Professional Purchasing Training Course for Buyers and Business Owners

The course is divided onto six major sections:

• Heart of Purchasing,
• Supplier Management,
• Practical Purchasing Law,
• Contracts Management,
• Supply Chain Management,
• Business Matters

This entire course takes at least 3 days to deliver. Please review the entire course curriculum below.

To sign up for the course please send your request and specify your requirements for the number of participants. We will get back to you with specific offer.

Heart of Purchasing

Total Cost of Ownership (TCO) (Price ≠ Cost)

•  How to identify and quantify TCO = the costs of Quality + Service + Delivery + Price 
•  Break down QSDP into significant sub categories
•  How to use TCO as the basis of Certification, Evaluation, and Negotiation plans

Spot Exercise “Rank QSDP” 

Establishing Cost criteria and rankings for procurement – a mini Negotiation Plan

Price Analysis

•  Why do buyers want to know about this?
•  Eight pricing strategies of sellers that buyers want to know
•  The effect of Sales on Price and Cost

Cost Analysis –The most essential tool for buyers

•  How and why buyers identify and eliminate unnecessary costs
•  Quantifying cost for evaluation and negotiation purposes
•  How to use costs in negotiation 

Spot Exercise “The ol’ Restock Fee” 

Applying Cost and Price Analysis to solve an old problem

Supplier Management

What Do We Know about Our Suppliers?

•  What problems do suppliers have with us?
•  Expertise in Strategic (Commodity or Service) Sourcing
•  How could we improve the process?
•  Supplier Certification Why is it necessary? 
•  How to establish minimum standards for suppliers
•  How to base standards on Costs
•  How and why does it save money to reduce the supplier base?

Supplier Evaluation

•  The 3 reasons to use Supplier Evaluation
•  How to set up metrics and enforce performance
•  When to invest in supplier development?
• Formal Exercise “The Gaylord Principle “ How to create a simple, user-friendly model to measure and evaluate supplier performance using dollars, and numbers

Preferred Suppliers

•  The mutual cost reduction rationale for preferred suppliers
•  Vendor Managed Inventory (VMI) and Vendor Owned Inventory (VOI)
•  Single and Sole Sources
• Informal Exercise Round Table What are our Single and Sole source problems?  Where are we going? What is our strategy?

Partnering A Cost reduction strategy for both parties

•  Reducing the costs of dong business together, short and long term
•  Cost reduction and profitability
•  How and How NOT to Partner

Practical Purchasing Law

Spot Exercise “What’s Your UCC Quotient?” 

A Brief intro into why we need things they didn’t teach in college, grad school too

•  Uniform Commercial Code (UCC) basics including
•  The 4 requirements of a P.O to avoid personal liability
•  The 4 requirements of a contract and the 4 forms of purchasing authority
•  UCC listings (liens) and searches
•  The 7 obligations of an agent

Spot Exercise “Do We Have a Deal?” 

Another familiar question, the answer to which may be different now that we know more 

Other important legal considerations

•  Important federal statutes Robinson-Patman and Reciprocity
•  Battle of the Forms and Offeror vs. Offeree
•  Mirror image rule, Last Shot principle, and Oral contracts

Warranties

•  Basic protections under law
•  Buyers remedies
•  Sellers Remedies

Contracts Management

Spot Exercise ROUND TABLE Examination

•  Where are we now with forms of contract familiarity?  
•  Where are we going?
•  What kind of problems do we have

Forms of Contract

•  Lump Sum, Cost plus, Unit Price, Take or Pay
•  Escalation/De-escalation, Fixed price re-determinable
•  Shared savings
•  Contracts from the FAR side, CPFF, CPAF, IDIQ, NTE, etc

Spot Exercise “Contract Form – Whatchu talkin’ abow?” An eye opening exercise in learning about appropriate contact forms

Related Issues

•  Insurance W/C, CGL,and others
•  Bonding Surety and Fidelity
•  Letters of Credit Domestic and International 

Supply Chain Management (SCM)

Spot Exercise ROUND TABLE Examination

•  Where are we now with SCM familiarity?  
•  Where are we going?
•  What kind of problems do we have?

Transportation

•  Delivery and risk of loss
•  JIT and teeth in delivery clause (Does Time is of the Essence mean anything)
•  Inspection rights

Spot Exercise “To be customized to client interests”

Logistics

•  Transportation modes 
•  Material Handling and Storage
•  Packaging and Shipping
•  3PL and Dedicated 3PL

Inventory Metrics

•  Fill Rates Accuracy
•  Back Orders and Stock Outs
•  Inventory turns
•  ABC’s and Pareto’s Principle

Inventory costs

•  Obsolescence and Spoilage
•  Shrinkage (Loss, theft, breakage)
•  Expedited delivery
•  Carrying costs and EOQ

Spot Exercise To suit client interests

Business Matters

Business Entities

•  Private Corporations, Partnerships, and Proprietorships
•  Public
•  Non-Profit Does Not for Profit = For Loss?
•  Reporting differences

Ethics

•  Legal versus ethical considerations (Ethical Behavior is the law!)
•  Ethical practices and good faith
•  Land mines to avoid

Spot Exercise “Legal Conduct vs. Ethical Behavior”

An interesting and extremely relevant challenge

Supplier Finance

•  Financial statements
•  Credit investigation
•  Ratio and trend analysis

Formal Exercise “The Shaky Supplier Samba” Learn how to recognize all the moves

Procurement cards, Ghost Cards, and P/R cards

•  What are they?
•  Why and how to use them most productively
•  How they cut costs for buyer and seller

Global Commerce

•  Off shore sourcing costs
•  Low cost country sourcing
•  Demographic trends
•  Impact of Supply and demand on prices and availability
•  Emerging economies

The Convention for the International Sale of Goods (CISG)

•  How does international transportation practice differ from domestic?
•  UCC and INCO terms and the CISG (Convention for the International Sale of Goods)
•  The 2 essentials for a contract
•  Foreign sourcing by country
•  INCO terms

Outsourcing

•  Make or Buy Analysis 
•  Core competency identification

Spot Exercise “To be developed?”

This is a good spot for a more advanced and customized exercise

Welcome to Purchasing Guide

•  How it serves internal customers and suppliers
•  How to construct one
•  How it improves productivity

Professional Advancement

•  American Purchasing Society (APS)
•  Certification as CPP, CPPC, and  CPPM

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