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Purchasing Training Outline
for a Consumer Products Company

Session 1

Introduction

  • Participants backgrounds
  • Current purchasing responsibilities
  • Objectives for this training

Purpose of Purchasing

  • History of industrial purchasing from order placers to modern day role
  • Sourcing, price negotiations, supply chain activities

Purchasing goals and objectives

  • Cost control
  • Assurance of supply
  • Control of company funds
  • Five "rights"

Plan for Session 2

Session 2

  • Operating procedures - generally accepted industry practice
  • Five step process
    • Requisition
    • Approval
    • Purchase Order
    • Receipt
    • Payment

Purchase orders, change notices, contracts

Purchasing records

  • Consumer Products Company
  • Other companies

Plan for Session 3- invite other departments?

Session 3

Purchasing interfaces- expectations from both sides

  • Internal - manufacturing, finance, quality, receiving, maintenance, etc.
  • External - suppliers, potential suppliers, industry associations, publications, internet

Supplier knowledge - how to use it

Commodity knowledge - how to use it

Plan for Session 4

Session 4

Supplier Management

Suppliers - who, how many, why?

Supplier selection

  • Financial stability
  • Reference checks
  • Facility evaluation
  • Other departments- quality, etc.

Plan for Session 5

Session 5

Cost savings

  • Savings vs. avoidance
  • Techniques - Class A and Class B
  • Purchasing's role
  • Supplier's role
  • Cost analysis
  • Cash discounts
  • Rebates

Negotiations

  • Purchasing's role
  • Planning for a negotiation
  • Techniques/role playing
  • Competitive bidding
  • Cost breakdowns
    • Direct material
    • Direct labor
    • Profit
    • Overheads
  • Conducting the negotiation

Wrap-up, next steps, follow-up meetings, etc.