Purchasing and Procurement Basics

Purchasing and procurement extends past getting the products and services that the organization needs at the right time and the right cost. This field has evolved to include relationship building, supply chain management integration, and communication with stakeholders to continually improve processes and results. This course covers all the essentials of purchasing and procurement.

Some of the topics covered include:

• The value of procurement
• The five rights of purchasing
• Checklist for supplier evaluation
• The purchasing cycle
• Managing competitive bidding with RFPs and RFQs
• Techniques for successful negotiation
• Risk management
• Agile procurement
• The role of cross-functional teams in purchasing and procurement
• Tools of the trade, such as EDI, ERP, and e-commerce

Course Topics:

Session One: Course Overview

Session Two: Supply Chain Management Basics

• Defining the Terms
• Making Connections
• The Value of Procurement
• Practice Makes Perfect
• Pre-Assignment Review

Session Three: The Purchasing Cycle

• Cycle Overview
• Identifying a Need
• Researching Your Options
• Lessons Learned

Session Four: Purchasing Toolkit

• Analyzing the Price
• Six Categories of Cost
• How Much?
• Analyzing Costs
• Evaluating Suppliers
• Evaluation Checklist
• Negotiation Basics
• Effective Questions
• Collaboration Techniques
• The Learning Curve

Session Five: Managing Competitive Bids

• Purchasing Through RFP’s and Tenders
• Making a Choice
• Creating a Contract
• Ethical Considerations
• Ethical Dilemmas

Session Six: Improving Efficiency and Accuracy

• Managing Supplier Performance
• Controlling Quality
• Setting and Monitoring Delivery Standards

Session Seven: Analyzing and Reducing Risk in the Supply Chain

• Whose Risk Is It Anyway?
• Agile Procurement
• A Risk Management Focus

Session Eight: Managing Internal Relationships

• Procurement’s Role in the Organization
• Spell It Out
• Making Your Mark
• Cross-Functional Teams
• Think About It

Session Nine: Tools of the Trade

• Digital Systems
• E-Commerce
• Tools of the Trade
• Evaluating Your Department
• Drawing Conclusions
• Recommended Reading List
• Personal Action Plan