Course description
By the conclusion of the specified learning and development activities, delegates will be able to:
Discuss the scope of purchasing
Identify the purchasing cycle concept
Discuss purchasing and supply as a service activity
Discuss the changing role of purchasing and supply
Explain how purchasing might develop from an independent function to an integrated activity
Identify the internal and external influences which have affected the evolution of purchasing
Examine the ‘total acquisition cost’ concept
Consider the adoption of relationships based on mutual benefits as an alternative to the traditional transactional, adversarial approach
Highlight the evolution of concepts relating to purchasing development
Identify key practices encountered in developed strategic purchasing
Provide mini-case studies demonstrating how companies are developing their purchasing functions
To explain the growth in the strategic role of procurement, purchasing and supply
Explain the concept of strategic management
Identify various forms of purchasing strategy aimed at gaining competitive advantage and to examine influences on strategic choice
Examine the issues of how decentralised v. Centralised departmental organisations and support services affect the structure of the purchasing team
Appreciate the importance of purchasing within the organisation’s structure
Consider the placing of purchasing in various types of organisation
Consider the central role of contract management in the virtual organisation
Discuss the concept of outsourcing
Highlight the basics of a best practice approach to outsourcing, including outsourcing methodologies
Outline the pitfalls of outsourcing
Outline the use of service level agreements (SLAs)
Indicate the move away from quality control (inspection techniques) towards quality assurance (prevention of defective work)
Discuss statistical process control (SPC) and off-line control
Introduce the concept of failure mode and effect analysis
Examine the different approaches to producing a specification and the role of value analysis, including the idea of early supplier involvement
Consider the fact that total quality management requires the involvement of all suppliers and subcontractors, ideally at an early stage, and to outline the concept of concurrent engineering
Comment on the benefits of standardisation
Introduce the standards BS EN ISO 9000 on quality assurance
Discuss Value analysis (VA) and Value engineering (VE)
Comment on the economics of quality
Identify what drives make-or-buy decisions
Consider provisioning systems for stock and production purposes
Examine positive and negative reasons for holding stock and approaches to reducing inventories
Identify methods of stock control and their application
Explain the EOQ concept
Discuss the usefulness and limitations of forecasting in the supply context
Develop an appreciation of MRP, MRP2, DRP and ERP systems
Discuss ‘just-in-time’ and related philosophies
Explain late customisation as a provisioning policy
Emphasise the importance of responsiveness to customer needs
Consider differing perceptions of ‘lead time’
Explain the importance of lead time variability
Outline the component parts of lead times
Explain the need for expediting, how it is prioritised and organised and how it can be reduced
Introduce network analysis and gantt charts
Consider the inclusion of liquidated damages, penalty and force majeure clauses in a contract
Suggest the attributes of a good supplier
Examine the ‘relationships spectrum’, and the move towards more mutuality in appropriate buyer/seller relationships
Discuss the advantages and disadvantages of different procurement policies
Examine the factors influencing pricing decisions
Compare ‘price analysis’ with ‘cost analysis’
Analyse the ways in which major contracts might be priced
Explain contract price adjustment clauses
Explain the use of incentive clauses in relation to price and cost
Explain the effect of the ‘learning curve’ on the cost of production.
Understand negotiating as a ‘mutuality of wants, resolved by exchange’
Identify the activities carried out during the different stages of negotiation
Analyse the characteristics of a skilled negotiator
Recognize the key points of discussion stage behaviour and recognize negotiating ploys
Introduce the concept of body language and how it can be interpreted
View how negotiating technique is influenced by long-term interests
