Procurement & Supply

The Pillar Knowledge of Procurement Arena

Tutor: SETTEC
Start Date: Sunday, Mar 15,2020
End Date: Wednesday, Mar 18,2020

0LE per Course join now

Introduction
In every aspect of business Procurement management can save or waste money and it is the only way that Processes Required to Acquire Goods and Services from outside the Performing Organization For Simplicity, Goods and Services, Whether One or Many Will Generally Be Referred to As a “Product “
In this 4 days course Procurement Management Is Discussed from the Perspective of the Buyer in the Buyer - Seller Relationship which, Can Exist at Many Levels of work Depending on the Application Area. This course Assumes That the Seller Is External to the Performing Organization.

Objective:
By taking this course, you will be able to:

• Acquire all the required skills to be an effective buyer
• Understand the fundamentals and modern principles of purchasing function
• Improve the efficiency of buying goods and services
• Select suppliers in a better way
• Determine transportation and packaging requirements
• Shorten total lead-time to speed up the purchasing cycle

Content:
Purchasing Background
• Glossary
• Introduction
• Purchasing History
• Procurement importantance
• Objectives of Purchasing:
• Types of Purchasing
• Purchasing Procedure
• Method of Procurement
• Procurement process
Preparation Stage
Advertising Stage
Response Management Stage
Award Stage
Contact Management & Monitoring Stage

• Examples of Types of contracts
• Important element of procurement process
• General Principles of Procurement
• Purchasing Management Process
• Competition
• Functions / Responsibilities of Purchase Department
• Purchasing management process
Purchasing Planning
Purchasing Tracking
Purchasing reporting
• Centralized purchasing System
Advantages of Centralized Purchasing
Disadvantage of Centralized Purchasing
• Decentralized Purchasing System
Advantages of decentralized Purchasing
Disadvantage of decentralized Purchasing
• Purchase Functions
• Evaluating Price
• Paperwork and Accounting
• Policy Compliance
Buyer Roles and Responsibilities
• The Purchasing Department
• Procurement management
• Buyer and seller relationship
• The major process
• Purchasing Procedures
Recognition of need
Requisition approval
Placement of the purchase order
Follow-up and expediting
Receipt and approval of goods/services
• Purchasing Policy
• Getting Best Value
Pre-qualifications
Expressions of Interest
Cooperative Purchasing
Purchasing Methods
• Direct Award
• Tendering
• Request for proposal
• Request for quotation
• Request for information
• Invitation to tender
• Completion time line
• Appraisal of Responses
• Contract Management
• A Buyer’s Crucial Need-to-knows
Your Non-Negotiable Points (statutory, technical/functional, other)
Your Targets and Walk-Away Issues
Vendor supplier pricing policies
• The pricing process
• Using Estimates As A Control Device
• Definition of estimate
Conceptual estimates
Feasibility estimate
Order of magnetite estimate
Investment opportunity estimate
Bid estimate
Independent estimate
Preliminary estimate
Budget estimate
Definitive estimate
Negotiation
• Qualities of an Effective Negotiator
Defending those attribute
What Makes a Poor negotiator?
• Negotiating with Suppliers
Negotiation Preparation
Authority to Negotiate
Who, What and Where in Meetings
Negotiating Style: Point by point or all or none
Avoiding Win-Lose attitudes
After the Negotiation
Partnership
• Suppliers
Finding qualified suppliers
Suppliers selection
• Supplier segmentation BASF
• Preparing a Prospective Supplier List
• Types of Suppliers
Local vs. National Suppliers
Distributor vs. Direct
Foreign Sources
Single vs. Multiple Sourcing
• How many suppliers?
• Supplier Evaluation Factors
Location
• Managing the Disadvantages of Location
Reserve Capacity
Technological capabilities
Inspection
Labor Relations
Warranties
Vendor Sources
Plant visitations
Visit the supplier
Financial Status of Supplier
• Financial Status …Popular Ratios
• The current ratio
• The acid test ratio
• The sales-receivable ratio
• Net profit to sales
• Cash flow
• The inventory turnover ratio
• Vendor Rating
Criteria for Vendor/Supplier Evaluation
Pricing factors
Quality factors
Delivery factors
Service factors
• Measurement criteria 7 C's.
• Benefits of vendor rating systems
Techniques of Vendor Rating
Supplier Evaluation Methods
• The Categorical Method
• Categorical Plan
• The Weighted Point Method
• The Cost-Ratio Method
• Cost Ratio Plan
• Quality Cost Ratio
• Critical Incident Method
• Checklist System