Purchasing and Warehouse Management Strategies

Introduction:

The Purchasing function has transitioned from a purely administrative role to a pivotal strategic business unit. The outdated approach of merely processing purchase orders and waiting for delivery has been replaced with a more strategic focus.

This training course on sPurchasing and Warehouse Management Strategies will equip participants to develop and execute detailed strategies for acquiring materials, goods, equipment, and services. This will help reduce operating costs while enhancing quality and productivity.

The course will delve into the strategic implications of purchasing functions and their impact on the organization. Emphasis will be placed on supplier evaluation, negotiation techniques, and methods to improve the effectiveness of the Purchasing department.

Objectives:

By the end of this Purchasing and Warehouse Management Strategies course, participants will:

• Explain inputs, outputs, and processes of the purchasing system.
• Assess sourcing strategies and suppliers.
• Comprehend legal and administrative aspects of contracts.
• Manage tenders effectively.
• Develop competencies in all phases of strategic procurement.
• Apply warehouse design techniques and optimization models for storage.

Training Methodology:

• Case Studies
• Simulations
• Workshops
• Group Discussions
• Role-Playing
• Technology Demonstrations

Course Outline:

Unit 1: Introduction to Purchasing Management

• Welcome, Introduction, and Course Objectives
• Purchasing Strategy in Procurement Management
• Functions of Procurement
• Purchasing Obligations in an Organization
• Quotation Requests Obligations
• Team Role in Procurement
• Procurement Cycle
• Planning Procurement: Internal vs. External Acquisition
• Discussions, Questions, and Homework Topics

Unit 2: Sourcing Analysis and Supplier Evaluation

• Recap of Previous Session
• Answers to Previous Assignments
• Sourcing Analysis and Frameworks
• Supplier Assessment Techniques
• Negotiations from Buyer and Supplier Perspectives
• Negotiation for Mutual Gain
• Discussions, Questions, and Homework Topics

Unit 3: Effective Negotiation and Procurement Execution

• Review of Last Session
• Answers to Homework
• Communication Channels in Negotiation
• Backgrounds and Behavioral Types in Negotiation
• Practice Negotiation Scenarios
• System Support and Management in Procurement
• INCOTERMS Overview
• Discussions, Questions, and Homework Topics

Unit 4: Tenders and Contracts Management

• Review of Key Points from Last Session
• Prepare Responses for Homework
• Understanding Tenders and Tender Processes
• Contract Provisions and Forms
• Advance Payment in Contracts
• Eligibility Criteria for Contractors
• Discussions, Questions, and Homework Topics

Unit 5: Introduction to Warehousing Management

• Basic Concepts of Warehousing Management
• Stock Protection and Organization
• Warehousing Management Aspects
• Cost-Effective Storage Solutions
• Streamlining Processes and Reducing Expenses
• Review of Previous Session and Homework
• Inventory Instructions
• ABC Analysis
• EOQ Model and Related Equations
• Economic Order Quantity (EOQ) and Reordering Points
• Warehouse Operations Work Methods
• Discussions and Questions