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International Purchasing

How to purchase in a one-world market

The demand for purchasing and negotiating skills is growing steadily since the importance of the purchasing function is increasing due to the operation on a global market. Negotiations are frequently held in a complex, global and multi-cultural environment.

Breakthroughs in transportation and communications bring foreign suppliers practically as close as domestic ones. The course will give you extensive knowledge in international purchasing, supplier contacts, and negotiation planning and tactics.

Objectives: The purpose of the course is to provide you with profound skills required to conduct international purchasing and negotiation in an efficient and professional manner.
At the end of the course you will have gained a comprehensive picture of the purchasing and negotiation process.

Participants: Purchasing, sourcing, sales and other business professionals wanting to improve their skills in purchasing, negotiation and how to reach agreements with international counterparts or strategic suppliers and customers.

Qualifications: No previous knowledge is required, but it is preferable if you have some work experience.

Training Method: International Purchasing is a Premium course and is studied over the internet via our e-learning platform Instant education. Read more about the training method E-learning - Premium courses.

Course Length: Approximately 30 hours active study time, depending on previous knowledge. Each student has access to the course for 6 months.

Price: 589 Euro / student
654 USD / student

Prices excluding VAT.
For large-scale education projects request quotation.

Online price:

572 EURO / student
635 USD / student

Prices excluding VAT.

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Course contents:

Part 1

Purchasing in Worldwide Economy

Almost all businesses have to learn to operate in a one-world market.

Purchasing in Evolution

The role of the purchasing function is becoming increasingly important.

Process of Buying

The production processes must produce goods economically based on an efficient process of buying.

Importance of Purchasing

Materials costs from purchasing often represent more than 50% of the total product cost.

Purchasing and Profit Leverage

Purchasing is responsible for placing the orders and for ensuring that the goods arrive on time.

Effect of Purchasing on Other Costs

There are other ways besides direct expenditures in which purchasing can affect end-product costs.

Purchasing and Inventory Management

Purchasing has a role in inventory management that is complex and changing.

Purchasing Objectives

The purchasing department is responsible for establishing the flow of materials into the company, following up with the supplier and expediting delivery.

Purchasing Strategy in Strategic Planning

Purchasing organizations will be expected to take an increasing role in overall corporate strategy.

Purchasing Policy

Every purchasing department has policies, whether or not they are put into writing.

Quality Definition Aspects

Purchasing needs to ensure that quality is adequately defined and expressed.

Quality Requirements

Quality is not measured by price.

Quality Control in Purchasing

Move the responsibility and the cost for quality measurement back to the supplier

Decisions for Global Sourcing

Making the decision to globally source raw materials or components requires careful consideration.

Global Sourcing

Buying the raw materials, components, or services from companies outside the home country.

Considering the Carbon Footprint in Purchasing

Concerns about global sourcing and the impact of the carbon footprint.

Part 2

Functional Specification Description

The first step is to analyze the material or part to determine what function it will fill

Purchasing by Brand Name

The simplest method of defining quality is to identify it by the manufacturer's own brand name.

Purchasing by Specification

The quality is based on some standard understood by both buyer and supplier.

Characteristics to Specification Description

There are several characteristics to description by specification.

Good Purchasing Policy

As a general rule, it is good purchasing policy to inform the supplier or bidder as fully as possible.

Factors in Selecting Suppliers

There are several factors in selecting a supplier.

Selecting Suppliers

The objective of purchasing is to get all the right things together including the right supplier.

Survey Stage

The original survey of potential sources should overlook no possibilities.

Inquiry Stage

The inquiry stage involves pre-qualification of potential sources.

Sourcing Alternatives

The buyer usually wishes to establish alternative sources for the products that are to be bought.

Number of Suppliers

There is a trend to reduction in number of suppliers.

Final Selection of Supplier

Some factors in evaluating potential suppliers are quantitative and others are qualitative.

Establishing Supplier Relationships

Once a supplier is selected, a relationship develops.

Supplier Performance

The real test of supplier selection is the follow-up of experience, or satisfactory performance.

Developing World-Class Suppliers

Purchasing should select and develop suppliers that provide with the best value today and tomorrow.

Supplier Partnerships

Partnerships require much closer and more open and frequent communication.

Part 3

Purchase Planning and Forecasting

We get from the supplier what we ask the supplier to furnish.

Price Determination

Low ultimate cost is the objective and responsibility of purchasing.

Price and Value

To measure value we balance what we get in our purchase against what we must pay.

Price Setting

Business is a process of arriving at a mutual agreement that results in sales and purchases.

Price Analysis in Purchasing

One economic concept is that right price is based largely on the law of supply and demand.

Discounts in Purchasing

There are four types of discounts that concern buyers in their consideration price.

Economic Order Quantity and Discounts

When material is purchased, suppliers often give a discount on orders over a certain size.

Negotiating Bids

Many major purchases and contracts in industrial buying are negotiated.

The Nature of Negotiation

It is basically a process achieved through bargaining, conferring or discussing an issue.

Negotiation and Buying

There is a distinction between buying by negotiation and buying by competitive bidding.

Negotiation Planning

Flexibility is at the heart of the negotiating art.

Negotiation Tactics in Purchasing

Negotiation is often a highly technical matter, but it is always a very human matter as well.

Purchasing Performance

It is difficult to measure purchasing effectiveness when so many variables are involved.

The Purchase of Transportation Services

Use of transportation services involves a form of purchasing.

Shipping Terms

A number of terms are used in international trade to describe sellers' and buyers’ rights, duties and risks.

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