Benchmark your procurement strategies against those used by one of the world's most admired corporations

In the last few years, the world’s leading corporations including Shell are recognizing the need to review the way it looked at the procurement process of goods and services.

This has led to a different approach, which focuses on the whole supply chain for goods and services - starting from identification of the need to design and specification, and ultimately acquisition, usage and disposal or demobilisation. The “total cost of owning” the goods or services are now considered in all procurement decisions.

Procurement Excellence at it's Best

Today’s increasing competitive and cost-conscious business environment demands constant innovation to sustain income and profits. Aspirations about future growth, market positioning and customer satisfaction will have an impact on what business priorities will be.

Procurement offers a key opportunity to improve performance and reduce costs. In fact purchasing organizations across industry are proving they can add millions to the corporate bottom line.

As the leading global player in its industry, Shell Services, for the first time ever, will impart invaluable knowledge that enabled savings on procurement of goods and services in the region of 15% - 25% of total company spending in the span of 3 years.

The program leaders will take you through and share successful case studies from local, regional and global offices. Ideas will be supported by successful case studies and examples and demonstrated through various interactive exercises throughout the workshop.

You will benefit tremendously from their varied international experience and exemplary performance, with an extensive international track record, from Scandinavia to Malaysia.

The Road to World Class Supply Chains
THE TOTAL PROCUREMENT PROCESS (TPP)
is a practical solution to improving financial performance by strategically managing the procurement process. Traditional purchasing methods tend to focus on reducing acquisition costs (price, quality and performance). The Total Procurement Process is a broader view of procurement that promotes strategic decision making based on two key elements:

• Total cost of ownership

– the cost to own a product or service from initial design to final disposal
• Cross-functional input from everyone involved in acquisition decisions

– technical specialists, internal and external customers, suppliers and procurement staff

Immediate benefit to
Senior decision makers involved in initiating, developing and implementing purchasing strategies, and managing the procurement process:

• Managing Directors, CEO’s and Chief Operating Officers
• Vice Presidents, Directors and Managers of Purchasing, Procurement, Supply Chain, Materials, Logistics, Sourcing, Vendor Development, Operations, Planning & Control, Treasury, Finance, IT, MIS, Business Development, Re-engineering, Suppliers, Buyers, Merchandising and Manufacturing.

• PRE-WORKSHOP QUESTIONNAIRE

To ensure that you gain maximum benefit, a detailed questionnaire will be sent to all registered participants to establish exactly where your training needs lie. The completed forms will be analysed by the workshop leaders prior to the event. As a result we can guarantee that the course is pitched at exactly the right level and that the issues you regard as relevant are addressed.
• INTERACTIVE SESSIONS TAILOR-MADE TO YOUR NEEDS

You will be engaged in a series of interactive exercises on procurement strategy. This will enhance your participation and enable you to return to your organization with significant information and solutions customized to your needs.

Team attendance highly recommended
This is to facilitate successful implementation of the theory learned and establish a common framework to practice in real-life environment.

Certificate of Participation will be awarded.

Phase 1: Company Spend Analysis
A high level and in-depth analysis of expenditure on goods and services. Developing and analyzing your company’s spend profile. Suppliers and necessary information needed for strategic decision making.

Phase 2: Procurement Prioritisation & Selection
A structured approach to prioritizing the items in your spend profile that will identify the critical goods, services and suppliers. This prioritization process is a typical management decision process which will ensure that initiatives are linked with overall company business plans.
Interactive Session: Procurement Prioritising

Phase 3: Setting Up Highly Effective Cross-Functional Procurement Teams
The Total Procurement Process is a broad view of the procurement process that relies on input from everyone in the supply chain. Effective cross-functional teams are hence critical to the success of the Total Procurement Process. A thorough guide on the process of forming a team, whether in one location or elsewhere.

Phase 4: Project Alignment
How to align a newly set-up team to common goals and outcomes of the project. Ensuring that the team is up and running.
Interactive Session: Establishing the bottom line for the project

Phase 5: Strategy Development
Identifying first cut strategies for selected commodities and understanding the supplier’s point of view:

• Procurement Targeting: developing an effective procurement strategy for key goods and services on the basis of the supply risk and the relative total cost
• Supply Risk Analysis: assessing risks arising from the vulnerability of the business to unreliability of supply at the acquisition stage of the procurement process
• Procurement Strategy Enhancement: incorporating the supplier’s point of view

Phase 6: Opportunity Identification
How to identify specific areas for improvement using a series of tools to define the final procurement improvement strategy

• Supply Chain Cost and Value Analysis: modeling the supply chain, identifying all significant activities of the supply chain and identifying the major cost constituents
• Impact of Cost Levers and Value Drivers: reviewing the possible impact of all major variables, which can influence and impact on supply chain costs

Phase 7: Implementation
Establishing the framework for successful implementation and options on how to measure success. A discussion on negotiation issues - informal & formal engagements with suppliers
 

E-COMMERCE IMPLICATIONS TO PROCUREMENT
In today’s procurement environment, E-Commerce is already playing a crucial role.
E-Procurement will be a crucial building block in a company’s business strategy. A discussion on E-Procurement opportunities and it’s corresponding best-practice in today’s world.

PROCUREMENT PROCESS REVIEW
The Total Procurement Process is a proven strategy to reduce costs and improve the value of goods and services you buy. Is your company ready to implement this strategy? A framework for reviewing your company’s current procurement process and organization to help identify areas for improvement; executing the right procurement strategies in order to reduce costs significantly. Knowledge Management as a key support function to optimum procurement management.

COMMERCIAL COMPETENCE DEVELOPMENT
Procurement, technical and management skills needed to facilitate effective cross-functional team interactions. Includes a working model that helps develop staff with commercial competence.

A much sought-after training consultant, Arold De Vries has been actively consulting
and training in the South East Asia region in the areas of Procurement
Improvement and Electronic Procurement. A partial list of in-house training
clients include Petronas Dagangan, Brunei Shell, Alliance Refining Company
Thailand, Alcan Asia Pacific Limited.

Arold  is a Senior Consultant with Shell Services International. With a worldwide, ASEAN and diverse client base, he focuses on helping clients achieve the best value deals from their procurement functions.

He is responsible for the facilitation of contracting and procurement process reviews and procurement savings identification, resulting in the design of new internal systems and “new purchasing” processes. His tasks include design and facilitation procurement excellence training for internal and external audiences. 

Prior to this, de Vries was the Change Implementation Manager for  IT outsourcing where he was the driver for a change implementation plan to enable senior Shell leaders to manage the transition from four in-house IT operations to one external (SSI) provider. His experience includes sales and marketing responsibilities for key accounts in the Shell Group.
 
 

The Shell Group Rated #1 The Shell Group was rated the Most Admired Company in 1998. One of the world’s top 10 largest industrial groups in more than 120 countries, 1700 separate enterprises operating under local management with a global staff of 100,000 employees. $138 billion after tax profits in 96 and assets valued at $110 billion making The Shell Group one of the world’s largest oil majors and one of the world’s top trading organizations. ~Fortune, Oct 1998 Shell Services International The largest service provider to the Royal Dutch/Shell Group. Its programs are thoroughly researched and structured to provide intense and intimate practical training directly applicable to your organization: Pre-course questionnaires Tailored programs to address individual concerns Practical workshops and worked examples Comprehensive course documentation

• Recommended Reading