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Basic Purchasing

Establishing the flow of materials into the company

Basic Purchasing is a course for those making purchasing decisions in their everyday work and wants to create a structure into their purchasing process.

For those who are planning a career in sourcing, this course is a good first step in the ongoing competence development. It will give a basic knowledge of purchasing techniques, logistics, and business economics.

The course concerns good purchasing policy, factors in selecting suppliers and Price Negotiation.

Objectives: The purpose of the course is to provide you with basic skills needed to conduct purchasing negotiations in an efficient and professional manner.

Participants: People involved in purchasing and sourcing who require broad based training in purchasing to provide them with a basic introduction to professional sourcing.

The course is ideal for new purchasing staff and employees who have been given greater cost accountability.

Qualifications: No previous knowledge is required, but it is preferable if you have some work experience.

Training Method: Basic Purchasing is a Premium course and is studied over the internet via our e-learning platform Instant education. Read more about the training method E-learning - Premium courses.

Course Length: Approximately 25 hours active study time, depending on previous knowledge. Each student has access to the course for 6 months.

Price: 510 Euro / student
566 USD / student

Prices excluding VAT.
For large-scale education projects request quotation.

Online price:

495 EURO / student
549 USD / student

Prices excluding VAT.

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Course contents:

Part 1

Purchasing Functions

Purchasing is the "process of buying."

Purchasing and Profit Leverage

Purchasing is responsible for placing the orders and for ensuring that the goods arrive on time.

Purchasing Objectives

The purchasing department is responsible for establishing the flow of materials into the company, following up with the supplier and expediting delivery.

Purchasing Cycle

The purchasing cycle consists of seven steps.

Request for Quotation

It is usually desirable to issue a request for quotation when planning to purchase of major items.

Analyzing Quotations

The quotations are analyzed by the buyers based on different criteria in order to find the optimal choice.

Issuing a Purchase Order

A purchase order is a legal offer to purchase.

Follow-up and Delivery

The supplier is responsible for delivering the items ordered on time.

Receiving and Accepting Goods

When the goods are received, the receiving department inspects the goods.

Buying Assignments

Buying assignments are usually specific, item by item.

Establishing Specifications

The first concern of purchasing of what to buy is how the item will be used.

Management Decision

Product planning is involved with decisions about which products and services a company is to market.

Part 2

Quality Requirements

Quality is not measured by price.

Quality Definition Aspects

Purchasing needs to ensure that quality is adequately defined and expressed.

Functional Specification Description

The first step is to analyze the material or part to determine what function it will fill

Purchasing by Brand Name

The simplest method of defining quality is to identify it by the manufacturer's own brand name.

Purchasing by Specification

The quality is based on some standard understood by both buyer and supplier.

Characteristics to Specification Description

There are several characteristics to description by specification.

Good Purchasing Policy

As a general rule, it is good purchasing policy to inform the supplier or bidder as fully as possible.

Engineering Drawings

Engineering drawings describe in detail the exact configuration of the parts and the assembly

Purchasing by Sample

Purchasing by inviting prospective suppliers to match a sample submitted by the buyer.

Quality Control in Purchasing

Move the responsibility and the cost for quality measurement back to the supplier

Incoming Quality Inspection

The most familiar technique used in conventional inspection is the sampling of purchased goods.

Handling Quality Problems

Several alternative methods of procedure are open to the buyer when dealing with substandard deliveries.

Part 3

Selecting Suppliers

The objective of purchasing is to get all the right things together including the right supplier.

Survey Stage

The original survey of potential sources should overlook no possibilities.

Inquiry Stage

The inquiry stage involves pre-qualification of potential sources.

Sourcing Alternatives

The buyer usually wishes to establish alternative sources for the products that are to be bought.

Number of Suppliers

There is a trend to reduction in number of suppliers.

Factors in Selecting Suppliers

There are several factors in selecting a supplier.

Final Selection of Supplier

Some factors in evaluating potential suppliers are quantitative and others are qualitative.

Selection and Negotiation Stage

This stage of the source selection process leads to issuance of the initial order

The Make or Buy Decision

The decision to make or buy is presumably made before the stage of a purchase requisition

Cost Comparison Make or Buy

The decision of make or buy must be approached analytically and objectively.

Price Determination

Low ultimate cost is the objective and responsibility of purchasing.

Price Negotiation

Prices can be negotiated if the buyer has the knowledge and the power to do so.

Requirements Planning in Purchasing

There is dependence between material requirements planning and the purchasing function

Buyer-Planner Concept

To improve the effectiveness the two functions of buying and planning can be combined.

Contract Buying

This approach is efficient and cost effective but requires close coordination and communication

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