14th May 2021 | 9.00am to 2.00pm
Procurement team members make multiple decisions daily, both individually and in teams. This course will provide practical tools and thinking frames for supporting and correctly channelling judgement. In everything from supplier selection to contracting terms choices, complexities such as risk/uncertainty and multiple conflicting objectives make it challenging to make and justify decisions.
This course provides simple and powerful decision trees and rate/weight techniques that increase decision effectiveness, leading to better procurement/supply outcomes. They provide powerful justification for ‘correct’ decisions and mitigate against human biases that creep into unaided decision processes.
We will present and practice in workshops the two most powerful techniques for procurement decision making support. These techniques lead to better decisions and to better communicated justification of those choices.
First is ‘decision trees’ that foster then identification of alternative actions/ choices, and sources of uncertainty, then map these to provide insights about what the best course of action really is. This tool promotes correct thinking and decisions about risk and reurn, and mitigates against human biases.
Second, we present and use the ‘rate and weight’ technique for when procurement decisions involve multiple dimensions of value, often present in vendor selection decisions.
- Understanding of the importance of making rational, supported decisions, that support business judgement and improve outcomes relative to the pure intuition approach.
- Awareness of human decision making natural biases and how to avoid these
- Ability to build and ‘solve’ decision trees to support important decisions
- Explicit understanding of ‘risk aversion’ and the importance of knowing and applying a consistent approach to risk across procurement and the organisation
- Knowledge of how to articulate multiple dimensions of value in procurement decisions and model those trade-offs using rate/ weight tables
- Ability to engage in group decision making processes
Who should attend:
- People who make or contribute to decisions in procurement and supply functions
- People who provide input to procurement decisions and strategies
- Procurement managers who select vendors or procure products/ services for their firm
- Those who wish to acquire practical tools for supporting decisions
- People who lead or work in procurement teams and make team decisions
Danny Samson, Professor and CoEditor in Chief at Operations Management Research