The aim of this Laboratory is to expose students to the most adopted tools by companies in managing their relationships with suppliers. In particular, participants will study and apply tools to analyse the supply market, scout and qualify new suppliers, negotiation practices and techniques, spending analysis and classification methodologies, and finally, vendor rating tools and techniques. All these tools are discussed with a panel of Chief Procurement Officers during the semester and are applied to different real cases in small working groups.
1) Objectives and contents
This laboratory will focus on managing relationships with suppliers, along the whole relationship lifecycle: market analysis, suppliers scouting and qualification, negotiation, spending analysis, vendor rating.
It will enhance students’ capabilities to:
- negotiate with suppliers and manage the relationships;
- evaluate their capabilities and performance;
- analyze and rationalize the overall spending.
Market Analysis: assessment of the current supply market and evaluation of potential different supply markets, including market structure and fragmentation, outsourcing strategies, suppliers cost structure, prices volatility, Supply Chain Finance. Market analysis will also allow to study and apply some key risk management policies.
Suppliers scouting and qualification: once the supply market characteristics are known, buyers must scout for potential suppliers. That includes scouting and qualification procedures, technical assessments, financial evaluation, overall sustainability assessment.
Negotiation: The negotiation process is a key element of the relationship with suppliers. Students will practice negotiation process and techniques, win-lose vs win-win negotiations, preparing and acting the negotiation, electronic negotiations.
Spending analysis: in order to support the negotiation process and to manage proactively the relationship with suppliers, buyers apply tools and methodologies to analyze the spending, adopt quantitative and qualitative portfolio matrixes, and design proper business cases and action plans for improvement.
Vendor rating: in order to continuously drive supplier performance it is important to measure and assess the supplier base through specific Key Performance Indicators, stimulate suppliers development, and rationalize the supply base.
3) Course organization
Students will be divided in groups of 4-5 people since the beginning.
Every group will be assigned to a specific problem/challenge within a company and will work on this problem along the semester. In order to face the challenge, students will apply a set of different tools and methodologies applied by companies in that specific field.
Groupwork might be performed in two different ways, according to each specific case:
- Synchronous: groups will work on group activities in class all together.
- Asynchronous: groups will work on their own on the case.
Moreover, 5 Chief Procurement Officers will be involved during the course in order to present and discuss with students their professional daily life.