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Purchasing and Supply

An important part of a company

The role of the purchaser is more and more becoming an important part of the company’s overall competitiveness.

From previously having the role as an order clerk, the purchaser is now an important business person who has extensive knowledge of commercial, technical as well as international issues.

Objectives: This course provides you with profound insights into how to coordinate the purchasing and supply activities of your company. It will also teach you how to specialize and concentrate on areas of core competency, which results in a reduced supplier base and the creation of more long-term strategic alliances.

Participants: People who are working, or are about to start working with purchasing issues, procurement of material, sales, project management, designing specifications of requirement or have a cost responsibility regarding maintenance and supplier contacts.

Qualifications: Participants should have knowledge in basic logistic principles acquired from previous studies or from work experience.

Training Method: Purchasing and Supply 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 25 hours active study time, depending on previous knowledge. Each student has access to the course for 6 months.

Price: 510 Euro / student
566 USD / student

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

Online price:

495 EURO / student
549 USD / student

Prices excluding VAT.

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Course contents:

Part 1

Development of the Purchasing Function

The development of the purchasing function from the 1970s and its present importance for the competitiveness.

The Role of the Purchasing Function

The changed role of the purchasing function and its increased complexity.

The Traditional Objectives of the Purchasing Function

Purchasing as a process and the objectives of the purchasing function.

Purchasing Requirements

Identifying the company’s purchasing needs and purchasing planning.

Purchasing Planning

Purchasing planning includes both the acquisition of material and supplier contact.

Number of Suppliers in Purchasing Strategy

The problem of choosing between one or several suppliers per product.

Materials Supply and Purchasing Strategy

Two different tendencies when choosing purchasing strategy.

Materials Supply Concepts

The difference between two different materials supply concepts.

Purchasing Lead Time

The purchasing lead time for a purchase planning can be divided into time elements that are linked to the material procurement process.

Reduced Delivery Times and Greater Delivery reliability

Reduced delivery times and greater delivery reliability to achieve flexibility and adaptability.

Specification of Requirements for Purchasing

The basics of establishing a specification of requirements.

Value Analysis

Introduction to value analysis as a method and analyzing the functional requirements.

The Supplier Market

Working with supplier search and supplier evaluation.

Part 2

Manufacturing Planning and Control

Introductory description of the planning and control systems used in production processes.

Capital Tied up in Inventory

A basic premise for material control is that tied-up capital should be kept at a low level.

Controlling Materials Flow in Inventory

Managing inventory to match supply and demand.

Order Point Systems

The definition of an order point system and how to use it.

Periodic Ordering Systems

Explanation of the implication and function of a periodic ordering system.

Lot Sizing and Economic Order Quantities

Regulations for how to calculate batch sizes.

The Wilson Formula

The Wilson formula is used to calculate the most economic order quantity.

Increased Purchase Frequency

Increased purchase frequency at companies entails reduced purchase quantities per call-off and an increased frequency of delivery.

Managing Uncertainty

Managing uncertainty and estimating future demand as basis for short and long term decisions.

Vendor Managed Inventory

The supplier monitors the inventory level and replenishing the customer’s inventory as required, without a special order being sent.

Part 3

Delivery Monitoring

Working with delivery monitoring to assure delivery.

Goods Receiving

Activities that take place when incoming goods are received.

Receiving Inspection

Receiving inspection of arriving goods.

Quality Control Procedures

The routines for quality control when receiving goods.


The implications of a claim.

Shipping Claims

The CMR convention stipulates how claims are to be handled.

Labeling and Addressing

Routines for labeling incoming goods.

Placing Items in Inventory

Principles for placing items in inventory.

The Warranty

The purpose and scope of a warranty.

Invoice Authorization and Payment

Routines for invoice authorization.

Follow-up of Delivery Performance

Routines for following up the delivery and the supplier.

Part 4

Supplier Development: a Reciprocal Process

When done correctly, supplier development should create advantages for both the buyer and the seller.

Supplier Relationships

There are various types of relationships with suppliers, and they are found at many organizational levels.

Reasons for Partnering with Suppliers

The term supplier cooperation places an emphasis on active participation on the part of both buyer and supplier.

Changed Requirements for Materials Supply

Purchasing companies have begun to focus on the entire logistics chain.

Designing the Supplier Structure

The design of the supplier system has an impact on the buyer's competitiveness.

Network Relationships between Companies

Companies that have contact with each other build up various types of relationships.

Rationalization through Supplier Relationships

The task of rationalizing the company’s purchasing approach includes a series of ongoing activities.

The Supplier as an Opponent

The cooperation between the company and the suppliers is characterized by one-way communication.

The Supplier as a Production Partner

The supplier is here regarded in the same way as a department within the company.

Supplier Networks

Utilizing the supplier’s expertise both in the development work and in order to solve production problems.

Cooperating with Suppliers on Product Development

Cooperating to achieve efficiency gains in product development.

Maintaining a Supplier Relationship

Important issues are how to maintain supplier relationships and how much can they be exploited.

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