Procurement & Inventory Management

Course details

PROGRAMME OUTLINE

Definition of Procurement

• Roles and responsibilities of procurement
• Operational strategies
• Financial strategies
• Marketing strategies
• The 5 ‘Rights’ of procurement

2. Procurement Profitability And Added Value

• The evolution of procurement
• Procurement and the change
• Buyer’s and seller’s strengths matrix

3. Negotiation In Procurement

• What to negotiate?
• Negotiation techniques
• Negotiation guides to preparation
• The 6 basic steps in negotiation
• The 3 categories in negotiation
• Summary of bargaining stages
• 7 Critical mistakes in negotiation
• General rules in negotiation

4. Cost Reduction Techniques

• Purchasers’ cost reduction responsibilities
• Changing the roles of procurement and its perception
• Cost reduction process
• ABC cost reduction analysis
• Direct materials cost reduction
• Indirect Materials Cost Reduction (MRO items)
• Suppliers cost reduction responsibilities
• Developing procurement personals’ KPI/KRA

PROGRAMME OBJECTIVES

At the end of the 2-day programme, participants will be able to:

1. Understand the operational, financial and marketing strategies of procurement;
2. Obtain up-to-date negotiation techniques and effective guides in preparing a negotiation;
3. Master the cost reduction process and techniques in procurement;
4. Develop competency and commitment in cost reduction responsibilities;
5. Understand the benefits of benchmarking application in procurement management;
6. Master the five crucial stages of benchmarking implementation process; and
7. Improve the procurement functions and contribute to organisation’s efficiency, productivity and profitability.