Value-Based Procurement

Your well-deserved procurement seat at the executive table

What you'll learn

Understand the notion of value from various perspectives (e.g., price, relationship, competitive advantage, etc.)

Examine the effects of procurement value on stakeholder work, supplier relationship management, and agility.

Distinguish the value from the efficiency and effectiveness.

Review the evolution of procurement process from the lowest bid to the value-based one

Study some practical concepts, e.g., Best-Value Procurement, Value Stream Mapping, Reverse Marketing, etc.

Conduct exercises on different aspects of value-based procurement

Requirements

Basic understanding of procurement processes

Description

Procurement value became the second-popular buzzword in procurement after "agile."Interestingly, the agile methodology also describes incremental value delivery. So, we suggest starting from this course before jumping onto the agile bandwagon.Tremendous competitive pressures and an ever-lasting global crisis led to the focus shift from traditional savings to the holistic value delivery agenda.Indeed, we all know what the value is. However, it's one of the most subjective topics.Value needs to be more substantive. It is rather adjectival. It characterizes something or results from the application of something. It doesn't exist in its raw form; it's being created. It's a universal differentiator between good and bad things or actions.Look at your bosses – some distinguish only the monetary value, while others care about relationships, sustainability, social contribution, and many more. Procurement managers need to sense all these perceptions and transform them into objective and measurable outputs which genuinely matter to the broader stakeholder community.Our course will carefully define the value from different perspectives and with the help of well-known and workable theories (e.g., dynamic capabilities, VIPER model, stakeholder work system, etc.) Then we will suggest practical ways of creating and appropriating the value.Our course includes a handful of exercises that help to understand the usability of proposed theoretical constructs and business concepts.Ideally, at the end of this course, your understanding of the procurement value and methods of its creation and appropriation will transform from unconscious perceptions to clear definitions and action plans.

Overview

Section 1: Procurement Value Basics

Lecture 1 Procurement Value Evolution

Lecture 2 Value-based Pricing

Lecture 3 Value Creation and Appropriation

Lecture 4 Exercise on Value Creation and Appropriation Mapping

Lecture 5 Procurement Value Curve

Lecture 6 Dynamic Capabilities Framework

Lecture 7 Value Creation Through Stakeholder Work System

Lecture 8 VIPER Model

Lecture 9 Efficiency, Effectiveness, and Value

Lecture 10 Section Summary

Section 2: Value-based Procurement in Practice

Lecture 11 From Lowest Bid to Value-based Procurement

Lecture 12 Changes Required to Exercise Value-based Procurement

Lecture 13 Exercise: Lowest bid vs. TCO vs. Value-based evaluation of air conditioners

Lecture 14 Exercise: Value-based Procurement of an Electronic Queue System

Lecture 15 Reverse Marketing

Lecture 16 Creating Value in Negotiations

Lecture 17 Value-add Area in Negotiations

Lecture 18 Best-Value Procurement Process

Lecture 19 Value Stream Mapping

Procurement professionals willing to create and appropriate the value,Procurement beginners and experts looking to organise their knowledge of value and apply it in practice