PRO-D Supply Management (Procurement) Track

Students who successfully pass all 6 modules are issued with a digital Certificate of Achievement from the International Learning and Training Center of Missouri State University.

Benefits of Attending

Upon completion of Module 1: Fundamentals of SRM participants will gain knowledge of:

• Optimizing the Supply Base: Learn to rationalize the supply base through activities like spend segmentation, leveraging reduction, and cultivating key relationships using the ABC approach.
• Benefits and Risk Reduction: Understand the benefits of optimized supply base, including reduced risk, lower Total Cost of Ownership (TCO), pursuit of value-added activities, and streamlined Supply Chain Management (SCM).
• Supplier Segmentation: Segregate suppliers into Transactional, Collaborative, or Strategic categories using Approach 1, and further categorize them as Pre-Qualified, Approved, Certifiable, Certified, Preferred, Partnerships, or Disqualified.
• Supplier Relationship Management (SRM) Strategies: Engage in supplier segmentation through four progressive steps and review eight key ways to maintain good supplier relationships, from training and education to timely payments.
• Additional Segmentation Approaches: Segregate suppliers into Basic, Operational, and Business Strategic categories using Approach 2.
• Supplier Innovation: Explore how supplier innovation, with inputs from both customer and supplier, can contribute to effective SRM.
• Diversity Programs: Implement diversity programs, including Minority and Women Business Enterprises (MWBEs) and/or HUBs, as a social or community responsibility or in compliance with customer and governmental requirements.
• Supply Chain Mapping: Perform supply chain mapping, creating a visual representation, with examples and a review of the SCOR (Supply Chain Operations Reference) model.
• Financial Evaluations: Conduct detailed financial evaluations on suppliers, focusing on the Balance Sheet, Income Statement, and key financial ratios.
• Quality Evaluations: Perform detailed quality evaluations on suppliers, assessing incoming quality, testing capability, Statistical Process Control (SPC), and Total Quality Management (TQM).
• Overall Supplier Organization Evaluations: Assess overall supplier organization, emphasizing top management commitment, technical competence, and technical support.
• Supplier Labor Evaluations: Evaluate supplier labor, considering skill sets, training, and industrial relations policies.
• Performance Evaluations: Conduct overall performance evaluations, focusing on lead/cycle time reduction, delivery, capacity, and productivity.
• Importance of Good Housekeeping: Understand the importance of good housekeeping in supplier relationships, emphasizing organization and order.
• Supplier Exit Strategy: Learn to create a comprehensive Supplier Exit Strategy before the relationship begins, considering internal and external factors and associated risks.

Upon completion of Module 2: 21st Century Negotiations, participants will gain knowledge of:

• SWOT Analysis: Conduct a comprehensive SWOT analysis, considering both the buyer's and seller's strengths, weaknesses, opportunities, and threats.
• Porter's Five Forces Model: Incorporate Dr. Michael Porter's Five Forces Model to assess whether it is a buyer's or seller's market.
• Negotiation Preparation: Understand the importance of effective negotiation preparation and identify key factors for successful preparation.
• Supplier Position Analysis: Analyze the supplier's position, considering factors such as the desire for and certainty of a contract, available options, skill levels, and cost modeling (referencing the Applications in Cost Modeling course).
• BATNA Implementation: Incorporate the Best Alternative To A Negotiated Agreement (BATNA) concept in negotiations.
• Setting Negotiation Objectives: Determine and set negotiation objectives that contribute to the overall theme of the negotiation.
• Skill Sets of Good Negotiators: Review 22 skill sets essential for becoming a proficient negotiator.
• Negotiation Outcomes: Compare and contrast the three possible outcomes of negotiations.
• Key Tactics: Incorporate key negotiation tactics, including the Caucus (time-out), Challenging The Deadline (e.g., immediate price increase), Missing Person (appealing to a higher authority), BAFO – Best and Final Offer (take-it-or-leave-it), and the Bogey (an appeal to the emotion of the other party).
• Special Negotiation Situations: Review two special negotiation situations involving Historically Underutilized Businesses (HUBs) and Consortiums (different buying companies joining to leverage). 
• Negotiation Plan Creation: Develop a detailed negotiation plan, focusing on the Introductory Summary, Particulars, Procurement Situation, and Negotiation Summary.

Upon completing Module 3: Managing Risk in the Supply Chain participants gain knowledge of:

• Risk Management Definition: Understand the definition of risk management and differentiate between the reduction, elimination, and mitigation of risk.
• Five-Step Approach: Follow a comprehensive five-step approach to risk management, covering scope, impact assessment, alternative identification, planning, and readiness.
• Supplier Risk Profiles: Create supplier risk profiles, focusing on factors such as relationship quality, performance, personnel, environmental considerations, and financial health.
• Comparison of Risk Categories: Compare and contrast the six risk categories in the supply chain: financial, operational, reputation, legal, environmental, and technical.
• Law of Agency and Legal Counsel Involvement: Apply the Law of Agency and understand when to involve legal counsel in supplier risk matters.
• Review of Legislation: Review key international restriction laws, including the Foreign Corrupt Practices Act, the International Anti-Bribery Act, Anti-Boycott Legislation, and the Export Administration Act.
• Sarbanes-Oxley (SOX) Compliance: Review the Sarbanes-Oxley (SOX) legislation and its application to customer-supplier relationships.
• Product Life Cycle (PLC) Risk Assessment: Differentiate the five phases of the Product Life Cycle (PLC) and understand how to assess risk in each phase.
• Risk Effect of Hazardous Waste: Understand the risk associated with hazardous waste, including a review of the Resource Conservation and Recovery Act (RCRA) that categorizes various types of hazardous waste.
• Contract Language for Hazardous Waste: Develop contract language that minimizes the risk associated with hazardous waste violations.
• Audit Issues: Review key audit issues, including reporting and certification, to ensure compliance and risk management.
• Prevention of Sexual Discrimination or Harassment: Minimize the risk associated with sexual discrimination or harassment of employees by understanding key compliance laws.
• Response to Employee Discrimination Violations: Understand how to respond to employee discrimination violations and manage associated financial risks from lawsuits.

Upon completing Module 4: Applications in Cost Modeling course, participants will gain knowledge of:

• Budget Understanding: Understand the four-fold purpose of a budget, including obtaining pre-approved funding, setting standards, monitoring, and controlling expenses.
• Types of Budgets: Compare and contrast various types of budgets, such as Zero-Based, Line-Item, Capital, and Flexible budgets.
• Cost Avoidance, Reduction, and Containment: Differentiate between cost avoidance (part of the increase), reduction (cost goes down), and containment (not spending more than the previous period).
• Cost Modeling and Value Analysis/Engineering: Understand how Cost Modeling relates to Value Analysis and Value Engineering.
• Principles of Cost Modeling: Describe the five principles of Cost Modeling.
• Costs of Quality and Inventory: Review the costs of quality and costs associated with inventory.
• Spend Analysis: Define a Spend Analysis and engage in a five-step model.
• Total Cost of Ownership (TCO): Define TCO and its three categories: Pre-Acquisition, Main-Acquisition, and Post-Acquisition.
• Cost Driver Framework: Review factors that make up the Cost Driver Framework.
• Cost Types vs. Behaviors vs. Decisions: Differentiate between cost types, behaviors, and decisions.
• Principles of Direct, Fixed, Variable, and Mixed Costs: Compare and contrast principles of Direct, Fixed, Variable, and Mixed costs.
• Life-Cycle and Activity Based Costing: Review and apply both Life-Cycle and Activity Based costing.
• Should Cost and Target Cost: Define Should Cost and Target Cost, including mathematical calculations.
• Overhead Allocation Formulas: Review and apply three Overhead Allocation formulas.
• Supplier Profitability Ratios: Compare and contrast key supplier profitability ratios.
• Rolling Out Techniques to Suppliers: Understand how to roll out these techniques to suppliers, including the use of Reverse Marketing and the Customer/Supplier Symposium.

Upon completion of Module 5: Principles of Contracting course, participants will gain knowledge of:

• Key Elements of a Contract: Review the four key elements of a contract: offer and acceptance, consideration, competent parties, and a legal purpose.
• Uniform Commercial Code (UCC): Define the UCC and understand how its language should mirror the contract.
• Statute of Frauds: Review a key UCC provision, the Statute of Frauds, and its application to written vs. oral contracts.
• Purchase Order and Contract Relationship: Establish the relationship between the purchase order and the contract.
• Letters of Intent: Review the two types of Letters of Intent.
• Price Type Contracts: Compare and contrast Price type contracts, including Firm Fixed Price, Fixed Price with Adjustments, and Fixed Price with Incentives.
• Cost Type Contracts: Compare and contrast Cost type contracts, including Cost with Fixed Fee, Cost with Award Fee, and Cost Plus Incentive Fee.
• Indefinite Delivery Contracts: Define Indefinite Delivery type contracts and identify situations where they would be applicable.
• Service Level Agreements (SLAs): Define Service Level Agreements and understand situations where they would be applicable.
• Key Terms and Conditions (T’s & C’s): Review key T’s & C’s, including Intellectual Property, Indemnification, Limitation of Liability, Reservation of Rights, and Force Majeure.
• UCC Provisions on Remedies: Compare and contrast UCC provisions on buyer’s remedies vs. seller’s remedies in the case of a breach.
• Teeth Clauses: Develop teeth clauses like Price Change, Volume Rebates Based On Business Growth, and Mutual Cost Reduction Programs.
• Contract Administration Objectives: Review the five key objectives of Contract Administration.
• Work Control and Contract Closeout: Understand the role of Work Control, compliance, and contract closeout based on Suspension (temporary), Conclusion (for cause or convenience), or Termination (natural life).
• Dispute Resolution Methods: Compare and contrast methods for dispute resolution, including mediation, arbitration, or litigation.
• Rolling Out Techniques to Suppliers: Understand how to roll out these techniques to suppliers, ensuring effective communication and collaboration.

Upon completion of the Module 6: Implementing Strategic Sourcing course, participants will gain knowledge of:

• Key Strategies: Develop and implement five key strategies in Operational (continuity of supply), Financial (accurate budgeting), Marketing (meeting customer demand), Supply (commodity direction), and Technology (optimization).
• Supply Strategy Rollout: Roll out the Supply strategy by developing the Risk vs. Profit matrix, considering factors like competition and procurement categories (A, B, or C).
• Econometric Models: Incorporate Econometric Models to analyze the correlation between pricing (dependent variable) and cost (drivers).
• Change Management: Implement change management, addressing barriers to positive change in Strategic Sourcing.
• Technology Tools: Use technology tools such as Spend Analysis, Reverse Auctions, and Performance Measurements as modules of the current ERP system or as add-on packages.
• Stakeholder Engagement: Form key stakeholder groups, considering identification, importance, relationships, and involvement.
• Stakeholder Alignment: Achieve stakeholder alignment for buy-in, focusing on outcomes, strategy development/implementation, and results-tracking.
• Steering Committee Facilitation: Facilitate a "steering committee" for decision-making and executing action items related to Strategic Sourcing.
• Spend and Supplier Leverage: Effect spend and supplier leverage through process improvements, innovation, and prioritization of projects.
• Make-vs-Buy Decisions: Participate in make-vs-buy decisions, particularly in justifying outsourcing or offshoring moves in the context of outside supply.
• Supply Chain Segregation: Segregate supply chain focus in Strategic Sourcing based on the target market, product features, customer service, and/or customer selection.
• Roll-out Plan Development: Develop an effective roll-out plan for Strategic Sourcing, ensuring a systematic and organized implementation process.