Purchasing and Suppliers Management

Day 1: What is the Role of Purchasing in the Company?

• Introduction to Purchasing and its contribution to the organization.
• 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.

Day 2: Developing the Purchasing Strategy:

• 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.

Day 3: Selecting the Right Supplier & Evaluating Performance:

• Conditioning the supplier to meet your requirement.
• The total cost approach to purchasing.
• Analyzing Cost.
• Analyzing Value.
• Hidden costs.
• Life cycle costing.
• Using Price indices.
• Performance evaluation.

Day 4: Tendering and Analyzing the Bid:

• 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.

Day 5: Negotiating the Contract and Preparing a Plan of Improvement Action for Purchasing:

• 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.