Procurement (Sourcing & Purchasing)

Explore three procurement decisions—cost, risk, and value—focusing on price, payment terms, maintenance, logistics, and contract conditions, plus supplier availability, reputation, quality, and strategic alignment with company goals.

Learn to manage supplier contracts, categorize suppliers into category a, category b, and category c suppliers, and prioritize bottleneck and strategic partners, with integrated ERP visibility and real-time shipment notifications.

Learn the procurement process from market mapping and supplier bidding through contracting and negotiating payment terms and incoterms, to purchasing, order execution, and post-delivery evaluation.

Explore the leverage effect of procurement and how reducing external costs, especially direct materials, can dramatically boost profit margins and ROI.

Differentiate vendor and supplier in procurement. Suppliers provide raw materials to manufacturers at the start, while vendors deliver goods to customers at the end, influencing cost, risk, and value decisions.

Learn the sourcing phase of procurement, detailing supplier evaluation and scoring across replenishment lead time, on-time performance, quality, costs, and collaboration to shape contracts and purchasing.

Learn how supplier flexibility handles variation in order quantities, its impact on lead times, costs, and production lines, and how to balance demand with supply through replenishment lot size.

Assess supplier quality and its impact on lead time, replenishment lead time, minimum lot, delivery frequency, transportation costs, pricing terms, information coordination, and design collaboration in a global supply chain.

Learn how to select suppliers via single or multiple sourcing, assess and score them, and use auctions and negotiations to secure contracts, including sealed bid, English, Dutch, and second-price auctions.

Negotiate with suppliers to capture bargaining surplus by aligning buyer and supplier value through auction or negotiation. Explore contract types buyback, revenue sharing, and quantity flexibility to manage procurement outcomes.

Collaborate with suppliers during the design stage to design manufacturing parts and select raw materials, achieving cost reductions up to 30%, shorter lead times, and lower inventory.

Explore the purchasing process within procurement, distinguishing capital expenditure, direct versus indirect materials, and the roles of suppliers, auctions, rfq, and maintenance in cost and operations.

Categorize materials by criticality and value to identify strategic and critical items, and map the purchasing cycle from purchase request to supplier payment.

Monitor and control purchasing by evaluating supplier performance with key performance indicators, considering total cost of ownership, market demand, and alignment with business strategy.

Analyze spending across supply categories to gain visibility, decide on economic order quantity and volume discounts, and optimize supplier performance with a diversified portfolio for resilient procurement.

learn five procurement negotiation tips: first reveal needs last, ask for the final price, then leverage concessions like prepayment or higher volume; avoid veiled threats and match concessions to value.

Apply a personal touch and transparent supplier relationships to negotiate within policy, keep vendors honest, and win-win outcomes with the best product and service.