APD’s New Certification Course: Tools and Strategies for Buying and Managing Indirect Categories
APD is pleased to announce a new virtual training course focusing on practical skills for buying indirect categories. Manufacturing purchasing teams have come to rely on APD training for important topics like negotiations, cost management, and commodity leadership. Now buyers and purchasing managers can expand their skills and learn tools and templates for real-world application to indirect categories.
The largest spend categories for manufacturers are in direct materials. Consequently, indirect categories are often under-managed, and buyers don’t have the tools to drive savings and mitigate supplier risks like they do with direct material categories. This is even though, in cases where capital expenditures are included, indirect spend can often be close to or equal the total spend on direct materials.
APD’s Indirect Purchasing Certification program consists of three live virtual sessions, additional on-demand content, and take-away assignments to apply the lessons learned. A self-directed project delivering tangible improvements is required for participants to receive certification.
The program content was constructed based on feedback from indirect purchasing leaders in industry. APD’s Kristin Alafita, who held Director of Indirect Purchasing roles at several global manufacturers, led the development along with APD’s founder, Jeoff Burris.
The program consists of 13 skill-based modules and several category deep dives.
Indirect Purchasing Skill Modules
Influencing Stakeholders
Will address the important role that stakeholder play in non-production purchasing and specific tools to identify and engage stakeholders in the procurement process.
Segmenting Indirect Spend to Determine Leverage Strategies
Will focus on conducting spend segmentation to determine best leverage strategies and methods for increasing leverage.
Understanding Stakeholder Needs
Will provide guidance on identifying stakeholders for various indirect categories, developing a stakeholder interview guide, and conducting stakeholder interviews.
Achieving Alignment Through Commodity Objectives and KPIs
Will introduce a step-by-step methodology for developing category objectives and KPIs. In addition, best practices for reporting net savings vs. cost avoidance will be presented.
Developing a Statement of Work for Market Testing Indirect Materials and Services
Will address the key elements of an effective SOW, as well best practices for developing an SOW that prevents scope creep, missed deadlines, and contractual disputes.
Reviewing Contracts and Negotiations Contract Terms
Will review commonly used language and clauses in indirect contracts, focusing on pitfalls to avoid and best practices for developing effective supplier agreements.
Evaluating Potential Suppliers
Will introduce a simple and straightforward tool for identifying the attributes needed from a supplier in a specific category, as well as evaluating the capabilities of potential suppliers against the identified attributes.
Managing Indirect Supplier Risks
Will focus on supplier relationship building, supply path monitoring, and maintaining security.
Cost Management Tools and their Use in Savings Achievement
Will introduce a straightforward tool for identifying savings opportunities and validating supplier quotes using supplier-provided quote data.
Conducting a Strategic Sourcing Event
Will provide the steps and tools for planning and executing a successful market test of indirect materials and services.
Prioritizing Workload
Will enable buyers and purchasing managers to balance job demands to ensure the most important tasks are completed to maximize impact.
Communication Skills
Will address proven techniques for influencing stakeholders and achieving collaborative decisions with the stakeholder community.
Indirect Purchasing Category Deep Dives
Specific modules will explore the supplier types, cost drivers, common industry practices, and industry trends for managing the buying of:
- Services such as temporary labor, marketing, and travel
- Corrugated packaging
- Capital equipment
- Freight & logistics
- MRO
Interested in learning more about this new APD training program? We’ve prepared a short video below, or can download the course brochure.