Module 1 – Introduction, Six Dimensions, Status, SWOT Task
• Introductions
• Purpose
• Workbook
• Purchasing Six Dimensions / Challenges
• Status
• SWOT Task
Introduction Slide 1
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Individual & Purchasing Team Improvement
• Provide education on Supplier Relationship Management in order to support Supply side career development plans and team skill levels & effectiveness.
• Identify Supplier profit improvement opportunities, ensuring they are aligned with the business strategy and priorities.
• Develop the learning interactively in the workshop, so that there is ownership & applicability both internally within and externally with suppliers.
Business Improvement
• Further improve supply side profit and cash, respecting AQSCI (Supply, Quality &
Regulatory, Service, Cost and Innovation) principles, thereby increasing Supply credibility and reputation with Leadership, Employees, Customers, Suppliers and Stakeholders.
Introduction Slide 2
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Supplier Relationship Management Workshop –
Introduction Slide 3
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Time
0830 – 1000
1015
– 1115
1130
– 1230
Day One – Session
Module
1. Introductions, Purpose,
Workbook, 6 Dimensions,
Challenges, Check List
2. Business and Purchasing
Cost (P&L) and Cash
(Balance Sheet)
3. Current and Improved
Source Planning and Supplier
Management Process. Six
Sigma / Lean
1330
– 1430
4. Purchasing / Sourcing /
Project Team Development
Who
Time
0830
– 1000
1015 – 1130
1145 – 1230
1330 – 1430
Day Two – Session
Module
6. Sourcing Strategy &
Selection, Standardisation,
Leverage, e Auction
7. Negotiation skills & practice. Agreement formation and implementation.
8. Supplier Case Study and how to improve current and future year (s) results.
Sales & Marketing
Strategies.
9. Supplier Management, and Benefits Tracking.
1445 – Close
Introduction Slide 4
5. Data Gathering, RFI, RFP,
Market Evaluation, Supplier
Scorecards
1430
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– Close
10. SRM Plans.
Slide / Workbook review
Who

Paul Warrick – The Delos Partnership Limited
Through global purchasing leadership roles with ICI PLC, Elementis PLC, Lonza AG, Crown Cork & Seal and Georgia
Pacific, Paul has acquired substantial Strategic Purchasing, Supply Chain and Business expertise and has a career track record of delivering outstanding supply side value Improvement.
He has complete spend category and project management expertise and has recently led major supply side improvement projects on Strategic Sourcing of Raw Materials with volumes in excess of 500,000 tonnes, Inventory
Reduction, Global Logistics & E Commerce.
Paul wrote the Delos Procurement Masterclass, containing all of the leading edge procurement & supply tools and techniques, which has been delivered to numerous blue chip businesses. The Masterclass is based on both first hand global Purchasing experiences in the Chemicals, Packaging, Paper, Coatings, Biopharmaceuticals, Adhesives & Metal industries and the Delos approach. This recognises that the drive towards effective procurement will only be achieved through engagement of all of the people across the functions – from Sales & Marketing providing accurate forecasts, to
Development innovating in a way that is integrated within an effective global Procurement Strategy, to working closely with Operations, Supply Chain and Finance to ensure P&L spending and Balance Sheet cash & assets are optimized.
Paul has a chemistry & polymer science degree, is Six Sigma and World Class Manufacturing trained and has worked with most of the big five and leading procurement consultants. Procurement support and advice has been delivered to manufacturing, service and consumer companies.
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Introduction Slide 5

Mr. X – The Delos Partnership Limited
Introduction Slide 6
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Introduction Slide 7

SRM
DEALMAKING
STRATEGIC SOURCING
PROCESS & TOOLS
COST, CASH & SPEND
LEADERSHIP & PEOPLE
Introduction Slide 8
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6 Supplier Management – Relationships & Results
5 Negotiation & Agreements – Skills & Type
4 Strategic Sourcing – Process & Capability
3 Process & Tools – Awareness & Use
2 Cost, Cash & Spend – Management & Control
1 Supply & Procurement – Integration & Leadership

The Cost, Cash, Supply Chain & Inventory Challenge
• Inflation Up – Oil & Energy, Asia Demand, Market Consolidation
• Global Supply Chains – Asia Outsourcing by Europe & US
• Customer Expectations – RFTQ100%OTIF, Faster, Cheaper
• Shareholder Demands – More Profit, Higher Dividends
• Excess Inventories – Slow Moving / Obsolescence
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Introduction Slide 9

Leadership & People – Key Areas
• Purchasing Vision and Strategy – integrated with the Business
• Internal customer / business “Buy – In”
•
Purchasing Capability & Management System
Cost, Cash & Spend Focus – Key Areas
•
Focus on all key spend categories & suppliers
•
P&L, Balance Sheet and Expense coverage
• Inflation (Cost) & Project Management
Process & Tools – Key Areas
•
Integration with the ERP system / report
• P2P
• Sales Process (demand/forecast) understanding / management
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Introduction Slide 10

Strategic Sourcing – Key Areas
•
Managed supply risk on key strategic / critical products & services
•
Innovation (New Product/New Source) Project involvement
• Standardisation / Dual Sourcing + Leverage
Dealmaking – Key Areas
•
Complete Agreement coverage (CDA to Supply/Service Level)
•
Negotiation excellence
•
Clear terms, price lists and optimised invoice / payment
Supplier Management / Benefits Tracking – Key Areas
•
Complete supplier mapping / management
•
Self Monitoring suppliers (RFTQ100%OTIF) & Finance integrated savings system
•
Strategic Supplier partnerships
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Introduction Slide 11

• No evidence of supplier partners in each business / region / plant
• No evidence of Supplier Management / Low RFTQ & OTIF
• Supply problems
• No evidence of agreements / price lists
• High Supply side inventories
• No recognition of the importance of Strategic Sourcing
• Limited bargaining power (sole source & size)
• No Standard Sourcing Process
• No Shared Service Centre / P2P system.
• Focus on Price / Cost only
• Uncompetitive prime materials pricing
• No clear Leadership – No Goals/Focus – Poor People – Not Lean!
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Introduction Slide 12

You have been asked make a 10’ presentation to the Board on SRM
What went well – Where are the problems – Where are the opportunities ?
Costs Reduced 
Fragmented Supply Base 
Supply problems 
No Standardization of Products or Services 
No understanding of / support for SRM 
Internal battles and politics 
Supplier Quality improvements 
Service improvements 
High Emergency Transport Costs 
Excess Stocks 
Innovation & Plants doing their own thing 
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Introduction Slide 13

Introduction Slide 14
DELOS PROCUREMENT ASSESSMENT
Public Course
–
Overview improvement opportunities on Spend, Assets and Cash Flow
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SRM – Value Gap Analysis
The Delos Partnership has assessed procurement capability and the value gap in businesses ranging from large multinationals through to S.M.E.'s, across all of the spend & territory map and in many market segments. Procurement is now firmly established as an essential part of Supply Chain and plays a vital role in global sourcing, supplier relationship and cost management strategies. We assess the capability of business procurement and how effective the business is in leveraging its cost and spend on behalf of its customers to support of the business vision, strategies and goals. We assess performance against the six dimensions of Procurement which cover leadership and people, internal and external customer performance, how spend & cost is managed, process capability, strategic sourcing, leverage, dealmaking and supplier relationship management. This provides an independent and quantitative measure of how much year on year net total value improvement is being delivered versus agreed goals & benchmarks and improvement opportunities in business profit , cash and service.
Bronze Silver Silver Gilt Gold Platinum
Scor e
Benchmark
Leadership & People (Management System)
Cost, Cash and Spend
Process and Tools
Strategic Sourcing
Dealmaking
Silver
Silver Gilt
Gold
Platinum
= Developing
= Competent
= Advanced
= Expert
Introduction Slide 15
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Introduction Slide 16
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