[Online 2-Day] Implementing Purchasing & Negotiating Effectiveness in Supply Chains
Course Information
  • 09-Jul-2020
  • Online
  • Stephen Kum
  • English
  • RM 610
  • 9am - 11am & 2pm - 4pm
[01] INTRODUCTION
In the general perspective, there is insufficient competency in the purchasing cycle to procure materials and services matching the strategic value of organization. Not realizing this business behaviour will lead to profit erosion.

The salvage plan lies in the standard procedural and policies which govern and monitor the procurement objectives to be implemented.

Hand in hand, negotiation tactics and techniques are required in matters related to the Pre-transaction, On-transaction and Post-transaction stages.

[02] WHO SHOULD ATTEND
For all personnel in Procurement, Purchasing, Finance, Supply Chain, Materials Planning, Order Management and related job scope.

[03] COURSE OBJECTIVES
At the end of this course, learners will develop an appreciation for
• Clarifying the efficiency of the purchasing cycle and efficacy of the purchasing process combined
• Explaining the objectives and principles of a firm’s purchasing functionality and the impact to various departments
• Understanding the risks and costs elements in the purchasing and supplying requirements
• Familiarizing the levels of negotiation planning and stages in narrowing the purchasing collusion and collision gaps

[04] METHODOLOGY
Lecture and power-point presentation, case study and analysis, group assignment and discussion

[05] DATE/ TIME/ FEE

Date : 9-10 July 2020 (Thu - Fri)
Time : 9.00am - 11.00am (2 hours) & 3.00pm - 5.00pm (2 hours)
Mode: Online

[HRDF/ SBL CLAIMABLE]

- Fee - RM 610

>> *Fee is inclusive of Course Notes, Certificate of Completion & 6% Service Tax

**Discounts**
(i) 15% overriding discount for SST2u Learner Card members

[06] COURSE CONTENTS

1. Value Engineering (VE) and Value Analysis (VA) for Improving Products and Processes
• Key Applications
• VE/VA Techniques - in demonstrating the functional relationships probing into the products and services costs and performances levels
• Organizing the VE/VA Process – Three (“3”) Approaches of Specialized Staff, Cross Functional and Staff Training
• Five (“5”) generalized Procedural Model of VE/VA Study Roadmap
o Information Phase o Speculation Phase o Analysis Phase
o Design Phase
o Evaluation Phase

2. The Buyer-Seller relational factors in the Supply Cycle
• Three (“3”) different types of Buyer-Seller relationships - Transactional, Collaborative and Alliance
• Buyer-Seller Relations – Advantages, Limitations, How to Apply them
• Supplier Development - Best practices, barriers in developing World Class Supply Management
• Continuous Improvement

3. The Purchasing Cycle and Process of a Firm
• Procuring quality material at a reasonable price
• Flawless design of documentation
• Free flow of information
• Recognition of the need (Purchase Requisition or Purchase Indent)
• Quotation request (Enquiry for Quotation)
• Stages of Evaluation of Quotation and Selection of Supplier
• Placement of Purchase (Purchase Order)
• Receiving Goods (Goods Inward Note)
• Payment for Goods to the supplier

4. The Purchasing Terms and Conditions
• Types of Tender in purchasing - Open tender, Limited tender and Single tender
• The various ways of payment terms on the provisions of
o twenty percent (20%)
o eighty percent (80%)
o one hundred percent (100%)

5. The Definition and Objectives of Purchasing
• Overview of material management
• Management of material flow
• Quantity & Quality
• Others: Right Place, Right Source & Right Time
• Eight (“8”) Objectives
• Developing Policies and Procedures

6. Principles and Methods of Purchasing
• When Markets Conditions are Stable/ Unstable
• Duties and responsibilities of Purchase Department
• Purchase parameters - from SWOT analysis probing into the 10 R’s of purchasing aims
• Purchasing decision process – (i) Anticipation of a problem, (ii) Performance feedback, (iii) Evaluation
• Appraisal and application factors of Incoterms in the pre-transaction to post-transaction framework o Division of Costs
o Transfer of Risks
o Sharing of Security and integrity Information as per Incoterms 2020 provisions

7. Purchasing Negotiation for Consumer and Industrial Products.
• What is Negotiation?
• Three (“3”) Features of Negotiating Principles
o Price of industrial products
o Autonomy of buyer
o Relationship with the supplier
• Thirteen (“13”) factors weakening the buyer’s negotiating position
•.Ten (“10”) Steps in Negotiation Planning o Objective accomplishment
o Gather important facts
o Power position assessment
o Identify common interest
o Design systematic questionnaire o Task definition
o Develop Team
o Pre-plan concession
o Plan tactics
o Mode of conclusion
• Four (“4”) Tactics in purchasing negotiations o ‘Take it or leave it’
o ‘Bogey impersonating’
o ‘Fuzzy regarding price’
o ‘Good guy bad guy image’
• Four (“4”) stages of purchasing negotiation - Exploration, Reflection, Actual negotiating and Closing
• The Ethical Code from the IFPMM code of conduct comprising Precepts and Guidance Guidelines

[07] TRAINER PROFILE

STEPHEN KUM
Certified HRDF Trainer

Stephen Kum graduated with Master of Business Administration from Newport University, United States. He is a fellow of the Institute of Freight Forwarders (UK), The Institute of Logistics & Transport (UK), The Institute of Business Administration (UK), Professional Member of Logistics & Supply Chain Management Society and former Vice Chairman of Persatuan Logistik Selangor.

He has more than 28 years of hands-on experience in the field of international trade, global procurement, freight and logistics supply chain management. His consultancy expertise relates to implementing logistics strategy, criteria in selection of carriers, supply chain integration and Incoterms contracts.

He held various senior positions as Managing Director of a global logistics service provider with regional offices in United Kingdom, United States, Australia and Asia. On contractual appointment, he was the Country Manager with Esprit Shipping (HK), Sales Director with Karl Schroff Associate (US) and Regional Manager with Port Cargo Ltd (UK). His affiliation includes Cambridge International College (UK) as their Logistic Program Examiner and Durham Logistics College (UK) as their Program Consultant. Currently, a Resident Consultant for SCS Consultation Services (UK) and TPL Global Chains Management (US).

He has been involved in corporate training and development since 2002 for manufacturers, multinational companies, trade associations and trade and tourism divisions of foreign embassies. He has developed various freight forwarding programs for Institute Technology Multimedia, logistics programs for Sentral City Institute and post graduate programs in supply chain management for Camden University and export trade management for Metropolitan University.

[08] REGISTRATION & ENQUIRY

Email: SSTcourse@gmail.com

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