Fundamentals of Purchasing
Your organization entrusts a great deal of money to be spent by your purchasing people.
Why not arm them with the expertise to spend it wisely?
Buyers play a pivotal role in the financial success or failure of your organization. Since purchasing activities can account for as much as 80% of your organization's total budget, your purchasing decisions directly influence the company's profit margin.
This intensive, hands-on seminar will arm you with the skills you need to influence that profit or gross revenue margin in a positive manner. You must have savvy negotiating techniques; a clear, concise method of keeping good records; forms that are succinct and functional; a working knowledge of the legal ramifications that could land your organization in court; and more.
The more skillful your purchasing people, the better your organization's chances are for turning a profit.
Newly appointed as well as experienced buyers can learn these important skills in this Fundamental of Purchasing seminar, making them some of your organization's most valuable assets. This fast-paced, two-day seminar is packed with useful information, from the basics of purchasing to the finest points of shaving costs.
Who Should Attend
This program is designed for both the newly appointed buyer as well as more experienced buyers who wish to expand their knowledge base or want formal training.
What You Will Learn
After attending Fundamental of Purchasing, you'll return to the job with critical skills you can put directly to use. You will learn:
- How to establish relationships in which you and your supplier both benefit
- Tips that can literally save your organization thousands of dollars
- How to become a savvy negotiator
- How to untangle the web of legalities that can affect purchasing decisions
- How to develop and keep information and records up-to-date and accessible
- The basic principles of successful purchasing
- How to choose the suppliers who provide the lowest overall cost for the best value
. . . and much more. This program focuses on the most challenging aspects of the purchasing function and will provide the "tools" and techniques you need to meet those challenges efficiently.
Essentially, Fundamental of Purchasing will provide you with the basis to
- Secure, and
with your supply base, all within the framework of practical purchase policies and systems of the supply management process.
Of Special Note: Many people make the mistake of thinking that a computerized system will solve all their procurement problems. Far from it! A computerized system simply supports the purchasing function but is not the function itself. Yourunderstanding of sound purchasing principles and practices is the foundation for the success of the function, with or without computerized system support. In this seminar, you will learn the essentials necessary to harness your system's full potential so you can work more effectively, solve a multitude of day-in and day-out problems more resourcefully, and enhance your overall success on the job. It is the intent of this seminar to make you knowledgeable about the terms, methods, and tools used in the purchasing (or procurement/acquisition/supply management) profession and to help you gain a greater perspective about how purchasing functions with the other parts of your organization.
The 29 Specific Benefits of Attending this Seminar
- How to get "the right price" by understanding the "total cost of ownership"
- How to increase your organization's profits through savvy purchasing
- The 8 practices you should avoid in order to remain both ethical and successful
- The 10 rules that guarantee negotiating failure and how to avert them
- Keys to getting organized and a time-saving checklist to help you do it
- The 6 major components of overall cost
- When and how to apply specialized purchasing instruments and contracts
- The 6 essential tips for negotiating and how to be prepared before you start
- Strategies to uncover the most reputable sources through sourcing and qualification
- What you must know about the laws that apply to purchasing matters
- A terms and conditions checklist and ways to clarify the fundamental elements of a contract
- What makes a good purchasing policies and procedures manual
- How to rate different suppliers precisely through performance evaluations
- A 10-point checklist to help you know your supplier
- The 4 major steps for selecting a source of supply
- The 7 warning signs of a supplier at financial risk
- Applying computerization, EDI, and electronic commerce to your best advantage
- When and when not to aim for the 7 types of discounts
- A checklist of negotiating tactics
- The 5 categories of suppliers and the supplier relationship building tree
- How to reduce costs in an organized and creative manner
- The basic aspects of replenishment lead-time and types of inventory planning
- How to control inventory using the Pareto Principle and A-B-C inventory stratification
- How to get clarity on F.O.B. terms of sale
- The 3 essential purposes of a bill of lading
- The 4 types of freight loss and damage claims
- The 9 methods to establish quality specifications
- The 9 commandments for the seller and supplier obligations
- The 4 stages of supply management
1. The Buyer in the Purchasing Function
- Top Management Philosophy, Organization and Responsibilities of Purchasing
- Buying in the 21st Century and the Purchasing Function
- The Buyer's Role in Supply Management
- Top Five Key Characteristics Managers Want from Their Subordinates
- Pareto Time Principle and Purchasing Time Dynamics
- Team Functions and Effective Cross Functional Teams
2. Professional Practices and Systems
- Purchasing Ethics and Questionable Practices
- Types of Contracts and Elements of a Valid Contract
- Terms and Conditions Checklist
- Purchasing Policies and Procedures
- Electronic Data Interchange (EDI) and ERS
- Electronic Commerce and the Internet
- E-Purchasing Functionality and Benefits
3. Supplier Management and Relations
- Responsibilities and Specifications
- Quality Assurance through Description
- Quotes, Quotations, Bids, Proposals, and SOWs
- Developing Sources of Supply
- Know Your Supplier: Ten-Point Checklist
- Improving Supplier Utilization
- Supplier Qualification, Due Diligence, and Supplier Selection
- Expediting and Follow-up for Late, Lost, and Defective Shipments
- Supplier Performance Evaluation and Ratings
- Alliance, Partnering, and Relationship Building
4. Cost/Price Analysis and Total Value Techniques
- What Is Something Worth?
- Discounts - Types and Applications
- Total Cost of Ownership
- Price and Cost Analysis - Elements and Applications
- Purchasing's Use of Learning Curves
- Value Analysis Applications
- Make vs. Buy Analysis and Outsourcing
- Foreign Sourcing Considerations
5. Specialized Purchasing Tools and Contracting
- Supplier Base Management Model
- MRO and Indirect Material Procurement
- Contracting for Services Classifications and Guidelines
- Capital Item Purchasing Considerations
- Blanket and Open-Ended Orders
- Long-Term Contracting and Agreements
- Purchasing/Procurement Cards
6. Supply Management Interfaces: Inventory and Traffic Implications
- Inventory Planning Types
- Types of Order Point Systems
- Economic Order Quantity and EOQ Example
- Supplier Delivery and Supplier-Managed Inventory Replenishment
- Freight Terms versus Sales Terms/Implications
- Terms of Sale Delivery and Service Significance
- Shipping Documentation and Bills of Lading
- Receiving and Freight Claims
7. Purchasing Negotiations: An Even Exchange
- Introduction to the Negotiating Process
- When and What Do You Negotiate?
- Preparation and Planning
- Principles of Persuasion
- Basic Rules for Negotiating
- Types of Questions and Their Significance
- Conflict Resolution Processes for Negotiation Teams
- Ten Rules to Guarantee Failure in Negotiation
8. Reference and Recommended Reading
- E-Commerce Reference and Glossary
- Selected Bibliography and Recommended Reading
Instructor: Tom Tanel
Improving Your Purchasing Negotiation Skills
Does negotiating make you generally apprehensive or uncomfortable?
Do you fear that the other parties will take advantage of you?
Are you concerned about getting the best possible terms when you negotiate?
Do you find yourself not knowing where to start at the negotiating table?
Negotiation is an indispensable part of the purchasing function. As a buyer, you play a critical role in the financial success or failure of your organization; therefore, the more skillfully you negotiate, the better your organization's chances for turning a profit.
One of your major functions is to negotiate the best terms and price for the materials and services your organization needs to operate. This complex task requires knowledge, tact, superior communication skills, and a solid game plan! But few people understand the 90% of all negotiations takes place before the involved parties even get to the bargaining table.
What You Will Learn
Unlike many other seminars that concentrate on techniques to be used during the end stages of negotiating, Improving Purchasing Negotiation Skills focuses onsetting you up for success right from the start. You will gain valuable insights about how to prepare for your negotiation as well as strategies to employ during the meeting itself.
In short, you can take the mystery out of the negotiation process by learning some valuable, time-tested skills that can make you a more valuable asset to your company, including:
How to prepare for negotiations effectively
The ins and outs of savvy negotiating
The effective use of strategy and tactics
How to structure win/win negotiations
How to establish and meet negotiation objectives
How to negotiate for the best value and terms
And much, much more
Instructor: Ken Martin
Strategic Purchasing & Supply Management
Are you having trouble managing the "big picture" of Purchasing effectively within your organization?
Do you need help setting goals and objectives to improve the bottom line?
Are you making the most of sourcing strategies to enhance supplier quality and productivity?
How do supply management organizational concepts, training and educational factors, and job descriptions affect the purchasing function overall?
What are you doing to improve vital communications among vendors, suppliers, contractors, and staff?
Where are your supply management initiatives taking you in terms of electronic commerce and internet-based procurement?
Purchasing as a vital element of the company, must be able to function at top efficiency at all times. To do so, there must be flexibility and proper organization. Each purchasing manager must be able to review the purchasing function objectively and determine whether its current structure and system of operation fills the needs of the company as well as the needs of purchasing. In such an analysis, such matters as purchasing policies, job descriptions, operational procedures, and departmental structure must be considered with care.
A preoccupation with "us versus them" purchasing that pits buyer against supplier; or "place and chase" purchasing, which places orders then expedites them; or "three quotes and a cloud of dust" purchasing, which places emphasis on the lowest price rather than the lowest overall cost for the best value - all are indicative of 20th century vintage purchasing. The new breed of purchasing professional has added new dimensions to the responsibilities of physical supply management that will continue to bring their organizations into the 21st century.
Strategic Purchasing and Supply Management will address these critical management concerns and will provide practical techniques and vital information to enhance the purchasing function's contribution to your organization's bottom line.
Top Management Philosophy and Expectations from Purchasing
- Top Management Philosophy
- Understanding the Big Picture and the New Business Environment
- Centralized Procurement Impact
- Strategic Purchasing Management
- The New Way of Doing Things
- Seven Key Areas Where Purchasing Can Excel
- Ways to Add Value and Best Practices
Organizational Concepts and Relations
- Organizing the Department and Centralization
- Factors Affecting the Purchasing Organization
- Selection and Education of Purchasing Personnel
- Buyer Training Program
- Guide for Developing Job Descriptions
- Steps in Appraising Performance
The Environment of Purchasing Planning
- Environmental Considerations
- Purchasing A-B-C Analysis and Spend Profile
- Illustrative Index of a Purchasing Manual
- Role in Purchase Planning
- Porter's 5 Force, PESTLE, and SWOT Analysis Applications
- Effects of Environmental Factors on the Supplier Marketplace
- Know the Marketplace and Your Supplier
- Conclusions - RESPECT Quiz
Increasing and Improving Supplier Utilization
- Know Your Supplier
- The Supplier Qualification Process
- Categories of Suppliers and Relationship Building
- Strategic Sourcing and Supply Management
- The Road to Improved Supplier Performance
- Measuring and Evaluating Supplier Performance
- Strategies for Improving Supplier Performance
Strategic Physical Supply Management
- Lean and J.I.T. Principles and Benefits
- Early Supplier Involvement
- Supplier Certification Programs
- Supplier Partnering and Strategic Alliances
- Supplier Management Teams and Purchasing Councils
- Group or Consortium Purchasing and Reverse Aggregation
- Supplier Empowerment and Supplier Owned/Managed Inventory
- Value Analysis/Value Engineering
Purchasing and the Computer
- Computerizing the Procurement Process
- Data and Information Requirements
- EDI, ERS, and Pipeline Visibility
- Electronic Commerce and Internet Based Procurement
- E-Procurement and E-Sourcing
- Reverse Auctions as a Sourcing Tool
Specialized Purchase Instruments and the Contracting Process
- Specialized Purchase Instruments and Contracts
- Commodities, Raw Materials, and Capital Sourcing Groups
- MRO/Non-Production and Services
- Low-Value Purchases and MRO Partnering
- Purchasing/Procurement Cards
- Outsourcing and Third Party Re-Sourcing
Reporting and Evaluating Performance
- Performance Reports and Purchasing Metrics
- Appraising and Controlling Purchasing Performance
- Sample Types of Reports
- Summary and Conclusions
Who Should Attend
This program is designed to give purchasing, procurement, supply management, or materials management agents, supervisors, managers, directors, and vice-presidents a concentrated course in effective purchasing and supply management. It is designed for those who make decisions and develop strategies within the purchasing or supply management function.
Instructor: Tom Tanel
Understanding Purchasing & Supply Contracts
Are you concerned that your solicitations or current purchasing contracts will subject you to undue risk?
Do you have trouble understanding all the terminology you encounter on some procurement contracts?
Do you grow suspicious when a supplier or seller insists that certain clauses be included in your contract?
How do you know what type of contract to use in a given situation?
Does the term "fine print" send you into a mild state of panic?
How can you reduce the stress of dealing with global agreements in a variety of countries?
Do you dread the thought of constructing a Statement of Work or specifications?
If you are thinking about questions like these, chances are you are not alone. All too often, buyers and procurement specialists rely on a lot of luck and wishful thinking to carry them through the maneuvering of writing a contract. For some, it is difficult knowing just where to begin. For others, the challenge lies in making sure their contracts are comprehensive, accurate, and legally effective.
Understanding Purchasing & Supply Contracts is indeed a practicum which can not only help you generate the kinds of contracts you need for a variety of situations but also help you scrutinize those contracts that come to you from other sources. Through lecture and discussion, you will get detailed explanations and illustrations involving the use of contract clauses in such a way that you will be able to apply your new-found knowledge to your own contractual environment.
You will learn, for example, that virtually all "rules" can be varied by agreement, you can have any contract you can negotiate, since the "law" does not tell you what the contract must say. You will also see how problems arise because the buyer and seller themselves have not said what the contract should be (or put in enough detail). Furthermore, you will understand that contracts include not only what you write, but what you do: Contracts simply go beyond the mere words on the paper; they may depend on factors involving how the parties have dealt with one another in the past, such as: course of performance, usage of trade, or the course of dealing.
In this true workshop atmosphere your CATTAN instructor will share purchasing acumen and legal insights achieved through more than 35 years of practical experience. You will investigate general contract law, the applicable sales of goods code, and the CISG. You will have the chance, through interactive small group sessions, to explore applications involving contracts, clauses and provisions, and their purposes. In short, you'll go beyond theory into the applied techniques and methodology for contract writing, and you will have the opportunity to discuss the types of contractual problems you may face on a daily basis. Finally, you will receive a set of valuable checklists, formats, samples, and examples for your continued use after the seminar.
All participants are encouraged to bring their respective terms and conditions to the workshop. Since this is a practicum, registration will be limited, so please REGISTER EARLY! Understanding Purchasing & Supply Contracts is one experience you can't afford to miss.
Instructor: Ken Martin