How Can Strategic Vendor Management Transform Your Business Relationships?

Dinesh Divekar
Introduction: A man is known by the company he keeps, goes the age-old adage. True to this adage, it can be said that a company is known by the vendors it keeps. In today's competitive environment, progressive firms must be able to produce quality products at reasonable prices. Product quality is a direct result of the production workforce and suppliers. Buying organizations can no longer afford to maintain a large supplier base. There is a clear shift from a one-time operational relationship to a long-term strategic relationship. This course is designed so that participants gain insight into the strategic aspects of buyer-supplier relationships.

Objectives of the Workshop: By taking this 1-day course, participants will develop their competencies in:

- Distinguishing between strategic, tactical, and operational procurement
- Developing a checklist to appraise them
- Evaluating and rating potential suppliers
- Categorizing the vendors
- Distinguishing between traditional and partnership supplier relationships
- Understanding what preparatory work needs to be done before negotiating with vendors

Indigenous Concept by the Faculty: To gain a competitive advantage, a collaborative relationship with vendors is important. Vendor development plays a crucial role here. However, it is of paramount importance to decide which vendors to develop and how to develop them. In this program, participants will get a blueprint of the Vendor Development Plan (VDP). The faculty has developed this document indigenously, and participants will not find it in any book or website.

Training Programme Contents:

First Half (0930 to 1315 hours):

- Traditional Procurement Vs Strategic Procurement
- Concept of Total Cost of Ownership (TCO)
- Scientific method of Vendor Assessment
- Post-project evaluation of the vendors
- How to widen Vendor Database
- Vendor analysis Kraljic Matrix
- Vendor analysis "What Suppliers Think of You?" Matrix

Second Half (1400 to 1730 hours):

- How to develop "Vendor Development Plan" (VDP) based on the above two matrices
- Various ratios used to measure the performance of the Purchase Department in general and Vendors in particular
- How to audit various functions of the vendor's organization
- How to conduct a Vendor Satisfaction Survey (VSS)
- Pre-negotiation checklist while dealing with vendors
- How to handle negotiations with vendors

Cost Reduction because of this Training or ROI on Training: Participants can derive 'n' times benefits by implementing VDP.

Regards, Dinesh Divekar
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