Effective Purchasing, Tendering & Supplier Selection

by on January 6, 2015


This workshop integrates the activities that procure materials, transform them into final products, and deliver them to customers.


These activities include traditional purchasing function, along with additional activities that are important in the relationship with suppliers, distributors, and customers. Internally, supply chain managers work with Purchasing and other departments.  Externally, supply chain managers concentrate on building a high performing supply base that focuses on maximizing value to the ultimate customer while maintaining speed, flexibility, efficiency, and responsiveness in their own operations. Perhaps the most important aspect of supply chain purchasing is the focus of understanding and incorporating the needs of your customers into the operations of your organization.

Purchasing management professionals must develop and maintain the tools necessary to manage the supply chain and to maximize the performance of their organizations. They must understand and integrate such key skills as lean and agile manufacturing, supplier and customer relationships, Supplier selection, e-commerce and information technology, and decision support systems. In addition, the use of communication and collaboration, negotiation, and teambuilding are also skills that enhance the effectiveness of the purchasing function.

You Will Learn How To:

  • Align Purchasing strategies with your business needs
  • Design purchasing organization and purchasing systems
  • Integrate Purchasing concepts into your own organization
  • Identify and use different purchasing methods and tools
  • Build a cross-functional supply chain management team
  • Incorporate and communicate supplier
  • Evaluate and assess your suppliers
  • Select the right suppliers
  • Set supplier expectations and measure performance
  • Identify and use Purchasing negotiation techniques with suppliers and customers
  • Understand the use of partnerships and alliances with suppliers
  • Measure and improve supplier performance
  • Determine what future trends will impact your supplier selection strategies
  • Use e-procurement
  • Handle expediting, price, cost and value.

Workshop Outline:

Day One:

  1. Understanding the Purchasing Function
  2. Business Issues
  • Overview of Purchasing management
  • Overview of Materials management
  • Defining and mapping the optimal Purchasing function
  • The role of purchasing in organizations
  • Integrating Purchasing with functional operations
  • Gaining competitive advantage through effective and efficient Purchasing
  • Aligning supply chain and Purchasing business strategies
  • Identifying organizational barriers
  • Teaming and collaboration

Day Two:                                                                                         

  1. Managing the Supply Base
  • Strategic souring
  • Supplier evaluation and qualification
  • Partnerships and alliances
  • Tendering
  • Negotiation in a SCM framework
  • Managing supplier performance and expectations

Day Three:

  1. Logistics
  2. Measuring Purchasing and Supply Chain Performance
  • Transportation and distribution in the supply chain
  • Planning supply, demand, and inventory
  • Purchasing and Inventory
  • JIT Purchasing
  • Basics of E-procurement
  • Designing a performance measurement system
  • Financial implications of supply chain strategies
  • Identifying and managing cost issues – Price, Cost and Value
  • Benchmarking

Day Four:

  1. Emerging Trends in Purchasing and Supplier Management

7. Action Plan: Cases and Exercises


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