The Strategic Buyer

Introduction:

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.

Targeted Groups:

• Experienced Buyers and Purchasing Agents
• Purchasing Managers and Purchasing Directors
• Supply Chain Management personnel responsible for international logistics
• Managers interested in enhancing their management, negotiation and buying skills

Course Objectives:

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

Targeted Competencies:

• Purchasing methods
• Supplier communication
• Writing purchase orders
• Logistics methods
• Sourcing of materials
• Negotiation

Course Content:

Unit 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

Unit 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

Unit 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

Unit 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

Unit 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
• Reengineering purchasing operations