Advanced Purchasing Management

Introduction:

Managing the purchasing department of the 21st Century is not an easy task. Today's global economy makes the purchasing function increasingly complicated. In this course, we will explore how to manage the various suppliers that may be located thousands of kilometers from your plant while achieving real cost savings. Furthermore, we will discover how the purchasing department fits in the overall function of the supply chain operation. Lastly, we will cover how the purchasing department should be managed properly to achieve all of its Key Performance Indicators (KPIs).

Targeted Groups:

• Buyers
• Senior Buyers
• Purchasing Supervisors
• Purchasing Managers 
• Other personnel who need to understand the purchasing function.

Course Objectives:

At the end of this course the 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 Key Performance Indicators (KPIs)
• Improve the efficiency of the purchasing department

Targeted Competencies:

• Strategic purchasing operations
• Item value analysis
• Departmental management
• Negotiation
• Purchasing ethics
• Supplier evaluation

Course Content:

Unit 1: 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

Unit 2: 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

Unit 3: 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

Unit 4: Managing and Evaluating 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

Unit 5: 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