Fundamentals of Purchasing

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Course Objectives

By the end of the course, participants will be able to:

• Apply the fundamentals and modern principles of the purchasing function
• Utilize the best practices in purchasing strategies and processes
• Use all the skills required to be an effective buyer
• Improve the efficiency of buying goods and services
• Describe how best to select suppliers
• Determine transportation and packaging requirements
• Explain how to shorten total lead time to speed up the purchasing cycle

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Who Should Attend?

Junior buyers, intermediate buyers, purchasing department personnel and other personnel from other departments who need to understand the buying function.

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Course Outline

• Introduction to purchasing

  • Definition of purchasing
  • Purchasing steps
  • The role of the purchasing function
  • Centralized versus decentralized purchasing

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• Buyer roles and responsibilities

  • Specific duties of a buyer
  • The right job description of a buyer
  • Skills and qualities of a successful buyer
  • Reactive versus creative buyer
  • Limitation of authorities
  • Adding value as a buyer

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• Purchasing methods and strategies

  • Conventional purchase blanket orders
  • Forward buying
  • Outsourcing
  • Stockless Buying
  • Leasing
  • E-procurement
  • Evolution in strategies for purchasing

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• The purchasing process

  • Request for Information, Quotation and Proposal (RFI, RFQ, RFP)
  • Purchase requisition
  • Purchase order
  • Total cost of ownership
  • Local sourcing versus international sourcing
  • Supplier selection
  • Problems with suppliers
  • Total purchasing cycle

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• Logistical consideration

  • Letters of Credit (LCs)
  • Carrier modes
  • Carrier evaluation and selection
  • Transportation documentations
  • Incoterms
  • Packaging
  • Material disposal

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• Partnership and negotiation

  • Partnership with suppliers
  • Partnership requirements
  • Building good relationships with suppliers
  • Negotiating with suppliers
  • Qualities of negotiators
  • Negotiation principles
  • Strategies for negotiation

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