The purchasing function has a dramatic impact on the profitability of a business, and so must be carefully managed. The Purchasing Guidebook is an essential tool for doing so, since it shows how the department's performance can be fine-tuned. The course focuses on supplier selection and management, the competitive bidding process, negotiations, and contract management. It also addresses the many ways in which purchasing can be used to control costs in the areas of inventory management, logistics, and quality, while also providing the financial tools to improve a number of purchasing decisions. In short, thePurchasing Guidebookis a required toolkit for the purchasing professional.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Recognize the reporting relationships for a purchasing department, how the role of the department changes in a multi-division environment, the responsibilities of each position, and the purchasing manager's responsibilities related to ethics.
Describe the process flows related to requisitions, purchase orders, and competitive bidding.
Identify the methods available for rolling out a procurement card system.
Specify the considerations and criteria involved in supplier selection.
Identify the methods used to attend to supplier needs, and recognize the contents of a supplier scorecard.
State the circumstances under which competitive bidding should be used, the types of supplier qualifications, and when a reverse auction might be a viable option.
Identify the situations in which negotiations may be needed, the types of positions that may be taken, and the characteristics of a successful negotiator.
Identify the types of clauses that may be included in a contract with a supplier, and the key differences between a contract and a purchase order.
Specify the costs associated with inventory, how inventory record accuracy can be improved, and how to mitigate the effects of a supply chain bottleneck.
Recognize the different types of shipping terms, logistics performance goals, and characteristics of the different types of transport.
Identify the uses to which a spend management system can be put, how it is used, and the expected outcome of a spend compliance program.
Define the concept of quality, identify the goals of six sigma, and note how a corrective action process is used.
Recognize the pricing systems used by suppliers, and how a target costing system works.
Specify the key points in a leasing agreement to negotiate, the advantages of using leases, the methods for improving the financial results of a business, and how to improve the learning curve experienced by suppliers.
Identify the circumstances under which a supplier is more likely to accept a supply chain financing offer.
Specify the measurements to use when attempting to reduce purchase orders and suppliers, and to emphasize the use of certified suppliers.
Identify the components of a material requirements planning system, and the types of electronic notifications that can be provided to a buyer by a seller.
Major Topics
The Purchasing Function
Purchasing Processes
Procurement Cards
Supplier Selection
Supplier Management
Competitive Bidding
Supplier Negotiations
Contract Management
Inventory Management Issues
Logistics
Spend Management
Quality Management
Cost Management
Purchasing Financial Analysis
Supply Chain Financing
Purchasing Measurements
Applicable Information
