Advanced Purchasing, Supply & Cost Effectiveness

Organizations and procurement personnel in the purchasing and searching modes must carefully weigh up what is available and what benefits the organization can gain. The market place offers good prices for bulk purchases and discounts for regular orders depending on the quantity and quality required. The decisions involved take careful planning and research to find the most effective suppliers and maintain the relationship for mutual benefits. This course is designed to help the participants understand how effective use of a purchasing Et supply management systems, can give their organizations the best services and regular supply of what they need and want. The course discusses business to business buying and the selection of preferred suppliers. It features discussion groups to investigate utilization of creative tools and methods to be more effective, efficient and positively reduce costs involved.

Expected Accomplishments

• Use cost effective purchasing and supply procedures within the business environment
• Organize and manage effective purchasing and supply systems
• Know how to reduce costs without losing quality
• Select 'Preferred Suppliers'
• Liaising with departmental managers for organizational 'needs' and 'wants'
• Negotiate with vendors and secure the best deal (Win-Win terms)

Course Outline

• Organizational needs and the changing role and technology
• Responsibilities in the role of purchasing and supply
• Supplier expectations
• Review of department functions, methods and systems
• Department turnovers
• Make or buy decisions
• Cost considerations-analysis process
• Cost effective decisions
• Quality Et quantity decisions
• Organization communications Et liaison
• Purchasing and supply planning - Techniques and systems
• Blanket orders
• Bulk buying
• Lead time analysis - Advantages and disadvantages
• Buying and supply agreements
• Tenders - Procedures and bidding
• Auctions

Transportation services

• Purchase
• Hiring
• Leasing
• Service Level Agreements (SLA's)

FOB terms 

C Ft F Terms 

CIF Terms

Purchase and supply management 

• Planning methods
• Coordination
• Forecasting
• Basic steps

Legal aspects of purchasing

Basics of contract law

International aspects

Internet purchase and supply

Agencies

Preferred vendor system

Problems associated with purchasing and supply and suggested remedies

TQM in purchasing and supply chains

Negotiations

• Art ft science
• Negotiation distinct from bidding
• Negotiations strategy
• Win-Win situations