Tactical Purchasing Practices for Cost Optimization
Managing the purchasing department of the 21st Century is not an easy task. Today's global economy makes the purchasing function increasingly complicated. In this course…
Managing the purchasing department of the 21st Century is not an easy task. Today's global economy makes the purchasing function increasingly complicated. In this course, we will explore how to manage the various suppliers that may be located thousands of kilometers from your plant while achieving real cost savings. Furthermore, we will discover how the purchasing department fits in the overall function of the supply chain operation. Lastly, we will cover how the purchasing department should be managed properly to achieve all of its Key Performance Indicators (KPIs).
Course Methodology
This course uses a mixture of interactive learning tools such as round table discussions, role playing, case studies, individual and team exercises.
Course Objectives
By the end of the course, participants will be able to:
Define the strategic role of the purchasing department
Perform accurate supplier evaluation
Develop effective negotiation strategies with all suppliers
Explain the importance of value analysis to purchasing
Evaluate the performance of the department using proper Key Performance Indicators (KPIs)
Improve the efficiency of the purchasing department
Target Audience
Buyers, senior buyers, purchasing supervisors, purchasing managers and all other personnel who need to understand the purchasing function.
Target Competencies
Strategic purchasing operations
Item value analysis
Departmental management
Negotiation
Purchasing ethics
Supplier evaluation
Course Outline
The strategic function of purchasing
The link between the purchasing function and organizational strategy
Creating a purchasing mission statement
Matching the purchasing mission with the company's mission
Writing the department's objectives
Balancing quality, service and price
Things purchasing should strive for
Type O purchasing manager
Type S purchasing manager
Supplier evaluation and negotiation
Negotiating with suppliers
Power in negotiation
Planning for negotiation
The 13 powers of 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
Value analysis
16 key strategic questions to ask
Applying the 16 strategic questions
How these 16 questions will reduce total cost
Optimizing purchasing productivity
Adding value as a purchasing manager
The 21st century purchasing manager
From pushing papers to strategic thinking
Managing and evaluating the department performance
Centralization versus decentralization
Reasons for departmental performance appraisal
Managing other buyers
Management by objectives
Continuous development for the buyers
Key Performance Indicators for purchasing
Choosing the right KPIs for purchasing
The right number of departmental KPIs
Improving purchasing efficiency
Evaluating service to end users
Conducting the right surveys
Communicating better with end users
Ethical behavior with suppliers
Ethical behavior with end users
Ethical behavior within the department
Purchasing policies and procedures
Training the staff
Schedule & Fees
2026 Schedule & Fees
There are no public sessions remaining for the course this year. Please contact us if you wish to have a customized in-house session, or to find out how an additional public session can be scheduled.