Inventory Management and procurement strategies Course


Introduction

Procurement and Inventory management plays an important role in the profitability and success of every business. The way the purchasing function is managed and run will greatly influence any company’s bottom line. This course aims to provide purchasing personnel, as well as people who need to purchase big or small ticket items in their work, with the knowledge to be efficient, effective and ultimately to purchase materials and services at the best prices without sacrificing quality and service. It highlights on how purchasing personnel can help to increase productivity and achieve cost savings through effective purchasing.

Duration

10 Days

Target audience

This is intended for procurement managers, executives, supervisors, officers, and engineers from departments such as production, engineering, finance/accounts, sales, QA, R&D.

Course Objectives

At the end of this IRES training course, you will learn how to:

  1. Understand the strategic importance of procurement;
  2. Obtain up-to-date negotiations techniques and effective guides in preparing a negotiation;
  3. Master the cost reduction process and techniques in procurement;
  4. Develop competency and commitment in cost reduction responsibilities;
  5. Improve the procurement functions and contribute to organization’s efficiency, productivity and profitability.

Course Outline

Module 1

 Warehouse/Stores Management

Warehouse Organization

  • Introduction to warehouse organization
  • Position of Warehouse/stores in the organization
  • Organization structure of stores division
  • Organization matters for efficient working of stores division
  • Delegation of authority

Requisitions and Replenishment of Materials

  • Need for requisitioning the material
  • Replenishment of stock items
  • Preparation of materials requisition report
  • Dispatch of requisition to user department
  • Review order quantity

Performance Evaluation of Stores Activities

  • Criticism of stores division
  • Poor inventory control
  • Improper store-keeping and Tools Management
  • Performance indicators and evaluation
  • How is performance evaluation carried out

Module 2

ISO Standards and Warehouse Activities

  • Introduction to ISO standards
  • The importance of ISO standards
  • Registration for ISO certification
  • Warehouse activities and quality assurance
  • Stores division activities in conformance to ISO 9001

Warehouse Location, Layout, and Facilities Planning

  • Number and size of stores
  • Location of stores
  • Layout planning of warehouse
  • Physical facilities planning

Warehouse Security, Safety, and Maintenance

  • Security
  • Entry to warehouse
  • Management of warehouse keys
  • Closing of warehouse
  • Issue to authorized individuals

Module 3  Inventory Control

Inventory Classification and Strategies

  • Advantages of classification of inventory
  • Regular inventory item
  • In-process inventories
  • Finished goods inventory
  • Strategic considerations in the control of finished goods inventory
  • Market research

Codification and Standardization

  • Methods of Codification
  • Variety reduction
  • Advantages of standardization
  • Situations where standardization is not preferred
  • Types of standards
  • Standardization program

Module 4

Inventory Control Model

  • Theoretical inventory control model
  • Elements of inventory control model
  • Dynamic nature of the inventory control model
  • Maintenance requirements
  • Reorder point fluctuations

Inventory Control Techniques

  • Best order quantity
  • Economic Order Quantity (EOQ) defined
  • Determining Economic Order Quantity (EOQ)
  • Variable costs
  • ABC analysis
  • Other techniques of analysis

Module 5

Effective Management of Inventory

  • Factors influencing the stocking of inventory
  • Appropriate maintenance techniques
  • Administrative and financial factors
  • Steps for management of inventory
  • Diagnostic survey
  • Reconditioning and overhauling of inventory

Valuation of Inventory

  • Importance of valuation of inventory
  • Valuation of material issues
  • First in First Out (FIFO)
  • Last in First Outs
  • Highest in First Out (HIFO)
  • Next in First Out (NIFO)
  • Simple average method
  • Weighted average cost method
  • Factors considered in selection of method of valuation of inventory

Module 6

Definition of Procurement

  • Roles and responsibilities of procurement
  • Evolution of procurement: the shift from operational to strategic
  • Introduction to strategic procurement management
  • 3 Types of procurement strategy

Module 7

Negotiation In Procurement

  • Case on negotiation: Orange discussion
  • What to negotiate?
  • Negotiation techniques: 2 types
  • Negotiation Checklist

Module 8

Cost reduction process

  • ABC cost reduction analysis
  • Principles of Ordering & Carrying Costs
  • Direct materials cost reduction: a scientific technique
  • Indirect Materials Cost Reduction (MRO items): scientific measurement

Module 9

Suppliers cost reduction responsibilities

  • A look into the ways suppliers calculate their cost
  • How to spot if suppliers are over-charging you
  • Become an all-rounder awareness of procurement cos
  • Basics of Purchasing Management
  • Strategic Initiatives In Supply Chain Management

Module 10

  • Digitization in Supply Chain
  • How to convert the Purchasing Management a Value Creator
  • Advanced Purchasing Management
  • Supplier Selection
  • Inventory Management
  • Key Performance Indicators
  • Cost Management
  • Delivery
  • Quality
  • Working Capital
  • Negotiations
  • Reverse Auction

Enroll for this Course

We are proud to offer this course in a variety of training formats to suit your needs.

IRES

Enroll for a Face-to-Face (In-Person) Class

We use the highest quality learning facilities to make sure your experience is as comfortable as possible.

Register Here
IRES

Enroll for a Virtual (Zoom) Class

Join a scheduled class with a live instructor and other delegates.

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IRES

Enroll for an Online Self-Paced Class

Keep track of your own progression throughout your course and ensure continuous improvement.

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Benefits of Taking a Course at IRES

LEARN

Our courses are carefully curated to keep you abreast of latest industry trends, technological advancements, and best practices. We employ a variety of teaching methodologies, including hands-on workshops, case studies, and interactive sessions, all aimed at fostering an engaging and effective learning environment. Our expert instructors bring a wealth of knowledge and real-world experience, providing our clients with insights that can be immediately applied in their professional lives.

NETWORK

Our courses serve as a vibrant platform for professionals to connect and engage with a diverse community of peers, industry leaders, and experts. By participating in our programs, you gain access to an invaluable network that spans across various sectors and geographical boundaries. This networking aspect is not just about forming professional relationships; it's about creating a supportive ecosystem where ideas, opportunities, and collaborations can flourish.

GROW

Our courses are designed to challenge and inspire professionals to step out of their comfort zones and explore new horizons. Through a combination of theoretical knowledge and practical application, our programs help professionals refine their existing skills and acquire new ones, making them more versatile and competitive.

FAQs & Course Administration Details:

This training can also be customized to suit the needs of your institution upon request. You can have it delivered in our IRES Training Centre or at a convenient location. For further inquiries, please contact us on Phone: +254 715 077 817 or Email: [email protected].
The instructor led trainings are delivered using a blended learning approach and comprise of presentations, guided sessions of practical exercise, web-based tutorials and group work. Our facilitators are seasoned industry experts with years of experience, working as professional and trainers in these fields. All facilitation and course materials will be offered in English. The participants should be reasonably proficient in English.
Upon successful completion of this training, participants will be issued with an Indepth Research Institute (IRES) certificate certified by the National Industrial Training Authority (NITA).
Payment should be transferred to IRES account through bank on or before start of the course. Send proof of payment to [email protected].
Accommodation and airport pickup are arranged upon request. For reservations contact the Training Officer. Email: [email protected] Phone: +254 715 077 817.