Theory & Practice Of Purchasing

Course details

Course Objectives

Suppliers And Supply Partnerships 

Sourcing and source policy 

• Vendor appraisal and vendor rating 
• What is different about 'partnership agreements'
• The 5-point plan for customer/supplier logistics
• Supplier performance appraisal. 

Order Placement and Contract Law:

• Enquiries, quotes and tenders 
• Formation of the contract, including required conditions 
• and express/implied terms 
• Termination of the contract; liquidated damages 
• The receipt of goods, bailments and INCOTERMS 2000. 

Buying Practice: 

• Order point and the ordering process 
• Materials management techniques - ABC analysis and 'economic' order quantities 
• Buying capital equipment 
• Lease, hire, HP or rent? 
• Controlling major project purchases with critical 
• path analysis. 

 Prices and Costs: 

• The market economy 
• Standard costing, breakeven analysis and variances 
• Price agreements for major acquisitions 
• Commodities 
• Foreign purchases and the forward market. 

Supplies Quality: 

• SPC and the control charts 
• inspection v. correction - the breakeven point 
• the LTPD and AQL sampling tables 
• BS5750/ISO9000. 

Organisation and Ethics:

• Alternative organisational structures for purchasing 
• The buyer profile
• Ethics and ethics training