Purchase Management

Name: Purchase Management
Rating: 4.3 (17 reviews)

Conducting procurement operations

Created byMetacog Solutions

Last updated 9/2023

English

English [Auto],

What you'll learn

Describe the entire end-to-end process view of the Source to Pay cycle
Establish the Pre-Requisites for a Purchase Requisition Transaction
Explain the importance of proper specifications for Purchasing
Illustrate the methodology to be used in selecting a supplier

Course content

5 sections • 20 lectures • 3h 14m total length

Establishing Need for Purchasing10:16
Establish the need for purchasing and navigate the purchase requisition process from trigger to approval, covering capital and direct/indirect purchases, MRP, and reorder levels.
Budget8:05
A budget establishes total financial requirements, allocates funds by department or project, and governs procurement through sanctions and purchase requisitions with clear authorization and trigger mechanisms.
Specifications11:59
Master how precise product specifications guide purchasing by detailing product, quality, delivery, and cost criteria. Align requester and procurement during the purchase requisition to avoid miscommunication and waste.
Purchase Requisition Document6:30
Explore how a purchase requisition document records pr number, requester, department, item code and delivery time, and follows an automated, level-based approval flow to prevent malpractices and trigger procurement.
Quiz 1

Sourcing7:51
Explore sourcing and supplier selection, identifying and screening suppliers, evaluating qualifications, and negotiating contracts to balance quality, cost, delivery, and social impact across diverse markets.
Qualification of Suppliers - I7:34
Learn how supplier qualification ensures quality, delivery, and cost goals by evaluating a supplier's capability against job requirements, reducing recalls and rework.
Qualification of Suppliers - II9:24
Explore supplier qualification through reference checks, financial health, and capacity assessments, plus multi-stage verification—self-evaluation, site visits, sampling—and building an approved vendor master list with re-evaluation.
Costing and Pricing12:42
Define fair price in context, emphasizing timeliness, quality, and the buyer–supplier relationship. Explain cost elements—direct and indirect—alongside market dynamics and exchanges that drive pricing.
Impact of Pricing6:28
Explore procurement strategies across raw materials, consumables, services, and capital goods, emphasizing pricing and total cost of ownership, supplier qualification, best-in-class sourcing, and balancing quality, time, and cost.
Evaluating Suppliers14:37
Explore supplier selection through RFI, RFP, and RFQ, build an approved vendor list, negotiate scope, price, delivery, and post-sale support, while balancing cost, quality, liability, and confidentiality.
Quiz 2

Introduction to RFP/RFQ12:19
Explore the rfq and rfp processes, including prerequisites, components, and supplier evaluation, and compare rfq versus rfp while outlining quotation terms and pricing considerations.
RFP Process8:34
Understand the RFQ and RFP process from receive to onboard, including quoting, shortlisting, negotiating, and selecting suppliers, with detailed product or service descriptions, SLAs, and to-be scope of work.
Quiz 3

Introduction to Negotiation9:27
Learn to prepare for and conduct supplier negotiations, align procurement objectives with organizational goals, and apply item-based strategies for leverage and critical items to reduce cost and ensure timely supply.
What is Negotiation?7:07
Define negotiation as a process where parties with different views reach a common objective through persuasion, delivering lower costs, better quality, shorter lead times, and stronger supplier relationships.
Negotiation Objectives10:11
Explore negotiation objectives in purchase management by evaluating quality management systems, reliability, warranties, post-delivery support, delivery and lead times, just-in-time supply, and total cost of ownership.
Other Considerations12:07
Explore how corporate social responsibility shapes supplier selection, market conditions, and supplier relationships, and learn strategies like leverage items, annual rate contracts, and supplier partnerships.
Understanding the Supplier13:16
Evaluate suppliers by collecting data on products, technical expertise, and financial strength. Develop negotiation strategies using cost models, break-even analysis, and SWOT to ensure on-time delivery, quality, and cost savings.
Quiz 4

Purchase Orders9:14
Discover how a purchase order binds buyer and supplier, outlines terms and details, and triggers downstream procurement and payment obligations.
Elements of Purchase Orders7:52
Explore the elements of a purchase order, including buyer and supplier details, line-item data, taxes, delivery and payment terms, and electronic approval workflows.
Types of Purchase Orders8:47
Learn how purchase orders enforce internal controls and compliance, explore types like blanket, regular, standing, and maintenance orders, and see how ERP and MRP automate requisitions to suppliers.
Quiz 5

Requirements

Familiarity with purchase in an organization will be helpful, but not mandatory. It is recommended that students with no prior purchase experience go through our free course in Udemy, Basics of Purchasing

Description

This course covers all the different activities that are needed for management of purchasing. Procurement is an integral part of all organizations. It is one of the key processes that help a company control its costs. It is critical that anyone involved in carrying out purchase functions be fully aware of the steps related to procurement. The first section provides an overview of the source to pay process, for an overall understanding. The next section offers a detailed look at the purchase requisition process. This takes the learner through the cycle of identifying needs, complying with budgets, providing specifications, resulting in the purchase requisition process. Developing proper specifications helps the purchase function improve the quality of the final purchase.

The third section, addresses how suppliers are to be selected. It looks at different elements including supplier capabilities, qualification and assessment, and price estimation. It also covers approaches for different types of purchase management, namely, direct material, capital goods and services. The section concludes with descriptions of negotiation and finally selection of the supplier. The last section, details the importance of the purchase order, especially as a legal contract. It provides a close look at the elements of the purchase order and the various types of purchase orders.

Who this course is for:

Working professionals who would like to make a career in purchasing. Also those who work in associated functions such as warehousing and accounting, and small business owners.

Purchase Management

What you'll learn

Explore related topics

Course content

Purchase Requisition4 lectures • 37min

Supplier Identification6 lectures • 59min

RFP/RFQ2 lectures • 21min

Negotiation5 lectures • 52min

Purchase Orders3 lectures • 26min

Requirements

Description

Who this course is for: