Procurement Case Study |7 Step Strategic Sourcing Process 

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This case study highlights the impact of our 7-Step Strategic Sourcing Training on a team of procurement professionals, led by a Procurement Director. 

The training focused on aligning the team around the foundational principles of strategic sourcing, enhancing their skills through real-world case studies, interactive exercises, and practical templates. 

1.0 Existing Situation:

• Team Size: 15 procurement professionals.
• Leadership Role: Led by the Chief Procurement Officer (CPO).
• Current State: The team needed alignment with foundational sourcing principles.

Objective: To unify and elevate the team’s capabilities in strategic sourcing through targeted training.

Challenges Identified:

• Lack of consistency in strategic sourcing practices.
• Gaps in strategic sourcing expertise and skills.
• Need for a standardized approach to procurement processes.

2.0 What Were Client Objectives? 

The client had 3 main objectives from the training:

1. Enhance Strategic Sourcing Skills: 

Client wanted to equip his team with advanced strategic sourcing techniques through hands-on case studies and interactive exercises tailored to real-world scenarios.

2. Standardize Sourcing Practices: 

He also wanted to align the team on foundational sourcing principles to streamline procurement processes and drive consistent, high-quality outcomes.

3. Increase Engagement and Practical Application: 

Next, he also desired to ensure active participation and immediate application of learned strategies by his team into their real-life roles.

3.0 How Did We Implement the Training? 

The 7-Step Strategic Sourcing Training was conducted as a 2-day intensive onsite program designed to cover the entire sourcing cycle.

The training sessions were highly interactive, blending theoretical concepts with practical, hands-on exercises tailored to the team's real-world challenges.

The approach focused on engaging participants actively and equipping them with tools and techniques they could immediately apply in their roles.

Training Highlights:

Day 1: 

The first day focused on foundational strategies, including category strategy development and supplier management. The team participated in exercises such as redevising a questionnaire for Pre-Audit Qualification, emphasizing pandemic-era triggers and alerts. 

This exercise helped them recognize critical points in supplier assessment, especially in volatile market conditions.

Day 2: 

On the second day, the training delved deeper into advanced sourcing topics, such as developing a Competitive Intelligence stronghold in supply chain management. 

Participants were also guided through a comprehensive Supplier Risk Management Assessment for Tier One Suppliers, identifying potential risks and mitigation strategies. 

A highlight was the Holy Grail of Negotiations module, where they worked through a Negotiation Checklist covering both price and non-price lines of business (L-O-B), followed by a post-mortem review to identify areas of improvement.

Interactive Exercises Included:

Here are 3 key exercises included in the training: 

1. Re-devising Supplier Report Cards: 

The team was tasked with transforming traditional supplier report cards into tools that deliver actionable insights rather than mere grades. This exercise aimed to improve the value derived from supplier evaluations, enhancing decision-making processes.

2. Walkthrough of Competitive Intelligence Development: 

This exercise provided participants with a framework for establishing a stronghold in competitive intelligence, crucial for staying ahead in dynamic supply chains.

3. Negotiation Strategies: 

A hands-on session that included creating negotiation checklists and conducting mock negotiations, allowing participants to practice techniques and refine their approaches in real time.

What the Client Liked: 

The hands-on nature of these exercises was particularly appreciated by the client, as they provided a clear, practical illustration of strategic principles. 

Participants were able to immediately see the relevance and application of each exercise, making the training not only informative but directly impactful on their day-to-day responsibilities. 

Moreover, the interactive approach ensured high engagement and facilitated a deeper understanding of strategic sourcing, aligning the team with best practices that drive real results.

4.0 What Were the Results? 

The training delivered significant improvements in the procurement team's performance, aligning them with best practices and enhancing their strategic sourcing capabilities. Key results observed after the training include:

1. Improved Strategic Sourcing Capabilities:

Post-training evaluations revealed that 92% of participants felt more confident in applying strategic sourcing techniques, citing increased efficiency and effectiveness in their daily tasks. 

The Procurement Director noted a noticeable shift in the team's approach to category strategies, with an enhanced focus on adding real value to the organization.

2. Standardization of Sourcing Practices:

The team successfully standardized their sourcing practices, resulting in more streamlined procurement processes. This standardization led to consistent, high-quality outcomes across the board, with a reduction in process variability. 

This alignment was particularly evident in the development of the Spend Profile and Category Management Model, which helped unify their approach to procurement.

3. Enhanced Supplier Management:

Participants reported a 20% improvement in supplier performance measurement and management, utilizing the best practices and tools introduced during the training. 

Supplier relationships were strengthened, leading to better communication, more reliable supply chains, and improved negotiation outcomes.

4. Increased Engagement and Practical Application:

Engagement levels during the training were exceptional, with active participation in interactive exercises and real-world case studies. 

The training resulted in a 92% satisfaction rate, however, the 100% of respondents found the course real life & practical. Post-training surveys indicated that 94% of participants immediately applied the strategies learned to their roles, driving tangible improvements in procurement efficiency and effectiveness.

5. Reduction in Total Cost of Ownership (TCO):

By leveraging the Total Cost of Ownership framework and supply chain mapping techniques introduced during the training, the team identified cost-saving opportunities that could lead to significant reductions in TCO across several key categories. 

6. Enhanced Talent Management and Retention:

The training emphasized the importance of attracting and retaining top supply management talent. The client acquired a roadmap to develop targeted training programs and clearer job descriptions. 

Here is how the employees specifically rated the training:

4.1 Other Client Feedback On This Training:

"Highly recommended! Worth every penny. Great course, excellent trainer! Mark is a winner!  ... strongly believe that all of us have gained vast knowledge / on the subject. I like most that Mark was able to explain complex subjects in an understandable manner. Keep it up. "

Rusmar Tijing - Senior Quality Engineer,
Al-Arrab Contracting Company, Saudi Arabia

"I want to tell you how pleased we were with the deliverables from the Sourcing Process Training your team developed on our behalf. … The training you provided was a great value-add…as the classes were well-received by all participants. I feel that we were able to meet our objectives to reinforce proper sourcing processes and techniques, and to provide helpful information and tips towards the completion of RFQ’s, RFI’s, RFP’s and Negotiations. The exercises, case studies, and interactive activities, along with the open communications between you and the attendees, were excellent."

Vice President, Supply Management Services,
Fortune 500 Insurance Provider - US

7.0 Conclusion:

The 7-Step Strategic Sourcing Training proved to be a transformative experience for the client’s procurement team, meeting and exceeding all expectations. 

The structured approach, hands-on exercises, and expert guidance allowed participants to build critical skills, align on best practices, and apply strategic sourcing techniques directly to their roles.

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By the end of the training, the team was not only more cohesive but also equipped with the tools and confidence needed to drive procurement excellence within their organization. The immediate application of learned strategies, combined with a deep understanding of category management, supplier performance, and technology enablers, set a new standard for their sourcing process.

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This case study demonstrates how strategic sourcing training can be a game-changer, enhancing procurement capabilities and contributing significantly to an organization's financial performance.

Ready to take your procurement team to the next level? Click here to explore the full program details, including the daily agenda, program leader profile, and how to get started!

 

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If you're interested in booking the training or learning more, please call us at +1-312-300-8968 or email us at artin@procurementcenter.org!