Fundamentals of Purchasing


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

Who Should Attend?

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

Course Outline

  • Introduction to purchasing

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

  • 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

  • Purchasing methods and strategies

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

  • 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

  • Logistical consideration

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

  • Partnership and negotiation

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

Want To Share This?

Send Whatsapp Message To Us