Procurement of Equipment and Materials

Introduction

This course has been consistently cited as one of the most critical processes in any operational company. The impact SCM has on business is major given that SCM impacts customer service and the bottom line. However, SCM is not easy given the dynamic nature of the many uncertainties involved. This dynamism has necessitated many companies to upgrade the skills of their SCM employees in order to capitalize on this untapped opportunity. In this course, many SCM best practices will be discussed, and the solutions provided will help participants deal with various scenarios to ensure the continuous flow of material at the least possible cost.

This Advanced Logistics and Materials Management training course fully covers the role and impact of Logistics and Supply Chain Management affecting an organization through the understanding of Supplier Management in Purchasing, Transportation Models, and Inventory Models from a cost-efficient and optimization perspective.

This highly interactive advanced training course is designed for the program delegates to practice and develop key facets of advanced logistics and materials management which will enable delegates to strategically manage international shipping systems and inventory. Examples of global best practices are delivered throughout the training course to enable delegates to fully embed the learning in order that they can apply within their roles upon returning to their work following the course.

This training course will feature:

• Process mapping the Supply Chain and internal processes for optimized results
• Management of risks and the actions of both internal departments and external stakeholders
• The impact of advanced logistics management both upon the organization’s financial resources and the impact on internal and external customer service
• Integrating logistics forecasting with peak demands and resource planning to optimize the cost-efficiency in managing inventory
• Inventory models to effectively manage and where appropriate reduce inventories
• Global best practice in purchasing, inventory controls, and materials management

Objectives

By the end of the course, participants will be able to:

• Describe the objectives and functions of materials and supply chain management (stock control, purchasing, stores, and physical distribution) and explain how they relate to each other
• Categorize stock items based on the ABC classification model
• Calculate future demand for different stock items
• Identify Reorder Points (ROP), Economic Order Quantity (EOQ), and Safety Stocks (SS) for different stock items
• Apply the basic purchasing processes and use Incoterms appropriately
• Identify best practices in warehouses to maintain accurate inventory records
• List the various transportation functions and costs
• Appreciate the implication of the impacts of logistics & materials management and purchasing functions both internally and external to the organization
• Apply the concepts of international logistics/freight procedures & documentation
• Appreciate the importance of effective resources planning
• Develop optimized work processes and financial areas such as cash flow, cost reduction, and management
• Learn how to effectively manage inventory utilizing selective inventory strategic policies
• Develop specific action plans to further develop their role and organizational benefit

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practices. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

Those involved in any function of materials and supply chain management (inventory, warehousing, purchasing, and transportation) are concerned with successfully providing acceptable customer or user service at a minimum cost.  This course is also appropriate for anyone who needs to know more about the role of materials management.

Course Outline

Day 1: The Role of Logistics and Supply Chain Management in Modern Businesses

• Evaluate the logistics role in the current business process

• The evolution of Supply Chain Management and Supply Chain dynamics

• The application of a Supply Chain approach                

• How to use and apply the Supply Chain Operations Reference Model (SCOR)            

• Identifying Supply Chain Instabilities and Risks

  • Internal supply chain risks

  • PESTLE risks

  • Inventory risks

  • Disruption risks

  • Security risks

  • Procurement risks

Day 2: Linking Strategies and Improvement in Cost and Productivity in Procurement

• Developing Spend Analysis for establishing purchase prices index

• Examine the Total Cost of Ownership

• Analyze Supplier portfolio and classification utilizing and applying Kraljic’s Matric and Porter’s 5 Forces

• Formulate, plan and organize Strategic purchasing plans

• Illustrate the effective order-cycle and lead-time effect on Purchasing

• Plan and organize for negotiations

 Day 3: Strategic Supply in Materials Management

• Formulate, plan and organize formal procedures for making stock decisions

• Explain, discuss and review safety stock levels and order points

• Apply and improve min/max systems and settings

• Using material forecasts

• Cataloging materials for the effective buying process

• Developing Bills of Material for effective parts management

Day 4: Effective Inventory Planning and Control

• Setting comprehensive inventory goals and objective

• Effecting a rationalization strategy

• Calculating and evaluating carrying costs and economic order quantity theory

• Establishing a Strategic Focus with Pareto Analysis on Cost

• Improving material identification and coding

• Creating best practices in the physical control of materials

• Measuring record accuracy and improving cycle counting systems.

 Day 5: Tactical and Operational approaches in Transportation Economics

• Apply the Role of Transportation in Logistics to the organization

• Identify and recognize Transportation Management Strategic Key Decisions

• Explain, discuss and review the types of mode and intermodal systems

• Show and illustrate the International Commercial Terms in transportation and the liabilities

• Identify and review Hazardous materials transportation.