Lean Sourcing

4 days

course code 3. 10

What is the course for


Understand the fundamental concepts of supplier integration


Understand what tools to employ when choosing and managing suppliers


Understand which tools to use when preparing a negotiation

The central role of the purchasing department constantly stands out in all companies. However, when we analyse what is actually required for this role, we normally find that the main activity required, and therefore carried out, is related to reducing the purchase price of goods and services. Over the years, however, companies have realised that purchasing has a strategic and tactical role both in the initial choice and the day-to-day management of suppliers and that this choice cannot be solely entrusted to the “purchase price”. Building a supplier reference panel is among the purchasing office’s primary activities, sharing this selection with other corporate entities (R&D, Maintenance, Production, Logistics, Quality, Finance, etc.). It is important to learn how to stratify suppliers in different bands according to the strategic impact they may have on the company and to accordingly adopt coherent management techniques.

During the training course we will find out how to build the suppliers database. We will then discover several tools that help purchasing advance, such as creating appropriate indicators. In this regard we will see that the usual QCD indicators (Quality, Costs, Deliveries) should absolutely be integrated with a new “S” indicator (Security) regarding both the supplier’s financial aspects and security aspects in the strictest sense. Choosing to start, or continue, working with a supplier that fails to meet the required security standards and regulations poses a serious threat to the continuity of our business. The participants in the training course will find out how the role of purchasing has evolved, deepen their understanding of specific role-related issues – such as how to prepare and conduct effective negotiation – and will have the opportunity to try out and simulate typical scenarios.


  • Understand the fundamental concepts of supplier integration
  • Understand what tools to employ when choosing and managing suppliers
  • Understand which tools to use when preparing a negotiation
  • Negotiation techniques

Addressed to

  • Purchasing Management
  • All Departments involved in selecting and managing suppliers (Security, Finance, Quality, Logistics, R&D)


The strategic value of switching from purchasing to sourcing and the added value of purchases

  • Transforming the purchasing office from a “tactical” to a “strategic” entity: anticipating the company’s needs
  • From the search for the lowest price to the search for the best suppliers
  • Making the purchasing team responsible for the quality of goods and services purchased
  • Managing the supplier panel based on data and KPIs
  • The concept of “integrated” suppliers

Purchasing organisation and management

  • The ideal purchasing management organisation
  • The cultural change of purchasing management
  • Defining goals: from “savings” to evolved multi-dimensional models
  • Purchasing as marketing: the tools of the Purchasing mix
  • Defining purchasing strategies: how to buy, pricing models, what to communicate to a supplier, organising a set of suppliers
  • Organising purchasing: the centre vs. periphery; business vs. commodity
  • Analysing spending: KPIs and reporting models
  • Managing a supplier list: information, tools and technologies
  • Selecting new suppliers: analysis and decision-making models
  • Supplier control: supplier rating systems
  • Management and purchase of direct and indirect materials
  • Managing and purchasing services
  • Management and purchasing in new product/service development processes

Sourcing interaction with other business entities – the logic of TPM (Total Productive Management)

  • The cultural change in the company
  • The involvement of purchasing management and suppliers in the initial stages of the projects
  • The concept of “early management”

The concept of price and cost

  • Price and cost
  • The TCO – Total cost of ownership
  • Direct costs
  • Management costs: before orders – “operating costs”
  • Risk management
  • Choosing a supplier based on TCO

The concept of OTD (on-time delivery)

  • The meaning of OTD and why it is becoming a key parameter in evaluating a supplier’s performance
  • The KPI’s of on-time delivery
  • How to manage delivery issues effectively

The Supplier Integration Road Map

  • What is an Integrated Supplier?
  • How to establish and have integrated suppliers
  • The steps in the road map
    • Step 1: building and managing the supplier panel
    • Step 2: helping suppliers progress and improve
    • Step 3: integrating suppliers into product and system development
    • Step 4: integrating suppliers into the “day-to-day” management
  • Test: where are we with regard to supplier integration?
    • From the current state to the future state
    • The plan for implementing the road map

Performance indicators in selecting and managing suppliers

  • Traditional performance indicators for choosing and managing suppliers
  • The transition from QCD (Quality, Cost, Delivery) to SQCD (Safety, Quality, Cost, Delivery)
  • The interaction between different business functions in managing performance indicators


  • The “Stakeholder analysis”
  • The key principles of negotiation
  • How to properly set up a negotiation (key tools)

Catalogue purchasing

  • Why purchase a catalogue?
  • The evolution of catalogue purchasing over time
  • What – how to buy a catalogue
  • The added value of catalogue purchasing

You will experience

  • Analysing your company’s position in the supplier integration process – current state (road map assessment) and in the future state
  • Design the plan necessary for putting together the supplier panel and defining the partner suppliers to be involved in business projects
  • Negotiation simulations
  • Practical exercises and group activities aimed at using tools that can be immediately put into practice

Download the in-company training catalogue