Course Methodology

This course uses a mixture of interactive learning tools such as round table discussions, role playing, case studies, individual and team exercises.

Course Objectives

By the end of the course, participants will be able to:

• Establish the strategic role of the purchasing department, and develop the purchasing mission statement
• Develop effective negotiation strategies and supplier evaluations
• Perform value analysis in purchasing
• Evaluate the performance of the department using proper Key Performance Indicators (KPIs)
• Improve the efficiency of the purchasing department, and understand ethical practices in purchasing

Target Audience

Buyers, senior buyers, purchasing supervisors, purchasing managers and all other personnel who need to understand the purchasing function.

Target Competencies

• Defining strategic purchasing operations
• Performing value analysis
• Managing procurement functions
• Leading effective negotiations
• Evaluating competing suppliers
• Conducting ethical practices in purchasing

The strategic function of purchasing

• Intro to Supply Chains
• The link between the purchasing function and organizational strategy
• Creating a purchasing mission statement
• Matching the purchasing mission with the company's mission
• Writing the department's objectives
• Balancing quality, service and price
• Evolution in Strategies for Purchasing

Supplier evaluation and negotiation

• Negotiating with suppliers
• Planning for negotiation
• Negotiation tactics
• Tendering process
• Choosing the right suppliers

Value analysis

• The value analysis approach
• 16 key strategic questions to ask
• How the 16 questions will reduce total cost
• Commodity groups
• Adding value as a purchasing manager

Managing and evaluating the department performance

• Reasons for departmental performance appraisal
• Managing other buyers
• Continuous development for the buyers
• Management by objectives
• Key Performance Indicators for purchasing
• Choosing the right KPIs for purchasing

Improving purchasing efficiency

• Evaluating service to end users
• Conducting the right surveys
• Ethical behavior with suppliers, end users, and within department
• Purchasing policies and procedures
• Training the staff