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ONLINE: Purchasing (SCM902)


    A few decades ago, the Purchasing function in an oil & gas company was seen only as a Procurement function, being in charge of supplying goods and services defined by the end user. Over the years, the Purchasing function has proven to be a powerful leverage of savings and cost reduction.
    In the energy sector, where production sites are spread everywhere and sometimes in very isolated areas, Purchasing & Procurement have also the mission to secure the supply of high-tech equipment which will travel all over the world before being installed offshore or in remote areas.
    These two objectives - cost saving and security of supply - make the Purchasing & Procurement process a strategic function and an essential segment of the Supply Chain as it drives the other steps of the chain.

    Course Structure: 8 modules of max. 2 hours each, delivered over 4 days
    Each day will consist of 2 x 2 hour modules including a 30 min. break in between.

    Course Level: Skill
    Duration: 4 days
    Instructor: Paul Adrian or Pierre Lhermitte

    Designed for you, if you are...

    • This course is primarily designed for Purchasers or Head of Purchasing.
    • It is also beneficial for any actor of the Supply Chain: Expediter, Stock Controller, Cost Controller, Transit Agent.
    • It is also recommended to actors of the Logistics function who want to enlarge their domain of knowledge of the Supply Chain.
    • Finally, the Technical Administrators from the Technical Departments may also find this course beneficial in order to facilitate their interaction with the Purchasing Department.

    How we build your confidence

    • Live instructor-led training
    • This course will give you a strong theoretical background through a solid and meticulous documentation you will be able to use in your working position as a reference
    • The course will also make extensive use of case studies and exercises

    The benefits from attending

    Upon completion of this course participants will:

    • Have a thorough understanding of the Supply Chain and the way to optimise its efficiency through recommended practices and exercises.
    • Understand the interaction between the different links of the Chain.
    • Purchasers will have enhanced their strategy and developed their negotiation capabilities through the DIDACTIC negotiation method.


    Definition of the Supply Chain and Procurement functions description
    • The Supply Chain in a manufacturing industry: Definition, purpose and example.
    • The Supply Chain in the upstream industry: Definition, purpose and example. Differences and similarities between both supply chains.
    • Procurement functions description: Purchasing - expediting - inspection - transit/shipping - material management: mission, objectives, main tasks, job description.

    The Purchasing Process
    From the identification and expression of a need to the evaluation and follow-up of vendor's performance, this module is a detailed study of the Purchasing Process within the loop of the continuous improvement. Golden rules give a frame of Good Practices.
    • Golden Rules & PDCA cycle: 7 Golden Rules in Purchasing - PDCA cycle applied to purchasing process
    • Schedule and define the needs: Internal & external lead time - definition of the “right” need: SQSCI criteria - SOR/SOW - technical/functional specifications
    • Select a supplier: Qualification of vendor - category management - OEM - bidder’s list.
    • Purchase: Consultation - evaluation - cost structures - clarification - negotiation - award - purchasing documents
    • Follow-up and receive: Expediting & reception of the purchase order
    • Evaluate vendor’s performance: Vendor’s evaluation process - vendor’s progress plan

    The Purchasing Strategic Tools
    This module defines first what are the principles of a sustainable purchasing process with some guidelines on how to integrate these principles into a purchasing policy.
    In the following sections, we will study the tools allowing the purchaser to define a strategy: The Market Analysis, the segmentation of the market into categories, the vendor's strategy and the types of contractual agreement the buyer will put in place depending on the defined strategy.
    • Sustainable Purchasing: Sustainable purchasing definition & principles. Examples of actions in sustainable purchasing - The standards in CSR - compliance and ethics.
    • Category management: Category management definition - role of the category manager.
    • Market analysis & vendor’s strategy: SWOT analysis - market analysis - the 5 Porter Forces - category & vendor strategy.
    • Frame Agreement & Frame Contract: Definition - comparison - benefits and constraints - goods covered by the Frame Contract
    • Project’s Procurement: JIP33: An initiative for standardisation by IOGP




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