Make better purchasing decisions by developing key skills in negotiation, supplier management and procurement  

Highlights:

• Learn the best negotiation techniques you need in an international business environment
•  Manage your supplier relationships to reduce costs, improve quality and increase performance

Key Competences:

• Managing the supplier base
• Procurement decisions
• Life cycle costing
• Managing contracts
• Ethical & legal purchasing
• Negotiation skills for buyers

Essentials of Purchasing: for the New Buyer is a 3-days hands-on training programme, highly interactive with exercises and role plays. The programme will be led by an experienced facilitator with former procurement management experience in international companies.



Modules:

1 - The Buyer's Role in Today's Purchasing Organization

• Explain How Purchasing Adds Value
• Define the Supply Chain and the Buyer's Role in Purchasing and Supply Management
• Describe the Purchasing Cycle
• Discuss the Importance of Cross-Functional Teams and Purchasing

2 - Managing the Supplier Base and Relationships

• Obtain Sufficient Purchase Description or Specification Information from Internal Customers
• Rate Aspects of a Supplier's Capabilities
• Analyze a Financial Statement from a Hypothetical Supplier
• Define How Acceptable Sources of Supply are Found in the Marketplace
• Identify Key Principles of Soliciting, Qualifying, and Pre-Selecting Suppliers
• Examine Key Aspects Associated with Supplier Performance

3 - Managing Effective Procurement Decisions: Applying Price, Cost Value

• Assess Competitive Market Pricing and the Application of Discounts
• Analyze Costs to Calculate a Target Cost to Negotiate More Effectively with Suppliers
• Define an Internal Cost Estimate and a Supplier's Cost Breakdown Structure
• Explain Learning Curves, Life Cycle Costing, and Value Analysis
• Define Leasing, Renting, and Outsourcing
• Describe How Identifying Total Cost of Ownership Fosters Better Buying Decisions

4 - Tools for Enhancing Material and Product Flow

• Explain How ABC Analysis Is Used to Make Informed Purchasing Decisions
• Summarize the Techniques Used to Make Informed Decisions on Inventory
• Describe How Inbound Freight Control Is Used to Improve the Total Value Provided to a Firm by a Supplier
• Describe the Most Common INCOTERMS and Their Meaning for International Sourcing
• Discuss How Global Sourcing Requires Additional Knowledge to Understand Supplier Selection, Payment, and Risk Implications

5 - Understanding Specialized Purchasing Instruments and Contracting Methods

• Identify the Basic Parts of a Contract and a Contract Planning Checklist
• Differentiate between the Types of Purchasing Contracts and Agreements
• Discuss Usage of Purchasing/Procurement Credit Cards and Appropriate Policies for Their Implementation
• Describe the Service Contracting Process and Guidelines for Service Contract Supplier Selection, Agreement Provisions, and Administration
• Apply E-Procurement Principles to the Purchasing Cycle

6 - Professional Practices

• Explain the Difference between Ethical and Legal Purchasing Practices
• Describe 12 Questionable Purchasing Practices
• Discuss the Legal Framework That Affects Purchasing
• Explain Elements of a Breach of Contract That Remedies the Breach
• Describe Three Kinds of Warranties—Stautory, Implied and Express
• Discuss Key Points of the Convention for International Sales of Goods
• Recognize Key Issues about Contract Law and How Contracts are Formed
• Determine the Importance of the Uniform Commercial Code

7 - Negotiating Skills for the Buyer

• Define the Nature and Scope of Negotiations in Purchasing
• Differentiate between Strategy and Tactics in Negotiations
• Define Win-Win, Objective Setting, Deadline, and Authority Level
• List the Crucial Elements of Negotiation
• Prepare and Plan for Negotiations
• Apply Some Negotiation Strategies, Tactics, and Counter Offers

You are a manager who is newly responsible for purchasing in your organization. You need to improve your procurement skills and knowledge. This programme gives you the key skills you need today.


Typical Participants are:
•  Managers
 • New  Managers