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 Level:
Course Objectives
At the end of this IRES training course, you will learn how to:
- Understand the strategic importance of procurement;
- Obtain up-to-date negotiations techniques and effective guides in preparing a negotiation;
- Master the cost reduction process and techniques in procurement;
- Develop competency and commitment in cost reduction responsibilities;
- 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
Related Courses
Course Administration Details:
METHODOLOGY
The instructor-led trainings are delivered using a blended learning approach and comprise presentations, guided sessions of practical exercise, web-based tutorials, and group work. Our facilitators are seasoned industry experts with years of experience, working as professionals and trainers in these fields. All facilitation and course materials will be offered in English. The participants should be reasonably proficient in English.
ACCREDITATION
Upon successful completion of this training, participants will be issued an Indepth Research Institute (IRES) certificate certified by the National Industrial Training Authority (NITA).
TRAINING VENUE
The training will be held at IRES Training Centre. The course fee covers the course tuition, training materials, two break refreshments, and lunch. All participants will additionally cater to their travel expenses, visa application, insurance, and other personal expenses.
ACCOMMODATION AND AIRPORT PICKUP
Accommodation and airport pickup are arranged upon request. For reservations contact the Training Officer.
- Email: [email protected]
- Phone: +254715 077 817
TAILOR-MADE
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:
- Email: [email protected]
- Phone: +254715 077 817
PAYMENT
Payment should be transferred to the IRES account through a bank on or before the start of the course. Send proof of payment to [email protected]
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