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.

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

§         Source,

§         Solicit,

§      Secure, and

§         Settle

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.  Your understanding 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 

1. How to get "the right price" by understanding the “total cost of ownership"

2. How to increase your organization’s profits through savvy purchasing

3. The 8 practices you should avoid in order to remain both ethical and successful

4. The 10 rules that guarantee negotiating failure—and how to avert them

5. Keys to getting organized and a time-saving checklist to help you do it

6. The 6 major components of overall cost

7. When and how to apply specialized purchasing instruments and contracts

8. The 6 essential tips for negotiating—and how to be prepared before you start

9. Strategies to uncover the most reputable sources through sourcing and qualification

10. What you must know about the laws that apply to purchasing matters

11. A terms and conditions checklist and ways to clarify the fundamental elements of a contract

12. What makes a good purchasing policies and procedures manual

13. How to rate different suppliers precisely through performance evaluations

14. A 10-point checklist to help you know your supplier

15. The 4 major steps for selecting a source of supply

16. The 7 warning signs of a supplier at financial risk

17. Applying computerization, EDI, and electronic commerce to your best advantage

18. When and when not to aim for the 7 types of discounts

19. A checklist of negotiating tactics

20. The 5 categories of suppliers and the supplier relationship building tree

21. How to reduce costs in an organized and creative manner

22. The basic aspects of replenishment lead-time and types of inventory planning

23. How to control inventory using the Pareto Principle and A-B-C inventory stratification

24. How to get clarity on F.O.B. terms of sale

25. The 3 essential purposes of a bill of lading

26. The 4 types of freight loss and damage claims

27. The 9 methods to establish quality specifications

28. The 9 commandments for the seller and supplier obligations

29. 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