Business, Commerce and Management Studies Procurement

Sourcing Strategy Development for Procurement Training

SAQA US 260097 | NQF 6 | Credits 8 | Duration 5 Days
From $913 per delegate

Description

This course equips procurement professionals with the skills to develop comprehensive sourcing strategies that align with organisational objectives. Participants will learn to analyse market conditions, evaluate supplier capabilities, and design strategic approaches that optimise cost, quality, and risk. The course ensures learners can apply systematic methodologies to create robust sourcing strategies that drive competitive advantage.

Learning Outcomes

  • Analyse internal and external factors influencing sourcing decisions to identify strategic requirements.
  • Evaluate supplier markets and assess potential sources of supply using appropriate research methods.
  • Design a sourcing strategy that balances cost, quality, risk, and sustainability objectives.
  • Develop criteria and processes for supplier selection and contracting within the strategy framework.
  • Implement the sourcing strategy through stakeholder engagement and effective change management.
  • Monitor and review the performance of the sourcing strategy against defined metrics and adjust as needed.

Target Audience

Procurement managers, supply chain specialists, and buyers responsible for developing or contributing to sourcing strategies within their organisations. It is also suitable for professionals transitioning into strategic procurement roles.

Prerequisites

None — open enrollment

Course Outline

Day 1: Foundations of Sourcing Strategy

Objectives:
• Understand the role of sourcing in the procurement value chain
• Differentiate between strategic, tactical, and operational sourcing
• Identify key internal and external factors influencing sourcing decisions
• Recognise the link between sourcing strategy and organisational goals

Topics:
• Introduction to sourcing strategy and its importance
• The procurement value chain and sourcing's place within it
• Strategic vs. tactical vs. operational sourcing
• Internal factors: organisational objectives, spend categories, stakeholder needs
• External factors: market dynamics, supplier landscape, risk factors
• Overview of sourcing strategy frameworks (e.g., Kraljic matrix)
• Ethics and governance in sourcing decisions

Day 2: Spend Analysis and Category Management

Objectives:
• Conduct a basic spend analysis to inform sourcing decisions
• Apply category management principles to segment spend
• Identify opportunities for consolidation, rationalisation, and cost savings
• Use data to prioritise sourcing categories

Topics:
• Spend analysis: data collection, cleansing, and classification
• Category management: definition and benefits
• Segmenting spend using ABC analysis and Pareto principle
• Understanding total cost of ownership (TCO)
• Identifying quick wins and strategic opportunities
• Tools for spend visualisation and reporting
• Practical exercise: analysing a sample spend dataset

Day 3: Supplier Market Analysis and Strategy Formulation

Objectives:
• Assess supplier markets using Porter's Five Forces and PESTLE analysis
• Evaluate supplier capabilities and risks
• Develop sourcing strategies aligned with organisational objectives
• Choose appropriate sourcing models (e.g., single, multiple, global, local)

Topics:
• Supplier market analysis: Porter's Five Forces, PESTLE, SWOT
• Supplier evaluation: financial health, capacity, quality, innovation
• Risk assessment in supplier markets (supply disruption, geopolitical, etc.)
• Sourcing models: single vs. multiple sourcing, global vs. local
• Strategy formulation: make-or-buy decisions, insourcing vs. outsourcing
• Developing a sourcing strategy document
• Case study: formulating a strategy for a key category

Day 4: Supplier Relationship Management and Negotiation Strategy

Objectives:
• Classify suppliers based on relationship potential
• Develop a supplier relationship management (SRM) plan
• Prepare a negotiation strategy aligned with sourcing objectives
• Understand key negotiation tactics and ethical considerations

Topics:
• Supplier segmentation: strategic, preferred, transactional, etc.
• SRM principles: collaboration, performance management, development
• Supplier scorecards and key performance indicators (KPIs)
• Negotiation strategy: objectives, BATNA, concessions, and tactics
• Ethical negotiation and supplier diversity considerations
• Contractual considerations: terms, SLAs, and exit strategies
• Role-play: negotiation scenario based on a sourcing case

Day 5: Implementation, Monitoring, and Continuous Improvement

Objectives:
• Plan the implementation of a sourcing strategy
• Monitor supplier performance and strategy effectiveness
• Apply continuous improvement methodologies to sourcing
• Integrate sustainability and transformation objectives

Topics:
• Implementation roadmap: timelines, resources, change management
• Performance monitoring: dashboards, reviews, and reporting
• Continuous improvement: Lean, Six Sigma, and Kaizen in sourcing
• Sustainability and BBBEE in sourcing strategy
• Managing strategic shifts and supplier transitions
• Final integrated case study: develop and present a full sourcing strategy
• Course wrap-up and assessment

Practicals

No practicals for this training.

This course is made up of exercises and case studies delivered alongside the theory — no separate practical sessions are required to complete it.

Summatives

Each delegate is assessed continuously throughout the course and a final summative test at the end.

Daily Exercises — 30%

Every training day ends with a multiple-choice exercise scored out of 100%. The scores from each daily exercise are averaged across the duration of the course to produce a Daily Average mark, which contributes 30% to the final total.

Final Test — 70%

On the last day a final summative test is written. It is a multiple-choice paper with multiple-answer questions: each question may have more than one correct option, and a single wrong selection on a question marks the entire question wrong — no partial credit. The final test is scored out of 100% and contributes 70% to the overall mark.

Final Total
Component Out of Weight
Daily Average (multiple choice) 100% 30%
Final Test (multi-answer multiple choice) 100% 70%
Final Total 100%

All marks are recorded on the AATICD LMS and visible to each learner under their account.

Certificate

Certificate of Completion

Awarded to delegates who achieve an overall mark of 50% or higher on the Final Total (Daily Average 30% + Final Test 70%).

How it works
  • Certificates are auto-generated on the AATICD LMS as soon as the marks pass the 50% threshold.
  • Each certificate is a branded PDF with the delegate's name, the course title, the unit standard ID, NQF level, credits, and the date of issue.
  • You can download or print your certificate from your LMS dashboard at any time after issue — there's no reissue fee and no expiry date.
  • If you scored under 50% you can sit the final test again at the next scheduled session at no extra cost.
Where to find it

Sign in to the LMS, open your dashboard, and your certificates appear under My Certificates. Each entry has a View / Download button and a print option.

Training Discounts

Group discounts apply automatically — the more delegates you enrol, the greater the saving. Discounts are calculated at 3% per 5 delegates, scaling up to 40% off for 100+ delegates.

Delegates Discount
5 3% off
10 6% off
15 9% off
20 12% off
25 15% off
30 18% off
50 30% off
75 35% off
100 40% off

3% discount per 5 delegates, up to 40% off for 100+ delegates. Contact us for a custom group quote.

Upcoming Training Sessions
Online training — attend live sessions from anywhere via our virtual classroom.
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Mon 03 Jan 2028 Fri 07 Jan 2028 Your Premises Summer 2027 $1,188 Register
Mon 24 Jan 2028 Fri 28 Jan 2028 Your Premises Summer 2027 $1,188 Register
Training Discounts
Delegates Discount
5 3% off
10 6% off
15 9% off
20 12% off
25 15% off
30 18% off
50 30% off
75 35% off
100 40% off

3% off per 5 delegates, up to 40% for 100+

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