The Strategic Buyer

Overview:

International procurement is a complex process, which has the potential to provide many benefits to the organization in the form of lower prices, higher quality and improved supplier performance. In this programme you will learn how to:

• Locate, evaluate and manage international sources.
• Implement best practices in international procurement.
• Effectively draft an international procurement contract.
• Manage the international movement of materials.

PROGRAMME OBJECTIVES:

• Examine how to locate and evaluate new sources internationally.
• Consider the impact of the internet on purchasing operations.
• Review best practices in international purchasing.
• Analyze ways of managing suppliers more effectively.
• Study new concepts in inventory management.
• Enhance their negotiating skills.
• Understand the proper drafting of international contracts.
• Plan for effective international transportation management.

TRAINING METHODOLOGY:

Participants will learn by active participation during the programme through the use of programme materials, exercises, video presentations and discussions on “real life” issues in their organizations.

PROGRAMME SUMMARY:

Effective international buying is essential to the success of the modern business, government and military materials management operation. This programme will focus on the best practices for locating, utilizing and managing global suppliers. Techniques for improving supplier performance, lowering prices, improving quality, shortening lead times, reducing inventory levels and eliminating unnecessary costs will also be carefully considered. In addition we will also examine the impact of the internet on global buying activities.

PROGRAMME OUTLINE:

DAY 1- The Modern Buying Function:

• Globalization and its effects.
• Utilizing the internet for procurement.
• Modern buying practices.
• Assuring supplier performance.
• Methods for determining price.
• Procurement’s role in the organization.
• Procurement performance measurement.
• Long term contract pricing formulas.

DAY 2- International Buying:

• International buying operations.
• International counter-trade.
• Achieving the benefits of global procurement.
• Overcoming the difficulties of international buying.
• Utilizing the learning curve.
• Ensuring the quality of material deliveries.
• International buying and inventory management.
• Reducing costs in inventory management.

DAY 3- International Supplier Sourcing:

• Preparing to move beyond domestic sourcing.
• Global sourcing.
• Locating international sources.
• Determining the type of supplier to utilize.
• Single source vs. multiple source policy.
• Source evaluation criteria.
• Managing exchange rate risk.
• Dealing with issues of ethics.

DAY 4- Negotiation and Contract Preparation:

• Insights into the negotiation process.
• Characteristics of the effective negotiator.
• Preparing to negotiate.
• Negotiating techniques.
• Obtaining the benefits of supplier partnering.
• International buying legalities.
• Drafting the international contract.
• Dispute resolution mechanisms.

DAY 5- International Movement Of Goods:

• International commercial terms.
• Buying transportation services.
• Utilizing air transportation.
• Utilizing ocean transportation.
• Securing marine insurance.
• Calculating total landed cost.
• Strategic purchase planning.
• Re-engineering purchasing operations.