Purchasing Training Outline
for a Consumer Products Company

Session 1

Introduction

• Participants backgrounds
• Current purchasing responsibilities
• Objectives for this training

Purpose of Purchasing

• History of industrial purchasing from order placers to modern day role
• Sourcing, price negotiations, supply chain activities

Purchasing goals and objectives

• Cost control
• Assurance of supply
• Control of company funds
• Five "rights"

Plan for Session 2

Session 2

• Operating procedures - generally accepted industry practice
• Five step process
  • Requisition
  • Approval
  • Purchase Order
  • Receipt
  • Payment

Purchase orders, change notices, contracts

Purchasing records

• Consumer Products Company
• Other companies

Plan for Session 3- invite other departments?

Session 3

Purchasing interfaces- expectations from both sides

• Internal - manufacturing, finance, quality, receiving, maintenance, etc.
• External - suppliers, potential suppliers, industry associations, publications, internet

Supplier knowledge - how to use it

Commodity knowledge - how to use it

Plan for Session 4

Session 4

Supplier Management

Suppliers - who, how many, why?

Supplier selection

• Financial stability
• Reference checks
• Facility evaluation
• Other departments- quality, etc.

Plan for Session 5

Session 5

Cost savings

• Savings vs. avoidance
• Techniques - Class A and Class B
• Purchasing's role
• Supplier's role
• Cost analysis
• Cash discounts
• Rebates

Negotiations

• Purchasing's role
• Planning for a negotiation
• Techniques/role playing
• Competitive bidding
• Cost breakdowns
  • Direct material
  • Direct labor
  • Profit
  • Overheads
• Conducting the negotiation

Wrap-up, next steps, follow-up meetings, etc.