Strategic Sourcing Management

Procurement functions are often measured on savings against budget and speed of tendering, so sourcing becomes a transactional exercise repeated for each requirement. Spend data is scattered, categories are not managed as a whole, supply markets are poorly understood, and contracts are awarded without a strategy for managing the supplier afterwards. Risks such as supplier concentration, price volatility and supply disruption surface only when something goes wrong.

This programme follows the strategic sourcing process from end to end. It moves through five stages: assessing sourcing maturity and aligning with organisational goals, analysing spend and supply markets, building category strategies, selecting suppliers and negotiating agreements, and managing supplier performance, relationships and risk to deliver value over the contract life.

Built on recognised practice. The programme references the procurement and category management practice promoted by professional bodies such as CIPS, the Kraljic portfolio model, total cost of ownership analysis, ISO 20400 guidance on sustainable procurement, ISO 44001 on collaborative business relationships and the UNCITRAL Model Law on Public Procurement for public-sector principles. Participants learn to apply them to their own categories.

Decisions this programme improves. Which categories deserve strategic attention; whether to consolidate, diversify or localise supply; when to use competitive tendering, negotiation or long-term partnership; how to evaluate total cost rather than price; which suppliers need active relationship management; and how to respond to supply risk.

How it is delivered. Twenty hours across five sessions, built around one running case: an organisation reviewing a high-spend category with a small supplier base and rising costs. Participants analyse spend data, position the category, build a sourcing strategy, plan a negotiation and design a supplier scorecard.

In-house option. For organisations, the programme can be tailored to your own spend data, procurement regulations, local content requirements and supplier base, and delivered for procurement, finance and requesting departments together.

Who Should Attend

Procurement leaders: procurement directors, procurement managers and category managers

Supply chain leaders: supply chain directors and managers

Sourcing specialists: strategic sourcing specialists, senior buyers and contract managers

Operations managers who depend on key suppliers

Finance professionals involved in procurement strategy and spend control

Objectives

Assess the sourcing maturity of their organisation and identify priority improvements

Align sourcing objectives with organisational strategy, budgets and stakeholder needs

Carry out a spend analysis and identify categories with the greatest opportunity

Analyse supply markets, supplier power and price drivers

Position categories using the Kraljic portfolio model and select suitable strategies

Build a total cost of ownership model to compare sourcing options

Develop a category strategy with objectives, sourcing approach and implementation plan

Prepare and conduct a structured supplier negotiation

Design supplier performance scorecards and relationship management plans

Identify supply risks and plan mitigation, including sustainability and local content considerations

Course Outline

Foundations of Strategic Sourcing

From transactional purchasing to strategic sourcing
The strategic sourcing process and its key phases
Aligning sourcing with organisational goals and stakeholder requirements
The role of sourcing in cost management and value creation
Public-sector principles: transparency, competition and value for money
Workshop: assessing your organisation's sourcing maturity

Spend Analysis and Supply Market Insight

Collecting, cleansing and classifying spend data
Spend cubes, Pareto analysis and opportunity identification
Supply market research and supplier landscape mapping
Porter's five forces applied to supply markets
Price drivers, cost breakdown analysis and indices
Digital spend analytics and the practical use of AI in procurement

Building Category Strategies

Category management principles and cross-functional category teams
Kraljic portfolio model and supplier preferencing
Total cost of ownership and life-cycle cost analysis
Sourcing options: consolidation, diversification, framework agreements and make or buy
Local content, in-country value and supplier development
Sustainable procurement considerations under ISO 20400

Supplier Selection and Negotiation

Choosing the sourcing route: tender, negotiation or partnership
Supplier prequalification and evaluation criteria
Negotiation planning: objectives, BATNA and concession strategy
Negotiation tactics and behaviour with strategic suppliers
Contract structures, pricing mechanisms and key terms
Ethics, conflicts of interest and anti-bribery controls

Supplier Performance, Relationships and Risk

Supplier performance measurement and scorecards
Supplier relationship management and collaborative relationships
Supply risk identification, business continuity and resilience
Continuous improvement and innovation with suppliers
Measuring and reporting sourcing value beyond savings
Action plan: strengthening strategic sourcing in your organisation

Competencies

Strategic sourcing process management

Spend analysis and opportunity identification

Supply market analysis

Category strategy development

Total cost of ownership analysis

Supplier negotiation planning and execution

Supplier performance and relationship management

Supply risk and resilience management

Sustainable and local content sourcing

Prague

Explore professional training in Prague across Elite Academy’s full range of disciplines. The city’s position as a well-connected Central European capital offering an accessible professional setting makes it an attractive international setting for scheduled courses and programs arranged to your preferred topic and dates. Elite Academy can deliver its full range of professional training programs in Prague, Czechia. Because the city is a well-connected Central European capital offering an accessible professional setting, it provides a strong international environment for participants from organizations as well as individual professionals. The courses shown on this page represent the programs currently scheduled in Prague; they do not limit what can be delivered there. If your preferred course or date is not listed, you can request any program from our portfolio to be arranged in Prague, subject to scheduling and delivery requirements.