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
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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
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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
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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