The corporate environment, including ownership and size, corporate culture, mission, goals, policies and strategy directly influence the way in which the purchasing & supply chain management function is organized and operates. The objectives, policies and strategies of the purchasing & supply chain management function must be aligned with those of the rest of the enterprise.

Specifying what an enterprise needs to purchase – along with how much it needs and when and where it is required – is the first, critical step in the purchasing & supply process. It must be done correctly if the rest of the process is to be successful.

Knowing supply markets is the basis for understanding supply risks, opportunities and costs, and for making correct supply decisions. Monitoring and analyzing supply markets helps the buyer to recognize how supply markets function and to compare and assess supply market options.

Supply strategy should be based on assessed requirements and supply market conditions. It will depend on the buyer’s levels of expenditure and of the supply risks involved. Supply strategy involves considering issues such as: the number and types of suppliers to use, the type of supplier relationships to develop and of contracts to use, and which types of purchase operations (such as e-purchasing) to apply.

Selecting the right supplier is the fundamental basis for effective purchasing & supply. Alternative suppliers must be located, screened, further researched and assessed using appropriate criteria that relate to the type of purchase that is being carried out. This will involve reviewing suppliers’ motivation and capabilities, including their financial situation.

Purchasing & supply practice means knowing how to best obtain and select offers from suppliers. Depending on the type of purchase being made, different purchasing approaches and processes will be used (ranging from simple informal contacts to formal tendering). The method of evaluating offers will also vary depending on what is being bought.

Negotiation starts with effective preparation, including setting realistic and achievable negotiation objectives and determining the best possible strategy to be used. Conducting the negotiation itself involves applying the arts of active listening and of questioning, and using appropriate tactics and persuasion techniques.

The contract specifies the buyer’s and seller’s main obligations, and determines the overall context under which the business relationship will be developed. It is important to understand which terms and conditions relate to the desired type of contractual relationship, and how to deal with issues such as applicable law, contractual default and the settlement of disputes.

Once a contract is signed, it is important to ensure its effective implementation and to successfully manage the relationship with suppliers. The various issues involved in managing the contract must be understood, as well as the roles and responsibilities of each side’s contract management team.

Managing logistics means dealing with the processes and operations of importation, internal distribution, scheduling and routing, the selection of transport partners, the choice of logistics equipment and packaging, and the implementation of improvements and cost reductions in the logistics process.

Good management of inventories is essential to improving enterprise effectiveness. This involves optimizing inventory levels, evaluating opportunities to reduce variety of supplies and holding costs, achieving high levels of internal and external customer service, minimizing stock error rates and achieving international standards of traceability and quality.

Evaluating purchasing and supply performance requires identifying which measurements are best suited to a company's needs. It involves collecting, analyzing and interpreting evaluation data, and using this information to improve purchasing & supply effectiveness and efficiency.

This Module gives comprehensive information and practical examples of approaches to environmentally preferable purchasing.

Group purchasing can bring significant benefits for both buyers and suppliers. This Module gives practical advice on how to go about this with special emphasis on SMEs.

This Module will allow readers to take full advantage of the opportunities and cost savings potentially offered by e-procurement. It covers practical guidance to readers at the planning, preparation and implementation stages.

This Module offers a framework CRM model, highlights the main competencies required to be a successful CRM company, as well as practical guidelines and advice for making it happen.

Operations Management involves the planning, scheduling and controlling of organizational processes that add value, to ensure efficient, effective production of goods and/or services for customers. The Operations function is at the heart of most enterprises, playing a vital role in improving productivity, quality, lead-times, availability, and improving competitiveness.

The management of money, banking, working capital, credit, assets and investments associated with international trade will facilitate imports and exports in the commercial activities of the supply chain. Trade Finance management includes assessing financial needs, methods of payment, financing techniques, planning, sources of finance, business planning, legal implications, and how they impact supply chain management.