Moving From Tactical to Strategic Purchasing

1. Introduction 
2. Objective 00:02:03
3. Purchasing in Transition 00:03:18
4. Definitions 00:04:07
5. Role of Procurement 00:06:26
6. Purchasing Process 00:08:56
7. The Future 00:10:09
8. Changes In Our Roles 00:11:27
9. Preparing For The Future 00:14:56
10. Skill Sets 00:16:24
11. Technology 00:20:44
12. Supplier Relationships 00:23:02
13. Organization 00:24:39
14. Basic Purchasing Process 00:28:26
15. Need Determination 00:31:18
16. Purchase Requisition 00:36:44
17. Purchasing Process Continues 00:38:40
18. Process Continues 00:39:50
19. Process Continues 00:42:45
20. Studies For Best Practices 00:45:19
21. Best Practices  - Findings 00:46:09
22. Most Implemented 00:51:06
23. Guidelines For Supplier Management Programs 00:51:51
24. Goals & Objectives 00:56:02
25. Goals & Objectives Continued 00:59:22
26. Understanding The Goals Of Suppliers/Customers 01:03:56
27. Understanding Continued 01:05:36
28. Obtaining Customer & Supplier Needs 01:06:51
29. What This Means 01:10:02
30. Supplier Needs 01:10:51
31. Approaches To Achieving SPM 01:12:41
32. Using Strategic Sourcing - Primary Process 01:13:08
33. Approaches To Strategic Change 01:13:47
34. Increasing Supplier Involvement 01:15:29
35. Transforming The Relationship 01:16:09
36. Sourcing Consideration 01:18:45
37. Categorization Model 01:21:35
38. Procurement Category Management 01:22:55
39. Creating Time To Be Strategic 01:25:01
40. SPM - A Competitive Weapon 01:29:20
41. Competitive Edge 01:30:49
42. Optimizing The Cost Of Ownership 01:31:57
43. Supply Risk And Profit Impact Model 01:33:18
44. Performance Criteria 01:34:41
45. Performance Standard 01:35:59
46. Recap 01:37:52
47. Q&A 01:41:50
48. Closing Comments 01:42:08
49. Presentation Closing 01:45:21

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  Michael W. Gozzo

  Michael W. Gozzo provides consulting and training services to all levels of management and is a Supply Chain Specialist including Purchasing (Supplier Collaboration), Inventory Control and Production/Operations Management.  With many years of practical international experience, he offers a supe [...]

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• 80-20 Pareto Rule 01:25:28
• Bid Analysis Form 00:41:10
• Commodity 00:24:56
• Cost 00:07:05, 00:08:01, 00:13:14, 00:36:15, 00:47:15, 00:54:35, 01:33:12
• Distribution Requirement Planning (DRP) 00:3
• Enterprise Resource Planning (ERP) 00:16:50, 00:17:17
• Inventory 00:26:18, 01:02:38
• Invoice 00:09:36
• Key Performance Indicator (KPI) 00:05:47
• Lead Time 00:07:02, 01:00:32
• Material Requirements Planning (MRP) 00:33:19, 00:35:22
• Material Resource Planning (MRP) 00:16:50, 00:17:03
• Procurement 00:05:58, 00:12:09, 00:33:41
• Purchase Order 00:09:25, 00:41:54
• Purchase Price Variance (PPV) 01:31:57
• Purchase Requisition 00:09:25, 00:36:48
• Request For Quotation (RFQ) 00:38:44
• Supplier 00:06:46, 00:07:39, 00:14:39, 00:18:22, 00:23:09, 00:24:49, 00:28:25, 00:34:26, 00:40:02, 00:44:41, 00:52:30, 01:10:01, 01:21:25, 01:25:18
• Supplier Resource Management (SRM) 00:06:26
• Supply Chain 00:11:38, 00:13:20
• Total Cost of Ownership (TCO) 00:47:43, 01:32:05
• Total Quality Management (TQM) 00:57:38
• Vendor 00:38:33
• Vendor Management Inventory (VMI) 01:27:36

80-20 Pareto Rule: The Pareto principle states that, for many events, roughly 80% of the effects come from 20% of the causes.

Bid Analysis Form: Bid Analysis (Vendor analysis) is a technique used to figure out the cost of a project by comparing the bids submitted by many suppliers. This can be accomplished by considering the costs (via quotes, bids, proposals, etc.) presented for project work. By using a selection criteria divided into categories, vendor proposals have to meet these criteria or may be eliminated.

Commodity: A basic good used in commerce that is interchangeable with other goods of the same type.

Cost: The sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location

Enterprise Resource Planning (ERP): Refers to a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations.

Inventory: A company's inventory typically involves goods in three stages of production: raw goods, in-progress goods, and finished goods that are ready for sale. Inventory or stock refers to the goods and materials that a business holds for the ultimate goal of resale, production or utilization.

Invoice: An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer. Payment terms are usually stated on the invoice.

Key Performance Indicator (KPI) : A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets.

Lead Time: The number of days from when a company places an order for supplies, to when those items arrive.

Material Requirements Planning (MRP): Material requirements planning (MRP) is a system that helps manufacturers plan, schedule, and manage their inventory during the manufacturing process.

Material Resource Planning (MRP): A standard supply planning system to help businesses, primarily product-based manufacturers, understand inventory requirements while balancing supply and demand.

Procurement: Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process. Procurement is used to ensure the buyer receives goods, services, or works at the best possible price when aspects such as quality, quantity, time, and location are compared.

Purchase Order: A legal contract between a buyer and a vendor. It lists the materials or services to be purchased on specified terms and conditions (quantity, price / pricing conditions, delivery date).

Purchase Price Variance (PPV) : Purchase Price Variance represents the difference between the actual price and the standard price, multiplied by the quantity purchased. The formula is: Purchase Price Variance = (Actual Price – Standard Price) x Actual Quantity.

Purchase Requisition: A purchase requisition is a document used as part of the accounting process to initiate a merchandise or supply purchase. By processing a purchase requisition, appropriate controls can monitor the legitimacy of a purchase, as well as identify the business need for the products.

Request For Quotation (RFQ): A process in which a company solicits select suppliers and contractors to submit price quotes and bids for the chance to fulfill certain tasks or projects.

Supplier: A supplier is an entity that supplies goods and services to another organization. A supplier is usually a manufacturer or a distributor. A distributor buys goods from multiple manufacturers and sells them to its customers. Similar Terms. A supplier is also known as a vendor.

Supplier Relationship Management (SRM) : Supplier relationship management is the discipline of strategically planning for, and managing, all interactions with third-party organizations that supply goods and/or services to an organization The objective of SRM is to maximize the value of those interactions.

Supply Chain: A supply chain is a network between a company and its suppliers to produce and distribute a specific product to the final buyer. The supply chain also represents the steps it takes to get the product or service from its original state to the customer.

Total Quality Management (TQM): Total quality management consists of organization-wide efforts to "install and make permanent climate where employees continuously improve their ability to provide on-demand products and services that customers will find of particular value."

Vendor: A vendor is a person or business that supplies goods or services to a company. Another term for the vendor is the supplier. In many situations, a company presents the vendor with a purchase order stating the goods or services needed, the price, delivery date, and other terms.

Vendor Management Inventory (VMI): A supply chain agreement where the manufacturer or supplier takes control of the inventory management decisions for the seller or retailer.