Strategic Purchasing & Supply Management Techniques
An Elective Session of the Supply Chain and Logistics Management Certificate Program
About This Program
Purchasing, a vital element of the company, must be able to function at top efficiency
at all times. To do so, there must be flexibility and proper organization. Each purchasing
manager must be able to review the purchasing function objectively and determine whether
its current structure and system of operation fills the needs of the company as well
as the needs of purchasing. In such an analysis, such matters as purchasing policies,
job descriptions, operational procedures, and departmental structure must be considered
A preoccupation with “us vs. them” purchasing that pits buyer against supplier; or
“place and chase” purchasing, which places then expedites orders; or “three quotes
and a cloud of dust” purchasing, which places emphasis on the lowest price rather
than the lowest overall cost for the best value – all are indicative of 20th century
vintage purchasing. The new breed of purchasing professional has added dimensions
to the responsibilities of physical supply management that will continue to bring
their organizations into the 21st century.
Who Should Attend
This program is designed to give purchasing, procurement, supply management, or materials
management agents, supervisors, managers, directors, and vice-presidents a two-day,
concentrated course in effective purchasing management. It is designed for those who
make decisions and develop strategies within the purchasing or supply management function.
Attend STRATEGIC PURCHASING & SUPPLY MANAGEMENT TECHNIQUES, and learn to:
- Manage the big picture effectively by inter-departmental coordination in a strategic
- Examine purchasing organizational concepts, personnel training and educational factors,
and purchasing job descriptions.
- Prepare plans, set goals and objectives for contribution to the bottom line and cost
- Decide what sourcing strategies and expectations can be used to enhance supplier quality
and productivity and optimize the supply base.
- Broaden your perspective about what factors in the business environment affect purchasing
decisions and how purchasing should monitor, appraise, and evaluate these factors
through performance reports.
- Use electronic commerce, Internet-based purchasing, and purchasing/procurement cards
for operational management and decision support to improve productivity and enhance
- Maintain cooperative relationships with suppliers in order to realize maximum cost
efficiencies and continuity of service.
- Exchange insights and information about the problems you face every day with other
professionals, developing a network of executives with whom you can share information.
- Ensure that communication is clear and concise both internally and between you and
your staff, and externally with vendors, suppliers, and contractors.
- Become savvy in the “ins and outs” of strategic sourcing, early supplier involvement,
supplier empowerment, outsourcing, and value-added supply management.
- Improve your ability to communicate results to top management about selling purchasing’s
contribution to the overall organizational goals.
- Grasp a better understanding of strategic physical supply management and its inherent
- Prepare yourself for the use of specialized purchase instruments and their contracting
alternatives in the contracting process.
The Program Outline
- Top Management Philosophy and Expectations from Purchasing: Top Management philosophy.
Centralized procurement impact. Strategic purchasing management. The new way of doing
things. Seven key areas where purchasing can excel. Ways to add value and best practices.
- Organizational Concepts and Relations: Factors affecting purchasing. Organizing the
department. Selection and education of purchasing personnel. Buyer training program.
Guide for developing job description. Steps in appraising performance.
- The Environment of Purchasing Planning: Environmental considerations. Setting goals
and objectives. Illustrative index of a purchasing manual. Role in purchase planning.
Cost reduction compendium.
- Increasing and Improving Supplier Utilization: Know your supplier. The supplier qualification
process. Categories of suppliers and relationship building. Strategic sourcing and
supply performance. The road to improved supplier performance. Measuring and evaluating
supplier performance. Strategies for improving supplier performance.
- Strategic Physical Supply Management: J.I.T. principles, risks, and benefits. Early
supplier involvement. Supplier certification programs. Supplier partnering and strategic
alliances. Supplier management teams and purchasing and reverse aggregation. Supplier
empowerment and supplier owned/managed inventory. Value analysis/value engineering.
- Purchasing and Electronic Commerce: Computerizing the procurement process. Data and
information requirements. Paperless purchasing and efficient channel integration.
EDI, ERS, and pipe visibility. Purchasing on the Internet.
- Specialized Purchasing Instruments and the Contracting Process: Specialized purchase
instruments. Low-value purchases and MRO partnering. Purchasing/procurement cards.
Sample types of reports.
- Outstanding and Third Party Re-Sourcing
- Reporting and Evaluating Performance: Performance Reports and Purchasing Metrics.
Appraising and controlling purchasing performance. Sample types and reports. Summary