Strategic Procurement for Buyers

Introduction:

The process of international strategic buyer procurement is complex but adds significant value to organizations in terms of cost, quality, and overall supplier performance. This Strategic Procurement for Buyers course is designed to develop the skills necessary to navigate intense competition.

Participants will learn to utilize strategic buyer tools throughout the course and will be prepared to apply these skills in real-life work situations.

Objectives:

The Strategic Procurement for Buyers course aims to achieve the following competencies by the end:

• Source and manage international suppliers remotely
• Employ international procurement best practices
• Write coherent international procurement contracts
• Control the international movement of materials
• Identify and assess additional international sources
• Assess the relevance of the Internet in procurement processes
• Identify and discuss trends in international purchasing
• Resolve difficult supplier management issues
• Explore improved techniques for inventory control
• Enhance negotiation tactics
• Prepare relevant international contracts
• Incorporate efficient international logistics in the global market

Training Methodology:

• Interactive lectures
• Case studies
• Group activities
• Role play
• Real-life situations
• Peer learning
• Problem-solving exercises

Course Outline:

Unit 1: The Modern Buying Function

• Effects of globalization
• Use of the Internet for sourcing
• Modern purchasing approaches
• Monitoring supplier capabilities
• Cost estimation techniques
• Procurement functions within the organization
• Evaluation of procurement activities
• Price determination mechanisms for long-term contracts

Unit 2: International Buying

• Global buying transactions
• International countertrade
• Advantages of global sourcing
• Challenges in international buying
• Use of trade-offs
• Maintaining standards for material deliveries
• International procurement and stock control
• Inventory management cost reduction

Unit 3: International Supplier Sourcing

• Preparing to move beyond US suppliers
• Searching for global resources
• Identifying foreign suppliers
• Selecting the appropriate supplier type
• Single sourcing vs. multi-sourcing strategies
• Supplier selection criteria
• Avoiding foreign exchange risk
• Addressing ethical concerns

Unit 4: Negotiation and Contract Preparation

• Insights into negotiation
• Essential skills for successful negotiation
• Preparation for negotiation
• Negotiation tactics
• Benefits of supplier collaboration
• Statutory requirements for international procurement
• Drafting international agreements
• Conflict resolution methods

Unit 5: International Movement of Goods

• International trade rules
• Procurement of transportation services
• Air freight
• Ocean freight
• Marine insurance
• Estimating total cost at destination
• Purchasing strategy and planning
• Business process reengineering in purchasing