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Purchasing Techniques for Effective Buying

A Required Session of the Supply Chain and Logistics Management Certificate Program            

About This Program
Buyers play a pivotal role in the financial success or failure of your organization. Since purchasing activities can account for as much as 80% of your organization’s total budget, your purchasing decisions directly influence the company’s profit margin.
This intensive, hands-on seminar will arm you with the skills you need to influence that profit or gross revenue margin in a positive manner. You must have savvy negotiating techniques; a clear, concise method of keeping good records; forms that are succinct and functional; a working knowledge of the legal ramifications that could land your organization in court; and more. The more skillful your purchasing people, the better your organization’s chances are for turning a profit.
Newly appointed as well as experienced buyers can learn these important skills in this Purchasing Techniques for Effective Buying seminar, making them some of your organization’s most valuable assets. This fast-paced, two-day seminar is packed with useful information, from the basics of purchasing to the finest points of shaving costs.
Your organization entrusts a great deal of money to be spent by your purchasing people. Why not arm them with the expertise to spend it wisely?

Who Should Attend
This program is designed for both the newly appointed buyer as well as more experienced buyers who wish to expand their knowledge base or desire formal training

Attend PURCHASING TECHNIQUES FOR EFFECTIVE BUYING, and learn to:

  • Get “the right price” by understanding the “total cost of ownership.”
  • Increase your organization’s profits through savvy purchasing.
  • Recognize 8 practices you should avoid in order to remain both ethical and successful.
  • Avoid 10 rules that guarantee negotiating failure – and how to avert them.
  • Use keys to getting organized and a time-saving checklist to help you do it.
  • Apply 6 major components of overall cost.
  • Apply specialized purchasing instruments and contracts.
  • Use 6 essential tips for negotiating – and how to be prepared before you start.
  • Develop strategies to uncover the most reputable sources through sourcing and qualification.
  • Recognize what you must know about the laws that apply to purchasing matters.
  • Use terms and conditions checklist and ways to clarify the fundamental elements of a contract.
  • Uncover what makes a good purchasing policies and procedures manual.
  • Rate different suppliers precisely through performance evaluations.
  • Use a 10-point checklist to help you know your supplier.
  • Use the 4 major steps for selecting a source of supply.
  • Recognize the 7 warning signs of a supplier at financial risk.
  • Apply computerization, EDI, and electronic commerce to your best advantage.
  • Discover when and when not to aim for the 7 types of discounts.
  • Use a checklist of negotiating tactics.
  • Understand the 5 categories of suppliers and the supplier relationship building tree.
  • Reduce costs in an organized and creative manner.
  • Understand the basic aspects of replenishment lead-time and types of inventory planning.
  • Control inventory using the Pareto Principle and A-B-C inventory stratification.
  • Get clarity on F.O.B. terms of sale.
  • Discover the 3 essential purposes of a bill of lading.
  • Understand the 4 types of freight loss and damage claims.
  • Use the 9 methods to establish quality specifications.
  • Uncover the 9 commandments for the seller and supplier obligations.
  • Review the 4 stages of supply management.

 The Program Outline

  1. Top Management Philosophy, Organization and Responsibilities of Purchasing. Buying in the 21st Century and the Purchasing Function. The Buyer’s Role in Supply Management. Top Five Key Characteristics Managers Want from their Subordinates. Pareto Time Principle and Purchasing Time Dynamics. Team Functions and Effective Cross Functional Teams.
  2. Purchasing Ethics and Questionable Practices. Types of Contracts and Elements of a Valid Contract. Terms and Conditions Checklist. Purchasing Policies and Procedures. Electronic Data Interchange (EDI) and ERS. Electronic Commerce and the Internet. E-Purchasing Functionality and Benefits.
  3. Responsibilities and Specifications. Quality Assurance through Description. Quotes, Quotations, Bids, Proposals, and SOWs. Developing Sources of Supply. Know Your Supplier – 10-Point Checklist. Improving Supplier Utilization. Supplier Qualification, Due Diligence, and Supplier Selection. Expediting and Follow-up for Late, Lost, and Defective Shipments. Supplier Performance Evaluation and Ratings. Alliance, Partnering, and Relationship Building.
  4. What Is Something Worth? Discounts – Types and Applications. Total Cost of Ownership. Price and Cost Analysis—Elements and Applications. Purchasing’s Use of Learning Curves. Value Analysis Applications. Make vs. Buy Analysis and Outsourcing. Foreign Sourcing Considerations.
  5. Supplier Base Management Model. MRO and Indirect Material Procurement. Contracting for Services – Classifications and Guidelines. Capital Item Purchasing Considerations. Blanket and Open-Ended Orders. Long-Term Contracting and Agreements. Purchasing/Procurement Cards.
  6. Inventory Planning Types. Types of Order Point Systems. Economic Order Quantity and EOQ Example. Supplier Delivery and Supplier-Managed Inventory Replenishment. Freight Terms vs. Sales Terms – Implications. Terms of Sale Delivery and Service Significance. Shipping Documentation and Bills of Lading. Receiving and Freight Claims.
  7. Introduction to the Negotiating Process. When and What Do You Negotiate? Preparation and Planning. Principles of Persuasion. Basic Rules for Negotiating. Types of Questions and Their Significance. Conflict Resolution Processes for Negotiation Teams. Ten Rules to Guarantee Failure in Negotiation.
  8. E-Commerce Reference and Glossary. Selected Bibliography and Recommended Reading.