Effective purchasing is important for any enterprise – manufacturing or service, public or private. Over the last few decades, the nature of this function has radically changed from just “negotiating with vendors and buying cheap” to one of “strategic importance” in the supply chain. In the manufacturing sector, the cost of materials is often 55-70% of the product cost, and the quality of the finished product is heavily dependent upon the quality of material purchased. Hence the impact of the Purchase function on cash flow and profitability is very high. All this has placed new demands on position and role of the procurement function.
In the current economic climate inventory is more important than ever. With slowing activity, inventory decisions that result in excess inventory will take much longer to correct and the working capital that is tied up hurts even more when capital is hard to come by. Improve inventory turns, lower operating costs and enhance customer satisfaction.
This 1day program brings out a new way of looking at the functions and processes involved in the field of procurement. It helps you align your procurement strategies with management expectations and to identify actionable points, which can have an immediate effect on improving the performance of the organization in the short term, and are consistent with strategic imperatives in the long term.
The program will help you strengthen the performance of your Vendor base by enabling them to acquire the skills and capacities to raise the product quality, on-time delivery, reduce the working capital besides cost competiveness.
The program takes through various scientific methods (IBM & Bell) of Vendor Rating & Capability Assessment in order to develop a healthy Vendor base which will help you reduce your working capital and lead time of your products.
The program helps you understand different Inventory classifications ABC XYZ VED SOS FSN GOLF SDE , Runners Repeaters Strangers for effective Inventory Analysis
This program would be of greatest value to professionals working in or desiring to work in areas related to procurement, and outsourcing.
- Purchase Function – traditional role and changing relevance
- Reconstruction of Purchase function for a strategic role
- Purchase’s role in strong supply chain and impact on yield
- Just In Time (JIT) Procurement
- EOQ (Economic Order Quantity) concept and modern interpretation
- Effective strategic sourcing
- Vendor Selection and Evaluation
- Vendor Development – Value drivers
- Vendor Rationalization
- Delivery Performance monitoring
- Volume flexibility
- Vendor meet
- Vendor reward scheme
- Vendor satisfaction survey
- Ethics in Purchasing
- Case examples and illustrations from practice
- Actionable points for immediate and long term application
- KPIs for effective Sourcing