Advanced Purchasing Skills

15 minutes Overview of the course and class introduction

1 hour & 30 minutes Understanding the petrochemicals industry and markets

• Key petrochemical value chains and their inter-relationship
• Market Intelligence

15 minutes Break

10 minutes Pre-session interactive poll

1 hour & 5 minutes Analytical approaches to purchasing (part 1)

• Opportunity Analysis – a tool for identifying and
  ranking opportunities based on return, effort and
  probability of success
• Examples of formulas used in petrochemicals
  purchasing

15 minutes Summary & Conclusion

1 hour & 15 minutes Analytical approaches to purchasing (part 2)

• Price history vs. market or formula
• Cost Models, price forecasting and margins

15 minutes Break

1 hour Analytical approaches to purchasing (part 3)

• Contract Model – legal & mathematical
• Price versus total cost

15 minutes Summary & Conclusion

15 minutes Interactive live poll

1 hour Strategy development: Spend classification and Risk Management

• Spend Classification
  • Strategic, Critical, Tail spend
• Risk management
  • Internal vs External Sourcing
  • Hedging
  • Global vs Regional
  • Contract vs Spot
  • Supplier viability & natural disasters
  • Strategy alignment via supply/sales agreements

15 minutes Break

1 hour Strategy development: Strategic sourcing and improving supplier cooperation

• Strategic Sourcing to insure the lowest cost.
• Improving supplier cooperation

15 minutes Interactive poll

15 minutes Summary & Conclusion

1 hour & 30 minutes Execution

• Alignment with strategy
• Tracking to plan
• Purchasing procedures
• RFQ (Request for Quote) process
• Supplier development = competition; Supplier Score
  Cards with weighting that reflects impact on cost
• Quarterly supplier meetings – to provide feedback
• Negotiation

15 minutes Break

30 minutes Evaluation – Performance metrics

• PPV – tracking to budget – short term performance
• YoY price inflation / deflation vs. index – longer term
  performance
• Price – volume – mix analysis
• Individual metrics aligned

25 minutes Class insight exchange

20 minutes Summary & Conclusion