Main topics of study:

What is Purchasing?

• Definition
• Organisational Buyers
• Purchasing, Profitability & Added Value
•  The Evolution of Purchasing
•  Purchasing & Change
•  The Status of Purchasing

Purchasing Strategy

• Definition
• Levels of Strategy
• The Strategic Planning Process
• Purchasing Strategy
• Environmental Scanning
• Strategy Formulation
• Strategy Implementation
• Strategy Evaluation & Control
• Strategic Options

Purchasing Organisation

• Organisational Design & Structure
• Approaches to Organisation Structures
• Centralised Purchasing
• Purchasing & Its Functional Interfaces
• The Internal Organisation of Purchasing Departments
• Purchasing & Supply in Group Undertakings
• Horizontal Organisations
• Supply Chain Management
• Materials Management
• Logistics Management
• The Contribution of Purchasing to Supply Chain Management

Purchasing Procedures

• Introduction
• Traditional Purchasing Procedures
• The Inefficiencies of Traditional Procedures
• Legal Aspects of Ordering Procedures
• The ‘Battle of the Forms’
• Purchasing Records
• Small Orders
• Purchasing Manuals

Purchasing & IT

• Introduction
• Management Information Systems (MIS)
• Information Technology (IT)
• IT & Competitive Advantage
• Computer Systems
• Computer Operation
• A Typical Computerised Purchasing Application Flowcharts
• Essential Features of a Computerised Supplies System
• Some Computer Applications Relevant to Purchasing
• Some Advantages of Computerised Purchasing
• Telecommunications & Networks
• Electronic Commerce
• Electronic Data Interchange
• Electronic Funds Transfer (EFT)
• Electronic Mail
• Smart Cards
• Bar Coding
• Electronic Catalogues
• Security & Legal Issues
• The Impact of IT on Purchasing & Supply

Human Resources in the Supply Chain

• Introduction
• Human Resource Planning
• Job Analysis
• Recruitment & Selection
• Performance Appraisal
• Training & Development
• Purchasing & Pay
• Motivation, Communication & Commitment
• Communication
• The Management of Change
• Teamwork & Multinational
• Teams
• Management Styles & Leadership
• Strategic Aspects of HRM Applied to Purchasing

Specifying & Assuring the Quality of Suppliers

• Introduction
• What is Quality?
• The Importance of TQM
• The Specification of Quality
• Product & Production Design & Re-Design
• Specifications
• Standardisation
• Value Analysis & Engineering
• The Implementation of Quality
• Quality Control & Assurance
• Quality Systems
• Independent Quality Assurance & Certification
• Tools for Quality & Reliability
• Failure Mode & Effects Analysis (FMEA)
• Quality Circle & Task Teams
• The Cost of Quality
• Purchasing & Quality

Matching Supply with Demand

• Definitions
• Inventory Classifications
• The Aims of Inventory Management
• The Right Quantity
• Demand
• The Economics of Stock Management
• ABC Analysis
• Variety Reduction
• Economic Order Quantities (EOQs)
• The Quantity Discount Model
• Lead Times
• Forecasting Demand
• Fixed Order & Period Review Systems
• Materials Requirements Planning (MRP)
• Distribution Requirement Planning (DRP)
• Just-In-Time Purchasing (JIT)
• Optimised Production Technology (OPT)
• Lot Sizing
• Safety
• Stocks & Service Levels
• Special Inventory Factors

Sourcing

• Sourcing Levels
• Sourcing Information
• Analysis of Market Conditions
• Directives
• Sources of Supply
• Suppliers Assessment & Appraisal
• Supplier Performance Rating
• The Supplier Base
• Make or Buy Strategies & Tactics
• Outsourcing
• Outsourcing Purchasing
• Tiering
• International Sourcing
• Partnership Sourcing
• Forming Successful Partnerships
• Reciprocal Trade
• Countertrade
• Intra-Company Trading
• Subcontracting
• Local Suppliers
• Small or Large Suppliers
• Sourcing Decisions
• Factors in Deciding Where to Buy

Contrasting Approaches to Supply

• Introduction
• Industrial Products
• Capital Investment Items
• Buying Used Equipment
• Evaluating Capital Investments
• Selecting Suppliers of Capital Items
• Leasing
• The Buyer & Capital Investment Purchases
• Production Materials
• Raw Materials
• Futures Dealings
• Methods of Commodity Dealings
• Component Parts & Assemblies
• Production Materials & Bills of Materials
• Consumables
• Construction Supplies & Bills of Quantities
• Goods for Resale in Wholesaling & Retailing

Storing Supplies

• Storage & Supplies
• Type, Location & Siting of Storage Facilities
• Storage & Materials
• Handling Equipment
• Assessment of Storage Requirements
• Stores Layout
• Identification of Stock Items
• Surplus

Controlling Prices & Costs

• Price
• The Conditions for Perfect Competition
• Imperfect Competition & Monopoly
• UK Competition Legislation
• Price Information
• Pricing Agreements
• Variations to Firm & Cost
• Price Agreements
• Price Analysis
• Price Variation & Adjustment Currency Management
• Incoterms

Support Tools

• Tendering
• Debriefing
• Post-Tender Negotiation (PTN)
• Forecasting Techniques
• Techniques of Investment Appraisal
• Application of Costing Techniques
• Life Cycle Costing
• Target Costing
• Absorption Costing
• Activity-based Costing (ABC) & Management
• Standard Costing
• Budgets & Budgetary Control
• Learning Curves
• Project Management
• Scheduling
• Models & Simulation Approaches

Negotiation

• Introduction
• Definitions
• Approaches to Negotiation
• The Content of Negotiation
• What is an Effective Negotiation?
• Factors in Negotiation
• The Process of Negotiation
• Pre-Negotiation
• The Actual Negotiation
• Post-Negotiation
• Global Negotiation

Purchasing Research, Performance & Ethics

• Purchasing Research
• Purchasing Performance & Control
• The Aims of Performance Measures
• The Prevalence of Purchasing Performance Measures
• Principles of Performance Measures
• Methods of Evaluating Purchasing Performance
• Accounting Approaches
• Comparative Approaches
• The Purchasing Management Audit Approach
• Management by Objectives (MBO)
• Purchasing & Fraud
• Whistle-Blowing
• Purchasing Ethics

Reading List

Main Text:

Purchasing & Supply Chain Management - C K Lysons (Prentice Hall)