Purchasing Management

SC-903

Course Objectives

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

  • Define the strategic role of the purchasing department
  • Perform accurate supplier evaluation
  • Develop effective negotiation strategies with all suppliers
  • Explain the importance of value analysis to purchasing
  • Evaluate the performance of the department using proper KPIs
  • Improve the efficiency of the purchasing department

Who Should Attend?

Buyers, senior buyers, purchasing supervisors, purchasing managers and all other personnel who need to understand the purchasing function.

Course Outline

  • The strategic function of purchasing

    • The link between the purchasing function and organizational strategy
    • Creating a purchasing mission statement
    • Matching the purchasing mission with the company’s mission
    • Writing the department’s objectives
    • Balancing quality, service and price
    • Things purchasing should strive for
    • Type O purchasing manager
    • Type S purchasing manager

  • Supplier evaluation and negotiation

    • Negotiating with suppliers
    • Power in negotiation
    • Planning for negotiation
    • The 13 powers of negotiation
    • Achieving the right agreements with suppliers
    • Factors used to evaluate suppliers on total performance
    • Ways of promoting good supplier relations
    • Creating suppliers as good partners
    • Choosing the right suppliers

  • Value analysis

    • 16 key strategic questions to ask
    • Applying the 16 strategic questions
    • How these 16 questions will reduce total cost
    • Optimizing purchasing productivity
    • Adding value as a purchasing manager
    • The 21st century purchasing manager
    • From pushing papers to strategic thinking

  • Managing and evaluating the department performance

    • Centralization versus decentralization
    • Reasons for departmental performance appraisal
    • Managing other buyers
    • Management by objectives
    • Continuous development for the buyers
    • Key Performance Indicators for purchasing
    • Choosing the right KPIs for purchasing
    • The right number of departmental KPIs

  • Improving purchasing efficiency

    • Evaluating service to end users
    • Conducting the right surveys
    • Communicating better with end users
    • Ethical behavior with suppliers
    • Ethical behavior with end users
    • Ethical behavior within the department
    • Purchasing policies and procedures
    • Training the staff

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