MM24
Course Contents
Module 1 - The Strategic Function of Purchasing
Key Topics
- The Link of the Purchasing Function with the Organizational Strategy
- Creating a Purchasing Mission Statement
- Balancing Quality, Service and Price
- Things Purchasing Should Strive For
- The importance of effective purchasing
- Understanding the Purchasing strategy
- The five steps of the Purchasing process
Module 2 - Supplier Evaluation and Negotiation
Key Topics
- Negotiating with Suppliers
- Power in Negotiation
- Planning for 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
Module 3 - Value Analysis
Key Topics
- What a good specification for goods and services looks like
- Defining needs and wants – Essential vs ‘nice to have’
- Who needs to develop and contribute to the specification?
- Important questions to ask when developing a specification
- Optimizing Purchasing Productivity
- Adding Value as a Purchasing Manager
Module 4 - Managing and Evaluating the Department Performance
Key Topics
- Centralization versus Decentralization
- Reasons for Departmental (Macro-Level) Performance Appraisal
- Managing Other Buyers
- Key Performance Indicators (KPIs) for Purchasing
Module 5 - Improving Purchasing Efficiency
Key Topics
- Internal Stakeholder Management
- Conducting the Right Surveys to Improve Performance
- Efficient Internal and External Communication
- Ethical Behavior with Suppliers and End Users
- Ethical Behavior within the Department
- Purchasing Policies and Procedures
Module 6 - What is the Role of Purchasing in the Company
Key Topics
- Introduction to Purchasing and its contribution to the organisation
- What is the purpose of a business
- Dealing with the problem of being a “go between“
- Purchasing process and cycle of procurement
- Positioning purchasing within the company
- Vision, Mission and Value of Purchasing
- Purchasing Structure
- Where to find performance improvement
Module 7 - Developing the Purchasing Strategy
Key Topics
- How to reach the internal customer
- Developing Purchase agreements
- Importance of being involved in creating the specification
- Supplier selection methodology
- Criteria for pre-qualifying suppliers
- Integrating the supplier selection process
- Positioning your need and you value against the market
- The role of ISO 9000
Module 8 - Selecting the Right Supplier & Evaluating Performance
Key Topics
- Conditioning the supplier to meet your requirement
- The total cost approach to purchasing
- Analysing Cost
- Analysing Value
- Hidden costs
- Life cycle costing
- Using Price indices
- Performance evaluation
Module 9 - Tendering and Analysing the Bid
Key Topics
- Process needs
- Types of tender
- Electronic commerce / E Auctions
- Evaluating a bid objectively
- Terms and Conditions of contract
- Standard contract clauses
- Methods of Payment
- Expediting the agreement
- What if the contract fails to deliver – legal issues
Module 10 - Negotiating the Contract and Preparing an Action Plan for Purchasing Improvement
Key Topics
- Defining negotiation
- Obstacles to effective negotiation
- Different styles of negotiation
- The tools of the process
- Phases of a negotiation
- What to do and what not to do
- Focus on four key areas of world class performance
- Evaluating performance gaps
