Purchasing and Inventory Control

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  • Private Class Price is Per Day not Per Pax
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(2 Days)



In an environment characterized by many unknowns, purchasing professionals must assist general management by providing purchasing expertise for strategic decisions as it plays an important role in the profitability and success of the business. Purchasing can assist in calculating the probable impact of outside factors on supply, quality and price. Secondly, effective managers are consensus builders. Consensus is built with artful negotiation. It is not a game of compensating some “wins” with some “losses”. Ultimate result is the winning of the organization by creating collaborative relationship.

Inventory Management

All organization need to maintain inventory in various forms like raw materials, work in progress (WIP) and finished products. However, maintaining inventory at optimum level is a perennial challenge. On the one hand there is risk of stock out and building up of excess inventory on the other. Hence, maintaining inventory at optimum level is essential for business organization which can lead to additional profits. To equip the stores/ inventory professionals with effective inventory management strategies.

  • Develop the understanding of the importance of the purchase function and how it impacts the business as a whole
  • Improve their decision making skills in general and increase productivity and achieve savings through effective purchasing & Cost reduction techniques
  • Take decisions effectively as to how much quantity to order, when to order and why only that quantity to order
  • Understand the various qualities that a good negotiator should possess
  • Get hands on experience of success and failure of the negotiations
  • Understand the role of maintaining the inventory and how to release the working capital by holding a lean inventory
  • Learn How to categorise the material and thereby improve the efficiency of the purchase and stores department
  • Be able to take scientific decision on how to much quantity to order when suppliers gives various price discounts
  • Manage Inventory scientifically by measuring KPI, establishing safety stock and reorder point
  • Be able to take scientific decision on how to quantity to keep in warehouse thereby avoiding excess quantity or inadequate stock
  • How to measure the performance of the purchase function as a whole.

Purchasing Managers, Purchasing Executives and Purchasing Officers and Supply Chain professionals


This stimulating program will maximize understanding and learning through Interactive lectures, course notes, individual & group exercises

Module1: Overview of Purchasing Function
  • What is purchasing
  • Background on importance of purchasing
  • Objectives & roles of purchasing
  • Principles of purchasing management – 7 Rs
  • Other Rs – to consider
  • Purchasing Interfaces
  • Purchasing cycle
  • Design of purchasing organization
Module 2: Concept of Economic Order Quantity (EOQ)
  • What is EOQ
  • Definition of EOQ
  • Importance of EOQ
  • How EOQ works
  • EOQ models
  • Calculation of EOQ – worked example
  • EOQ - team exercise
Module 3: Negotiation for Results
  • Establish objectives to be achieved by negotiation
  • Identify a range of outcomes from the desired ideal to the ultimate acceptable fall back position
  • Use interpersonal skills to influence others in both informal and formal situations to achieve your objectives
  • Understand how often we all negotiate and the benefits of good negotiation skills
  • Recognize the importance of preparing for the negotiation process
  • Identify the various negotiation styles
Module 4: Supplier Selection and Evaluation
  • To identify the qualifications a good supplier
  • To identify appropriate supplier selection techniques
  • To learn about supplier relationship management
  • To identify potential disadvantages of single sourcing
  • To analyze how to reduce the number of suppliers
  • To learn about strategic supplier relationship management
  • To understand how supplier evaluation is accomplished

Module 5: Materials Management
  • To identify the activities of materials management
  • To identify the four functions of inventory
  • To understand the relationship between purchasing and materials management
  • To determine how the materials management concept makes a contribution to profitability
  • To understand why firms are moving toward materials management
Module 6: Inventory Management
  • To learn the relationship between the purchasing function and inventory control
  • To learn the primary reasons for holding inventory
  • To identify the necessary requirements for effective inventory management
  • To learn about ABC analysis
  • To identify the cost components of the classical EOQ model
  • To learn the basic assumptions of the EOQ model
  • To learn about quantity discounts
  • To learn about service levels
  • To identify the differences between fixed-order-quantity and variable-order inventory systems
  • Inventory Stock Valuation
Module 7: Operations/Inventory Excellence
  • Inventory Performance Measures/KPIs
  • Best Practices in Inventory Management
  • Business operations perspective
  • 7 keys to profit improvement in business operations and inventory