Date of Training

Sep 13 & 14 - Dubai

Next Date

to be announced soon

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Pricing Structure

Platinum Package send 4 delegates
1020 USD per person

Gold Package send 2 delegates
1080 USD per person

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Strategic Procurement and Inventory Management

Sourcing expenses can be 40% to 70% of the total revenue of companies. With outsourcing, this proportion is on a continuous increase. Local decisions of choosing vendors and cost based purchases can have disastrous long term consequences. Especially for companies having a global business these decisions can create a havoc in the financial statements.

The two day workshop on Strategic Sourcing has been specifically designed to equip decision makers with easily usable tools and thus be able to design a robust sourcing strategy for their firms. The workshop will convince the audience to look at sourcing from

Who Should Attend

ice-Presidents, Directors and Senior Managers of the following departments:

  • Supply Chain Operations

  • Sourcing (Purchasing and Procurement)

  • Logistics

  • Inventory Management

Course Outline

Day One

Supply Chain Management Fundamentals

Before focusing on key elements in supply chain management such as strategic sourcing and inventory management, it’s good for all course participants to refresh their knowledge about the basics and principles of Supply Chain Management.

  • Short history of Supply Chain Management

  • Objectives and key principles ofSupply Chain Management

  • Current state of affairs in Middle East supply chains and the need to achieve a next level of performance improvement

Strategic Sourcing Fundamentals

  • Introduction to Strategic sourcing: Where did it come from? What has it accomplished? Where is it going?

  • How to develop a strategy for sourcing

  • Product category analysis, supplier segmentation and selecting the right type of supplier relationship for each product category

Sourcing Cost Control – Total Cost Approach

This session highlights the importance of selecting and evaluating suppliers not just on price but on the total cost of doing business with them. It introduces the concept of Total Cost of Ownership (TCO)

Group Exercise&Discussion – Total Cost of Ownership (TCO)

This group exercise provides the participants with hands-on practice in applying TCO concept

  • Select and evaluate suppliers not just on price but on the total cost of doing business with them

  • Learn to apply the TCO technique

  • Group discussion

Supplier Integration, Foundation for Cost Control

This session introduces the concept of supplier integration, worker closer with your suppliers on a forecasting, planning and execution level. It also introduces a 3-step implementation approach on how to launch integration efforts with your suppliers

  • Objectives & Benefits of Supplier Integration

  • Initiating the Integration effort

Supplier Performance Measurement and Benchmarking

Continuous assessment of your supplier performance is critical to understand the current capabilities and risk in your supplier network. This requires to have a well-defined set of KPI for supplier performance measurement. Benchmarking is another technique that can be used to evaluate and improve supplier performance.

Best practice 1 in Sourcing – Supply Base Optimization

Supply base optimization is the process of determining the right mix and number of suppliers to maintain

Best practice 2 in Sourcing – Spend Analysis

Spend analysis is the process of providing a holistic visibility of how the compa- ny spends money on its suppliers, in order to better understand, control and optimize all spending (direct, indirect, hidden costs)

Day Two

Sourcing Impact on Financial Performance

Describes the quantitative relationship between sourcing and the direct impact on the financial result of your organization. This is includes techniques such as:

  • Use supply chain metrics (KPI) to capture the overall impact of sourcing on supply chain performance

  • Use Dupont model to link SCM cost drivers to your Profit and Loss statement (P&L) and Balance Sheet (BS)

Group Exercise and Group Discussion – Sourcing Impact

This group exercise provides the participants with hands-on practice in quantifying the impact of sourcing decisions on the overall financial result of the company

  • Introduce Dragon Computer Company Case

  • Analyze the impact of global sourcing options on the overall supply chain cost

  • Show the impact of different sourcing strategies on the overall financial perfor mance of the company

Sales & Operations Planning (S&OP)

S&OP is the key process in the organization to balance service level, cost & inventory in the supply chain

  • Clear operational view of what is S&OP process and how to implement it

  • Quantifiable and soft benefits through the organization

  • Use S&OP to control Sourcing and Inventory levels, and thus company financial results

Basics of Inventory Management

  • Introduction to inventory management

  • Calculating Inventory cost: making trade-offs between key cost components to optimize total inventory holding cost

  • Types of inventory: cycle stock and safety stock

  • Basics of safety stock

Mathematical Inventory Models

Overview of common mathematical models used for inventory management

  • Order policies such as periodic review policy, reorder point policy, hybrid policy

  • Simple excel models Safety stock calculations

  • Aggregation of safety stock and simple excel model to calculate the benefits

Advanced Inventory Optimization

Basics of ABC analysis method and how to apply ABC analysis for inventory management

Case Studies

Two case studies of companies in Middle East that have successfully improved their strategic sourcing, S&OP and inventory management capabilities will be shared:

  • Emirates, Dubai

  • Al Nahdi, pharmaceutical company in Saudi Arabia

 Course Director

Luc Kermers

M.Sc Logistics from Delft University

Luc Kremers (MSc) is Director Consult- ing Asia Pacific with ORTEC, one of the largest providers of advanced planning and optimization software solutions and consulting services, mainly in Logistics and Supply Chain.ORTEC has over 1,750 customers worldwide, 750 employees and offices in Europe, North America, South America and the Asia-Pacific Region.
His areas of expertise includes supply chain reconfiguration, operational improvement, SCOR implementation, strategic benchmarking and technology deployment. In addition to consulting, he is responsible for the Annual Supply Chain Benchmark studies and the IT Solutions development. In the past few years he has written various SCM-arti- cles and authored and delivered numerous workshops and forums in Asia about Supply Chain Management.

Luc has fifteen years of supply chain improvement experience within various industries in Asia at strategic and operational level. He has worked with a wide range of clients such as Toyota, Saint Gobain, UPM, Fonterra, British American Tobacco, Mengniu, Shanghai Electric, Bayer MaterialSci- ence,Nuplex, Orchard Marine Logistics and Sembcorp Logistics in the area of supply chain reconfiguration, opera- tional improvement, SCOR implemen- tation, strategic benchmarking and technology deployment.

In the past few years he has held numerous workshops and trainings, presented in leading conferences in Asia Pacific and written various articles about SCM. He has been a member of the Metrics Committee of the Supply Chain Council and contributed to the metrics in SCOR version 7.0 and 8.0. He received his Masters degree in Logis- tics in 1996 from Delft University in the Netherlands.


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