Warehousing and Procurement

Building Supplier Segmentation Strategies by Importance and Risk

A senior-level treatment of supplier segmentation, focused on what changes outcomes.

  • 5training days
  • 4modules
  • 8sessions
  • 32topics
View packages and pricesCourse outline
Building Supplier Segmentation Strategies by Importance and Risk
5days

About the programme

Course Overview

Single sourcing on supplier segmentation looks efficient until the day it is not. Warehouse performance on the practice within procurement and supply operations is decided by layout and discipline long before technology. Participants come from operational and oversight roles, and both perspectives on this part of procurement and supply operations are used deliberately. The version of supplier segmentation described in the manual and the version practised on the floor tend to diverge over time. Practitioner evidence points the same way: this area of procurement and supply operations improves fastest where responsibility for it is named and owned. The course gives participants a defensible structure for this aspect of procurement and supply operations and the judgement to adapt it. Exercises escalate in difficulty, ending with the ambiguous situations that make supplier segmentation hard in practice. The programme builds the judgement to know which parts of this part of procurement and supply operations to standardise and which to leave flexible. The course ends by identifying what the participant will stop doing to make this strand of procurement and supply operations sustainable.

Expected Learning Outcomes

  • Segment spend on supplier segmentation and apply a sourcing strategy proportionate to risk and value.

  • Negotiate payment terms on supplier segmentation that improve cash without damaging supply.

  • Set inventory policy for supplier segmentation: reorder points, safety stock and review cycles.

  • Agree the first three actions on supplier segmentation that will be taken on returning to work.

  • Adapt recognised practice on supplier segmentation to local constraints without hollowing it out.

  • Prepare the audit trail for every award decision under supplier segmentation.

  • Diagnose whether a problem in supplier segmentation is one of design, resourcing or discipline.

Who Should Attend

  • Operations staff who encounter the consequences of supplier segmentation directly.

  • Contract managers administering agreements covering supplier segmentation.

  • Engineering and maintenance staff specifying requirements for supplier segmentation.

  • Internal auditors examining controls over supplier segmentation.

  • Analysts producing the data on which decisions about supplier segmentation rest.

  • Procurement and category managers responsible for supplier segmentation.

Course Modules

Open any module to see its sessions and topics.

01

Supplier segmentation: customs, documentation and cross-border movement

2 sessions · 8 points

Session 1Choosing the right sourcing approach for supplier segmentation

  • Review the audit trail for the last three award decisions on supplier segmentation.
  • Validate claimed savings on supplier segmentation against actual invoiced spend.
  • Review whether supplier segmentation is aligned with the objectives of the supply function.
  • Identify single-source dependencies in supplier segmentation and cost the alternatives.

Session 2Releasing working capital trapped in supplier segmentation

  • Segment spend on supplier segmentation by value and supply risk before choosing an approach.
  • Establish who is informed, consulted and accountable in supplier segmentation.
  • Set the consequence for failing service levels on supplier segmentation, and apply it.
  • Write down the assumptions underpinning the approach to supplier segmentation.
02

Supplier segmentation: supplier evaluation, award and contract terms

2 sessions · 8 points

Session 1Making supplier performance on supplier segmentation mean something

  • Identify slow-moving and obsolete stock inside supplier segmentation and decide its fate.
  • Set escalation thresholds for supplier segmentation that work out of hours.
  • Establish the boundary of supplier segmentation and record what sits outside it.
  • Calculate reorder point and safety stock for each item in supplier segmentation.

Session 2Reviewing supplier segmentation when nothing has gone wrong

  • Close out actions on supplier segmentation rather than leaving them open indefinitely.
  • Decide what will be stopped to create capacity for supplier segmentation.
  • Check that supplier segmentation still works when volumes rise unexpectedly.
  • Assess supplier financial health for critical elements of supplier segmentation.
03

Supplier segmentation: inventory policy and working capital

2 sessions · 8 points

Session 1Who answers for supplier segmentation, and to whom

  • Confirm that contractual obligations around supplier segmentation are understood.
  • Write the specification for supplier segmentation so two suppliers would price it the same way.
  • Define the trigger that would require supplier segmentation to be redesigned.
  • Check the delivery terms and customs classification applied to supplier segmentation.

Session 2The approval control on supplier segmentation that prevents fraud

  • Evaluate supplier segmentation on total cost of ownership across the full life.
  • Map the handovers in supplier segmentation between functions and secure them.
  • Set the stock count cycle for supplier segmentation and act on discrepancies.
  • Confirm traceability from supplier to point of use for supplier segmentation.
04

Supplier segmentation: specification, requirement and demand

2 sessions · 8 points

Session 1Closing out supplier segmentation and capturing what was learned

  • Map the physical flow of supplier segmentation through receiving, storage and dispatch.
  • Record the rationale for each significant choice made about supplier segmentation.
  • Prepare the summary of supplier segmentation that senior management will read.
  • Agree the escalation route when supply of supplier segmentation is disrupted.

Session 2Documentation and customs treatment for supplier segmentation

  • Build the internal briefing that explains supplier segmentation to those affected.
  • Apply ethical and environmental criteria to supplier selection in supplier segmentation.
  • Plan the sequence in which improvements to supplier segmentation will be introduced.
  • Rank the weaknesses in supplier segmentation by consequence rather than by ease of fixing.

Choose the package that suits you

Silver Package

At least 3 people

USD1,250
  • Workshop or Program Participation
  • Airport Transfers
  • Customized Badge
  • Expert Mentorship (Private Sessions)
  • Supervision & Secretarial Services
  • Accredited Certificate of Participation
  • Complete Training Kit
  • Coffee Break
  • Closing Ceremony

Gold Package

At least 3 people

USD1,850
  • 5-night stay in a 5-star hotel
  • Workshop or Program Participation
  • Airport Transfers
  • Customized Badge
  • Expert Mentorship (Private Sessions)
  • Supervision & Secretarial Services
  • Accredited Certificate of Participation
  • Complete Training Kit
  • Coffee Break
  • Closing Ceremony

Complete your registration

We will contact you within one business day to confirm.

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