ADR International ADR s Online Supply Chain Academy (OSCA) elearning Courses

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1 Learning ADR International ADR s Online Supply Chain Academy (OSCA) elearning Courses 2016 ADR International

2 Contents About ADR s Online Supply Chain Academy (OSCA) 3 The Strategic Sourcing Process 4 ADR s elearning module alignment to the Strategic Sourcing Process 5 Module 1 - Project Scoping 6 Module 2 - Stakeholder Engagement 7 Module 3 - Business Needs Analysis 8 Module 4 - Opportunity Analysis 9 Module 5 - Portfolio Analysis 10 Module 6 - Pace and Supplier Price Analysis 11 Module 7 - Risk Management 12 Module 8 - Financial Analysis (Part 1) 13 Module 9 - Financial Analysis (Part 2) 14 Module 10 - Supply Market Analysis 15 Module 11 - Sourcing Strategy Development 16 Module 12 - Deconstructing Price 1 Ask, Harmonization and Volume Leverage 17 Module 13 - Deconstructing Price 2 Comparative Analysis and Price List Analysis 18 Module 14 - Deconstructing Price 3 Creating Competition 19 Module 15 - Deconstructing Price 4 Should Cost Analysis 20 Module 16 - Deconstructing Price 5 Could Cost Analysis 21 Module 17 - Competitive Bidding 22 Module 18 - Supplier Evaluation and Selection 23 Module 19 - Sourcing Recommendation 24 Module 20 - Contracting for Performance 25 Module 21 - Supplier Relationship Optimization and Management ADR International

3 About ADR s Online Supply Chain Academy (OSCA) OSCA is a collection of online learning courses designed and developed by ADR that provides a substantive learning foundation for developing any individual or organization s strategic sourcing capability. It can be used standalone or combined with classroom training as part of your Academy. Each module contains a variety of learning methods such as case studies, case scenarios, practice-while-learning and checkpoint quizzes. The modules include templates that can be downloaded and used in day to day work activities. At the end of each module there is a 20 question quiz. A score of 70% needs to be achieved to be qualified as a passing score. Once the quiz is completed and passed, a certificate of successful completion for each module is provided. Each course is 65 minutes long and qualifies for one Continuing Education Hour (CEH). OSCA is fully SCORM compliant therefore will be able communicate with your Learning Management System if required ADR International

4 The Strategic Sourcing Process ADR International

5 ADR s elearning module alignment to the Strategic Sourcing Process Strategic Sourcing Process Description ADR s Aligned OSCA Modules Step 0 Kick Off 1. Project Scoping Step 1 Step 2 Business Needs Analysis Category Profiling 2. Stakeholder Engagement 3. Business Needs Analysis 4. Opportunity Analysis 5. Portfolio Analysis 6. Pace and Supplier Price Analysis 7. Risk Management 8. Financial Analysis (Part 1) 9. Financial Analysis (Part 2) 10. Supply Market Analysis Step 3 Sourcing Strategy Development 11. Sourcing Strategy Development Step 4 Sourcing Event 12. Deconstructing Price (1): Ask, Harmonization and Volume Leverage 13. Deconstructing Price (2): Comparative Analysis and Price List Analysis 14. Deconstructing Price (3): Creating Competition 15. Deconstructing Price (4): Should Cost Analysis 16. Deconstructing Price (5): Could Cost Analysis 17. Competitive Bidding Step 5 Supplier Evaluation and Selection 18. Supplier Evaluation and Selection Step 6 Sourcing Recommendation 19. Sourcing Recommendation Step 7 Sourcing Recommendation Implementation 20. Contracting for Performance Step 8 Supplier Management 21. Supplier Relationship Optimization and Management ADR International

6 Module 1 - Project Scoping Prior to commencing a category management or strategic sourcing project, it is essential to determine the scope of the activity. Scoping is about setting the strategic sourcing project boundaries: Category definition sub-groups, functionality and capability scope Business units to be involved - local, regional, global Value of spend ($) to be considered Duration of contract / commitment Geography of supply market to be considered(local, regional, global). To maximize benefit and minimize costs it is essential to establish the appropriate scope for a sourcing project Scoping the project will help you to identify the investment required time / resource / costs There is usually an Ideal scope for any sourcing project (one which the duration, geographic extent and business involvement maximizes the buyer s potential to extract value from the supply base). Understand the need for scoping in a category management or strategic sourcing project Understand the key steps in Scoping Identify the project boundaries Agree category / sourcing objectives and metrics Determine the ideal scope Spend Analysis Template Scoping Template Category Mapping Template Problem definition Template Project Plan Template Force Field Analysis Template Introduction to Scoping: Defining a category or sourcing project The objectives of scope development Introduction to the scoping process The outcomes of scoping Data Gathering and Analysis Spend data sources and spend analysis Contract identification and analysis Sourcing history analysis Internal sourcing environment analysis (including P2P) Category mapping Setting Category or Sourcing Project Measures Making a problem definition statement Creating project success measures Project Initiation Planning the category or sourcing project Gaining commitment for the category or sourcing project Communication options (e.g. storyboards, road shows) Managing business case projects Launch ADR International

7 Module 2 - Stakeholder Engagement A key element of successful category management is the management of key stakeholders who strongly influence the Strategic Sourcing process. It is crucial to the success of any sourcing exercise that stakeholders are fully engaged and are continuously involved in the process so that maximum benefit is realized for the business. Engaging and managing stakeholders can often be challenging for your sourcing project. Identify the stakeholders most influential to your sourcing projects Explain the supplier engagement process and its key steps Understand how to map and plan effective engagement Apply principles to engage more effectively with stakeholders Stakeholder Map template Team Charter template Introduction to Stakeholder Engagement Defining a stakeholder Case study Introduction to the Stakeholder Engagement process Stakeholder Identification Factors to consider when identifying stakeholders Stakeholder mapping The Stakeholder influence map Quadrant analysis Stakeholder Analysis and Planning Introduction to analysis and planning Team charter Introduction to RACI Rational and emotional drivers Communication planning Stakeholder Engagement Principles of effective stakeholder engagement Stakeholder wants and needs Building rapport and communication with stakeholders ADR International

8 Module 3 - Business Needs Analysis Business Needs Analysis (BNA) is a methodology used to help identify and agree sourcing requirements on a category by category basis. This is a foundation for effective supplier evaluation, selection and on-going supplier management. Define the business needs in a sourcing process and the key elements to be included Explain the key steps in developing a business needs analysis Understand the information required and how to build an effective Business Needs Analysis Apply the model to supplier evaluation, selection and ongoing sourcing activity Business Needs Analysis worksheet Introduction to Business Needs Analysis Definition of Business Needs Analysis Benefits of Business Needs Analysis Business Needs Analysis process overview Understanding Business Needs Analysis What is Business Needs Analysis Understanding legal and regulatory needs Understanding quality, delivery, cost and service needs Understanding category innovation needs How to develop a Business Needs Analysis Engaging with stakeholders to develop the needs Challenging and adaptation of specification Reviewing strategy and functional plans Prioritizing with stakeholders MoSCow Model How to apply Business Needs Analysis Requests for information Business Needs Analysis and Supplier Evaluation Applying Business Needs Analysis in the sourcing process ADR International

9 Module 4 - Opportunity Analysis Opportunity Analysis (OA), is a technique to assist Strategic Sourcing and Procurement to systematically identify cost savings opportunities for each category of spend, establish the sequence in which cost savings opportunities should be acted upon, support cost / benefit analysis and support bottom up savings target setting as an alternative to imposing unsupported savings targets. Introduction Introduction to Opportunity Analysis Understanding Opportunity Analysis What is Opportunity Analysis? Uses of Opportunity Analysis Define Opportunity Analysis and related terminology Explain how the Opportunity Analysis technique works Explain uses and benefits of Opportunity Analysis Confidently apply Opportunity Analysis to your spend Opportunity Analysis template Using Opportunity Analysis Outlining the Opportunity Analysis technique Drivers of price flexibility Drivers of source flexibility Indicators of past effort and expertise applied Using the OA matrix Recommendations for success ADR International

10 Module 5 - Portfolio Analysis Portfolio Analysis (PA), is a tool that has become a cornerstone of effective strategic sourcing and supply management best practice. PA is a planning and decision support tool that will help you to better understand and manage purchases of goods and services. Introduction to Portfolio Analysis Defining Portfolio Analysis Understanding Portfolio Analysis The uses of Portfolio Analysis Portfolio Analysis in practice Understanding market difficulty and expenditure Define Portfolio Analysis and key terminology Explain the structure of the Portfolio Analysis model Understand the logic underpinning the Portfolio Analysis model Understand uses and benefits of Portfolio Analysis Apply Portfolio Analysis in developing a sourcing strategy Portfolio Analysis template Model Quadrant Analysis Characteristics and significance of the model Acquisition expenditure Leverage expenditure Critical expenditure Strategic expenditure Quadrant placement Applying Portfolio Analysis Portfolio Analysis application The goals of Portfolio Analysis Using Portfolio Analysis to set the future strategy ADR International

11 Module 6 - PACE and Supplier Price Analysis This module introduces two key sourcing thinking tools, Price And Cost Evolution (PACE) and Price. PACE is a model that helps buyers understand the evolution of supplier price and supplier cost. Participants will also learn, using Price Analysis, how to recognize and address supplier pricing strategies. These tools are a foundation for robust price challenge, more effective negotiation and on-going supplier management. Define the different pricing methods a supplier may adopt Explain the appropriate buyer focus for each of the four stages of PACE Understand the different approaches that can be adopted to challenge supplier price Know when to apply the different approaches when challenging a supplier s pricing policy PACE Model Introduction to PACE and Price Analysis Introduction to price and cost analysis PACE Model Introduction to the price and cost evolution (PACE) model Tactical versus strategic control New ways of working PACE in practice Supplier Pricing Strategies Pricing methods Price ceilings and floors ADR International

12 Module 7 - Risk Management The OSCA Risk Analysis module introduces the risk management process as it applies to strategic sourcing activity. This module explores how buyers can recognize, analyze, prioritize and mitigate supply chain risk by applying the ADR seven step process. Introduction to Risk Management (RM) Definition of risk Understanding risk a case study Why we need Risk management Sources and drivers of risk Where risk can occur in the supply chain Why risk can occur Different types of risk Risk Management template Risk severity guidelines Occurrence severity guidelines Detection ranking guidelines Suggested risks and mitigating actions template The risk management process Intro to the 7 step process Applying PA to focus on key risks and eliminate risks Identify potential risk Assess and prioritize impact Develop risk mitigation strategies Action and implementation of risk management strategies ADR International

13 Module 8 - Financial Analysis (Part 1) In this session participants will learn about supplier financial analysis and data gathering strategies. Introduction to supplier financial Analysis Defining supplier financial analysis Planning and performing a supplier financial analysis Determining the use of the analysis Identifying key financial assessments Define supplier financial analysis Identify the uses of supplier financial analysis Determine the supplier assessments needed to support the intended use of the analysis Identify key questions to ask Explain what information is required to perform the analysis Identify sources of the required information Financial review template Asking the right questions Determining information needed Identifying the sources of information 20 question quiz ADR International

14 Module 9 - Financial Analysis (Part 2) This OSCA module covers Supplier Financial Analysis Part 2: Financial Ratio Analysis. This part is intended to help buyers apply the concepts of supplier financial analysis to their category strategies. Financial Analysis refresh Ratio Analysis Financial Analysis case study 20 question quiz Apply the financial analysis process Explore Ratio Analysis ADR International

15 Module 10 - Supply Market Analysis Supply Market Analysis is the process of understanding the structure and business drivers of the supply market and the assessment of appropriate sourcing options. We will also go through how to analyze external factors and apply Supply Market Analysis tools to generate effective sourcing options. Introduction to Supply Market Analysis What is Supply Market Analysis? Data collection and research Market structure Sources of data analysis Option Generation overview The STEEP Model Introduction to the STEEP Model Inter-relationships between the 5 factors In-depth review of the 5 factors Define the factors driving structure of a supply market Explain the use of Porters 5 Forces and other tools Understand how to collect and analyze market data Apply the data analysis to generate sourcing options The Porter 5 Forces Model Introduction to Porter s Five Forces Relationship between the 5 Forces In depth review of the 5 Forces Applying the Data Analysis A market analysis case study STEEP model exercise Porter s Five Forces exercise ADR International

16 Module 11 - Sourcing Strategy Development The Sourcing Strategy is generated following the category profiling activity. It involves collating the information from the category profiling step in the strategic sourcing process to enable a robust fact-based consideration of the sourcing options available. Once identified, the preferred strategic sourcing strategy should be documented and implementation steps developed and detailed. The Sourcing Strategy document is used to plan and record the strategic decisions made about the category and to communicate this to the business. Informed, robust and insightful sourcing strategies are a differentiator of world-class procurement. Define the category or sourcing project strategy and purpose Explain the strategy development process Explore methods to summarize data analysis for options generation Understand the options generation methodology and outputs Create the Sourcing Strategy using the template Analysis Summary template Options Generation Template Options Evaluation template Options Prioritization template SWOT template Sourcing Strategy template Introduction to Sourcing Strategy Development Definition of a category or sourcing project strategy The benefits and uses of the strategy document The strategy development process Summarizing the category profiling step information Collating and summarizing internal analysis Collating and summarizing external analysis Using analysis to prepare for options generation Options Generation and Evaluation Definition and purpose of options generation Stakeholder involvement in options generation Methods to conduct options generation Sourcing Options, Contracting Options, Relationship Options Options Evaluation and Recommendation Strategy Creation and Launch Using the Sourcing Strategy Template What the sourcing strategy should include Ensuring the strategy fits with category / organizational goals Gaining commitment for the category or sourcing strategy Preparing for strategy launch ADR International

17 Module 12 - Deconstructing Price 1: Ask, Price Harmonization and Volume Leverage The deconstructing price Module 1 is the first of 5 Deconstructing Price modules within the ADR Academy. Deconstructing Price introduces the ten techniques available to buyers to improve supplier price and supplier cost. This module introduces practical guidance on how to reduce price using tactical techniques of ask, price harmonization, volume aggregation and sourcing historical analysis by applying knowledge of previous sourcing decisions and actions. Introduction to Deconstructing Price 1 Defining the deconstructing price model Introduction to the ten techniques Applying Portfolio Analysis thinking to managing price and cost Define the Deconstructing Price Model and the techniques of ask, volume aggregation, price harmonization and historical sourcing analysis Explain the deconstructing price and cost model and the practical tools to challenge price Understand how and when to apply the tactical deconstructing price techniques to influence suppliers Apply sourcing analysis and tactical price management techniques to sourcing activity Sourcing History Analysis template Tactical Price Control Tools The ask technique of price reduction Impact of price reduction Ask checklist Price harmonization Volume aggregation Sourcing Historical analysis Summary of Deconstructing Price 1 Summary of Deconstructing price 1 Case study ADR International

18 Module 13 - Deconstructing Price 2: Comparative and Price List Analysis The deconstructing price Module 2 is the second of 5 Deconstructing Price modules within OSCA. This module introduces two practical tools for challenging supplier price using simple data and supplier information. The module provides users with worked examples and case studies to apply the learning. Introduction to Deconstructing Price 2 Typical buyer challenges Case Study Comparative Analysis When to use Comparative Analysis Unit of measure comparator Historic Similar item Estimates Define the deconstructing price tools comparative analysis and price list analysis Explain the Comparative Price Analysis and Price List Analysis tools technique 5 and 6 in the Deconstructing Price Model Understand when and how to use the tools to identify any inconsistencies in supplier pricing and improve negotiation outcomes Apply Comparative Analysis and Price List Analysis to improve the organization s buying power Price list analysis working template Price List Analysis Price List Analysis definition Step by step worked example Applying Comparative Analysis and Price List Analysis When to use price analysis tools Case study ADR International

19 Module 14 - Deconstructing Price 3: Creating Competition The deconstructing price Module 3 is the third of 5 Deconstructing Price modules within OSCA. Deconstructing Price introduces the ten techniques available to buyers to improve supplier price and supplier cost. This module explores how buyers can maximize competition in the supply base through appropriate behaviors and practices. Introduction to Deconstructing Price 3 Definition of creating competition Approaches to creating competition Using portfolio analysis for creating competition Define the need to create competition Explain the appropriate use of competition and the different types of competitive events Understand the conditions necessary to apply the competitive process Understanding and applying appropriate conditioning approaches and behaviors to maximize competition Competition Strategy template Pre-Enquiry Messages The competitive event process Building desire and fear The Enquiry Process Introduction to managing the competitive process Competition strategy approaches Competition success criteria The competitive event process ADR International

20 Module 15 - Deconstructing Price 4: Should Cost Analysis The deconstructing price Module 4 is the fourth of 5 Deconstructing Price modules within the ADR on-line academy. Deconstructing Price introduces the ten techniques available to buyers to improve supplier price and supplier cost. This module introduces practical guidance on how to develop Should Cost models using Purchase Price Cost Analysis (PPCA). Introduction to Deconstructing Price 4 Introduction to the 4 elements of cost Introduction to cost analysis Uses of should cost analysis Explain the difference between price and cost Identify the cost components and the cost drivers of a product or service Apply the PPCA process to develop should cost models Understand the different types of should cost model Apply the should cost model to tactical and strategic activity Data collection PPCA template Should cost model General cost breakdown document Minute rate analysis Temporary labor cost model Developing a should cost model Introduction to the 7 step model Understanding the cost drivers Gathering and analyzing data Building the should cost model Minute Rate Analysis (MRA) Definition of Minute Rate Analysis How to use Minute Rate Analysis Applying should cost model Applying cost analysis to direct categories case study ADR International

21 Module 16 - Deconstructing Price 5: Could Cost Analysis The deconstructing price Module Total Cost Management is the last of 5 Deconstructing Price modules within the ADR on-line academy. Deconstructing Price introduces the ten techniques available to buyers to improve supplier price and supplier cost. This module introduces practical guidance on how to apply detailed knowledge on cost to create could cost optimized supply chains. Introduction to could cost analysis Moving from should cost to could cost Definition of could cost analysis Total cost of ownership (TCO) Explain the concept of Total Cost of Ownership (TCO) and could cost analysis Understand the different types of cost in the supply chain Understand how to apply the could cost principles to strategic sourcing activity and supplier continuous improvement programs Could cost template Applying could cost concepts Process for implementing could cost concepts Understanding the cost drivers Gathering and analyzing data Building the should cost model Could cost analysis Case study Practice point ADR International

22 Module 17 - Competitive Bidding This module introduces a practical toolkit on how to build a successful competitive event from preparation to quotation analysis, supplier evaluation and selection. It focuses on the structure and content required that will enable objective evaluation and successful selection of the solution and on a typical process and timeline for an RFP. Introduction to competitive bidding RFI RFT RFQ RFP esourcing Understand the difference between tenders, RFI, RFP and esourcing Develop the content and structure for a successful competitive bidding process Explain the concept and structure of an RFI Explain the key elements of a RFP and the information to request from the market Understand how to develop effective evaluation criteria and analyze supplier submissions Competitive bidding worksheets Production related quotation analysis Non-production related quotation analysis Developing the bid documentation content Request for information Company information Financial information Customers and markets Content of the competitive bid Supplier evaluation and selection Bid evaluation and supplier selection Evaluation process Evaluation scorecard Evaluation submissions Introduction to quotation analysis ADR International

23 Module 18 - Supplier Evaluation and Selection The evaluation and selection of suppliers requires extensive interaction between purchasing and internal stakeholders to ensure the supply market can provide suppliers with the right capability to meet our current and future business needs. Where there are gaps, we may use the supplier selection criteria to target the desired improvements in our agreements with the chosen supplier(s). Explain the supplier evaluation and selection process Understand how to work with stakeholders during the evaluation and selection process Use Business Needs Analysis to build a supplier evaluation scorecard Identify supplier capability gaps and improvement targets Discover tools to assist in contracting and implementation Business Needs Analysis template Supplier Evaluation scorecard The Supplier Selection Process The supplier evaluation and selection process Supplier evaluation activities Commercial appraisal Recommending award of business Evaluation using Business Needs Analysis Refreshing current and future business needs Evaluating organizational fit (management and culture) Using the supplier evaluation scorecard with stakeholders Understanding supplier capability gaps Targeting capability improvement for shortlisted suppliers Evaluating Suppliers with Stakeholders Evaluation as part of a multi functional team Evaluating entry qualifiers (EQ) Evaluating performance qualifiers (PQ) Evaluating order winning criteria (OWC) Contracting and Implementation Contract preparation Implementation Planning Implementation Management ADR International

24 Module 19 - Sourcing Recommendation The Sourcing Recommendation is a process to transition effectively from strategy launch to benefits realization (following a sourcing event or an alternative change mechanism). The objective is to ensure that all stakeholders understand and agree to the commercial terms and value delivery that have been agreed with the supplier(s). The sourcing recommendation is a change management approach to prepare for successful implementation by gaining commitment to the solution and schedule benefits realization. Define sourcing recommendation activity and its outcomes Explain the sourcing recommendation process Explore the uses and benefits of sourcing recommendation activity Outline how to validate and calculate the costs and benefits of the sourcing recommendation Deal with change management issues raised by the sourcing recommendation Team Charter Communications plan Force Field Analysis Introduction Definition of the sourcing recommendation step The benefits and uses of the sourcing recommendation The sourcing recommendation process Validating the case for change Contrasting the impact of the recommendation with the Opportunity Analysis Checking the supplier business case Calculating the costs of change Implementation planning Creating an implementation time table Creating an implementation team charter Creating a benefits realization schedule Choosing the right how to buy / P2P approach Compliance Planning Performance management planning Risk management planning Making the sourcing recommendation Making the strategy recommendation Handling change management Preparing for objections and obstruction to implementation Obtaining internal sign-off ADR International

25 Module 20 - Contracting for Performance The OSCA Contracting for Performance module is the second module related to Supplier Relationship Management. The module describes the essentials of contract management and how to manage aspects of the contract such as price, service, intellectual property rights and other performance issues. Explain the essentials of contract management Define the performance management process Understand how to solve problems and improve performance using practical tools Apply tools and processes for continuous improvement Supplier governance template Supplier scorecard Supplier review template Introduction to Contracting for Performance Contract essentials Price Service Information management Introduction to performance management Different levels of performance management The supplier performance management process Introduction to Supplier development Continuous improvement The right conditions for success Defining performance measures Defining objectives Creating the measures around contract essentials Building the scorecard Managing supplier performance Managing supplier performance reviews Defining and identifying performance failure Sources of failure soft and hard Root cause analysis Remediation ADR International

26 Module 21 - Supplier Relationship Management and Optimization The OSCA Supplier Relationship Management and Optimization module introduces principles that enable buyers to choose the most appropriate supplier relationship type and associated supplier management tools. This module introduces techniques for mapping and evaluating existing supplier relationships and identifying the most appropriate future approach. Introduction to SRM Why relationship management is important Aspects of SRM SRM Process Relationship mapping Introduction to relationship mapping Relationship types Relationship mapping template Relationship needs analysis (RNA) Relationship attributes Understand what is meant by Supplier Relationship Management (SRM) Explain why SRM is so important Define the different supplier relationship types Understand the different criteria required to ensure relationships are effective Apply governance processes to better manage supplier relationships Relationship mapping template Supplier governance template Supplier engagement and governance Introduction to supplier governance Developing a governance model Case study and practice ADR International

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