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Strategic Purchasing

Design of internal and external policies

Strategic purchasing is usually at the highest level of responsibility within a company's purchasing operations and basically it is always a centralized function. Sometimes the role also includes global responsibility for the Group. The purchase share in the company's business is growing and the role of purchasing is increasingly important for the company's overall competitiveness.

The purpose of strategic purchasing is to enable business and solutions that improve the company's profitability. It includes working with analyzes, strategies and relationships.

Objectives: This course provides an in-depth insight into the supply process and an overall strategy in order to develop goals and guidelines for the company's purchasing activities and to design assortment and supplier strategies.

Participants: The course is intended for those who work or intend to work with purchasing and material supply issues at a strategic level.

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

Training Method: Strategic 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 20 hours active study time, depending on previous knowledge. Each student has access to the course for 6 months.

Price: 432 Euro / student
480 USD / student

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

Online price:

417 EURO / student
463 USD / student

Prices excluding VAT.

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Course contents:

Part 1

Purchasing Strategy in Strategic Planning

Purchasing organizations will be expected to take an increasing role in overall corporate strategy.

Purchasing and Profit Leverage

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

Purchasing Operations Structure

Purchasing operations can be divided into strategic, tactical and operational purchasing.

Strategic Purchasing

Overall purchasing activities related to the operation or the company's business plans.

What Factors Affect the Flow of Materials?

Functions within a company that affect the flow of materials.

Manufacturing Planning and Control

Introductory description of the planning and control systems used in production processes.

The Planning Process

Planning levels and level of detail.

Purchasing and Strategies

The company’s resources and competence as basis for purchasing strategies.

Development of Purchasing Philosophy

Various purchasing philosophies.

Organization of the Purchasing Function

The purchasing environment and situations affecting the purchasing function.

Roles in the Purchasing Function

The various roles of the purchasing function.

Purchasing Patterns are Changing

The purchasing function at companies is gaining in importance

Buying Assignments

Buying assignments are usually specific, item by item.

Part 2

The Traditional Objectives of the Purchasing Function

Purchasing as a process and the objectives of the purchasing function.

Purchasing Policy

Every purchasing department has policies, whether or not they are put into writing.

Purchasing Planning

Purchasing planning includes both the acquisition of material and supplier contact.

Purchase Planning and Forecasting

We get from the supplier what we ask the supplier to furnish.

The Industrial Purchasing Process

Description of the purchasing process.

Specification of Requirements for Purchasing

The basics of establishing a specification of requirements.

Price Analysis in Purchasing

One economic concept is that right price is based largely on the law of supply and demand.

Geographical Proximity and Purchasing Strategy

Geographical proximity offers many advantages. Buyers prefer close geographical proximity to their suppliers.

Designing the Supplier Structure

The design of the supplier system has an impact on the buyer's competitiveness.

Concentration on a Few Suppliers

A reduction of the total amount of suppliers positively affects the possibility to achieve better results quickly.

Number of Suppliers in Purchasing Strategy

The problem of choosing between one or several suppliers per product.

Reasons for Using a Specific Supplier

It is important to understand why a specific supplier is used in order to understand the supplier situation today.

Part 3

Materials Supply and Purchasing Strategy

Two different tendencies when choosing purchasing strategy.

Changed Requirements for Materials Supply

Purchasing companies have begun to focus on the entire logistics chain.

Increased Purchase Frequency

Increased purchase frequency at companies entails reduced purchase quantities per call-off and an increased frequency of delivery.

Vendor Managed Inventory

The supplier monitors the inventory level and replenishing the customer’s inventory as required, without a special order being sent.

Reasons for Partnering with Suppliers

The term supplier cooperation places an emphasis on active participation on the part of both buyer and supplier.

Supplier Development: a Reciprocal Process

When done correctly, supplier development should create advantages for both the buyer and the seller.

Supplier Relationships

There are various types of relationships with suppliers, and they are found at many organizational levels.

Rationalization through Supplier Relationships

The task of rationalizing the company’s purchasing approach includes a series of ongoing activities.

The Supplier as an Opponent

The cooperation between the company and the suppliers is characterized by one-way communication.

The Supplier as a Production Partner

The supplier is here regarded in the same way as a department within the company.

Supplier Networks

Utilizing the supplier’s expertise both in the development work and in order to solve production problems.

Cooperating with Suppliers on Product Development

Cooperating to achieve efficiency gains in product development.

Maintaining a Supplier Relationship

Important issues are how to maintain supplier relationships and how much can they be exploited.

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