Purchasing Management and Cost Saving Techniques

Why Attend

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

Location:

South Africa

Training Dates:

Each course starts every Monday of each week. Please book your training on a date that is a Monday.

Course Duration:

Unit Standard:

NQF Level:

Number of Credits:


Course Fees

Note: Please fill in the online application form on the left or bottom if this page to receive a quotation with detailed pricing from AATICD.

How to Apply:

To Apply Simply Fill in the Online Enquiries / Applications form on the Right Sidebar or Bottom of this website https://www.aaticd.co.za

NB:

When filling the online application form; please take note of your desired Training Month, Duration in Weeks and Training Session. This will give us the exact dates you will be attending your classes.

Also note that Tuition Fees must be paid upfront on or before training start date. This is to ensure that all resources are made availabe for you before you start. You will not be allowed into training if fees are not paid and verified.

Also note that Tuition Fees Cancellations must be made 14 business working days before the starting date of training. This will allow us to do a 50% refund of the total amount paid. If cancellations are made thereafter note that no refund will be made to delegates.

Tuition Fees include teas and lunch as well as either a laptop or tablet which a delegate will take home free of charge.

Tuition Fee DOES NOT include Accommodation, Dinners and other Extra Curricular Activities or Incidentals. Delegates are expected to fund this on their own. AATICD will not be held accountable for any incidents to delegates.

In-House Trainings are also available for 3 or more delegates for any duration. Please consult with our Administration for such In-House training bookings.


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