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Purchasing & Procurement - explore the opportunities

In organisations large and small, purchasing and procurement processes can prove vial to maximized efficiency and production of goods and services. As a discipline it itself, purchasing and procurement represent the opportunity to acquire goods from outside sources as well as outsource tasks to a third party. Under circumstances when a company is unable to acquire or perform at an appropriate level of efficiency, it is simply inadequate to focus on cost reductions. In such scenarios, the time and money saved by outsourcing are unparalleled.

Purchasing and procurement has been effectively divided into two key categories of goods and services. The first type, production-related procurement, refers to the purchase of goods, especially raw materials, which are required for manufacturing processes. As a direct contribution to a product, production-related procurement most often occurs in a manufacturing or supply chain management setting. The second category of procurement, non-production-related procurement, is a contribution to the production process, itself. In this case, the goods and services being purchased help to maintain operations and can include materials ranging from office supplies and oil for machines to large machinery and human capital and services. While these two areas of procurement contribute to production in contrasting ways and in different aspects of the production process, both present high value opportunities.

Purchasing and Procurement in Detail

Today, many companies purchase an increasing proportion of their final product or service from outside their organisation. Consequently, procurement processes and relationships with third party suppliers have escalated in in importance with the ratios of in-house and outsourced production in companies. It is therefore important for business success that external relationships are managed properly, opportunities are seen and risks reduced in the supply chain, increase its competitiveness.

Accordingly, the role of the procurement professional has adapted to its strategic importance. Historically, procurement personnel have relied on having knowledge of specific goods, products and services as well as where and how to source them. Today, procurement requires additional interpersonal skills as well as awareness of factors such as product development, cost-utility, cost-benefit, risk analysis and, of course, consideration for logistical convenience and possible obstacles. The combination of the heightened importance of purchasing and procurement and the multitude of factors to be considered has resulted in a highly-strategic and highly-valued role within an organisation.

Purchasing and Procurement Courses

As a buyer, you must be well-aware of the purchasing process in its entirety as well as of the multitude of factors which define it, such as administrative aspects, legal implications and processes and economic principles and guidelines. With intense global reach, and competition, buyers must be experts in product knowledge, business law and everything in between. Training and courses in purchasing and procurement incorporate case study scenarios to teach delegates the best practice and pitfalls of purchasing.

When it comes to purchasing, knowledge is power. Training and courses in this area will help delegates to develop their skills in procurement processes and business law as well as tips and techniques in developing detailed knowledge of their products or services and of their competition. On the other hand, interpersonal skills play a significant role in gaining access to the right goods and services, at a good price. With training in communications and negotiation, delegates will become better able to build relationships with suppliers, build a value-creating network with other organisations and negotiate for the best deal. Further, knowledge of IT systems is becoming more and more important, as procurements are increasingly being done electronically.

Training and Courses in Logistics

Logistics is being ready to lead and control the material flows and the related resources, information and monetary flows. The goal is to achieve the highest potential efficiency through good service and low costs, in order to satisfy the various parties in a supply chain. There are several different branches of logistics related to various professional logistics: transport, production and outsourcing.

Logistics affects your company's functioning, its economy and its competitiveness. A major challenge in the production logistics is efficiently scheduling orders from customers while maintaining adequate capacity. If a company has a long production process, with long lead times and long order backlog, it is naturally more difficult to meet these demands. Training in logistics provides delegates and, thus, companies with an understanding of relevant understanding of concepts, definitions, approaches and techniques. At advanced levels, training in this area may focus on more strategic aspects, such as planning and calculating processes and orders of operation as well as legal implications associated with sales, inventory, and transportation.

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Related training areas
October 2021
Case Study
LEORON Accredited by ANSI

LEORON Institute is accredited by ANSI as, ANSI-Accredited Certificate Issuer.

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Strengthening procurement across...

CIPS Corporate Academy for Aerospace and Defence has helped BAE Systems create a new generation of procurement professionals ready to reshape the way the company approaches purchasing, providing:

  • raised professional procurement standards across a whole sector;
  • £200,000 saved in delegate fees to date;
  • reduced time away from the office for training;
  • decreased project management costs.
Find out more
Utility Company Sharpens Negotia...

After a few new starters joined the procurement and supply chain team at Anglian Water in quick succession, a training need arose and the company selected an off-the-shelf course called Effective Negotiation – one of three negotiation courses currently in the CIPS skills training catalogue.

The training was complimented for its pace and content and all the participants said the course met their initial objectives. The CIPS trainer was also praised for their sustained energy and enthusiasm over the two days.

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