Advanced Purchasing Management Techniques

Introduction:

Running a purchasing department in the 21st century presents significant challenges. As the global economy evolves, the purchasing function becomes increasingly complex. This Advanced Purchasing Management Techniques course will explore how procurement personnel can effectively negotiate with suppliers located thousands of miles away while achieving genuine cost savings.

Additionally, the course will examine how the purchasing function interacts with the organizational supply chain. Strategies for managing the purchasing department efficiently, in alignment with Key Performance Indicators (KPIs), will also be covered. 

Objectives:

At the conclusion of this Advanced Purchasing Management Techniques course, learners will acquire the following knowledge and skills:

• Define the scope of the purchasing department in relation to strategic dimensions
• Conduct proper supplier appraisals
• Formulate effective negotiation techniques for engaging with suppliers
• Discuss the relevance of value analysis in purchasing processes
• Use Key Performance Indicators (KPIs) to assess and provide feedback on departmental performance

Training Methodology:

• Lectures by Instruction
• Case Analysis
• Group Work
• Simulation and Role-Playing
• Exemplification
• Seminars
• Dialogue

Course Outline:

Unit 1: The Strategic Function of Purchasing

• The link between the purchasing function and organizational strategy management
• Creating a mission statement for purchasing
• Aligning the purchasing mission with the company’s mission
• Formulating departmental objectives
• Ensuring quality, service, and price through purchasing and logistics management
• Key goals for purchasing
• Types of purchasing managers: Type O and Type S

Unit 2: Supplier Evaluation and Negotiation

• Understanding supplier negotiations
• The concept of power in negotiation
• Planning for negotiation
• The 13 powers of negotiation
• Ensuring effective agreements with suppliers
• Assessing suppliers based on performance
• Enhancing supplier relations
• Developing supplier partnerships
• Selecting appropriate suppliers

Unit 3: Value Analysis

• The core purpose of the 16 Strategic Questions
• Application of the 16 Strategic Questions
• Using these questions for cost reduction
• Enhancing the productivity of the purchasing function
• Improving value as a purchasing director
• The role of the purchasing head in the 21st century
• Distinguishing between tactical and strategic mindsets

Unit 4: Managing and Evaluating Department Performance

• Centralization vs. decentralization
• Purpose of performance evaluation within departments
• Supervising other purchasers
• Management by objectives
• Developing buyers
• Purchasing KPIs
• Selecting appropriate KPIs
• Determining the number of departmental KPIs

Unit 5: Improving Purchasing Efficiency

• Assessing the level of service to end customers
• Conducting appropriate investigations
• Enhancing communication with end-users
• Social responsibility within the supply chain
• Ethical conduct for end-users
• Departmental ethics
• Policies and procedures related to purchasing
• Conducting personnel training