In a market where customers are more demanding than ever and resources are
scarce, achieving excellence in the supply chain is increasingly challenging.
With the mandate to provide technical cooperation in the area of international
trade promotion and development, ITC has developed a Modular Learning System in
Supply Chain Management (MLS-SCM)Ⓟ.
The MLS-SCM
Ⓟ includes a series of 18 high-quality and up-to-date
training packs covering all stages of supply chain management to help companies
achieve greater competitiveness. A global professional certification programme
with exams managed by ITC is also offered. The programme was launched in 2000
and, so far, more than 25,000 professionals in 61 countries have benefited from
the training offered by a network of more than 1,500 trainers attached to 120
institutions. The programme has also paid dividends for the companies whose
employees have attended training with savings of more than US$ 51.5 million made
in 2009 and 2010.
The MLS-SCMⓅ programme has been singled out as a model for
sustainable training capacity development. It offers an interesting business
model for local institutions where these institutions are given access to
internationally validated materials, to trainers trained in modern training
techniques and to an internationally recognized professional certification
programme which these institutions can offer to their local markets.
The Importance of Optimizing Entry
Processes
While many companies have worked hard to develop internal processes,
marketing and sales, the purchasing, logistics and supply chain aspects have
often been neglected. For the most part, the search for ways to optimize these
processes is only now gaining importance. Companies need to find new ways to
deal with suppliers and customers through focusing on more strategic approaches,
long-term thinking and an investment in training to allow managers and staff to
implement best practice business processes.
For example, a company that invests an average of 60% of total sales in raw
materials and supplies (including production, administrative costs and utilities
representing 40% of sales), a saving of 10% in the total acquisition costs could
result in a 60% increase in profits.
MLS-SCMⓅ
Success Story Winners of 2009 and 2010
Through participating in the MLS-SCMⓅ programme, more than 25,000
professionals from around the world have had a positive impact on the companies
they work for. Below are two case studies highlighting participants who were
awarded for their contributions.
CASE STUDY
SYED ASGAR ALI
BOC Bangladesh
With implementation of the MLS-SCMⓅ, Syed Asgar Ali yielded an
astonishing e 2.6 million in savings through:
- Cancelling some orders previously booked at a higher price compared
to the point of supply time and renegotiated with suppliers for a better price;
- Closely monitoring market supply for the favourable time to buy in;
- Placing orders through competitive bids and, where applicable,
negotiating and renegotiating the source among approved suppliers; and
- Developing competitive sources for relevant material and services.
CASE STUDY
THOMAS MESFIN ARAYA
Program Management Unit – Eritrea
Education Sector
Development Program, Eritrea
Through implementation of the MLS-SCMⓅ processes, Mr Araya
achieved direct savings of US$ 31,522 and a contribution to overall savings of
US$ 95,000 for his company and minimized transportation and shipment risks. He
achieved this through:
- Introducing an insurance policy purchase system for inland
transportation;
- Becoming actively involved at the early stages of the preparation of
supplier requirements and specifications;
- Introducing a combination of technical and performance
specifications, depending on the type of supplies required; and
- Developing more realistic budget estimates that redesigned purchase
expenditures and clearly articulated the rights and obligations of contracting
parties.
For more information visit www.ipscm-learningnet.net