Fundamentals of Purchasing Skills for New Buyers and Purchasers

Course details

PROGRAMME OUTLINE

1. The Concept of Supplier Development

• Six “Rights” in purchasing
• Sources of suppliers' information Purchasing needs
• Evaluating potential suppliers

2. Purchasing administration and control

• Purchasing in the organisation structure
• Centralised and Decentralised purchasing
• Types of purchasing practice
• Purchasing plan and documents control

3. The Concept of Supplier Development

• Main factors for evaluation
• Secondary factors-plant visits, financial conditions and management.
• Post-evaluation problems
• Group exercise

4. Purchasing administration and control

• Supplier evaluation
• Materials specification
• Materials standard
• Inspection concepts

5. Expediting and Follow-up

• Why expediting?
• When to expedite and when to follow-up
• What happens if expediting fail?

6. Basic Approach to Purchase Control

• Qualitative assessment of a number of board managerial responsibilities
• Buying efficiency
• Purchasing efficiency

7. Controlling Buying Efficiency

• Time factor
• Quantity and inventory efficiency
• Price paid for materials
• Audit of buying performance

8. Controlling Purchasing Efficiency

• Purchasing measurement
• Efficiency of personnel
• Key measures in planning workloads and controlling efficiency

9. Art and Science of Purchasing Negotiation

• Why, what and when to negotiate?
• Basic purchasing strategy in negotiation
• Preparing and planning for price negotiation
• Tactics and skills applied in negotiation

10. Price and Cost Analysis

• What is Price Analysis and Cost Analysis
• Useful technique for negotiation
• Factors in price analysis
• Work-out examples

PROGRAMME OBJECTIVES

This 2-day programme on fundamentals of purchasing skills is designed to give participants an understanding of purchasing management fundamentals and various methods of operating the daily purchasing processes. Participants will learn the methodology of the supplier’s evaluation and selection technique, buying efficiency, purchase negotiation, and administer the purchase.