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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 with care.
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 purchasing environment.
  • 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 effectiveness.
  • 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 decision making.
  • 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 “new wrinkles.”
  • Prepare yourself for the use of specialized purchase instruments and their contracting alternatives in the contracting process.

The Program Outline

  1. 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.
  2. 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.
  3. The Environment of Purchasing Planning: Environmental considerations. Setting goals and objectives. Illustrative index of a purchasing manual. Role in purchase planning. Cost reduction compendium.
  4. 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.
  5. 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.
  6. 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.
  7. Specialized Purchasing Instruments and the Contracting Process: Specialized purchase instruments. Low-value purchases and MRO partnering. Purchasing/procurement cards. Sample types of reports.
  8. Outstanding and Third Party Re-Sourcing
  9. Reporting and Evaluating Performance: Performance Reports and Purchasing Metrics. Appraising and controlling purchasing performance. Sample types and reports. Summary and conclusions.