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Strategic Purchasing and Supplier Relationship Management

quick enroll sample 3 Course: PUM001 Price: ¥8,850
Duration: 2 days PDU:14
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Over the years purchasing has become a very strategic focus for companies since a good portion of the product costs are in purchased goods or services. If you are unaware of the latest tools and techniques in purchasing, you may be in a big surprise since your suppliers are well equipped with the latest tools and techniques. As suppliers are key to your product success, managing the suppliers will give you a significant improvement in delivering the products, as well as being able to work together to deliver a better solution. The aim of this two-day course is to provide the delegates with the knowledge and skills required to manage a mutually beneficial relationship with your suppliers.

Apollo Strategic Purchasing Management Workshop

Objectives for this training:

  • To understand who your suppliers or potential suppliers are
  • To identify both internal and external suppliers
  • To understand the role of suppliers within the organization's quality management system and their contribution to your organization's innovation and future sustainability
  • To find out how to build a mutually beneficial supplier relationship
  • To examine the importance of your purchasing process and its impact on your supplier performance
  • To understand what information should be given to suppliers, so that they meet your requirements
  • To understand how to work with suppliers to help them identify and meet our expectations and needs
  • To learn the methods for improving communication with suppliers
  • To find out the role of the Service Level Agreements and Quality Plans and how to ensure these are effective
  • To learn about the criteria used and methods for evaluation, re-evaluation and monitoring of supplier performance (based on output and results, based on outcome and results, based on audits of management system)
  • To understand approaches for effective assessment/auditing of suppliers processes/management system
  • To understand what is needed for planning effective and constructive supplier audits/assessments (based on clear objectives, scope and criteria)

Who should attend:

Anyone who is currently involved directly or indirectly in the company purchasing and supplier management will be benefited to this training. People in the following categories will find this workshop particularly useful

  • Purchasing Manager
  • Lead buyer
  • Buyer
  • General manager
  • Program managers
  • Sponsors
  • Finance
  • Anyone who is involved in purchasing and budgeting

Topics Covered:

Through an immersive, simulated case study, you gain practical experience evaluating the development and implementation of a complex purchasing and supplier management techniques.

About your facilitator

Your International Facilitator:
Francis Hung, Managing Director – Apollo
Consulting Group

Francis Hung, P. Eng, MBA, PMP, PRINCE2, ITIL, EIPM is a bilingual professional specializing in portfolio, project and program management and purchasing management. For the past 30 years he has worked with large companies in project and project office managements from the US, Canada and Asia. In particular, his work in the adaptation of project management processes and his creation of earned value management tool to assist business to manage their projects more effectively. Thanks to his years of experience with Nortel, Systek and North America aerospace industries, he brings practical information, an insider's view of the corporate world, and many live stories (both from his own experience and from her co-workers, vendors, and friends in the corporate community) to match the theory to reality. Francis was a Nortel program manager and senior VP of Systek directing multiple projects simultaneously following the Nortel corporate project management process, which he now applies to his own independent project management consulting business.


  • Project Management Consulting & Training
  • Setting up project management office (PMO)
  • Strategic program management and purchasing management

Sector & Industry Experience:
Manufacturing, Telecom, Information Technology, Finance, Call Center operation

Major Projects

Shanghai 168 Internet Call Center, SYWG security Bshare trading system, Nortel digital cross connect program manager, NASA space shuttle EMI component reliability program, Greatwall CDMA service and billing system


"One of the best course I ever recevied, Francis is absolutely a trainer's trainer." Helen Liu, VP & Associate, Adfaith Management Consultant, Beijing, China.

"Francis is an experienced and well organized trainer with good understanding of the subject. His unique Project Management tool that is so useful and covers all important aspects of project management." – Oonagh Chan, Head of Broadcast Division, Hong Kong Jockey Club

Day 1

Purchasing & Supplier Management Training Contents:

Module 1 – Purchasing Strategy and Implementation

Strategic purchasing and purchasing strategy

  • Determine the right purchasing strategy for the purchases
  • Getting the best contribution from purchasing
  • Selection of the sub-families that will be sourced in priority
  • Setting-up of efficient project team to achieve target saving
  • Planning & Communication

Supplier market analysis

  • Characterization of your organization's needs
  • Understanding of the supplier market
  • Evaluation of your organization's position on the supplier market
  • Synthesis of first elements defining the sourcing strategy

Effective cost reduction process in purchasing

  • Definition of the most appropriate approach to deliver the targeted savings
  • Sourcing levers
  • Target procurement policy
  • Buy-in of the sourcing approach by project team and stakeholders


Module 2 – Cost reduction tools in purchasing

  • Identify the purchase category for purchasing
  • Example use of Cost Reduction tools
  • Calculate potential saving using the cost reduction tool

Supplier selection and evaluation

  • Identify selection criteria for your organization's basic Requirements
  • Review suppliers' database and select suppliers for RFP
  • Prepare and follow-up RFP
  • Analyze and list recommendations
  • Prepare and formalize RFP
  • Analyze RFP and select suppliers
  • Run negotiations
  • Simulate negotiated savings
  • Select suppliers to whom a contract will be sent

Day 2

Module 3 – Supplier Management

  • Understand the importance of the suppliers' performance
  • Supplier's impact on your organization and its products/services
  • Deliver effective Service Level Agreements with supplier
  • Understand the importance of effective implementation of the SLAs
  • Ongoing supplier monitoring and control
  • Issue resolution and techniques with supplier
  • Change management with supplier
  • Supplier continuous improvement tools and techniques

Module 4 – Tools for Purchasing Managers

Cost analysis

  • Cost breakdown analysis to identify cost reduction levers
  • Method of a cost breakdown
  • Example of a cost breakdown in a purchased items
  • Exercise: determine the component cost of a system


Course Format:

Trainer will use practical examples and case studies to reinforce and expand the scope to cover applicable concepts in this training.

Partial Client List

  • Air Liquide
  • Clariant
  • Oracle
  • AXA Insurance
  • Hong Kong Jockey Club
  • PCCW Cascade

Total cost of ownership

  • Define the process of TCO – Total Cost of Ownership
  • Generic uses for TCO approach in Procurement
  • What TCO for procurement strategy definition its whole life cycle
  • TCO focus for routine purchase and new product development
  • TCO exercise

Value Concept

  • Value and Quality concept
  • Reasons for unnecessary cost
  • Define Quality and value
  • Quality function deployment (QFD)

Negotiation for purchasing

  • Difference between « to buy » and « to negotiate »
  • First negotiation case study
  • Purchasing Negotiation's best practices
  • Concession counterpart exchange step
  • Concession / counterpart workshop
  • Preparing the negotiation: the planner
  • Second negotiation case study



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