Effective Purchasing

Course Overview

Purchasing is a critical function for a small business because it affects performance at every level. If the purchased suppliers for consumption do not meet the needs of the organization, they will effectively reduce the functioning of operations. The purchased materials for manufacturing or resale must be of acceptable quality and procured at a competitive price or the customers will not be satisfied. The organization must develop appropriate purchasing procedures and closely monitor them.

The course is targeting those individuals who have less experience or are new to purchasing as it will assist them to make their contribution valuable. This will provide them with the required skills and knowledge that will transform them from order placer of purchasing team into productive members. This course is also important for those personnel that interface with the purchasing function and have the responsibility of buying goods and services.

Course Objectives

The participants will have overview of how professional buying can contribute significantly in an organization. They will learn the ways through which they can manage the process of enquiry, negotiate for the prices and be in the position to make agreements with the suppliers. Likewise, in this course the significance of professional behavior in commercial relationships and need of compliance with the process of procurement is also highlighted.

Course Content

Key Objectives of the Buyer

  •     Potential profit contribution of the purchasing function
  •     What is needed by the professional buyer?
  •     Knowledge of the job
  •     Personal skills

The Purchasing Cycle

  •     Best practice process
  •     Essential elements for requesting quotation and invitation to tender documents
  •     Quotation analysis
  •     Importance of the purchase order
  •     E-procurement
  •     Getting delivery on time
  •     Progressing delivery
  •     Verifying the invoice
  •     Payment and settlement terms

Selection of the Supplier

  •     Information sourcing for finding the suppliers
  •     Evaluation of the potential sources
  •     Appraisal of the supplier
  •     Partnership sourcing
  •     Competition

Cost

  •     Total acquisition cost
  •     Price of purchase
  •     Discounts
  •     Transportation cost
  •     Settlement of the terms
  •     Storage costs
  •     Administrative costs
  •     Comparison among the prices
  •     Tooling and the fixed charges
  •     Obtaining the breakdown costs
  •     Fixed and variable costs
  •     Labor
  •     Materials
  •     Overheads
  •     Managing increase of the prices

Buying from Overseas

  •     Customs
  •     Incoterms
  •     Currency
  •     Valuation
  •     Import duties

Quality

  •     How quality is achieved?
  •     Specification
  •     Controlling
  •     Inspection
  •     ISO 9001:2015

Purchasing Ethics

  •     Open and fair dealing
  •     Dealing with offering gifts
  •     Corporate hospitality
  •     International relationships
  •     Codes of conduct
  •     Company policy

Negotiation

  •     Important stages
  •     Preparation
  •     Open
  •     Debate
  •     Move
  •     Agree
  •     Close
  •     Review
  •     Techniques of negotiation
  •     Strategy
  •     Behavior

Introduction to Legal Aspects

  •     Background to the law affecting purchasing
  •     Requirements of valid contract
  •     Offer and acceptance
  •     Breach
  •     Damages
  •     Ownership
  •     Risk
  •     Sale of goods legislation

Course Methodology

The training is going to be highly interactive combination of lectures, group discussions, questionnaires, individual reflections, role plays, simulations and videos.

Target Audience

This practical course is for those individuals who are working in the role of formal procurement. This course will help them to have understanding and knowledge of the functions of the procurement.

Duration

02 Days (08:30–14:30) with appropriate breaks for tea/refreshments and lunch.

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