Fundamentals of Purchasing and Supply Management

Do you want to perform your purchasing and supply management duties more effectively? This course helps you understand the ethics and business role of purchasing and procurement, identify alternative terms and conditions of sale (plus legal means of contracting with suppliers), source suppliers, and build supplier relationships linked to overall organizational goals. You’ll evaluate when decision making and bidding is appropriate, review skills and sound principles in negotiating with suppliers and your internal customers, and identify how purchasing works across all functional areas—including supply chain and transportation logistics—to help contribute to a competitive advantage and added value through teamwork.

You will:

  • Develop negotiation skills that will maximize your purchasing effectiveness
  • Master a general understanding of the entire purchasing process and alternative procurement processes, as well as how to keep ethical business in play
  • Review base negotiations to expand your purchasing expertise and effectiveness 
  • Gain knowledge about value-added purchasing, and make purchases consistent with your organization’s customer satisfaction strategies and business ethics
  • Better understand the legal aspects of purchasing and how they affect your organization 
  • Further develop your analytical and decision making tools and skills 
  • Be better able to develop productive supply management strategies
  • Select performance measures for purchasing which reflect individual and team performance
  • Gain the latest, proven purchasing knowledge
  • Learn from seasoned practitioners who are also experienced educators
  • Return to your job with a new sense of direction and action items for improvement
  • Begin your journey to professional certification

Who should attend

We have developed this course with the newly appointed buyer or agent in mind. More experienced buyers, purchasing agents, expediters, schedulers, purchasing managers and supervisors in smaller to medium-sized organizations will also benefit, as they will add state-of-the-art procurement basics to their established skills. Attendance is also beneficial for those in smaller organizations who perform purchasing activities along with other responsibilities.

Day 1: Organizational structure and the purchasing process

Orientation and introductions

  • Purchasing terms

Purchasing’s role

  • The changing role of purchasing and supply management in today’s organization
  • Strategic and tactical considerations

Structure of the purchasing and supply organization

  • Traditional vs. today
  • Strategic vs. tactical
  • Commodity procurement teams
  • Centralized vs. decentralized
  • Deployment of the order release process

The purchasing process

  • The process map
  • Tasks, personnel and other resources

How to execute a value-added purchasing process

Process methods

  • Traditional methods
  • Strategic and tactical considerations
  • Where the process begins and ends

Forms of solicitation

  • Request for: Quote (RFQ), Bid (RFB), Information (RFI) and Proposal (RFP)
  • e-Procurement processes

Day 2: Overview of Internet and Web-based tools

  • Where to look for information and how to use it

Negotiation basics

  • Negotiation styles
  • Determining negotiable issues
  • The negotiation process
  • Finalization of the negotiation and implementation of the agreement

Legal aspects of purchasing

  • Ethics
  • The law of agency
  • Contract formation and execution
  • Common law and the Uniform Commercial Code (UCC)
  • Contract types: goods vs. service, written vs. oral
  • Warranty and guarantee
  • The legal aspects of EDI and electronic commerce

Day 3:Strategic sourcing

  • Segmenting and leveraging the spend
  • Stakeholder management
  • Sourcing plans

Sourcing tactics

  • Tips for going to market, screening providers, purchasing commodities, contracting
  • Change management

Analysis tools

  • Cost/price analysis
  • Value analysis
  • Value engineering, design for manufacturability, design for assembly
  • Total life cycle analysis

Supply chain metrics

  • Uses of metrics in contracting and performance management
  • Supply chain metrics dashboard

Performance management

  • Balanced scorecard approach to measuring performance
  • Supply chain balanced scorecard

James Rappold

James Rappold has served as a supply chain consultant in the analysis and improvement of manufacturing, distribution and information systems for dozens of organizations, including BASF, Briggs & Stratton, Corning Glass Works, General Mills, IBM, Merck KGaA (Germany), Philip Morris, Procter & Gamble, Rockwell Automation, Sunoco Oil, The U.S. Air Force, Sango Ceramics in Semarang, Indonesia, and Polioles in Mexico City. He is a recipient of the University of Wisconsin-Madison Chancellor’s Distinguished Teaching Award and has published articles in numerous journals such as Operations Research, Manufacturing & Service Operations Management and Naval Research Logistics. Dr. Rappold holds a B.S. in Industrial Management and Mathematics from Carnegie Mellon University and an M.S. and Ph.D. in Operations Research and Industrial Engineering from Cornell University.

Pedro Rodriguez

Pedro Rodriguez is a management consultant and instructor at the University of Wisconsin-Madison. He is the former director of global materials planning at Rockwell Automation based in Milwaukee, Wis.. Rodriguez has led teams in procurement, strategic sourcing, operations, materials planning, logistics, and supply chain lean six sigma in the automotive, aerospace, industrial equipment, and automation industries. He holds a B.S. in marine engineering from the Polytechnic University of Catalonia in Barcelona, Spain, and M.S. degrees in both industrial engineering and business from the University of Wisconsin-Madison.

Enroll: Fundamentals of Purchasing and Supply Management

Individual Sessions

10/1/2014 - 10/3/2014
(#5303)
$2195 Add to Cart
3/16/2015 - 3/18/2015
(#5301)
$2195 Add to Cart