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Procurement and Inventory Management

Introduction

Procurement and inventory management form the interfaces in today’s supply chains of industrial goods. As the global division of work is still increasing in all industries in order to improve speed, process integration and customer satisfaction there is a growing need for a modern sourcing system.

This course will put the emphasis on the design and management of processes and control systems of the inbound supply chain. The content that is covered in this course include procurement processes and strategies, risk pooling and multi-stage inventory control systems, value of collaboration and streamlined information and financial flow in supply chains, supplier relationship management as well as elementary and advanced methods for analysis and planning.

Procurement and Inventory Management are critical to production companies as well as to service companies, as spending in procurement is often one of the biggest parts of the company’s budget. Procurement and inventory management ensure the availability of all supply categories for operations and infrastructure. Both are networked with the other functional areas making and delivering the products.

The aim of acting people in these value chains is a precise synchronisation of purchases and inventories with sales and customer demand to deliver high service levels. Therefore there is a strong demand for the knowledge about managing supply and demand. This means knowledge about strategies, concepts, processes, methods and technical systems in the areas of procurement and inventory management. This course module deals with the understanding and the design of procurement networks and multistage inventory control systems.

Objectives

On completion, participants will be able to:

  • Understand procurement and inventory management strategies, processes and organisational concepts and their links to further areas of the logistics system
  • Know where to collect information for planning or improving supply and stock keeping processes
  • Set requirements for supplier selection process and operate in procurement and inventory management processes
  • Define the right structure of the supply network and inventory control system
  • Use best practice solutions and state of the art control methods for managing the players of the supply chain considering logistics and financial aspects
  • Manage uncertainty risks of customer markets and their impact on demand and supply along multiple stages of the supply chain

Contents

  • Procurement and inventory management basics and their role in the supply chain
  • Basic methods for analysis and planning in procurement and inventory management
  • Strategic and operational procurement processes
  • Static and dynamic stock-keeping and replenishment policies
  • Supplier relationship management and collaboration in the supply chain
  • Information flow and financial flow in procurement processes
  • Advanced optimisation tools for sourcing organisations