Course Overview

Purchasing Management is a process used by organizations to acquire goods and services. Purchasing management is part of a much broader procurement process, which would generally include expediting, supplier quality, logistics and transportation.

It is a function that is responsible for professional management of an organization’s interface with the supply market, to ensure its supply with the necessary services and goods that are provided by other organizations namely “suppliers”.  Purchasing can be linked and connected with strategic sourcing (supply planning, selection and contracting of supplier) and operative procurement (ordering of material, expediting and paying).

process :

It is a process to ensure a safe and timely supply while achieving the target of meeting the cost of goods to contribute to innovation and strategic goals of an organization to meet and achieve the competitive advantage through smart purchasing.

Supply Management is a segment that supports identifying, acquiring and managing suppliers and resources that are of key importance and are essential to the operations of an organization. Supply management consists of purchasing of physical goods, information services or any other resources that enable the organization to continue operating and growing and achieve the goals to drive to the organization vision.

Supply Management can be stated as a systematic business process that goes a step further than procurement to include the coordination of pre-production, logistics and inventory management, along with budgeting, and other key essential information that is required for running day to day operations smoothly.

This training course aims to empower you with comprehensive knowledge and understanding about Purchasing and Supply Management. This course will support navigating through complex challenges which you encounter in your day-to-day operations and will help to upscale your current capabilities, and further help to equip you better by teaching how to use analytical and logical strategies for smooth functioning of logistics operations.

Course Objectives

The main objective of this Purchasing and Supply Management Course is to empower participants to —

• Define and establish the strategic role of the purchasing department
• Conduct and implement accurate supplier evaluation
• Effective negotiation strategies with suppliers
• Elucidate the importance of value analysis in purchasing
• Build process to improve the efficiency of the purchasing department
• Support performance evaluation through Key Performance Indicators (KPIs)

Training Methodology

This interactive Purchasing and Supply Management Course will comprise the following training methods:

• Presentation
• Assignments
• Case Studies & Functional Exercises
• Questionnaires

Organizational Benefits

By professionals enrolling for this Purchasing and Supply Management Course, organizations will get the following benefits:

• Understand how to analyse the added value that can be achieved through purchasing and supply management
• Will be able to define key stages of a purchasing process from defining needs to finalization of a contract
• Support in understanding the relationship between working in compliance with the process and achieving the desired outcome
• Compare the concepts of purchasing and find median to use it in the larger supply chain framework

Personal Benefits

Professionals enrolling for this Purchasing and Supply Management Course will benefit in the following ways:

• Help to further develop performance standards and use operational guidelines which will further improve the efficiency and effectiveness in the role of purchasing
• You will be able to measure supplier performance by using predetermined standards and metrics
• Support how to develop global procurement plans and aligning them to organizational goals
• Equip to plan, organize, and conduct negotiations in the most organized and effective manner
• Help in identifying opportunities to develop strategies to improve effectiveness by using the learnings and tactics to build increased efficiencies and source the right product at the right time at the right price

Who Should Attend?

Purchasing and Supply Management Course is ideal for Procurement, Purchasing & Supply chain management professionals who require to build on their knowledge to equip them to navigate through complex challenges and work effectively for overall improvement of the Organizations profitability.

This course will help prepare aspiring personnel to build on their management skills, strategies and knowledge required for working on building a world class purchasing function.

Typical participants include:

• Early or mid-career supply chain professionals who want to develop their knowledge
• Operations managers, Purchase managers, Supply chain managers, Logistics Managers, Finance Managers, Contracts Managers, Procurement Managers
• Professionals wishing to further develop their role in their organizations
• Shipping company personnel wishing to upgrade their knowledge to support their customers

Course Outline

The course covers the following topics for understanding Purchasing and Supply Management framework:

Purchasing a Strategic Function

• Organizational Strategy and Purchasing – The Link
• Mission Statement – Purchasing
• Purchasing Objectives
• The Balancing Act – Quality, Service and Price
• Definitions Purchasing and Supply
• Breakdown of typically organisational costs represented by purchasing of goods and services
• Stock and non-stock purchasing
• Direct and indirect purchases
• Operational expenditure and capital purchases

Supplier Evaluation and Negotiation

• Supplier – Negotiation Skills
• The Power of negotiation – 13 aspects and qualities
• Power and Planning in negotiation
• Suppliers – right partnering and ways of promoting good relations
• Supplier Performance Evaluation – Factors

Specifying Requirements and Planning

• Principles of Purchasing
• Pareto Principle – Application in Purchasing
• Forecasting Methods in the Purchasing process
• Advantages and Disadvantages of Sourcing (single/multi)
• Stakeholder and Supplier management
• Market Analysis

Value Analysis

• Address & Apply Key Strategic Questions (the rule of 16)
• Cost Reductions
• Optimize Productivity in Purchasing
• Role of Purchase Manager – Add Value
• Move away from pushing papers to strategic thinking

Preparation – Contract/Agreement

• Inclusion of Provisions/Clauses in the international purchasing contract
• Legal Counsel to support purchasing process – when and how
• Contract terms – Creation process
• Basic elements of antitrust laws and its impact on buyer and seller
• Expound Reciprocity and its legal implications
• Impact and Risk Assessment
• Contract Award process and procedure

Performance Management – Evaluating and Measurement

• Approach – centralized versus decentralized
• Managing and continuous development – Buyers
• Right KPI’s – Purchasing
• Policies and Procedures

Obtaining and Evaluating Offers

• Bidding and Proposal Solicitations
• EDI and VANS to facilitate Purchase process
• Understanding concept of price elasticity of demand in purchasing framework
• Process of qualifying/prequalifying

Governance of Purchasing and Supply Function

• Addressing conflict of Interest
• Document policies and procedures that may need urgency
• Organizational accountability and reporting for purchasing roles and functions
• Codes and Ethics in Purchasing and CIPS code of conduct

 Life Asset Management

• All cost inclusion – purchase pricing through to disposal and end-of-life
• Global sourcing, risks associated with the extended supply chain – Hidden costs
• Access to Data across the organization – Cross-functional/Management support
• Decommissioning

 Review Common IT Solutions and Other Tools

• P2P System
• Inventory Management
• Process Automation
• Information Integrity