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Purchasing Management and Cost Reduction Methods

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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.

Course Objectives:

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.

Target Audience:

  • Senior purchasing officers, purchasing supervisors, purchasing managers, and other managers who need to understand purchasing management.

Program Content:

  1. The strategic role of the purchasing department.
  2. Linking the purchasing department with corporate strategy.
  3. Developing the purchasing department’s mission.
  4. Aligning the purchasing department’s mission with the corporate mission.
  5. Writing purchasing department objectives.
  6. Balancing quality, service, and price.
  7. Essential objectives for the purchasing department.
  8. Traditional purchasing manager.
  9. 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.

Value Analysis:

  • 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.

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