World class procurement practices in purchasing & supply management
Today, purchasing must be the most progressive group in the company. Your systems, techniques, and operational theories must be flexible and dynamic. The typical philosophy of “We have done it that way for 20 years, so it must be good,” or, “We make money in spite of ourselves!” does not apply in modern procurement practices.
Worldwide competitive pressures require greater contribution from the purchasing and supply management functions, procurement practices and suppliers to improve the organization’s relative position on quality, price, technology, and responsiveness—that doesn’t mean sitting around and waiting for it to happen!
Remember: For a typical organization, a reduction of $100,000 in the cost of purchased materials or services is equivalent to an increase in sales or budget revenues of $2 million—and it can be a lot easier to attain!
As a mid-level to senior purchasing professional, you are the key in the purchasing and physical supply process. Advanced technology, sophisticated marketing approaches, and expanded requirements for goods and services have made the purchasing job more complex than ever before. “Evolution” is the buzzword among competitively-minded purchasing managers. There is the need for modern procurement practices.
Implicit in this concept is the application of personal skills which range from technical aspects to overall comprehension of the business requirements in procurement practices.
Here are some interesting general observations based upon recent purchasing analyses:
- Each day, buyers spend hundreds of millions of dollars which can account for anywhere from 20-70% of an organization’s revenue, budget, or sales dollar.
- An analysis of payments has shown that, in most companies, 50-60% of the number of checks to vendors are of payments of less than $500.
- These payments often represent less than 5% of the annual material expenditures.
- The payments under $1,000 represent the disbursements and approximately 10% of the dollars.
What this means is that the same elaborate procedures and procurement practices, skill sets, and extensive efforts are being expended for the small, as well as large purchases. Therefore, the degree of skill exercised in the purchasing process can make the difference between profit or loss and between cost savings or cost overruns.
Modern procurement practices will address these critical management concerns and will provide practical techniques and vital information to enhance the purchasing function’s contribution to your organization’s bottom line.
Learning the skills offered in Modern procurement practices can make a difference in the way you plan and execute the purchasing function within your organization. Plan to attend this exciting opportunity to refine your thinking and find out what you can do to become even more effective on the job.
At this powerful modern procurement practices training, you will learn how to:
- Manage the big picture effectively by inter-departmental coordination in a strategic purchasing environment.
- Examine purchasing organizational concepts, personnel training and educational factors, purchasing job descriptions and procurement practices.
- Prepare plans, set goals and objectives for contribution to the bottom line and cost effectiveness for procurement practices.
- Decide what sourcing strategies and expectations can be used to enhance supplier quality and productivity and optimize the supply base.
- Broaden your perspective about what factors in the business environment affect purchasing decisions and how purchasing should monitor, appraise, and evaluate these factors through performance reports.
- Use electronic commerce, internet-based purchasing, and purchasing/procurement cards for operational management and decision support to improve productivity and enhance decision making through modern procurement practices and modern procurement practices.
- Maintain cooperative relationships with suppliers in order to realize maximum cost efficiencies and continuity of service.
- Exchange insights and information about the problems you face everyday with other professionals, developing a network of executives with whom you can share information both during the training and beyond.
- Ensure that communication is clear and concise internally, both between you and your staff-and externally with vendors, suppliers, and contractors.
- Understand the “ins and outs” of strategic sourcing, early supplier involvement, supplier empowerment, outsourcing, and value-added supply management.
- Improve your ability to communicate results to top management about selling purchasing’s contribution to the overall organizational goals.
- Develop a better understanding of strategic physical supply management and its inherent “new wrinkles.”
- Prepare yourself for the use of specialized purchase instruments and their contracting alternatives in the contracting process and modern procurement practices.
Who should attend modern procurement practices training
Modern procurement practices training is designed to give purchasing, procurement, supply management, or materials management agents, supervisors, managers, directors, and vice-presidents a two-day, concentrated course in effective purchasing management. It is designed for those who make decisions and develop strategies within the purchasing or supply management function.
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