Procurement is the acquisition of goods and/or services at the best possible total cost of ownership (TCO), in the right quantity and quality, at the right time, in the right place and from the right source for the direct benefit or use of corporations, or individuals, generally via a contract. Simply, in other words, the range of activities associated with the buying of goods and services to support business operations is called procurement.

Typically, a company normally spends about 60-70% of revenues through procurement, and if this spending is managed efficiently and effectively, company can enhance its competitive advantage significantly. Any savings in procurement directly contribute to the company’s bottom line i.e. profit of the company. To achieve the same amount of profit through marketing and sale, the company’s sales may have to be increased proportionately. In most cases, this may become a difficult task for many companies.

Savings thorough procurement can be achieved by ensuring continuity of supply at the best possible TCO, reducing overall lead-times, maintaining quality and durability of supply of inputs, promoting innovation in supply, improving supplier’s reliability and services, maintaining optimum inventory and applying many other ways related to supply and procurement.

To reap the benefits of all opportunities of effective procurement management as narrated above, companies have to have to effective procurement organization in place. This procurement organization has to be run by trained managers. Without trained personnel in the organization in general and for the procurement organization in particular, organizations may fail to ensure an uninterrupted flow of supply at the lowest cost, improve quality, and to achieve satisfaction of end customers. Thus, corporate heads are requested to nominate purchasing managers, executives and other employees related to supply, procurement, logistics, finance and strategic planning for the proposed training program.

Outline:

Day 1:

• Difference between Procurement and Purchasing
• Purchasing objectives
• Customer in Purchasing
• Green Purchasing
• SRM and Lead-time Management

Day 2:

• Procurement Process
• Incoterms
• TCO
• RFQ,RFP, RFI, Outsourcing
• Vendor Evaluation
• Pricing, and Purchasing Glossary