Purchasing and Vendor Management 101


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  • 7
    Lessons
  • 15
    Exams &
    Assignments
  • 771
    Students
    have taken this course
  • 4
    Hours
    average time
  • 0.4
    CEUs
 
 
 
 
 

Course Description

This concise course is designed to explore the institutional purchasing cycle for consumable materials, raw materials, spare parts, and capital assets. Additionally students will explore and develop a thorough understanding of the supplier/buyer relationship, the benefits of high-quality vendor management systems, and the pitfalls of poorly designed or implemented vendor management systems. Throughout this course we will focus in detail on the basic principles, procedures, and policies involved in the organizational function often referred to as Supply Chain Management.


We will explore the delicate balance and interrelationships between the Supply Chain Management function and other key functions within the organization, and discover how the distinct but often overlooked value proposition that a well engineered purchasing and vendor management system can deliver to an organizations bottom line. Specifically we will explore how vendor product quality can contribute to performance gains, and losses that can, and have made the difference between a healthy income statement and balance sheet and losses that can quickly add up and haunt an organization for several fiscal periods.

We will also investigate a variety of purchasing and vendor management philosophies, and discover a variety of management systems that can contribute to data driven purchasing and vendor management decisions that insure optimal performance of the Supply Chain Management function.

Upon completing this course the student will be able confidently make data driven purchasing decisions for their organization, understand how purchases and vendor relationships affect the entire organization, and deliver bottom line improvement through a much greater understanding of Purchasing and Vendor Management.

Consider the purchasing function within your own business, or a business you might be familiar with, such as a school parent association, homeowners association, or church. Decisions are made to purchase goods and services almost daily right? Well those daily decisions can and do have a bottom line impact on the organization's income statement. It is essential for the sake of having a system of checks and balances that an organization's supply chain management system be independent.

Independence creates a system of anonymity and prevents biased purchasing decisions that we typically find when the end user of the proposed purchased good or service is also making the purchasing decision. Why might that be? Think about this in your personal purchases; quite often we are prone to impulse purchasing decisions based on our own preference. That preference might be based on experience, marketing impact, or a number of other variables.

While there is a need for independence for the purchasing and vendor management function of an organization there might be situations where it simply is not possible to have this system of independence. In such cases, the purchaser must be vigilant, recognize their own personal biases, and be prepared to make the right decisions based on data, not personal preference. It is essential to remember the independence is meant to serve as a system of checks and balances that separate the end user requesting the purchase, from the vendor, supplier, or contractor delivering the product or service.

Case Study 1:

Jim is the maintenance manager for a manufacturing organization and recently requested the purchase of a new pump to replace an outdated pump in the factory. Jim has for a number of years become quite familiar with the local supplier of pumps and has even engaged in out-of-work social activities with the vendor.

The vendor has recently asked Jim to attend a professional sporting event. While at the event the vendor asks Jim when he will receive a purchase order for the replacement pump. Jim tells him not to worry about it, that he will get the purchase order to him next week after he has a chance to speak to the purchasing manager.

Case Study Debrief:

There are a number of things that should immediately be recognized as wrong by even the most inexperienced, or novice person within the case study 1. First, it is generally considered to be inappropriate to accept gifts from vendors. By accepting the invitation to the sporting event Jim has put  himself in a questionable position ethically and professionally if his organization has a policy forbidding the acceptance of gifts (which most do). 2. Jim has clearly let his personal relationship with the vendor influence his purchasing preferences. 3. Jim feels as though he can influence the purchasing manager's decision in favor of this particular vendor.

Through this case study we should be able to clearly recognize why the purchasing and vendor management function of an organization should, if possible, function independently. We will hopefully also recognize some easily identifiable inappropriate behaviors on Jim's part that, in most cases, would be prohibited in an institutional setting.

Supply chain management is responsible for purchasing all goods and services necessary for an organization to achieve its goals. That being said, there are a number of areas where a good purchasing person might derive value for the organization. They might be able to negotiate the best price for the good or service, and save the organization in that regard. They might purchase based upon the lowest possible life cycle cost, thus insuring low operational costs of equipment purchased. There are likely a number of contracts that must be negotiated by the supply chain management team. What about vendor quality management? Best in class supply chain management organizations will implement vendor quality control measures and hold vendors accountable to those measures. Ultimately, there are a number of ways for supply chain management to create value for an organization; however, the breadth and depth of this value proposition is highly contingent on the size of the overall organization. The larger the organization, the larger the impact, simply based on economies of scale.

  • Completely Online
  • Self-Paced
  • Printable Lessons
  • Full HD Video  
  • 6 Months to Complete
  • 24/7 Availability
  • Start Anytime
  • PC & Mac Compatible
  • Android & iOS Friendly
  • Accredited CEUs
  • Universal Class is an IACET Accredited Provider
     
     

    Course Lessons

    Average Lesson Rating:
    4.6 / 5 Stars (Average Rating)
    "Extraordinarily Helpful"
    (499 votes)

    Lesson 1: Purchasing and Vendor Management

    When we consider the importance of a well-defined, well-engineered supply chain management function, the implications, organizationally, are widespread and certainly worth noting. 26 Total Points
    • Lesson 1 Video
    • Review Article: Managing Vendors and Suppliers
    • Take Survey: Reasons for Taking this Course
    • Complete Assignment: An Introduction
    • Complete: Lesson 1 Assignment
    • Complete: Lesson 1 Exam

    Lesson 2: The Purchasing Process

    In this lesson, the purchasing process is discussed. 25 Total Points
    • Lesson 2 Video
    • Review 3 Articles: Life-Cycle Cost Analysis; Purchasing Process; The Rise of Vendor Relationship Management
    • Complete: Lesson 2 Assignment
    • Complete: Lesson 2 Exam

    Lesson 3: Vendor Relationship Management

    This lesson will discuss how to monitor, maintain, and develop vendor relationships. 25 Total Points
    • Lesson 3 Video
    • Complete: Lesson 3 Assignment
    • Complete: Lesson 3 Exam

    Lesson 4: Capital Purchases -- There's a Big Difference

    Through this lesson, we will step through the purchasing process in a capital purchase scenario. 25 Total Points
    • Lesson 4 Video
    • Complete: Lesson 4 Assignment
    • Complete: Lesson 4 Exam

    Lesson 5: Alternate Purchasing Methods

    Blanket purchase orders typically offer easy access to preferred vendors, products, or services. 25 Total Points
    • Lesson 5 Video
    • Review Practice Worksheet: SCM-Lesson_5_-_Vendor_Evaluation_Ma.xlsx
    • Review Article: Capital Expenses
    • Complete: Lesson 5 Assignment
    • Complete: Lesson 5 Exam

    Lesson 6: Continuous Improvement in Purchasing and Vendor Management

    The supply chain management system within every organization, large and small, is full of opportunities to improve -- and then realize the benefits of those improvements. 38 Total Points
    • Lesson 6 Video
    • Complete: Lesson 6 Assignment
    • Complete: Lesson 6 Exam

    Lesson 7: Income Statement and Balance Sheet Consideration

    The most important consideration in almost any purchase is the total cost of ownership (TCO), also referred to as the total life cycle cost. 43 Total Points
    • Lesson 7 Video
    • Take Poll: What is your opinion of this course?
    • Take Survey: Program Evaluation Follow-up Survey (End of Course)
    • Complete: Lesson 7 Exam
    • Complete: The Final Exam
    207
    Total Course Points
     

    Learning Outcomes

    By successfully completing this course, students will be able to:
    • Define what purchasing and vendor management is.
    • Describe the purchasing process.
    • Describe vendor relationship management.
    • Summarize alternate purchasing methods.
    • Describe the processes for continuous improvement in purchasing and vendor management.
    • Describe income statement and balance sheet considerations in purchasing and vendor management, and
    • Demonstrate mastery of lesson content at levels of 70% or higher.
     

    Additional Course Information

    Online CEU Certificate
    • Document Your Lifelong Learning Achievements
    • Earn an Official Certificate Documenting Course Hours and CEUs
    • Verify Your Certificate with a Unique Serial Number Online
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    Document Your CEUs on Your Resume
     
    Course Title: Purchasing and Vendor Management 101
    Course Number: 8900268
    Course Requirements: View Course Requirements
    Lessons Rating: 4.6 / 5 Stars (499 votes)
    Languages: English - United States, Canada and other English speaking countries
    Course Type: Professional (Intermediate Level) (Self-Paced, Online Class)
    CEU Value: 0.4 IACET CEUs (Continuing Education Units)
    CE Accreditation: Universal Class, Inc. has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).
    Grading Policy: Earn a final grade of 70% or higher to receive an online/downloadable CEU Certification documenting CEUs earned.
    Assessment Method: Lesson assignments and review exams
    Instructor: Linda Zavadil
    Syllabus: View Syllabus
    Duration: Continuous: Enroll anytime!
    Course Fee: $50.00 (no CEU Certification) || with Online CEU Certification: $75.00

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