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    Fundamentals of Purchasing and Supply Management

    Do you want to perform your purchasing and supply management duties more effectively? This course helps you understand the ethics and business role of purchasing and procurement, identify alternative terms and conditions of sale (plus legal means of contracting with suppliers), source suppliers, and build supplier relationships linked to overall organizational goals. You’ll evaluate when decision making and bidding is appropriate, review skills and sound principles in negotiating with suppliers and your internal customers, and identify how purchasing works across all functional areas—including supply chain and transportation logistics—to help contribute to a competitive advantage and added value through teamwork.

    You will:

    • Develop negotiation skills that will maximize your purchasing effectiveness
    • Master a general understanding of the entire purchasing process and alternative procurement processes, as well as how to keep ethical business in play
    • Review base negotiations to expand your purchasing expertise and effectiveness 
    • Gain knowledge about value-added purchasing, and make purchases consistent with your organization’s customer satisfaction strategies and business ethics
    • Better understand the legal aspects of purchasing and how they affect your organization 
    • Further develop your analytical and decision making tools and skills 
    • Be better able to develop productive supply management strategies
    • Select performance measures for purchasing which reflect individual and team performance
    • Gain the latest, proven purchasing knowledge
    • Learn from seasoned practitioners who are also experienced educators
    • Return to your job with a new sense of direction and action items for improvement
    • Begin your journey to professional certification

    Who should attend

    We have developed this course with the newly appointed buyer or agent in mind. More experienced buyers, purchasing agents, expediters, schedulers, purchasing managers and supervisors in smaller to medium-sized organizations will also benefit, as they will add state-of-the-art procurement basics to their established skills. Attendance is also beneficial for those in smaller organizations who perform purchasing activities along with other responsibilities.

    Day 1: Organizational structure and the purchasing process

    Orientation and introductions

    • Purchasing terms

    Purchasing’s role

    • The changing role of purchasing and supply management in today’s organization
    • Strategic and tactical considerations

    Structure of the purchasing and supply organization

    • Traditional vs. today
    • Strategic vs. tactical
    • Commodity procurement teams
    • Centralized vs. decentralized
    • Deployment of the order release process

    The purchasing process

    • The process map
    • Tasks, personnel and other resources

    How to execute a value-added purchasing process

    Process methods

    • Traditional methods
    • Strategic and tactical considerations
    • Where the process begins and ends

    Forms of solicitation

    • Request for: Quote (RFQ), Bid (RFB), Information (RFI) and Proposal (RFP)
    • e-Procurement processes

    Day 2: Overview of Internet and Web-based tools

    • Where to look for information and how to use it

    Negotiation basics

    • Negotiation styles
    • Determining negotiable issues
    • The negotiation process
    • Finalization of the negotiation and implementation of the agreement

    Legal aspects of purchasing

    • Ethics
    • The law of agency
    • Contract formation and execution
    • Common law and the Uniform Commercial Code (UCC)
    • Contract types: goods vs. service, written vs. oral
    • Warranty and guarantee
    • The legal aspects of EDI and electronic commerce

    Day 3:Strategic sourcing

    • Segmenting and leveraging the spend
    • Stakeholder management
    • Sourcing plans

    Sourcing tactics

    • Tips for going to market, screening providers, purchasing commodities, contracting
    • Change management

    Analysis tools

    • Cost/price analysis
    • Value analysis
    • Value engineering, design for manufacturability, design for assembly
    • Total life cycle analysis

    Supply chain metrics

    • Uses of metrics in contracting and performance management
    • Supply chain metrics dashboard

    Performance management

    • Balanced scorecard approach to measuring performance
    • Supply chain balanced scorecard

    John M. McKeller is director of the Supply Chain Management and Purchasing and Supply Management programs for the Wisconsin School of Business Executive Education. He previously served concurrent appointments as the director of education for the Institute for Supply Management (ISM) and as an assistant professor at UW-Madison. During the last several years, McKeller has conducted hundreds of workshops and presentations for clients in the United States, Europe, Asia, the Middle East, Africa, and Central and South America. He currently teaches and consults on supply management-related topics for ISM and numerous corporate clients.

    Gary T. Prod, C.P.M., has over 35 years of experience in supply chain management, purchasing, and systems analysis and development in the electrical manufacturing and utility industries. He has developed strategic alliances for both materials and services; negotiated multi-million dollar contracts for software, capital equipment, and outsourced services; and has been responsible for purchases of nearly $250,000,000 annually.

    James Broderick is the retired vice president, secretary and general counsel of Rayovac Corporation, a leading manufacturer of batteries and lighting devices, where he was in charge of all legal matters for the company, including corporate and securities law, litigation, drafting contracts and settling contractual disputes. Since retiring from Rayovac, he has served as legal consultant for an electronics company near Chicago and continues to be an active educator, teaching three different courses for Executive Education at University of Wisconsin-Madison. Jim’s undergraduate degree is from the University of Notre Dame and his JD and MBA degrees are from the University of Chicago.