SUPPLY CHAIN MANAGEMENT AND PURCHASING PRINCIPLES
INTRODUCTION
This module unit is intended to equip the trainee with knowledge, skills and attitudes that will enable him/her carry out purchasing and distribution activities effectively
General objectives
By the end of this module, the trainee should be able to:
- Appreciate the importance of the purchasing function in an organization
- Understand the methods of sourcing for materials in an organization
- Understand the procedure for ordering materials
- Appreciate the activities involved in the process of receiving and inspecting incoming materials.
- Appreciate the procedure followed in the payment of suppliers
- Understand the role of physical distribution in purchasing materials for an organization.
Module Unit Summary and Time Allocation
SUB-MODULE UNITS | CONTENT | TIME(HOURS) |
Purchasing function | Meaning of purchasing
Importance of purchasing function Objectives of the purchasing department Relationships between purchasing department and other departments Internal organization of purchasing department |
12 |
Quality and quantity determination | Meaning of quality and quantity
Factors to be considered in determining quality of materials Purpose of specifying materials Features of a good specification Methods of materials specification Factors in determining quantity of materials to buy. |
14 |
Determination of price and right time to buy | Meaning of price and time
Importance of determining price of materials Factors influencing prices of materials Methods of pricing materials Factors in determining right time to buy Distinction between lead time and delivery time
|
20 |
sourcing | Meaning
Factors considered in determining sources of supply Sources of information about potential suppliers Types of sources of supply Methods of sourcing Documents used in sourcing Criteria for evaluating potential suppliers |
20 |
Ordering procedure | Importance of following the purchasing procedure Purchasing/ordering procedure Documents involved in ordering/purchasing procedure Types of orders |
20 |
Receiving and inspection of goods and services | meaning of receiving and inspection
factors considered during receiving and inspection importance of inspecting incoming goods methods used to inspect incoming goods documents used in receipt and inspection process options of treating rejected goods |
20 |
Payment procedure | Meaning
Factors considered in processing payment claims for suppliers Documents used in payment process Methods of payment Commitment register |
20 |
Physical distribution | Meaning
Components of physical distribution Importance of physical distribution Factors considered in selecting transportation mode Documents used to facilitate transportation of goods
|
20 |
Emerging issues and trends | Emerging issues and trends Challenges Coping with challenges |
10 |
Total | 140 |