Purchasing and Supplier Management Training

Overview

This module is a review of the Purchasing and Supplier Management process. It covers the basic objectives of purchasing, looking at the purchasing cycle, and then covers supplier agreements, and vendor managed inventory (VMI). It also covers the requisitioning process and its interface with MRP. It then looks at strategic sourcing and tactical buying. Supplier relationship management is then covered with supplier agreements, communication, concurrent engineering, and other supplier relationship management issues including electronic interfaces and supplier metrics. This module also includes the financial controls necessary in the purchasing cycle and the interface between Purchasing and Accounts Payable.

Recommended For:

Those people responsible for buying both products and services, and should include Quality department personnel if they are involved in supplier viability.

Time: 4 hours

Topics Covered

Purchasing

  • Types of purchased items
  • Selecting and managing suppliers
  • The purchasing cycle
  • Supplier agreements and what is covered in them
  • Consignment and Vendor Managed Inventory (VMI)
  • Requisitioning, creating a PO and effect on MRP
  • Interfaces with other departments
    • Receiving process
    • 3-way match and Accounts Payable
  • Make/Buy decisions
  • Types of sourcing
  • Tactical buying
  • Objectives of purchasing
  • Quality and Financial viability of suppliers
  • Communication with suppliers
  • Time-to-market
  • Concurrent engineering / supplier and purchasing involvement
  • Types of contracts
  • Total cost of ownership
    • Issues with suppliers overseas
    • Freight, customs, transportation, currency, culture, and lead times

Supplier Relationship Management

  • Strategic sourcing
    • Befits
  • Strategic relationships
    • Measuring risk