When the expenditures for materials purchase comprise the majority of companys expenses, purchasing function becomes strategic.

Companys profit will very much dependent on the effectiveness and efficiency of managing the purchasing activities. Material costs do not consist of the amount of money spent to buy the materials alone, but also include all the costs incurred in the process of purchasing and their inventory in the warehouse.

Modern purchasing is not the same as buying of yester-year. It requires not only commercial skills but also expertise in the technical aspect of what the purchaser buy. In fact, purchasing is the reverse of marketing. Purchasing is a strategic activity as in marketing. It is a process to serve users for the success of their operations, be it production, maintenance, projects, or office.

For practical purposes, it is impossible to acquire all kind of materials only when they are needed (known as just-in-time procurement). Some materials can be bought just in time, but other expensive materials must be stocked as inventory. Companies inevitably must store some materials as inventory for two main purposes: (1) to guarantee high level of service in material availability for undisturbed continuity of operations (either for production or for maintenance), and (2) to do that at the lowest cost possible.

Without an effective material management in place, companies suffer high level of inventory, dead stock in their warehouses, and low service level (as demonstrated by the large number of complaints). In this course, you will learn and acquire the skill to manage the purchasing of materials to meet the two purposes above simultaneously.

Manager and staff of:

1. Inventory planning
2. Purchasing
3. Buying
4. Cost control
5. Warehouse
   
   

Day 1

1. Materials Management, Some Basic Concept
2. The Evolution from Buying to Purchasing, to Procurement,to Supply Chain Management
3. Purchasing Scope
4. The Objective of Purchasing Management
5. Strategic Aspect of Purchasing
6. Purchasing Structure and Organization
7. Purchasing and Inventory
8. Purchasing Cycle
9. Purchasing Costs
10. Purchasing Tender and Its Evaluations
11. Purchasing Terms and Contracts

Day 2

• Achieving 5R in Purchasing:
1. Right Price
2. Right Quantity
3. Right Quality
4. Right Time
5. Right Source
   
• Receiving and Inspection
• Materials Knowledge
• Vendor Management
• Make or Buy
• Outsourcing
• Cost Reduction through:
1. Vendor Stocking
2. Blanket Order
3. Consignment
4. Value Analysis
5. OEM Materials
6. Negotiation
• Controlling Performance, Efficiency and Effectiveness of Purchasing
• People in Purchasing
• Professionalism in Purchasing and Certifications
• Discussion