One Day Workshop – Managing Risk Arising From Procurement Decisions

Wednesday, June 27th, 2012

We don’t have to look to far to see the consequences of supply chain  failure. The media is littered with the impact of such problems.

It might be a relief to be able to point the finger of blame at a supplier when things go wrong in the supply chain. But maybe we should  look to ourselves for not ensuring the problem did not happen in the first place.

It is easy with hindsight to say what should have been done but what help is there available beforehand.  In other words how do I cover every eventuality that might occur before the event rather than try to justify afterwards why I wasn’t able to foresee that the supplier’s factory cannot  supply materials as it is within the quarantined zone around Tsunami hit nuclear power station or a key provider of services has ceased trading with us because of a banking glitch that prevented payment being made to them.

Do not despair, we have produced a workshop designed specifically to help minimise potential disruption. It is in-house use only. By  its very nature it has to be organisation specific and you would not want to share experiences, content strategies and tactics with others on open courses.

The course detail is listed below. We can tailor it to your specific needs.

Give me , Ray Gambell, a call  on 01744 20698 or email me r.gambell@brianfarrington.com to discuss how this will benefit you

 

1.
OVERVIEW OF PROCUREMENT RISK
MANAGEMENT CONCEPTS

Objective To review the fundamental concepts
of procurement risk management.
Format 40 minute presentation in plenary
session by our consultant followed by discussion and brief exercise.
Content
  • Objectives of procurement risk management
  • Potential scope of procurement risk
  • Risk tolerance appetite
  • Linkage to Corporate Risk Management
  • Conducting due diligence
  • Risk profiling
  • Responsibilities for implementing risk
    management.
Exercise Following the presentation,
participants will be divided into two teams and will be requested to identify
their current practices to manage procurement risk and what, if any changes
to the practices do they believe need making.
Timing 1 ½ hours in total for presentation,
discussion, exercise and feedback on exercise.
Tools
  • Presentation by consultant
  • Exercise and feedback
  • Reference to ProcuriskÒ methodology.

 

  1. 2.
    IDENTIFYING PROCUREMENT RISKS
Objective To identify potential procurement
and supply chain risks.
Format Brief introduction by our
consultant, followed by exercise in groups (if category management adopted in
such groups) to identify their perceived top 6 risks and formal presentation
by each group.
Content
  • Identification of top 6 risks
  • Categorise risks, e.g. contractual, financial,
    intellectual property
  • Business impact of risk occurring
  • Probability of risk occurring – high, medium
    or low
  • Current mitigation strategies
  • Risk register auditing.
Exercise Group work to identify procurement
and supply chain risks.
Timing 1 ½ hours  
Tools
  • Consultant facilitated session
  • Structured analysis of top 6 risks
  • Template to determine mitigation strategies.

 

  1. 3.
    THE ROLE OF DUE DILIGENCE IN MANAGING
    PROCUREMENT RISKS
Objective To identify due diligence actions
that may be undertaken by procurement specialists in their attempt to
identify potential risks in the supply chain.
Format 45 minute presentation in plenary
session by our consultant followed by discussion and problem solving
exercise.
Content
  • The use and abuse of Pre-Qualification
    procedures
  • The rise and abuse of Tendering procedures
  • Supplier audits
  • Financial data analysis
  • Specification and quality management reviews
  • Probing resource planning
  • Pricing and negotiation considerations.
Exercise There will be 3 groups who will be
given the opportunity to conduct a situational analysis (using a real-life
case study) where some risks are capable of being identified.
Timing 1 ½ hours  
Tools
  • Consultant facilitated session
  • Use of situational analysis template
  • Structured identification of risk
    investigation.

 

  1. 4.
    IMPLEMENTATION PLANS
Objective To determine key tasks and
responsibilities to implement procurement risk management, including
involvement of stakeholders, risk profiling, monitoring and reporting risks
at a Corporate level.
Format Consultant led input and
discussion.
Content
  • Managers’ and buyers’ tasks and
    responsibilities
  • Documentation templates
  • Supply market research
  • Procurement team communication
  • Roadblocks to progress
  • Learning and development.
Exercise None
Timing 1 hour  
Tools
  • Implementation profiling
  • Activity and Resource allocation.

 

  1. 5.
    PROCUREMENT STRATEGIES TO MINIMISE
    SUPPLY CHAIN RISKS
Objective To actively consider the range of
procurement strategies that must be considered in order to minimise supply
chain risks and to consider the appropriateness of the strategies to the
organisation.
Format 45 minute presentation in plenary
session by the consultant followed by plenary debate on the respective
procurement strategies.
Content
  • Sole sourcing
  • Multiple sourcing
  • Outsourcing
  • Partnering
  • Long-term contracts
  • International sourcing.
Exercise None
Timing 1 ½ hours
Tools
  • Strategic option analysis
  • Implementation strategy template
  • Strategic choice review analysis.

 

  1. 6.
    NEXT ACTIONS   
Objective To agree and reach a positive
conclusion to actively review and enhance the current approach to procurement
risk management.
Format Consultant led debate, culminating
in each participant defining a Personal Action Plan and timings to bring to
fruition.
Content
  • Review of course/workshop inputs
  • Identifying personal action plan
  • Presentation of outline of the personal action
    plan.
Exercise None
Timing 45 minutes
Tools
  • Written plan.