Purchasing and Suppliers Management

• What is the Role of Purchasing in the Company?

              o Introduction to Purchasing and its contribution to the organization.
              o What is the purpose of a business?
              o Dealing with the problem of being a “ go between “.
              o Purchasing process and cycle of procurement.
              o Positioning purchasing within the company.
              o Vision, Mission and Value of Purchasing.
              o Purchasing Structure.
              o Where to find performance improvement.

• Developing the Purchasing Strategy:

              o How to reach the internal customer.
              o Developing Purchase agreements.
              o Importance of being involved in creating the specification.
              o Supplier selection methodology.
              o Criteria for pre qualifying suppliers.
              o Integrating the supplier selection process.
              o Positioning your need and you value against the market.
              o The role of ISO 9000.

• Selecting the Right Supplier & Evaluating Performance:

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

• Tendering and Analyzing the Bid:

              o Process needs.
              o Types of tender.
              o Electronic commerce / E Auctions.
              o Evaluating a bid objectively.
              o Terms and Conditions of contract.
              o Standard contract clauses.
              o Methods of Payment.
              o Expediting the agreement.
              o What if the contract fails to deliver – legal issues.

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

              o Defining negotiation.
              o Obstacles to effective negotiation.
              o Different styles of negotiation.
              o The tools of the process.
              o Phases of a negotiation.
              o What to do and what not to do.
              o Focus on four key areas of world-class performance.
              o Evaluating performance gaps.