Learn how to source

This course package aims to provide learners with a comprehensive understanding of the responsibilities typically on the agenda of a Chief Procurement Officer (CPO).

The Operation Strategy Matrix, developed by Professor Nigel Slack, offers an in-depth perspective on organizational strategies. Crucially, it illustrates how these strategies can be distilled into specific procurement strategies. This alignment is pivotal to ensure the procurement department's activities are in sync with the overarching goals of the company.

While there's no one-size-fits-all approach to structuring a procurement function, various factors such as the nature of the business, its history, available resources, and other variables dictate how roles and resources should be organized. Despite this variability, LHTS believes that showcasing a generic, contemporary blueprint of a procurement organization – detailing roles and responsibilities – can be instrumental. Such a structure not only helps budding procurement professionals understand their function but also highlights the potential challenges a CPO might face. An optimized procurement function is often the cornerstone of a company's success, ensuring quality, cost-effectiveness, and reliability within the supply chain. While every company must tailor its procurement function to its unique needs, this general blueprint provides a robust foundation to comprehend the core elements and their efficient integration.

Competence management emerges as a pivotal strategic area within the procurement function. When executed adeptly, it ensures access to pertinent skills and can also amplify a company's appeal as an employer.

Additionally, the package introduces learners to Sourcing Key Performance Indicators (KPIs), which are critical metrics every procurement department should monitor. Participants will gain insights into tracking and interpreting these KPIs to guarantee peak performance.

EFFSO sheds light on the concept of category management (CM) and offers guidance on establishing an effective category management program. The follow-up course navigates learners through the initial steps of CM implementation, providing an exhaustive overview of CM and the essential components for an initial category strategy, complete with handy checklists.

The course also delves into Value management, focusing on deriving additional value from the supplier base. It provides a deep dive into the techniques and tools employed to maximize this value.

Why is Corporate Social Responsibility (CSR) pivotal for the procurement community? The course explores the significance of responsible business practices and how they mark the initial steps towards sculpting a sustainable supply chain.

Discussing digitalization, the course underscores the integration of proactive digital procedures within the procurement domain. Successful digital transformation can unleash a plethora of benefits including enhanced efficiency, transparency, cost savings, revenue generation, agility, and supply chain management improvements. Various technologies are available to bolster this digital metamorphosis:

• Spend Visibility Analysis Tools: These tools proffer insights into organizational spending, promoting informed decision-making.
• Blockchain for Smart Contracts: With blockchain, contracts can be verified, executed, and stored securely without third-party intervention.
• Robotic Process Automation (RPA) Technology: This tech employs "robots" or software to automate mundane tasks, freeing up human resources for value-add activities.
• Procure to Pay System: These systems mechanize the process from ordering to payment, culminating in swift, efficient transactions.

In this module, Medius toolkit is exemplified to demonstrate how standard processes can undergo digitization. By grasping and leveraging these digital tools and methodologies, companies can not only streamline their procurement procedures but also remain competitive in an increasingly digital landscape.

The procurement department's role isn't just about sourcing goods and services. They must ensure these meet the organization's quality, cost, and delivery criteria. But beyond these basic requisites, procurement professionals must weigh the ethical and societal ramifications of their purchasing choices. This is where the 'Supplier Code of Conduct' assumes significance. This code demarcates the principles and expectations an organization sets for its suppliers, encompassing ethical work conditions, environmental stewardship, human rights, and other relevant societal facets. It's imperative for procurement professionals to be cognizant of and understand these facets to make informed decisions that align with the organization's broader objectives and ethos.