- Course Title
- Purchasing Fundamentals
Improve your company's bottom-line profitability by learning and implementing key concepts in purchasing, including negotiation, supplier sourcing and qualification, outsourcing and make-or-buy analysis. As you consider your strategic and tactical roles, you’ll learn about supplier partnerships, capital budgeting, green buying and more.
This six-week online course covers defining internal customer needs, generating purchase requisitions and purchase orders, expediting and other critical components, including maintaining effective records and managing purchasing budgets. Other topics include contracts, leasing, Six Sigma and total quality management (TQM).
Offered in partnership with ed2go. ed2go is a global Registered Education Provider for the Project Management Institute (PMI). Registered Education Provider R.E.P. #3213. Please visit pmi.org to learn more.
- Learn about how purchasing contributes to an organization and increases bottom-line profitability.
- Identify the elements of strategy implementation and learn how to effectively create purchase orders and purchase requisitions and how to negotiate.
- Discover the elements of the purchasing cycle and how to optimize each element.
- Learn how to expedite and receive orders, perform a make or buy analysis, and use leasing.
- Identify the elements of supplier sourcing and learn how to conduct a supplier visit.
- Discover the power of green buying and learn record keeping and competitive bidding fundamentals.
- Learn about business law, contracts, principal-agency, and legal forms of the organization.
- Discover the essentials of Six Sigma, total quality management (TQM) and Enterprise Resource Planning (ERP) to help you assess supplier capabilities.
- Learn about the purpose of budgeting and identify key budgets used in purchasing.
- Learn about the role that purchasing plays in capital budgeting.
- Discover the essence of supplier partnerships and learn how ethics and politics affect an organization.
- Learn the secrets of recruiting, evaluating, selecting, training, and retaining purchasing employees.
Wednesday - Lesson 01
In this first lesson, you'll learn about the various types of professional purchasing certification, including those offered by the Institute for Supply Management (ISM) and the National Institute of Government Purchasing (NIGP). We'll explore the breadth of the purchasing body of knowledge and identify several areas where purchasing provides value to organizations. You'll also discover the significance of buying on a total cost basis and learn how savings you generate for purchased materials and services improve your company's bottom-line profitability.
Friday - Lesson 02
Today, you'll learn how to set a vision and mission statement, and how to develop objectives and strategies. We'll also discuss the mechanics of creating purchase requisitions and purchase orders and how to use them effectively. We'll finish up by exploring different conditions that benefit from negotiation and the steps and techniques that contribute to a successful outcome.
Wednesday - Lesson 03
All organizations use a purchasing cycle to manage buying activities. To help you effectively manage purchasing activities, this lesson presents a seven step-cycle that begins with need recognition and ends with receipt of delivery. We'll discuss the first five steps in depth, and see how specifications, branding, and samples are three common methods for defining user needs. You'll also learn about four different forms of competition (monopoly, oligopoly, full competition, and perfect competition) and see how competition affects prices.
Friday - Lesson 04
In this lesson, we'll conclude our exploration of the purchasing cycle by discussing steps six and seven (perform follow-up and receive the delivery). Then we'll examine expediting, follow-up, and tracing as methods to enhance on-time deliveries. You'll also learn how purchasing supports the receiving function and discover the underlying concepts of make or buy and leasing.
Wednesday - Lesson 05
As a purchasing professional, you depend on your suppliers. After all, without capable suppliers, it would be very difficult (if not impossible) to meet your organization's needs. So today we'll discuss the importance of proper source selection, and how to prepare a prospective supplier list. You'll find out how to evaluate each supplier-sourcing element and determine when to conduct a supplier visit.
Friday - Lesson 06
Green buying is an extremely important organizational concept. Firms that use it successfully achieve internal objectives and also satisfy societal goals. In this lesson, we'll discuss the purpose of green buying and review its 3Rs (reduce, reuse, and recycle). To help you locate historical information when you need it, we'll investigate the various types of purchasing records and discuss electronic record keeping and reporting. You'll also learn all about competitive bidding and understand how to use a request for quotation (RFQ) or a request for proposal (RFP).
Wednesday - Lesson 07
In today's lesson, we'll discuss important legal matters that purchasing professionals encounter daily. We'll begin by looking at business law and then move on to talk about contracts. You'll learn about the principal-agency relationship and the four major forms of organization (sole proprietorships, general partnerships, limited partnerships, and corporations).
Friday - Lesson 08
Suppliers rely on manufacturing and quality systems. Purchasing professionals need to know about these systems because their use (successful or unsuccessful) highly influences suppliers' abilities to fill your purchase orders on-time, with quality, and at a desirable price. Today, we'll look at Six Sigma and Total Quality Management (TQM), and identify how these philosophies and methodologies benefit organizations. You'll learn about the elements of a supply chain, Manufacturing Resource Planning (MRP II), and Enterprise Resource Planning (ERP).
Wednesday - Lesson 09
Purchasing, as a major organizational function, is involved with a number of different types of budgets. These budgets include the purchasing department administration budget (also known as an expense budget), the production materials budget, and the maintenance, repair, and operating (MRO) budget. To use budgets wisely, you need to know how they work, what they are supposed to accomplish, and how they are constructed. In this lesson, you'll discover the primary purposes, advantages, and disadvantages of budgets. We'll cover how to select a budget period, review variable budgets, and understand budget variances.
Friday - Lesson 10
For many organizations, capital expenditures represent the largest disbursement of funds. And purchasing practitioners play a number of roles in capital budgeting including assisting with requests for capital expenditures, serving on capital budget evaluation committees, and leading teams to acquire capital assets. Today's lesson will help you effectively participate in these activities. You'll learn the definition of capital budgeting, understand the initiation process for capital request proposals, and examine different justification methods for project proposals.
Wednesday - Lesson 11
A supplier partnership is a fairly recent type of arrangement. It characterizes a progressive way for sellers and buyers to work together. Supplier partnerships require an extensive amount of preparation and commitment, but the payoff is substantial for firms that succeed. Today, we'll discuss the prerequisites and elements of a supplier partnership. We'll also explore ethics and organizational politics and study their effects on purchasing practitioners.
Friday - Lesson 12
In our final lesson, you'll discover how to recruit, select, and evaluate purchasing personnel. Then you'll learn how to implement a performance planning process, including administering performance reviews. And finally, you'll find out why so many people dislike giving performance reviews and get tips on how to make your reviews more meaningful.
Method of Instruction