Strategic Purchasing & Supply Management

Course Contents:

• An advanced course in Purchasing & Supply Management Strategies.

• Concentrates on the total approach to procurement, supply and materials management.

• The course also emphasizes the importance of local and international procurement, an efficient supply line to production, legal aspects of purchasing and the development of negotiation skills.

• Instruction is highly participative, with the emphasis on case studies and group work.

• Our Training Facilitators are experienced senior managers within the purchasing profession.

Duration

• 5 days full-time (week days) or 12 weeks part-time (Saturday mornings) or 2-12 months by correspondence. The average learner will need approximately 145 hours consisting of 48 hours of tuition and 96 hours for readings and assignments, to successfully complete the programme.

Assessment

• 12 written assignments (one following the completion of each learning module) and 1 final written examination or job-related report.

Accreditation

• This programme is a short course aligned with the  latest  industry standards and protocols. Successful learners will be issued a PSM College Certificate.

Course Objectives

• Provide the experienced purchasing and materials manager with a more professional insight into this subject.

• Illustrate how purchasing and supply management interface professional in a complex business enterprise.

• Emphasize new management tools and procedures, which can be used to improve the effectiveness of purchasing.

Course Content

• Advanced Purchasing Techniques: Purchasing systems; Operating systems; operations management; information systems & decision making; auditing systems; computerised procurement management systems.

• The Role of Purchasing & Materials Management: Functions of purchasing & materials management; management expectations, organisation of materials management in the public & private sectors.

• Production & Operations Management Concepts: Definitions; functions of production; design of the product; value analysis; layout facilities; ergonomics; human factors; physical environment; job design.

• Inventory Management & Supply: Definitions; functions of production; design of the product; value stores function; purpose; organisation; responsibility; position identification, coding systems; cataloguing; inspection procedures; stock records; control & checking obsolescence; redundancy; inflation.

• Transport & Traffic Management: The need for transportation & traffic management relationship; in-company material handling; concepts & Scope; national traffic management; surface rail; road transportation; international traffic management; importer finance; terms of purchase; international transportation; insurance; transport & traffic, evaluation techniques & control.

• Systems Management: Purchasing systems; concepts: definition; forms; records; computer orientated & management reporting systems; inventory management; output; input; strategies & cost of inventory; materials requirements planning; information systems; auditing systems & procedures; expenditure cycles; authorisation; accounting & asset safe guarding.

• Materials Accounting & Evaluation Concepts: Budgeting: Cost Control, budgeting inputs; accuracy priorities; contribution to course centres; accounting; capital equipment; fixed asset valuation; replacements; costing methods; average price; market & standards price; accounts payable; documentations and procedures; creditors reconciliation & procedures; variance analysis; overview; pricing & cost reduction techniques.

• Cost Analysis & Pricing Principles: Direct & indirect cost; tooling costs; activity-based costing; target costing; profit; cash flow price analysis; variable margin pricing; competitive pricing; trade/quantity discounts; seasonal/cash discounts; legal implication of pricing.

• International Sourcing: International procurement function: International contracts of purchase & sale; financing & international procurement; sourcing of international procurement department.

• Outsourcing & Make- Or-Buy Decision: Strategic decision; tactical decisions; factors influencing make-or-buy decision; unreliable suppliers; multiple sourcing policy; managerial & procurement considerations.

• Legal Aspects Of Purchasing: Definitions; essential elements of the purchase contract; offer & acceptance; formalities; incomplete contracts; statements of intent; breach of contract; termination; obliteration; capacity & authority to contract; latent defects; warranties & guarantees; fine print; examples of contacts; leases; securities.

• Negotiation Techniques & Suppliers Sales Tactics: Major phases; skills & tactics; resolving deadlocks; influences; agendas; bargaining; communication; interaction; closing a deal; documentation; characteristics of a successful negotiator.