Fundamentals of Purchasing and Procurement Course

What makes a successful buyer? In this course, we will discuss all the tools and techniques required to become a successful buyer. We will cover the basic principles and explore how to establish a strong foundation for the purchasing function. The efficient buying of goods and services will be covered in detail and will include the latest practices of purchasing. The total purchasing cycle will also be discussed to ensure the final product hits the market as fast as possible.

Course methodology

This course uses a variety of interactive learning methods such as: group discussions, videos, team exercises, case studies, and questionnaires.

Course Objectives

By the End of The Course, Participants Will Be Able To:

• Apply the fundamentals and modern principles of the purchasing function
• Utilize the best practices in purchasing strategies and processes
• Use all the skills required to be an effective buyer
• Improve the efficiency of buying goods and services
• Describe how best to select suppliers
• Determine transportation and packaging requirements
• Explain how to shorten total lead time to speed up the purchasing cycle

Target audience

Junior buyers, intermediate buyers, purchasing department personnel and other personnel from other departments who need to understand the buying function.

Target competencies

• Purchasing Methods
• Supplier Communication
• Writing Purchase Orders
• Logistics Methods
• Sourcing of Materials
• Negotiation

Course Outline

Introduction to Purchasing

• Definition of Purchasing
• Purchasing Steps
• The Role of The Purchasing Function
• Centralized Versus Decentralized Purchasing

Buyer Roles and Responsibilities

• Specific Duties of a Buyer
• The Right Job Description of a Buyer
• Skills and Qualities of A Successful Buyer
• Reactive Versus Creative Buyer
• Limitation of Authorities
• Adding Value as A Buyer

Purchasing Methods and Strategies

• Conventional Purchase Blanket Orders
• Forward Buying
• Outsourcing
• Stockless Buying
• Leasing
• E-Procurement
• Evolution in Strategies for Purchasing

The Purchasing Processes

• Request for Information, Quotation and Proposal (RFI, RFQ, RFP)
• Purchase Requisition
• Purchase Order
• Total Cost of Ownership
• Local Sourcing Versus International Sourcing
• Supplier Selection
• Problems with Suppliers
• Total Purchasing Cycle

Logistical Consideration

• Letters of Credit (Lcs)
• Carrier Modes
• Carrier Evaluation and Selection
• Transportation Documentations
• Incoterms
• Packaging
• Material Disposal

Partnership and Negotiation

• Partnership with Suppliers
• Partnership Requirements
• Building Good Relationships with Suppliers
• Negotiating with Suppliers
• Qualities of Negotiators
• Negotiation Principles
• Strategies for Negotiation