Purchasing Management and Cost Reduction Methods
- Interactive teaching tools such as roundtable discussions, role-playing exercises, case studies, and individual and group exercises are used in this course.
Participants will be able to:
- Identify the strategic role of the purchasing department.
- Conduct accurate supplier evaluations.
- Develop effective negotiation strategies with all suppliers.
- Understand the importance of value analysis in purchasing.
- Evaluate the performance of the purchasing department using appropriate Key Performance Indicators (KPIs).
- Improve the efficiency of the purchasing department.
- Senior purchasing officers, purchasing supervisors, purchasing managers, and other managers who need to understand purchasing management.
- The strategic role of the purchasing department.
- Linking the purchasing department with corporate strategy.
- Developing the purchasing department’s mission.
- Aligning the purchasing department’s mission with the corporate mission.
- Writing purchasing department objectives.
- Balancing quality, service, and price.
- Essential objectives for the purchasing department.
- Traditional purchasing manager.
- Strategic purchasing manager.
Supplier Evaluation and Procurement Negotiation:
- Procurement negotiation with suppliers.
- Power in negotiation.
- Planning for negotiation.
- Thirteen key strengths in negotiation.
- Achieving appropriate agreements with suppliers.
- Factors used to evaluate overall supplier performance.
- Methods to enhance relationships with good suppliers.
- Suppliers as good partners.
- Selecting the right suppliers.
- The sixteen key strategic questions.
- Applying the sixteen key strategic questions.
- How can these sixteen questions reduce total costs?
- Improving the productivity of the purchasing department.
- How can the purchasing manager add value?
- The purchasing manager in the 21st century.
- From paperwork management to strategic thinking.
Department Performance Management and Evaluation:
- Centralization vs. decentralization.
- Reasons for department performance evaluation.
- Managing other buyers.
- Management by objectives.
- Continuous development of buyers.
- Key Performance Indicators (KPIs) for the purchasing department.
- Selecting appropriate Key Performance Indicators for the department.
- The right number of Key Performance Indicators for the department.
Improving Purchasing Department Efficiency:
- Evaluating service to end-users.
- Conducting appropriate surveys.
- Improving communication with end-users.
- Ethical behavior when dealing with suppliers.
- Ethical behavior when dealing with end-users.
- Ethical behavior of employees within the department.
- Policies and procedures of the purchasing department.
- Employee training.