Best Practices in Materials Management (2-in-1 Course)

Impacting Performance through the use of Strategic Supply Chain & Materials Management Practices & Tools.


    Course Location: DoubleTree by Hilton Hotel, Riyadh, Saudi Arabia

    This course is made up 2 separately bookable course. Please select the correct option during booking.


    Course A: Best Practices in Procurement Planning, Sourcing & Supplier Resource Management (27th – 28th November 2016, 2 Days)

    Course B: Best Practices in Forecast/Demand, Inventory Planning & Warehouse Management (29th November – 1st December 2016, 3 Days)

    *Any of these programs satisfies 1 Elective Course Requirement for the Professional Certificate in Materials Management.


    Course Overview for Course A: Best Practices in Procurement Planning, Sourcing & Supplier Resource Management (27th – 28th November 2016, 2 Days)

    This 2 days training program starts with the significance of Procurement’s role in supply chain as it is a common denominator existing within each of the chain links. Then it shows how to incorporate an organisation’s plans into the procurement planning process. As the success of a supply chain and materials management professional depends not only planning sourcing requirements but more so on the suppliers that are going to deliver, the second day focuses on the biggest challenges you face in attempting to improve supplier performance.

    It highlights the fact that businesses cannot solve problems by just switching suppliers. The costs of poor quality always continues: cost of error detection, the cost of error correction, time to replace rejected materials and erosion of customer confidence.

    That’s why in Day 2, you will explore the latest strategies for improving the performance of suppliers. You will look at the successes of others and how they did it to make the suppliers performance improvement a reality.

    Includes a ten (10) point assessment that will measure a company’s posture for addressing growth.



    What You Will Learn (Course A):

    • Capability for Continuous Improvement Mentality
    • Lean Flow Collaboration in Procurement
    • Transformation of Purchasing in the Supply Chain
    • How to employ the process for Procurement Practices in the Supply Chain
    • Be able to converse with suppliers on how to achieve the desired results
    • How to keep costs down
    • How to address and resolve cost and respective quality issues
    • Learn the essential elements to attain a win-win relationship
    • How to employ the steps to attain a supplier certification relationship
    • What the ten (10) tips for success are in an Optimised Procurement Department


    Course Outline (Course A):

    Day 1: Procurement Planning & Sourcing

    Procurement Planning

    • What is it & Definition
    • Planning Interaction – Internal Customers
      • Services
      • Materials

    Management Plans

    • Mission and education
    • Seven phases of supplier certification
    • Strategic planning
    • Key factors in improvement process & certification
    • Purchasing ethics


    • Who needs it
    • Performance potential
    • What and how are we doing
    • Application of Lean practices

    Strategic Sourcing and Supply Relationship Management (SRM)

    • Sourcing requirements
    • What is SRM
    • E-Procurement
    • A test for managing the supply side


    Day 2: Supplier Resource Management

    The Impact of Quality

    • The practicality of ISO template
    • Supplier costs of quality
    • Statistical quality control

    Performance Evaluation

    • Report card
    • Managing with incentives and penalties
    • Service factors

    Reducing the Supply Base

    • Classification methodology
    • Importance of process implementation

    Measuring Results

    • Certification milestones
    • Documenting and reporting results
    • Cost avoidance and savings
    • Appraising and controlling purchasing performance
    • Management reports

    Exercise – Defining various terms

    Exercise – Supplier categorisations


    Course Overview for Course B: Best Practices in Forecast/Demand, Inventory Planning & Warehouse Management (29th November – 1st December 2016, 3 Days)

    Businesses around the world are in a predicament today, because of enormous pressures to improve internal and external performance. When the issues of material forecast, demand planning and inventory are raised, the common challenges become: bad forecasting, incorrect inventory mix, limited availability extended lead times from suppliers, and material and operational costs increases.

    While forecast improvement helps, it is not the solution. Business and inventory planning is a significant part of the problem. Today, business enterprises are seeing extensive technology coupled with a renewed view of linking the relationships of organisations – The Supply Chain. However, there are number of best practices and principles, to manage the flow of materials/services within and outside the firm that this program will showcase.

    Forecasting, demand planning, inventory and warehouse best practices are introduced in order to achieve a level of significant inventory reduction (Up to 20% improvement, per a research agency) throughout the supply chain.


    What You Will Lean (Course B):

    • How do you arrive at a projection of your business revenue – Forecasting
    • What is the frequency of the adjustments to a Forecast and what precipitates it
    • How to determine what the Cost of Carrying Inventory is and its importance
    • How to control inventory physically and virtually via computer systems and planning techniques
    • How to determine which is the appropriate replenishment technique to employ
    • What are the various order quantity approaches and when they should be used
    • What are the different measurements and what do they mean
    • How to define what is the appropriate inventory level
    • What are the requirements and practices for improving your posture (competitive advantage of an enterprise)
    • What level of investment is required to ensure 99% customer service
    • How are your business planning and operational policies adjusted regarding forecast revision
    • How to incorporate operating practices that promotes cross-functional relationships to resolve and improve customer service and satisfaction performance
    • How to establish a proficient flow/layout
    • What is “postponement” and how does that benefit your organisation
    • How to get control of your inventory accuracy errors
    • What is the KPIs for Warehousing


    Course Outline (Course B):

    Day 1: Forecast/Demand

    Unique Take Aways

    • How the Supply Chain influences the way we do business and interact with customers/suppliers
    • What are enterprise objectives
    • What are the Lean Principles along with the tools/techniques to use to achieve objectives
    • How to determine statistical safety stock
    • What are the data issues regarding forecasting
    • What is the forecasting process and how to use the associated techniques
    • How to employ quantitative and qualitative forecasting techniques
    • What is Mean Absolute Deviation (MAD) – why and how to use
    • What are the customer service elements
    • Who is involved in Sales and Operations Planning (S&OP) and what are their roles

    Today’s business environment

    • Impact of the Supply Chain
    • Lean thinking principles
    • Customer satisfaction and collaborative relationships
    • Global posturing
    • Information technology and its influence
    • Database Development
    • Terminology
    • Database map and editing


    • Forecast process strategies
    • Various approaches/methods of forecasting
    • Effects of product life cycle position
    • Seasonality index

    Exercise – Value Analysis

    Exercise – Calculating Safety Stock

    Demand Management

    • Reasons for inaccuracy
    • Monitoring the forecast for variation
    • Techniques used
      • Bias, trend signal, demand filters and others
    • Customer Relation Management (CRM)
    • Collaborative Planning Forecasting and Replenishment (CPFR)

    Sales and Operations Planning (S&OP)

    • What is it and its role in a company
    • Identifying the product/service hierarchy
    • The five (5) process steps involved in creating a S&OP
    • Developing a S&OP grid
    • Outputs from the S&OP
    • Assessing your S&OP process – What then?
    • The benefits of the S&OP

    Exercise – S&OP


    Day 2: Inventory Planning Optimisation

    Unique Take Aways

    • What is the demand driven supply network and why to use it
    • What are the key inventory management words and why do we need to learn how to employ them
    • What are the related costs to inventory – stock out?
    • What are the 10 critical inventory issues
    • What is the difference between inventory management and control

    Planning for Inventory

    • Inventory item classification (80/20 – ABC Analysis)
    • Understanding the lead time and its impact
    • Lean approach vs safety stock
    • Benefits of Lean practices
    • Push vs Pull approaches to materials flow

    Inventory Management and Control

    • Why carry inventory
    • Ten (10) critical inventory issues
    • The relationship of inventory to forecast revision, demand consolidation and supecession

    Inventory management Vs Control

    • Three (3) steps to inventory control
    • Safety stock, why and how much
    • Service policy a realistic necessity
    • Average inventory


    • Turns vs days of supply
    • Other performance indicators

    Inventory and forecast variability

    • Ordering rules/policy

    Replenishment alternatives

    • Kanban, ROP, MRP, VMI, and others

    Reducing Inventory Programs

    • Identifying areas
    • Where are these opportunities
    • How are they being determined and selected
    • Techniques to employ
      • Pareto’s Law
      • Lead time reduction
      • Single Minute Exchange of Die (SMED) application (internally and externally)
      • Vendor Managed Inventories (VMI)
      • Types of ownership and considerations for successful employment

    Exercise – Which is the better inventory measure

    Exercise – What are the 3 questions for doing inventory


    Day 3: Warehouse Management

    Warehouse Planning

    • The right number of warehouses
    • Where should they be located
    • Product-mix considerations
    • Layout and location methodology
    • Space utilisation

    Capabilities of the Warehouse

    • Consolidation of materials
    • Break-bulk and cross-dock
    • Postponement
    • Stockpiling inventory, Spot stocking and assortment
    • Mixing


    • Functions performed
    • Developing work procedures
    • Training personnel
    • Security systems
    • Product deterioration
    • Pilferage protection

    Accountability for Inventory

    • Inventory errors
    • Record Accuracy – Measurement
      • Variance tolerance
    • Auditing Inventory records
      • Periodic physical inventory
      • Cycle counting
      • Measurement methodology

    Application of Technology

    • Storage/handling systems
    • Transaction processing
      • Auto ID
      • Warehouse Management Systems

    Key Performance Indicators (KPI)

    • Perspective and objectives
    • Perfect order busters
    • Cost performance measures
    • Customer service
    • Productivity performance
    • Quality performance

    Exercise – Determining Customer Service Level

    Exercise – Why use Safety Stock and how to calculate it

    Exercise – Where are the bottlenecks




    “There’s no doubt that I gained more knowledge & information, taking into consideration the intensive experience of our trainer, Michael Gozzo.”

    – Mohamed Sheisha, Tendering Manager, Dubai Airports


    “”Gozzo is exceptionally skillfull and excellent trainer. He successfully managed to transmit excellent and well composed information to us. I have gained more knowledge (new) with improvement of existing ones.”

    – Contracts Manager, Aldar Properties


    “The presenter was perfect….don’t hesitate to join. I have new mentality which will help me in future to do my job well.”

    – Saud F. Al-Yami, Specialist, Purchasing, Sahara Petrochemicals Company


    “I like the way used (with) examples and case study. Its a very good program and I learned a lot which can help me to improve my skills and improve our company processes.”

    – Amro Mohsen Balobaid, Senior Buyer, Ma’aden Aluminium Company (MAC)


    Your Instructor:

    Michael W. Gozzo, CSCP, CPIM


    Michael W. Gozzo has over has over 30 years experience in Supply Chain, Demand Flow Technology, Just-In-Time, Total Quality Control, Inventory Control and Production/Operations Management. His experience as a practitioner concluded after completing seven years as Director of Operations at a division of Allied-Signal. He subsequently became a consultant and guided manufacturers and computer OEM’s (Apple) in the planning and interface with their suppliers.

    He has traveled and worked extensively in Canada, England, Hong Kong, Ireland, Scotland, Germany, Japan, Korea, Mexico, Indonesia, etc.

    Mr. Gozzo has been selected to Who’s Who in American Manufacturing and is Certified in Production and Inventory Management (CPIM) & Certified Supply Chain Professional (CSCP) by the Association for Operations Management (APICS),

    Mr. Gozzo is a successful and established author of many books. He is the co-author of “Made In America – The Total Business Concept”, “Just-In-Time Purchasing”, “Supplier Certification”, “Behind Bars: Bar Coding Principles and Applications”, and his latest “People Empowerment – Success Through


    Course Curriculum

    Best Practices in Materials Management (2-in-1 Course) 1 day, 11 hours

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    • SGD 3,250SGD 7,850
    • 5 days
    • 1 Units
    • 2100 Minutes
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    Purchasing & Procurement Center Inc. (PPC) is a boutique organisation specialised on supply chain & procurement competence based learning & development. PPC has a solid reputation in Asia & Middle East as a strategic partner for designing, setting up & implementing Practical Procurement & Supply Chain Academies for its clients, proven by the massive growth to its client based since 2013. With its unique, simple & quick to implement Academy approach PPC boasts leading companies as pioneers in setting up supply chain & procurement academies. When PPC talks about implementing Supply Chain & Procurement Academies, it is NOT just about training. It’s comprehensive yet flexible and very customizable approach includes competence development & mapping based on job roles, assessment & gap analysis and individual blended learning plans.
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