Procurement and Materials Management

This course examines the aspects of acquisition and material management. Participants examine the functional roles of those individuals having responsibility in this area. The course includes discussion of acquisition law, operations management, pricing, negotiations, and logistics.

This programmed the course participants will learn why companies hold materials / stock, how they acquire it and how they control it efficiently. They will also learn how to anticipate, plan and co-ordinate and as well measure the success of a materials management function. This training programmed will introduce the participants to many different methods and techniques of managing the materials management section and how different methods and PURCHASING & MATERIALS MANAGEMENT techniques can be applied in business.

This course is suitable for experienced staff from within the Supply function who would benefit from a wider understanding of the overall roles and responsibilities of the function, graduate entrants, people transferring from other functions or divisions of the business, people serving in other functions, such as Finance and HR Management, who need an understanding of the supply business and its activities without themselves necessarily being involved.

Module 1: Purchasing Management Strategy and Policy

• The Role Of Sourcing And Procurement And Their
• Position Within The Corporate Mission
• Change And Becoming More Strategic
• Relations With Other Functions
• How Do Other Functions View Purchasing?
• Purchasing Impact On The Bottom Line
• How Does Senior Management Measure Purchasing?
• Purchasing Accountability
• Measuring Purchasing Performance

Module 2: Sourcing and Procurement Procedures and Processes

• Eliminating Low Value-Added Processes
• Long-Term Agreements
• Model Agreements
• Supplier Reduction Programs
• Inventory Reduction Programs
• Managing Risk and Relation between Buyer and Supplier
• Supplier Categories
• Strategic Alliances
• Supplier Performance Measurement
• Supplier Qualification and Supplier Recognition
• Price Justification
• Model for Selecting Analysis Methods
• Methods of Price Analysis
• Competition
• Historical Prices
• Use of Price Indexes
• Methods of Cost Analysis
• Breaking Down the Elements Of Cost
• Developing “Should Cost” Exercise

Module 3: Forecast based provisioning

• Sales targets
• Salesmen’s forecast
• The supplier’s use of forecasts
• Forecast comparison
• Forecast bill of materials

Module 4: Measurement

• Stock turn calculation
• Stock turn assessment
• Stock turn management
• Demand satisfaction
• Demand satisfaction at order level
• Demand vs. issues

Module 5: Materials Management as Part Of Business Strategy

• Overview of business planning process
• Business forecasting
• Sales and operations planning
• Demand management
• Overview of demand forecasting methods

Module 6: Materials Planning System

• Master production scheduling
• Bill of materials
• Lead times
• Rough cut capacity planning
• Material requirements planning
• Capacity requirements planning

Module 7: Customer Linking

• Visibility of customer data
• Vendor managed replenishment
• Customer managed replenishment
• Improving Competitiveness
• Time compression
• Mass customization
• Organizational Requirements for Improving Materials

• Presentation & Slides
• Audio Visual Aids
• Interactive Discussion
• Participatory Exercise
• Action Learning
• Class Activities
• Case Studies
• Workshops
• Simulation