The fundamental goal of the purchasing or procurement function is to acquire optimum quality and quantity of goods and services for the company in a timely manner, and at the lowest total cost. This also means that procurement is not over when the item is delivered to the site by the supplier. Additional items or services may be needed in future along with the necessary parts, information, guidelines or even training. These all should be facilitated by the purchasing function.
Traditionally it was thought that competitive advantage was the result of marketing and advertisement expenses and purchasing was not given due importance. Even in the recent past, purchasing was regarded as being services to production and other functions of the company and thus it was given limited attention to issues concerned in the procurement. But in today’s competitive business world, these traditional approaches can no longer guarantee competitive advantage in all cases. Companies, therefore, have to find other means of succeeding. This is nothing but succeeding through effective utilization of purchasing or procurement processes. Now managers have realized that purchasing should be considered as a key strategic business process rather than a narrow specialized supporting function to overall business strategy.
Typically, a company normally spends about 60-70% of revenues through purchasing or procurement, and if this spending is managed efficiently and effectively, company can enhance its competitive advantage significantly. Any savings in purchasing or procurement directly contribute to the company’s bottom line i.e. profit of the company. To achieve same amount of profit through marketing and sale, the company’s sale may have to be increased proportionately. In most cases this may become difficult task for many companies.
It is difficult or nearly impossible to accomplish any international trading, global export/import processes, international repositioning of raw materials/products and manufacturing without a professional procurement support. With increased specialization and globalization, production is being located further away from consumption, rapidly increasing the demand for innovative procurement. In this increasingly competitive global business environment, the quality of purchasing and supply operation and supply chain management capability can make the difference between the success and failure of business ventures.
Today you need to reduce your company’s costs, improve your customer service quality, and increase the synchronization of activities throughout your supply chain. You need to look for cost benchmarking tools that can identify opportunities to generate savings in your procurement, transportation, warehousing, and other relevant operations. You must optimize supply chain management, freight transportation, and logistics Services. Boost your profits with the effective learning of procurement. This impressive and ongoing evolution of this discipline around the world has amply demonstrated how organizations can dramatically improve its’ performances.
Savings thorough procurement can be achieved by ensuring continuity of supply at the best possible TCO (Total Cost of Ownership), reducing overall lead-times, maintaining quality and durability of supply of inputs, promoting innovation in supply, improving supplier’s reliability and services, maintaining optimum inventory and applying many other ways related to supply and procurement.
Workshop topics to be covered:
Introduction to Program & Learning Objective
Procurement and its Evolution of Strategy
Overview of Purchasing Process
Specification of Purchasing Requirement
Types of Purchases
Select areas of Supply and its Strategy
Information about Supplier and Supply Market
Identify and select Suppliers
Negotiating and Bidding Process
Negotiating through Cost Analysis
BATNA and other elements of Negotiating
Price and Acquisition Cost
Total Cost of Ownership
Make or Buy Decision
Managing the Contract
Supplier Relationship Management (SRM)
Question & Answer Session
Summarize and Wrap up of the day
Introduction to Program & Learning Objective
ABC Analysis to make Purchasing Decisions
Supply Positioning Model
Supply Chain Management
Material Purchase: Profit Leverage
Cost/Benefit Analysis and Porter’s Value Chain
Working Capital Cycle (or order- to- cash received cycle)
Various Payment Method
Letter of Credit (L/C)
Transportation and its Importance
Shipping and related issues
Shipping Documents & Related Conventions
Summarize and Wrap up of the session