buyers, Project buyers, Business Unit buyers with large portfolio responsibilities.

 
 

Week 1

Key Category Management

LEARNING GOALS

Following this module, participants will be able to:

  • Understand the role of upstream and downstream purchasing.
  • Define a purchasing strategy based on in-depth knowledge of their company needs and market trends.
  • Maximize the value delivered to the company.
  • Understand the fundamental steps of strategic purchasing portfolio management.
  • Adapt this process according to the type of global/local organisation (for example within a Lead buyer or Key Commodity Management type organisations).
  • Define a plan to execute the strategy.
  • Measure the outcome of the strategy.
  • Communicate effectively with the different stakeholders.

TARGET GROUP

  • This course targets purchasing staff with experience as buyers or in other functions, aiming to assume regional or global purchasing category management responsibility, particularly Key Commodity Managers and Senior Buyers in charge of commodity teams.

METHODS AND TOOLS

  • Workshops will be used to provide participants with the opportunity to apply the tools presented.
  • Participants will be asked to apply the methodology to their own commodities.
  • Extensive discussions among participants will facilitate a dynamic and interactive learning environment.

DAY 1

  • Sourcing strategy development from a corporate point of view.
  • Introduction to Sourcing Methodology.
  • Portfolio analysis.
  • How to segment a portfolio.
  • Understanding the dynamics of the supplier’s market.

DAY 2

  • Purchasing strategy development by segment.
  • Sourcing Methodology.
  • How to find new potential suppliers.
  • Total cost approaches to supplier selection.
  • How to select strategic suppliers.

DAY 3

  • Risk.
  • Market Intelligence and the role of the KCM.
  • Discussion on the difficulties of the KCM’s coordinating role and how to deal with it.
  • Communication issues in relation to the management of commodity teams.

Supplier Relationship Management

LEARNING GOALS

Following this module, participants will be able to:

  • Understand the processes and tools to implement SRM and Key Supplier Management.
  • Identify the Key Suppliers in the company.
  • Analyse the relationship with the Key Supplier.
  • Understand the Key Suppliers strategy and its fit to the company.
  • Set-up objectives to a Key Supplier.
  • Identify the organisation and the process to manage key suppliers.
  • Understand the benefits, risks and key success factors to implement SRM.
  • Set-up a structured process to identify, to analyse and to manage Key Suppliers.
  • Understand the function of a Key Supplier Manager.

TARGET GROUP

  • All purchasing staff involved in the management of a Key Supplier.

METHODS AND TOOLS

  • Workshops will be used to provide participants with the opportunity to apply the tools presented.
  • Participants will be asked to apply the methodology to their own commodities.
  • Extensive discussions among participants will facilitate a dynamic and interactive learning environment.

DAY 1

  • Definition, benefits and risks of SRM.
  • Identifying Key Suppliers in a portfolio.
  • Focusing on a Key Supplier.
  • Identifying the Key Supplier business strategy.
  • Analysing the buying company’s attractiveness to the Key Supplier.
  • Understanding personal networks among the company and the Key Supplier.
  • Benchmarking several actual examples of Suppliers strategic mapping matrix and Global commodity strategic analysis.
  • Workshops and cases.

DAY 2

  • Defining objectives for a Key Supplier.
  • Identifying the action plan to manage the Key Supplier.
  • Setting up the organisation to manage the Key Supplier (Key Supplier Manager).
  • Understanding the purchasing Company’s maturity levels to drive and enable SRM process: from transactional process to Value chain integration.
  • Benchmarking several actual examples of performance measurement: Suppliers Scorecards, Customers Satisfaction Index, Suppliers Satisfaction Index.
  • From Scorecards to qualitative TCO: integrating the customers’ expectations into Key suppliers management objectives through a global value measurement process.
  • Workshops and cases.

Week 2

Advanced Cost Reduction Tools

LEARNING GOALS

Following this module, participants will be able to:

  • Lead functional analysis cessions for product and services by using standard methodology.
  • Understand principles for Value analysis and its application to Dfx (design for X) optimisation workshops.
  • Differentiate fundamental product cost elements linked to the financial income statement.
  • Understand cost element drivers and impact on product cost.
  • Create product or service should cost supporting suppliers cost breakdown analysis.
  • Apply methodology to develop structured TCO model with key parameters and cost drivers.
  • Develop a supplier engagement plan or cost reduction supported by in depth analysis of product cost elements.

TARGET GROUP

  • Technical buyers with technical background or culture involved in leading cost reduction activities.
  • Other buyers willing to understand the cost drivers of their company as well as with their suppliers in order to identify and take advantage of saving opportunities.

METHODS AND TOOLS

  • Each trainee will be given a handbook containing reusable templates used for the different tools.
  • A master document will present each technique as seen during the training session.
  • All tools and techniques are presented in a simplified and reusable way and illustrated by real application examples taken from various industries, including the most demanding ones (automotive, food, household...).

DAY 1

Functional definition of requirement: a tool to better understand the real needs and avoid over specification.

  • Concept of functions and functional specification.
  • Understand when to use it.
  • Step by step approach to build up a functional specification.
  • Application to various situations: products, systems and services.
  • Using the functional approach to support the purchasing strategy.

Value analysis: a re-design to cost approach

  • From cost reduction to value management.
  • Value analysis work-plan and conditions for successful implementation.
  • Understand how to assess the value of the existing solution (importance of functions and benefit versus cost).
  • Make a diagnosis of the design of a product using value analysis tools.
  • Seek innovative solutions through brainstorming and other techniques.
  • How purchasing can initiate and support value analysis projects.

DAY 2

Cost analysis & tool set

  • Understand cost structures and the key items in a cost breakdown.
  • How to challenge suppliers’ cost breakdowns: machine cost, labour cost, material cost, overheads, and margin.
  • What are the most frequent “mistakes” found in suppliers quotations?
  • Challenge supplier operations.

DAY 3

TCO (total cost of ownership)

  • What is TCO in real life.
  • TCO example.
  • TCO cost drivers and application to products or services.

Supplier Development & Optimisation

LEARNING GOALS

Following this module, participants will be able to:

  • Manage effectively supplier performance.
  • Anticipate and mitigate risk.
  • Integrate sustainability in the purchasing process.
  • Solve problems using a structured approach.
  • Create and implement a supplier development project.

TARGET GROUP

  • Engineers in Supplier Production, Logistics Sourcing and Sourcing Quality Assurance.
  • Key Commodity Managers.
  • Local Sourcing Agentsr.
  • All Buyers who need to develop suppliers’ performance.

METHODS AND TOOLS

  • A whole set of tools and techniques will be presented and applied through workshop sessions.

DAY 1

Introduction

  • The pre-requisite of supplier development

Measuring suppliers’ performance

  • Efficiency and effectiveness
  • Early warnings
  • Linking TCO and Metrics

Managing risk

  • Identifying and monitoring risk
  • Assessing the Value at risk
  • Monitoring risk

DAY 2

Sustainability

  • Why is sustainability important?
  • The role of purchasing regarding sustainability
  • Mapping risk and opportunities
  • Ensuring compliance

Leading supplier development project

  • Concepts
  • Tools
  • Managing a supplier development project

Week 3

Value Contribution

LEARNING GOALS

Following this module, participants will be able to:

  • Understand how purchasing can contribute to create value.
  • Make their company a preferred client to access valuable supplier innovation.
  • Identify the unmet needs of the business.
  • Find opportunities within the ecosystem.
  • Involve suppliers in the innovation projects.
  • Measure value creation.
  • Understand open innovation.

TARGET GROUP

  • Commodity Managers.
  • Purchasing Managers.
  • Expert and R&D Buyers.
  • Project Buyers.

METHODS AND TOOLS

  • Workshops and extensive discussions based on personal examples.

DAY 1

Value Contribution definition and expectations

  • Defining innovation & Value Creation
  • Case study
  • How to attract innovation from suppliers
  • The innovation Piano

Category strategy that deliver value creation

  • The three steps to value creation
  • Defining a Business unit value drivers
  • Defining the contribution of purchasing categories to value drivers
  • Identifying unmet needs and leveraging technology roadmaps

DAY 2

  • Exploring ecosystem for innovation opportunities
  • Scouting for innovation
  • Strategy: Developing scenarios

Measuring value creation

  • Innovation KPI
  • Impact on Business Model
  • Value creation Maps

Open innovation

  • Concepts
  • Tools

The Soft Skills in Hard Negotiations

LEARNING GOALS

Following this module, participants will be able to:

  • Articulate the preparation with the conduct of the negotiation.
  • Deploy a purchasing strategy in negotiation points.
  • Build a tactics according to the positioning of the buying company in front of the vendor.
  • Be aware of the unconscious reflexes.
  • Diagnose intercultural mismatches before they block the negotiation.
  • Get out of negotiation deadlocks, etc.

TARGET GROUP

  • Key Commodity Managers.
  • International Sourcing Officers.
  • Senior Buyers.
  • Sourcing Quality Assurance Engineers.
  • Pre-requisite: Negotiation experience at an International level.

METHODS AND TOOLS

  • International inter-industry environment;
  • Negotiation role-plays;
  • Observation games;
  • Leadership and argumentation exercises;
  • Theory and application workshop;
  • Analysis of business cases;
  • EIPM negotiation theory;
  • Emotional intelligence;
  • Intercultural analysis;
  • Behaviourism and Jung theories.

DAY 1

  • Negotiation points: exchange values for the value exchange.
  • Balance of Power, strong/weak strategy.
  • Balance of criticality, offensive/defensive strategy.
  • Negotiation role-play.

DAY 2

  • Combination of strategies into a negotiation tactics.
  • Behavioural reflexes.
  • Intercultural analysis.
  • Negotiation role-play.

DAY 3

  • Emotional leadership and relational intelligence in a negotiation.
  • Negotiation role-play.
  • Getting out of deadlocks, analysis of a difficult case.
 

Purchasing Managers

 

Objective

The Certification Programme for Purchasing Managers focuses on management and leadership capabilities as well as the organisational aspects of purchasing. Among the management issues covered are strategy definition, organisation and team management. Leadership subjects include leadership styles, change management and communication.

Target Group

The Certification Programme for Purchasing Managers is targeted to purchasing executives with a solid purchasing background who are leading a team of buyers or to senior buyers aspiring to an executive position.

 
 

Week 1

Purchasing Management: Strategies & Organisations

LEARNING GOALS

Following this module, participants will be able to:

  • Align the purchasing strategies to business strategies.
  • Align the purchasing organization with business organization and constraints.
  • Help their team to define appropriate category strategy.
  • Manage the complex interaction between internal customers, purchasing teams and suppliers.
  • Define relevant objectives.
  • Control the delivery of results according to the plan.

TARGET GROUP

  • The module is dedicated to purchasing executives with solid purchasing background who are leading a team of buyers or to senior buyers accessing to executive position.
  • It is also suitable to experienced executives new to purchasing.

METHODS AND TOOLS

  • Workshops and discussions will be organised in order to exchange experience between participants and the EIPM experts.

DAY 1

Do we have the right Purchasing Strategy?

  • We will start by clarifying what is a company business strategy. This is the basis to set-up a Purchasing strategy which is aligned with the company strategy. We will discuss what purchasing strategy is adapted to each of these options.
  • Participants will work on their own company and purchasing strategy.

Do we have the right Purchasing Organisation?

  • Once the Purchasing Strategy is clear, the Purchasing Manager must set-up the right and adapted organisation.
  • Which organisation is required to facilitate early purchasing involvement in product and service definition (Upstream organisation)?
  • Which organisation is adapted to leveraging and coordinating the company needs (Downstream organisation)?
  • Shall the company have a centralised or decentralised purchasing organisation in order to get the best out of the market? We will discuss the different factors and tools to support the decision process.

DAY 2

Do we have the right Purchasing Organisation?

  • We will review the various methods and tools and analyse their relevance in relation to the participants’ own environments.

DAY 3

Do we have the right suppliers and management system?

  • We shall discuss SRM-Supplier Relationship Management approaches in order to segment the supplier base and adopt a specific type of relationship to each category. Best practices to handle strategic suppliers will be extensively discussed.

Do we have the right strategy implementation process?

  • We will, with the help of the EFQM self-assessment methodology, benchmark the participants’ purchasing organisation.

Purchasing Management: Skills & Performance Indicators

LEARNING GOALS

Following this module, participants will be able to:

  • Create a 3 year roadmap to develop the performance of their purchasing units.
  • Build a one page strategy that support effective communication to stakeholders.
  • Develop and implement a human resource plan to attract, retain and develop people.
  • Review and develop the performance of people reporting to them.
  • Design and use performance measures.
  • Lead effective performance review.
  • Assess and improve processes.

TARGET GROUP

  • The module is dedicated to purchasing executives with a solid purchasing background who are leading a team of buyers or to senior buyers accessing to an executive position.
  • It is also suitable for experienced executives new to purchasing.

METHODS AND TOOLS

  • Workshops and discussions will be organised in order to exchange experience between participants and the EIPM experts.
  • Participants will be encouraged to apply the methods to their own purchasing organisation.

DAY 1

Purchasing trends

  • Trends related to globalisation
  • Trends related to value chain
  • Building your strategy in one page

Do we have the right People skills?

  • Talent management
  • Current and future skills required in a Purchasing Organisation

DAY 2

Do we have the right Performance indicators?

  • Performance measures for purchasing
  • Evolving your performance measure as your maturity evolves
  • Using the Balanced Score card approach: exercise the set-up of aligned performance indicators

Week 2

Supply Chain Optimisation Management

LEARNING GOALS

Following this module, participants will be able to:

  • Turn supply chain management into a competitive advantage.
  • Create value for all actors across the chain.
  • Strategically manage all types of flows.
  • Achieve global efficiency by involving the supply chain from suppliers to customers.

TARGET GROUP

  • Purchasing managers who wish to leverage an integrated supply chain strategy.
  • Supply chain practitioners who would like to enhance their knowledge of purchasing execution and challenges.
  • Experts in fields such as Information Systems, Logistics & Warehousing, Finance, Production, Quality, that wish to develop a greater understanding of how Purchasing and Supply Chain should be integrated with their specific area and processes.
  • Sales development people who wish to improve their understanding of the impact of Customer related inputs in the overall efficiency of the Supply Chain and Purchasing.

METHODS AND TOOLS

  • Presentation of supply chain management concepts
  • Workshops around examples and cases
  • Plenary discussions
  • Simulation exercises to demonstrate supply chain dynamics

DAY 1

Supply Chain management

  • Definitions: Is Supply Chain more than Purchasing?
  • From Inputs, Conversion and Outputs to the virtual Supply Chain company.

Review of Inventory Management notions

  • Global environment, modelisation of flows, Business Processes, Stakeholders
  • The Forrester effect, the JIT of demand and players
  • The Iceberg of inventories: from price to cost, from cost to value
  • Ordering optimisation techniques and systems integrations (EOQ, ERP, VMI, Safety Stock, etc)
  • KPI’s, logistics flows, complex supply chains mapping and improvements

Implementing Supply Chain orientated negotiations with Suppliers

  • Terms & Conditions, advanced parameters of optimisation
  • Rights and duties of Supply Chain actors

Practical cases and workshops

DAY 2

Strategic impact of Supply Chain Management

  • The life cycle’s dynamics: from TTM to TTT, TTV, TTC, TTR?
  • Supply Chain maturity levels
  • Full process of Supply Chain implementation in the Purchasing environment

Tool Box of Supply Chain Optimisation management

  • Procurement and Planning Structure
  • Warehousing and Logistics organisation
  • Financial and company-wide targets
  • Purchasing impacts
  • Negotiation and functional processes
  • Communication and influence of internal customers
  • Final customers/markets constraints integration

Global logistics

  • International logistics
  • The role of 3PL & 4PL partners
  • Incoterms refresher

Supply chain excellence

  • From CRM and SRM to GRM: Global Relationship Management
  • The 6SCORE: tool of global performance measurement and coaching along the Supply Chain

Going further…

  • Time compression techniques
  • Lean and agile supply chains
  • Demand planning and forecasting techniques
  • Sales & Operations planning

Leadership & Change Management

LEARNING GOALS

Following this module, participants will be able to:

  • Know themselves better, and how these characteristics impact their leadership.
  • Appreciate differences and how they can draw value from them.
  • Develop and coach their team members.
  • Manage their stakeholder relationships better by understanding what is at stake for others, using different influence strategies, and having courageous conversations.
  • Manage change and transitions better, through an increased understanding of reactions to change and how to handle them, and of the complexity of organizational change.

TARGET GROUP

  • As this module is about leading others, it is targeted to Purchasing managers who have the responsibility of leading a team or to Senior buyers transitioning to a managerial position.

METHODS AND TOOLS

  • Presentation of models/methodologies followed by application exercises, role play or group work on real issues to allow for practice and opportunities to exchange experience with other participants, receiving individual feedback on strengths and development areas, personal reflexion.

DAY 1

Leadership

  • When leading others, it is important to begin by knowing oneself and one’s leadership style. The Myers-Briggs Type Indicator gives helpful insight into one’s personality and preferences, communication style, team behaviour and reaction to change. Participants will explore their own profile though exercises.
  • Transition is a key moment in a career, which needs to be carefully navigated. Here, the focus is on leadership transitions, and what needs to be done when transitioning from one role to another.
  • Emotional intelligence has an impact on leadership effectiveness. The different aspects of it are explored and applied to different leadership styles.

DAY 2

Key Skills for Leading Others

  • Influencing is one of the most important skills in organisations today. A methodology is presented and participants work on their current influencing challenges.
  • Coaching: One of a leader’s roles is to coach their employees and help them develop. Different skills required for coaching are explored and practiced through case studies. The participants also identify their own motivations and work on understanding those of others.
  • Managerial courage requires the ability to say things that are not easy to say. Participants practice having difficult conversations using a methodology.

DAY 3

Leading change

  • The final day looks at change from an individual and from an organisational perspective. From an individual perspective, understanding reactions to change, the change curve, why people resist change, and how the MBTI type impacts our preferred way of dealing with change. From an organisational perspective, what are the key factors for successful implementation of change in an organisation.