International Trade Centre UNCTAD/WTO

Building a learning culture

in International Purchasing
& Supply Chain Management

... Helping to make supply chains

work !
 International Trade Centre UNCTAD/WTO

Importance of material costs

Average percentage share in total costs

Pakistan
Rubber processing
India Food processing

Indonesia

Bangladesh

0% 20% 40% 60% 80%

 International Trade Centre UNCTAD/WTO

Effective purchasing & supply chain

management can help an enterprise to…
 Ensure continuity of production
 Respond quickly to market changes
 Improve quality
 Innovate
 Reduce its total costs
 International Trade Centre UNCTAD/WTO

Paradigm shift in purchasing

& supply…
= “Buying into
competitiveness
”
Clerical Commercial Strategic
 International Trade Centre UNCTAD/WTO

“Buying into
competitiveness
”

In the home
market…
… & in the
world market
But achieving this requires
most companies to…
…change mindsets at top
management level
…build new partnership-based
relationships with suppliers
…develop new staff
knowledge & skills
 International Trade Centre UNCTAD/WTO

From the learning perspective,

there are four kinds of people…
…in each of us!
What Knowledgeable,
we and always Knowledgeable,
ready to improve but too proud
know
Which are
YOU?
Without Without
knowledge, but knowledge,
ready to learn & foolish

What we think we
know
 International Trade Centre UNCTAD/WTO

Learning must become a HABIT

Knowledgeable,
and always
ready to improve

•Know WHAT to do Knowledge

•Know HOW to do it Skills
•WANT to do it Attitudes
 International Trade Centre UNCTAD/WTO

The buyer’s key questions...

Why
What to buy it?
buy? At what price
to buy it?
Where
to buy it? When
to buy it?
How
to buy it?
 learning
International Trade Centre UNCTAD/WTO

The buyer’s key questions...

Why
What to learn
buy it?
it?
learn?
buy? At what price
to
to learn
buy it?
it?
Where
to
to learn
buy it?
it? When
to
to learn
buy it?
it?
How
to
to learn
buy it?
it?
 learning
International Trade Centre UNCTAD/WTO

The buyer’s key questions...

What to
•What you want…
learn? •…& what you need
In the
present…
•How can you
...& in the
future
know what you
need?
 learning
International Trade Centre UNCTAD/WTO

The buyer’s key questions...

Why
learn it?

•What you want...

Motivation!
L EARN? •…Is what you
& more...
will learn!
 learning
International Trade Centre UNCTAD/WTO

The buyer’s key questions...

At what price
to learn it?

•Not an expenditure, it’s

an investment
“A cynic knows the price of everything,
and the value of nothing…” Oscar Wilde
 learning
International Trade Centre UNCTAD/WTO

The buyer’s key questions...

Never be too busy
to learn...

…& never stop!

When
to learn it?
 learning
International Trade Centre UNCTAD/WTO

The buyer’s key questions...

by doing!
30%

60%
by seeing
10%

by listening How
to learn it?
The value of
group learning
 learning
International Trade Centre UNCTAD/WTO

The buyer’s key questions...

Good programmes…
…with good
tools

Where
to learn it?
 International Trade Centre UNCTAD/WTO

ITC programme to develop PSCM

training
 To be effective, training must be…
–Needs-based
–Competency oriented
 To develop effective delivery…
–Training of trainers
 Training materials must be…
–practical / application oriented
–user-friendly, attractive & enjoyable
 International Trade Centre UNCTAD/WTO Training
Certificate

ITC Advice & training

of trainers

New & upgraded

materials

Adaptation
& feedback

Institutions hold
training programmes

Translation &
adaptation of
Materials