SUPPLY CHAIN MANAGEMENT AND PURCHASING PRINCIPLES
This unit or subject is examined by KNEC on those taking the following courses:
The topics that need to be covered as required by KNEC in this unit/subject are as follows:
Introduction
This module unit is intended to equip the trainee with knowledge, skills and attitudes that will enable him/her perform purchasing and distribution functions effectively.
General Objectives
By the end of the module unit, the trainee should be able to:
- Discuss the importance of the Supply Chain Management an organization
- Explain the elements of Supply Chain Management in an organization
- Outline the procedure of sourcing for materials and ordering materials
- Describe the activities involved in the process of receiving and inspecting incoming materials
- Explain the procedure followed in the payment of suppliers
- Outline the role of physical distribution in purchasing materials for an organisation
Module Unit Summary
Topic 1: Supply Chain Management and Purchasing Function
- Introduction to supply chain management
- Internal and External supply chains
- Elements (Scope) of Supply chain management
- Supply chain management decisions
- Meaning of purchasing
- Importance of purchasing function
- Objectives of the purchasing department
- Relationships between purchasing department and production department
- Internal Organisation of purchasing department
Topic 2: Quality and Quantity Determination
- Meaning of quality and quantity
- Factors to be considered in determining quality of materials
- Purpose of specifying materials
- Features of a good specification
- Methods of materials specification
- Factors in determining quantity of materials to buy
- Methods used in determining quantity to buy
Topic 3: Determination of Price and Right Time to Buy
- Meaning of price and time
- Importance of determining price of materials
- Factors influencing prices of materials
- Methods of pricing materials
- Factors in determining right time to buy
- Distinction between lead time and delivery time.
Topic 4: Sourcing
- Meaning of sourcing
- Factors considered in determining sources of supply
- Sources of information about potential suppliers
- Types of sources of supply
- Methods of sourcing
- Documents used in sourcing
- Criteria for evaluating potential suppliers
Topic 5: Ordering Procedure
- Importance of following the purchasing procedure
- Purchasing/ordering procedure
- Documents involved in ordering/purchasing procedure
- Types of orders
Topic 6: Receiving and Inspection of Goods and Services
- Meaning of receiving and inspection
- Factors considered during receiving and inspection
- Importance of inspecting incoming goods
- Methods used to inspect incoming goods
- Documents used in receipt and inspection process
- Options of treating rejected goods
Topic 7: Payment Procedure
- Meaning of payment
- Factors considered in processing payment claims for suppliers
- Documents used in payment process
- Methods of payment
- Commitment register
Topic 8: Physical Distribution
- Meaning of physical distribution
- Components of physical distribution
- Importance of physical distribution
- Factors considered in selecting transportation mode
- Documents used to facilitate transportation of goods
Topic 9: Emerging Issues and Trends in supply chain management and purchasing principles
- Emerging issues and trends
- Challenges posed by emerging issues and trends
- Coping with challenges posed by emerging issues and trends
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