SUPPLY CHAIN MANAGEMENT AND PURCHASING PRINCIPLES OBJECTIVES

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:

  1. Appreciate the importance of the purchasing function in an organization
  2. Understand the methods of sourcing for materials in an organization
  3. Understand the procedure for ordering materials
  4. Appreciate the activities involved in the process of receiving and inspecting incoming materials.
  5. Appreciate the procedure followed in the payment of suppliers
  6. 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

 

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