Strategic procurement is the development of a true partnership between a company and a supplier of strategic value. The arrangement is usually long-term single-source in nature and addresses not only the buying of parts, products, or services, but product design and supplier capacity. Partnering agreements allow the mutual exchange of confidential information, proprietary restrictions, non-disclosure, non-compete, certification of processes, routine audits, delivery performance, quality performance, as well as the transfer of control of a process or product.
The relationship between partners is unlike the traditional adversarial relationship between buyer and seller, where the buyer pits one supplier against another frequently during the year, focusing entirely on unit cost. Under these conditions exists a mutual distrust between parties that is counterproductive to both. For the buying company, there generally exists an un-leveraged multiple supply base that results in a competitive cost disadvantage. For the seller, he is continually negotiating price reductions at a disadvantage, kept in the dark, expected to
Workshop topics to be covered:
An Overview of Strategic Procurement and Building a Strategic Procurement Function.
Strategic Procurement Planning.
Aligning purchasing decision with corporate goal and corporate governance.
Implementation Strategy. Development of Strategic Design and Action Plan Format.
Multinational Supplier Development Strategy for Global Partnership.
Measurement techniques including maturity assessment.
Case Analysis with participant participation.