Basics of Purchasing Management

Course Name

Basics of Purchasing Management

Contact Hours: 200 (an estimated time frame devoted to a course of study from start to finish that can vary from student to student)

Course Description

The course of study is for those who want to learn the basics of procurement, purchasing, pricing, and supplier contracting. It is useful for those who will both have management responsibilities and who seek to pursue management opportunities.

Our program offers comprehensive training in many important areas, including:

• Developing a corporate culture
• Prepare and manage a budget in an organization
• Use financial statements to prepare and structure your budget
• Evaluating price and costs
• Use ratios to analyze company`s financial position
• Cover the supplier selection process
• Explore the contracting process

Outcome

Upon successful completion, students will be well-prepared to work in the procurement and supply management areas of business.

Assessment

Assessment Tools:

• Exams
• Quizzes
• Practical Experience
• Online Exercises

Outline

Management Essentials
I.          The culture of an organization
II.         Organizational change and resistance to change
III.        Power and influence leaders use
IV.        Leadership theories
                a. Leaders are born
                b. Leaders are made
V.         Strategies and Strategic thinking
                a. Strategic planning
                b. Strategic Plan
                c. Kerry Napuk's 5-step Model
VI.         Decision-Making
VII.        Managing quality with "best practices"
VIII.       Human Resource procedures and policies
IX.         Financial accountability
                a. Budgeting
                b. Balance sheet
                c. Income statement

Budgeting Essentials
I.         Concept of budgeting
                a. Benefits of budgeting
                b. Zero-based budgeting
II.         Activity-based budgeting
III.        Factors that impact budgeting
                a. Pricing
                b. Market research
                c. Credit and invoicing
IV.        Production Planning
V.         How inventory impacts the budgeting process

Price and Cost Analysis
I.         Price evaluation
                a. Compare competitive prices
                b. Evaluate reasonableness of proposed costs
II.         Use of data
                a. Analyze the data to make price comparisons
                b. Produce an index number
III.         Strategic cost analysis
                a. Ratios to use to analyze a company's financial position
                b. Improve profitability
IV.         Maximizing the timing of cash-in and cash-out for your organization
V.         Using outsourcing in your organization

The Procurement Process
I.         Elements of supplier selection process
II.        The supplier evaluation process
III.       The bidding process