Purchasing, Materials Management & Supply Chain Management

Materials constitute the largest share of costs in manufacturing and significantly high percentage in others. Materials therefore represent highest potential for cost optimization and profit improvement in any enterprise.

The modern approach is not to view materials management in isolation, but as an ingredient of supply chain. A high performing supply chain supports operations and market strategies and drives integrated planning and execution.

It is designed to optimize service, inventory, investment and costs. The purpose of SCM is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and velocity.

Successful SCM requires business process integration involving collaborative work between buyers and suppliers, joint product development, common systems and shared information. This programme is highly practical and interactive.

Program outline :

• Overview of Materials Management: Its functions and profit improvement potential

• Supply Chain Management: The key supply chain processes: Demand Management & Forecasting, SCOR Model of SCM, Triple-A Supply Chain, De-risking the Supply Chain, Lead Time Analysis & control, Measuring SCM Performance, Best Practices in SCM in Indian & Overseas industries.

• The Role & Importance of Purchasing : Purchasing Cycle/ Process, Purchasing Market Research. 7 Rs of Purchasing: Buying Materials of Right Quality, in Right Quantity, at Right Price, & from the Right Source.

• Modern Trends in Purchasing– Spend Analysis & Management, Green Purchasing, SA-8000, P-Cards, Lead Time Analysis & Management, Purchase Market Research (PMR)

• E-Procurement : Reverse Auctions, EDI : How does e-Procurement benefit ?

• Legal Aspects of Purchasing: Indian Contracts Act & Indian Sale of Goods Act.

• Overseas Buying: INCO Terms 2010 of the International Chamber of Commerce, Paris.

• Vendor Management & Rating: Key Supplier Account Management, Supplier Relationship Management

• Negotiations: Characteristics of Successful Negotiators. Strategies & Tactics.

• Inventory Management/ Control: Concepts & Techniques, ABC to XYZ Analysis, Cost- Criticality Analysis, Movement Analysis, MUSIC-3D, Spare Parts Management, Ordering Systems, Minimum–Maximum & Reorder Levels, Financial Aspects, Control of Non-moving & Obsolete Inventory (SLOBs) , Just-in-Time Inventory, Zero Inventory, Vendor Managed Inventory, Measures of Inventory Performance.

• Financial Aspects: Inventory & Balance Sheet, Cost of Holding Stock: K-Factor, Replenishment Cost: R-Factor, Valuation of Receipts & Issues, Valuation of Stocks & Writeoff/ Write-on.

• Principles of Storekeeping, Stores Layout & Facilities, Physical stock-taking and stock verification, Cycle Counting Systems.

• Modern Storage and Warehousing Practices: Automated Storage & Retrieval Systems, Automated Guided Vehicles, Automated Identification Systems: Bar Coding & RFID,

• Codification, Standardisation & Variety Reduction

• Material Handling, Transportation & Logistics: Role of 3PL/4PL Service Providers.

• Risk Management in Supply Chains: Its importance & mitigation of risks.

• Cost Reduction Techniques: Value Analysis and Value Engineering.

• Human Resource development for Materials & Supply Chain functions

• Case Studies

• Role Plays.