Okay, so this is the final course. It's not really a course per se. What it really is is the wrap-up. And then included in the Global Procurement and Sourcing specialization attached to this particular course is the final assessment. That basically, is 40 multiple choice that you can take and get graded on. But what I'm going to do here is kind of wrap up all the different courses that we took. Basically, taking from some of the key slides in the key takeaways. So you're familiar, this is a all the courses that we had. And we're going to walk through each one of these, not going to read this particular slide. So the current basics, right? What did we learn? What are some of the key takeaways from them? Well, we made it in kind of an agreement. Hopefully, we kept it. For this course, we decided to use the definitions for procurement and strategic sourcing definition. Strategic sourcing, we talked about in Course 2. Procurement is usually a subset of supply chain management, but there are exceptions. So sometimes for example, where people have a high expenditure of indirects. Things like banks or pharma. Many times, it's reporting in to a different individual than supply chain. But Kermit usually is a supply chain, at least for all manufacturing companies. And then when I always tell people about these definitions because quite frankly, it is confusing. Just ask the individual what they mean. How do you define this? So we talk further about what the importance of procurement. And we believe that if it's properly organized with the right leadership, we can really create a competitive advantage for the firm. And how do we do that? We looked at four ways, right? We can deliver savings and value, which we talked about. We can build strong supplier relations and help drive innovation, which will help us drive that top-line growth. Quality a given, and we certainly want to be very conscious of the fact that it we don't want to hurt our reputation as a company, which would really hurt us and also potentially, ourselves. And then lastly, one that people don't think about is that we can have a great effect in reducing time-to-market. So if we can bring in a raw material packaging or a service quicker, they can then launch the the product sooner and thereby affecting the top line. So, these are all good reasons that procurement Is important in your organization. We went through these procurement processes. I'm not going to go through them here. But basically, I said just about every procurement department has similar processes. I think you'd find that probably 95% of companies, you do all these different steps. I think what's important is that least if you're new to procurement or your outside procurement, please understand the basic processes how it happens. And where those requests come? Do they come through projects. Do they come through internal customers or is it from operations? So this is pretty basic but we also mentioned to you at the very end of this particular week that there's other people that help facilitate this thing. Finance pays bills, and legal helps read contracts. IT helps the systems to support this particular process. We went on to talk about direct and indirects. We said that generally indirect such as raw materials and packaging, as I said, are fairly mature, most people procurements involved 95 to 99% of the time. And directs, although they're coming up to be more and more prevalent today, it is still fairly new, has some challenges, and it really have to require some additional top management support. You gotta have alignment with stakeholders that we're going to talk about in a minute. And you gotta get good spend/analytics information obviously for directs also. But that's kind of a given in most companies. And then, we wrapped up with internal stakeholder management. I think this is the key to your long-term success, and how you as an individual can create value for your company. Indirects, we'd recognize is a more challenging many times. But that it makes internal stakeholder management even more important. So that wrapped up procurement basics. We then went on to strategic sourcing. And we did it in three parts, as you remember. So we went in a fairly detailed on each one of the steps. So this was it. Profile the category. Develop category sourcing strategy. Generate supplier profiles. Choose a competitive strategy or how you're going to work with them. Select the individual company and negotiate. You're going to implement the contract and have some sort of a continuous improvement or supplier relationship management on ongoing basis. And throughout this whole process, we recommend that you keep your stakeholders involved. So it's very critical, so they know what's going on. So what are couple key takeaways of strategic sourcing? Well, I think we learned that it really is a process that creates value for your firm. It's important about the processes that you have it and stick to it. You may not do every single step, every single time. But you're going to least look at the process to say, do I need to complete this step or not? Then lastly, which is, I think is very important. It's not only for you and your category people that are running these particular categories, but also for stakeholders. So they know that it isn't just about going in a room and issuing a purchase order. Particularly for large critical items, you need to have a very robust strategic sourcing strategy to create value for your firm. We went on to supply management. And basically, supplier selection and evaluation is basically what we covered. And we said that supplier evaluation selection is probably one of the most important decisions that you make in procurement. Yes, you get input from your stakeholders. Yes, you might have a cross-functional team advising you, etc, etc. But at the end of the day, you're the one that selects the supplier. And as I said, when I talked about this is that when there's a problem, they don't go to the quality, they don't go to engineering. They come to you. And because you made the selection supplier, what are you going to do to fix the problem? So supplier selection is probably one of the most critical decisions that we make in procurement. We went in to some sort of a supplier evaluation such that you can evaluate your suppliers fairly. Not just on price, price, quality, service delivery. We went through all sorts of different criteria. You have to decide what the criteria is and then build an evaluation criteria around it. And if you're working with a cross-functional team, you get a lot of updates and what they think. And to the day when they do that, you'll get buy-in from them. We talked about contract development. We basically said, 100% of the time, it's always Kermit's job to choose the type of contract. Yes, legal might have some terms conditions you need or there might be terms conditions on the back of the contract, which we could cover in a different course. But what's important is you're going to determine the type of contract. We looked at about six different types. And then, you want to know the difference, the advantages, and disadvantages are of short versus long term contracts, which is one of the key decisions you have to make in contracting. We then went on into sessions talking about ten things that you should consider in risk management. I'm not going to go through every one of these, you can take a look at them. Hopefully, you remember. But I think we gave you ten good ideas that you should have. I suggested that even benchmark yourself to say, do I'm doing most of these? Well, so here's the key takeaways for risk management. I think that you need to have a well thought out risk management plan. And you can use those ten things. There may be others, but those are ten good ones. Is that, can you improve what you're doing today? And don't just focus on the supplier. Because when things happen you have to have good communication, right? We talked, for example, about Nokia versus Erickson. And you need some sort of continuous improvement plan to say, this isn't just you do it once and you're done. You want to say, how do I improve this? Managing complex risk require kind of a strategic holistic approach. You want to be proactive. Nine of the ten things that I gave you are proactive. And if you do have to react, in number ten, we gave an example with Nokia and Ericsson, time is of the essence. And lastly, managing risk is your job. It is not somebody else. At least, in the corporation's I've worked in. Yes, you may get help from finance and the risk management department. Yes, you may get help from some of the other stakeholders, but it is really your job to evaluate risk. And if there are issues, you have a very good risk management plan to mitigate them if they do occur. We finished up with ethics and supplier management. And what I said was, is that you'll generally have company policies and procedures. And then, what's critical about this is that if you're not cognitive of what happening around ethical issues, you can ruin your company's reputation. And between you and me, your career. I'm sure you've seen things in the The New York Times and The Wall Street Journal that people are fired for doing whatever they shouldn't be doing like taking money or whatever. It happens. So, you can ruin your career. So, think about it. And unfortunately or fortunately, I gave a couple examples in this particular area. But you work in procurement, you're going to be held to a higher ethical standard. We moved on to looking at supply market analysis. So this is when we're looking at the actual market. You're trying to understand, how is the market? We looked at it from three different perspectives. We looked at it from a macro level, industry level, and supplier level. And usually, you do all three usually in that order. And therefore, you're looking at strategically, what the supply market looks like? Tactically, what an industry supply market looks like? And then, what suppliers you want to pick? So let's just take a couple of key take-aways. PESTEL, we learned about PESTEL. We would recommend, before you jump, it's very critical that you don't just jump in and pick a supplier particularly if it's a new commodity or a large commodity or a strategic item. Analyze the industry, right? Who are the potential suppliers? Step back, don't don't go suppliers first. Just step back and say, what's the market from a strategic perspective? The PESTEL analysis is relatively easy to use. Can be done probably less than an hour. You can use your cross-functional team to help you. And if you do that, you're going to identify opportunities, threats, implications. And particularly, for new supply market areas, it's critical. And you want to move in and do industry analysis. We gave you three tools to do that. Hopefully, by looking at the industry before you select suppliers, you'll have a much better understanding of the industry, and how you're about to select certain suppliers. We looked at three different tools here. Supply market segmentation allows you to look at materials or commodities or services. And looking at it from both your perspective as well as your stakeholder or customers needs, right? And you'll have a much better understanding when you go through supply market segmentation. We looked at that 5 forces analysis. Sometimes known as Porter's 5 forces, right? Allows you understand where the power is. Are there any new suppliers entering the market? Any alternative materials that could change the dynamics of the market? And then, the overall competition. So again, very useful tool to really stand back and look at the overall industry. And then, we talked about mapping, which is a another great tool. You can use it both to identify risk and opportunities. And as we talked in the last course about risk management, this is one way you look at finding risks in your overall supply chain in your particular item that you're buying. And then we looked at basically, detailed levels, right? So we really looked at trying to determine now, how do you select suppliers? We looked at things such as SWAT. We looked at things such as looking at their financials. Some of it we looked in strategic sourcing. But the point would be, you're going down the level, really helping get involved. Which suppliers do we want to pick in this industry? So the point would be here is that all of this is done as part of the strategic sourcing process. Part of the selecting and evaluating suppliers. And you want to be able to select the best suppliers for your customers and for your company. We finalized the last course in negotiation. And just a couple of key take-aways here. You need to decide what you're going to negotiate and what you're not going to negotiate. As I said many times, the negotiation generally is a very time-consuming process. So you have to decide where you want to put your resources here. I stress this over and over again. Planning, planning, planning. Negotiation planning is the most important thing that you do in negotiation. 70% of your time should be spent here, whereas 30% roughly should be in the negotiation. We talked about in the negotiation. We understood the differences between positions, and interest, and wants, and needs. You got to really be a good listener when you're negotiating so you hear what the other party is saying. We talked about using tactics and more importantly, how you counter them if they're used on you. And we talked at length about giving concessions. Basically, you want to give some concession slowly, infrequently, and always try to get a concession in return. And developing the plan, right? And again, I'll say it again, most important thing. 70% of your time should be spent on planning negotiation. You want to develop those very specific objectives. And as I said in the last course, you want to be aspirational there. because the higher the aspiration, generally, the better are the outcomes. We want to establish realistic must desirable outcomes and the least acceptable alternatives. And most important, if you can't get your least acceptable alternative, LAA, you got to have a BANTA, right? And that's the best alternative to a negotiated agreement. So what are you going to do if you can? Are you going to go to the second source. Are you going to not do anything? Are you going to stop the launch of the product? Whatever it is going to be. And then lastly, we talked about the importance of large important negotiations. Particularly if you've got a large team, you want to run on mock negotiation. And then lastly, we talked about post negotiation. Some key take-aways. You want to brief your stakeholders and or your your boss or boss's boss. Whatever is the common thing you do in your firm. And you want to do an after action review for making continuous Improvement for next time. So what is successful negotiator. I talked about, generally, these are the people that have been trained. So, all sorts of places you can train. I talked about that in the beginning of the course. You want to do planning 70% of the time. And most importantly, you want to be able to practice, right? And people that have higher goals and aspirations, right? Tend to have higher, better outcomes. And lastly, I think if you are a good negotiation, take the time to become one. I think the organization will look to you as a value professional. So that's the end of the course. I hope you enjoyed global procurement and sourcing specialization and it's courses. I want to thank you for your time. And hopefully, you learned something. I'll just make a couple of comments here at the very end. I think this is what I used to coach my people that work for me in various consumer products companies. We went through a lot of material through these seven courses. We just went through a wrap up. I think they'd be good to look at. So usually, what I tell to people, whenever they're involved in training, and you can get wrapped up. And, Jesus, so much here. I don't know what to do. So I would start small. And my recommendation is to pick three or four things that are important that you took out of this course. Take them back to your apartment and accomplish them. Something like an after action review or using the strategic sourcing process. Then when you're done with those three, you feel comfortable, maybe come back and look at the wrap-up for the slides in the other courses, and maybe pick three more. So my point here is that you get overwhelmed with a lot of information, and do nothing. My suggestion to you would be, let's try to take it in small bites and make incremental improvements. And if you do that over and over again, you're going to have a massive improvement of working in your job. So with that, I'd like to end the course. I'd like to thank everybody, again, that being with me. And look forward to seeing you maybe in future courses down the road. Thank you.
