INTRODUCTION
The purchasing function is a key to the organization’s success and the foundation of strong, collaborative relationships with suppliers. Since many companies are sourcing products from around the globe more frequently than ever, a buyer needs strong capabilities.
In this course, participants will learn the fundamentals of purchasing, including the purchasing cycle, how to manage bids, how to deal with disruptions, and essential tools and strategies for making purchasing relationships work efficiently. The course explains how to manage suppliers and maintain good supplier relationships. The course also highlights effective purchasing skills and best practices to be used throughout all stages to ensure an efficient process.
BENEFITS OF ATTENDING
By the end of the course, participants will:
- Understand the skills required to be an effective buyer.
- Understand how to do material requirements planning calculations to answer the three important questions: What to order? How much to order? When to order?
- Know how to issue purchase orders and how to follow up to ensure supplier compliance.
- Understand how to evaluate supplier pricing and offer.
- Understand how to effectively communicate with suppliers and manage relationships.
- Be aware of the modern technological trends that can enhance the purchasing process.
- Understand how to deal with potential supply disruptions.
WHO SHOULD ATTEND?
This program is suitable for a wide variety of employees, from newly enrolled to middle management, working in: Procurement, Purchasing, Contracting, Planning and Operations, Logistics, Finance and Accounting, and other personnel involved in the planning and execution of purchases and contracts.
COURSE OUTLINE
Introduction to Purchasing
- Value creation in the supply chain
- Seven “rights” of supply chain management
- Supply chain planning and control activities
- Procurement vs. purchasing
- The role and objectives of purchasing in the organization
- Types of purchases
- Purchasing stakeholders
- Price of goods/services (total cost of ownership)
- An overview of the purchasing process
Overview of Material Planning and Management
- The 3 important questions for successful materials management
- Bill of material
- Material requirements planning (MRP) logic
- Inventory management
Managing the Purchasing Cycle
- Selecting the most appropriate ordering process
- Generating requisition (RFI, RFQ, RFP)
- Evaluating supplier pricing and offer
- Issuing purchase order
- Follow-up
- Expediting
- Receiving goods and paying the supplier
Supplier Relationship Management (SRM)
- Classifying working suppliers
- How to succeed in partnering with the supplier
- Supplier performance monitoring
- Quality assurance
- SRM software
- Rewarding good performance
- Penalizing bad performance
- Events that constitute a breach of contracts
- Different types of violations and various treatments available
- Judicial dispute and dispute settlement methods
- Use of modern technological trends (big data analysis, blockchain, etc.)