Purchasing is a vital function which creates significant impact on the bottom line of the organization. It is essential for the organisation to have an efficient procurement team in finding and developing suppliers and bringing in expertise that is highly valued by the organization. The role of the purchasing function has evolved from transactional to strategic to deliver value for the business.
This training course is intended to provide guidance to participants in the key function of purchasing and departmental cost saving. It will provide participants with an understanding of the principles of purchasing, tendering and supplier selection processes. Participants will learn how to evaluate procedures and make needed changes to methods to improve customer service whilst reduction on time and cost, and obtain added value for money. Lastly, we will cover how the purchasing department should be managed properly to achieve all of its KPIs.
This Advanced Purchasing, Tendering and Supplier Selection training course consists of two modules which can be taken as a 10 Day Training course, or as individual, 5 Day courses
The Advanced Purchasing, Tendering and Supplier Selection training course is based on accomplishing the following objectives:
Understand the key role of purchasing management as a strategic management tool.
Become a more efficient and productive buyer through applying the techniques of purchasing management.
Improve the services provided by suppliers through more effective negotiations and planning
Understand the ethical/legal aspects of purchasing and its possible liabilities.
Find out how to select and qualify suppliers.
Understand best practices in supplier relations, planning and specifying, procurement process, and supplier performance.
Know how to evaluate the proposals using price analysis and/or cost analysis.
Perform accurate supplier evaluation
Develop effective negotiation strategies with all suppliers
Identify the importance of value analysis to purchasing
Improve the efficiency of the purchasing function
TARGET AUDIENCE
Purchasing and contract management professionals
Professionals involved in defining the specification and evaluating supplier performance
Professionals involved in preparing and analysing bids
Professionals with an involvement in supplier relationships
Professionals whose role involves negotiation with outside agencies
TRAINING METHODOLOGY
This practical and results-oriented Advanced Purchasing, Tendering and Supplier Selection training course is based on adult learning concept. It will be presented using a combination of interactive presentations, case studies, participant activities and exercises to maximise the impact of the learning experience. Delegates will have ample time to consider the ideas and apply the skills discussed. The seminar will cover both practical and theoretical aspects of purchasing.
Pre & Post course assessments will be used to measure the effectiveness of this training.
COURSE CONTENTS
DAY 1 - The Strategic Function of Purchasing
KeyTopics:
The Link of the Purchasing Function with the Organizational Strategy
Creating a Purchasing Mission Statement
Balancing Quality, Service and Price
Things Purchasing Should Strive For
The importance of effective purchasing
Understanding the Purchasing strategy
The five steps of the Purchasing process
DAY 2 - Supplier Evaluation and Negotiation
KeyTopics:
Negotiating with Suppliers
Power in Negotiation
Planning for Negotiation
Achieving the Right Agreements with Suppliers
Factors Used to Evaluate Suppliers on Total Performance
Ways of Promoting Good Supplier Relations
Creating Suppliers as Good Partners
Choosing the Right Suppliers
DAY 3 - Value Analysis
KeyTopics:
What a good specification for goods and services looks like
Defining needs and wants – Essential vs ‘nice to have’
Who needs to develop and contribute to the specification?
Important questions to ask when developing a specification
Optimizing Purchasing Productivity
Adding Value as a Purchasing Manager
DAY 4 - Managing and Evaluating the Department Performance
KeyTopics:
Centralization versus Decentralization
Reasons for Departmental (Macro-Level) Performance Appraisal
Managing Other Buyers
Key Performance Indicators (KPIs) for Purchasing
DAY 5 - Improving Purchasing Efficiency
KeyTopics:
Internal Stakeholder Management
Conducting the Right Surveys to Improve Performance
Efficient Internal and External Communication
Ethical Behavior with Suppliers and End Users
Ethical Behavior within the Department
Purchasing Policies and Procedures
DAY 6 - What is the Role of Purchasing in the Company
KeyTopics:
Introduction to Purchasing and its contribution to the organisation
What is the purpose of a business
Dealing with the problem of being a “go between“
Purchasing process and cycle of procurement
Positioning purchasing within the company
Vision, Mission and Value of Purchasing
Purchasing Structure
Where to find performance improvement
DAY 7 - Developing the Purchasing Strategy
KeyTopics:
How to reach the internal customer
Developing Purchase agreements
Importance of being involved in creating the specification
Supplier selection methodology
Criteria for pre-qualifying suppliers
Integrating the supplier selection process
Positioning your need and you value against the market
The role of ISO 9000
DAY 8 - Selecting the Right Supplier & Evaluating Performance
KeyTopics:
Conditioning the supplier to meet your requirement
The total cost approach to purchasing
Analysing Cost
Analysing Value
Hidden costs
Life cycle costing
Using Price indices
Performance evaluation
DAY 9 - Tendering and Analysing the Bid
KeyTopics:
Process needs
Types of tender
Electronic commerce / E Auctions
Evaluating a bid objectively
Terms and Conditions of contract
Standard contract clauses
Methods of Payment
Expediting the agreement
What if the contract fails to deliver – legal issues
DAY 10 - Negotiating the Contract and Preparing an Action Plan for Purchasing Improvement
KeyTopics:
Defining negotiation
Obstacles to effective negotiation
Different styles of negotiation
The tools of the process
Phases of a negotiation
What to do and what not to do
Focus on four key areas of world class performance
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“The course has been able to enhance my knowledge in leadership as a whole which I intend applying on the job” – Essentials of Management & Leadership
“Excellent method on delivering the topics, very clear and specific” – Writing Project Scope and Procurement Statements of Work
“An appraisal of my leadership journey, very practical tips on leadership dynamics and how it will grow me” – Next Generation Leadership
“Learnt how to communicate effectively, it changed my attitude about motivating staff” – Motivational Training for Managers
“I have realised that, for me to become a good manager, I need to apply qualities of a good leader which I lent in this class” – Management & Leadership Skills for the Supervisor-New Manager
“ It was very informative. It provided guidelines & bigger picture of my work of budgeting and cost control” – Effective Budgeting and Cost Control
“I learnt different skills and technique about data analysis technique; those new learnings will help me increase my work efficiency” – Data Analysis Techniques
An excellent probgramme with superb content throughout. This course really Thought provoking with additional references to follow up on. I throughly enjoyed the weekly recommend this to anyone looking to pursure a Non-exec’ role! Go for it! Contact me anytime for further comment.
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“Helped to enhance my communication skills persuasively” – Interpersonal Skills for Managers
“We have learnt new things about communication & interpersonal Skills” – Interpersonal Skills for Managers
“The course has been an eye-opener and a lot of new ideas have been learnt” – Vehicle Fleet Development & Management
“This course has been beneficial and it will be helpful in managing my subordinates” – Fleet Management & Leadership
“This training course is beneficial to me and company” – Vehicle Fleet Development & Management
“I have attended several training programmes, but this one is the best” – Fleet Management & Leadership
