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Supply Chain Principles

Supply Chain Management and Procurement October 25, 2025
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Introduction

This course delves into the core principles that govern successful, modern supply chain design and execution. Moving beyond the basics, participants will explore concepts such as lean, agile, and resilient supply chains, understanding the strategic trade-offs inherent in SCM decisions. Key topics include demand forecasting accuracy, the bullwhip effect, and total cost of ownership (TCO) in sourcing. Mastering these principles is crucial for professionals seeking to optimize global networks, minimize risk, and drive strategic value from their entire end-to-end supply chain operation.

Objectives

Upon completion of this course, participants will be able to:

  • Analyze the principles of **Lean** and **Agile** SCM and determine when to apply each.
  • Explain the causes and mitigation strategies for the **Bullwhip Effect** in demand forecasting.
  • Apply the concept of **Total Cost of Ownership (TCO)** in strategic sourcing decisions.
  • Design strategies for building **Resilient** and **Sustainable** supply chain networks.
  • Understand and apply fundamental inventory management techniques like **ABC Analysis** and safety stock calculation.
  • Evaluate the role of strategic partnerships and **Collaborative Planning, Forecasting, and Replenishment (CPFR)**.
  • Map and analyze a supply chain's value stream to identify non-value-added activities.
  • Describe the principles of ethical and responsible sourcing and their impact on brand reputation.

Target Audience

  • Mid-Level SCM Analysts and Managers
  • Procurement and Sourcing Specialists
  • Logistics and Distribution Managers
  • Operations and Production Planning Supervisors
  • Inventory and Demand Planning Professionals
  • Internal Consultants focused on Process Improvement
  • Finance and Cost Accountants supporting SCM

Methodology

  • Case study analysis of a major supply chain disruption (e.g., Suez Canal blockage) and resilience planning.
  • Quantitative group activity: performing a TCO calculation for a capital expenditure item.
  • Role-playing: negotiating a supplier contract using a TCO approach.
  • Individual exercises on calculating safety stock and reorder points.
  • Value Stream Mapping workshop for a production or fulfillment process.

Personal Impact

  • Ability to make data-driven, strategic supply chain decisions.
  • Enhanced negotiation skills using Total Cost of Ownership concepts.
  • Expertise in identifying and mitigating complex operational risks.
  • Increased efficiency and recognition as a process optimization leader.
  • Foundation for leadership roles in SCM and operations.

Organizational Impact

  • Minimized operational costs through effective TCO application in sourcing.
  • Increased responsiveness to market changes using Agile and Lean principles.
  • Improved supply chain resilience against disruptions, ensuring business continuity.
  • Reduced inventory costs through advanced forecasting and inventory control.
  • Enhanced brand reputation through ethical and sustainable sourcing practices.

Course Outline

Unit 1: Strategic Alignment and Value Creation

SCM Strategy Types
  • Alignment of SCM strategy with corporate business strategy
  • The trade-off model: cost, speed, flexibility, and quality
  • Introduction to **Lean Supply Chain** principles and waste elimination (Muda)
  • Introduction to **Agile Supply Chain** and quick response capabilities
Demand and Planning Fundamentals
  • Techniques for demand forecasting and managing forecast error
  • The **Bullwhip Effect**: causes (e.g., lack of communication) and mitigation (e.g., shared data)

Unit 2: Principles of Procurement and Sourcing

Total Cost of Ownership (TCO)
  • Defining TCO: beyond the purchase price (acquisition, possession, post-possession costs)
  • Methodologies for TCO calculation and application in decision-making
  • Analyzing the cost structures of suppliers
Supplier Relationship Management (SRM)
  • Kraljic Matrix: segmenting suppliers and developing appropriate relationships
  • Principles of collaborative negotiation and value-based sourcing

Unit 3: Inventory and Operations Principles

Advanced Inventory Control
  • **ABC Analysis** for inventory prioritization and control effort
  • Calculating and managing **Safety Stock** and reorder points
  • Applying Just-in-Time (JIT) principles in manufacturing and logistics
Process Improvement
  • Value stream mapping to identify bottlenecks and lead time components
  • The role of continuous improvement (Kaizen) in operations

Unit 4: Logistics and Distribution Excellence

Network Design Principles
  • Principles of distribution network design (centralized vs. decentralized)
  • The location decision: trade-offs between facility, labor, and transport costs
  • Cross-docking and milk-run strategies for efficient transportation
Service and Cost Balance
  • Defining optimal customer service levels and their cost implications
  • Introduction to reverse logistics principles and waste management

Unit 5: Risk, Resilience, and Sustainability

Risk Management Principles
  • Mapping and assessing supply chain vulnerabilities and dependencies
  • Strategies for **Supply Chain Resilience** (e.g., redundancy, flexibility)
  • Developing a supply chain continuity plan
Ethics and Sustainability
  • Principles of social and environmental responsibility in the supply chain
  • Conducting supplier audits for ethical sourcing and compliance

Ready to Learn More?

Have questions about this course? Get in touch with our training consultants.

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Upcoming Sessions

17 Nov

Dusseldorf

November 17, 2025 - November 28, 2025

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15 Dec

Kuala Lumpur

December 15, 2025 - December 19, 2025

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05 Jan

Milan

January 05, 2026 - January 09, 2026

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