Purchasing plays an important role in the profitability and success of every business. The way the purchasing function is managed and run will greatly influence the company’s bottom line. This programme aims to provide Purchasing personnel with the knowledge to be efficient, effective and ultimately to purchase materials and services at the best prices without sacrificing quality and service. It highlights on how Purchasing personnel can help to increase productivity and achieve savings through effective purchasing.

Objective

At the end of the programme, participants will be able to :

• understand the strategic importance of procurement;
• obtain up-to-date negotiations techniques and effective guides in preparing a negotiation;
• master the cost reduction process and techniques in procurement;
• develop competency and commitment in cost reduction responsibilities;
• improve the procurement functions and contribute to organisation’s efficiency, productivity and profitability.

Outline

1. Definition of Procurement
• Roles and responsibilities of procurement
• Evolution of procurement: the shift from operational to strategic
• 3 Types of procurement strategy

2. Negotiation In Procurement
• Case on negotiation: Orange discussion
• What to negotiate?
• Negotiation techniques: 2 types
• Negotiation Checklist

3. Cost reduction process
• ABC cost reduction analysis
• Principles of Ordering & Carrying Costs
• Direct materials cost reduction: a scientific technique
• Indirect Materials Cost Reduction (MRO items): scientific measurement

4. Suppliers cost reduction responsibilities
• a look into the ways suppliers calculate their cost
• how to spot if suppliers are over-charging you
• become an all-rounder awareness on procurement cost

Who should attend

Procurement Managers, Executives, supervisors, Officers, and engineers from departments such as production, engineering, finance/accounts, sales, QA, R&D.

Methodology

Active learning activities are included to allow participants to engage actively in the learning process. Besides that, leading the participants through these activities will enable better understanding on the concepts. The active learning activities may include:
• Hands-on exercises
• Group discussions
• Case studies
• Interactive storytelling
• Commentary on other companies / industries
• Video presentation

Andrew Cheah's Profile

Mr. Andrew Cheah has been a trainer and management consultant since 1991, specializing in the areas of Strategic Thinking, Leadership Transformation, Lean, QC Tools, VSM, Procurement & Inventory Management, negotiation, 8D Problem Solving, performance management, productivity improvement, behavioral change, and Critical & Creative Thinking. Andrew has trained clients from such diverse industries (see list below) as banking, insurance, hospitality, sales and distribution, manufacturing, food, property development, government/public services, and higher education. Being tri-lingual (English, Mandarin, and Malay Languages), and has extensive regional exposure in Singapore, United Arab Emirates, Malaysia, Hong Kong, China, Thailand, Indonesia and Vietnam. In addition to training, Andrew has guided and provided consulting services to clients, leading to one of them winning the prestigious Malaysian National Productivity Award (1999) presented by the 2-time Malaysian Prime Minister, Tun Dr. Mahathir. The award is for productivity enhancement through many areas such as continuous improvement, cost and waste reduction.

In addition to writing articles for the premier English newspaper in Singapore (the Straits Times), Andrew has been invited to speak at events such as International Conference on Best Practices, which was graced by senior officials from the Ministry of International Trade and Industry (MITI), sharing the stage with Professor Michael Gregory of the University of Cambridge, Mr Dieter Heyl (2007 Vice President of Mercedes Benz Malaysia), and Dr Marcus Chao, President of Lean China Enterprise Inc.

Andrew has an MBA degree qualification with the University of Portsmouth, UK. At the professional level, Andrew has certifications in: Blue Ocean Leadership Masterclass, Leading Dimensions Profiling (LDP), REACH Profiling, and ISO9000 assessor. His experience in international consultancy has also earned him a membership with the Association of Productivity Specialist (New York).