At the end of the course the student will have the ability to:
- Explain Materials Management definitions and terminology.
- Understand and apply materials management practices and its relationship to supply chain management.
- Implement the key activities involved in buying and utilizing materials that contributes and enhances the organization’s performance.
Introduction to Materials Management
- Describe the functions and objectives of materials management.
- Describe a typical materials organization and its policies and procedures.
- Recommend policies and procedures for purchasing, inventory, and transportation management.
- Describe several problems in materials management.
Purchasing Pre-award Processes
- Describe the basic purchasing process.
- List and explain the factors to consider when selecting suppliers.
- Describe the principles and techniques for negotiating with suppliers.
- How to determine appropriate methods of procurement.
- The process for preparation and solicitation of competitive bids, quotations, and proposals with pertinent specifications, terms, and conditions.
- When to use informal procurement methods and when to use formal procurement methods.
- The competitive bidding and negotiation procurement methods.
- List and describe the criteria used to select an appropriate type of contract.
- Explain how different contract types fall on a “risk continuum”.
- Explain the principal characteristics of several fixed price and cost reimbursable contracts.
- Prepare and/or issue contracts/purchase orders (using the appropriate type of contract).
Price and Cost Analysis
- Define and explain price analysis and cost analysis.
- List the members of the pricing team and explain how to manage them in their conduct of price and/or cost analysis.
- Use price analysis and/or cost analysis to evaluate competitive offerings to determine the overall best offer for a product/service.
- Explain the relationship between price/cost analysis and negotiation.
Purchasing Post-Award Processes (Contract Administration)
- Explain the buying organization responsibilities in contract administration and the central purpose of contract administration.
- Describe the contract administration planning process and explain the importance of such planning.
- Describe the contract administration team and the respective duties and responsibilities of team members.
- List and describe the specific responsibilities of the contract administrator, technical representative, and quality assurance representative.
- Explain the contract close-our process.
- Terms of Purchase Documentation
- The Terms of Shipping Documentation
- What the Purchaser Should Specify in the International Purchase Contract
- International Commercial Terms (INCOTERMS)
- Bill of Lading and Other International Purchasing Documents
- Global Payments
- ustoms Duties and Required Documents
Introduction to Transportation
- The macroeconomic and microeconomic roles of transportation;
- The characteristics of various transportation modes;
- The various methods of ownership.
- The economics of movement; and
- The changing environment in which transportation operates
- Balancing Act: Security vs. Global Commerce.
- Global Transportation Providers.
- Rate Making in Global Transportation.
- Global Transportation Problems, Issues, & Policies.
- Role of Port Authorities in Global Transportation.
- Future of Global Transportation.
Basics of Inventory Management
- Explain the fundamental purpose of maintaining inventory;
- Develop an understanding of the benefits and costs of inventory;
- Examine the tradeoffs present among inventory, customer service and other functional costs in logistics; and
- Demonstrate awareness of rationing methods and inventory performance measurement.
Inventory Management Costs
- Explain the major reasons for carrying inventory.
- Explain the role of inventory to major functional areas in the company.
- Discuss the major types of inventory-related costs and their relationships to inventory decisions.
- Understand how inventory items (stock-keeping units) can be designed to maximize the efficiency of managing inventory.
- Appreciate the importance and value of inventory visibility to increasing supply chain effectiveness.
- Understand how companies can evaluate the effectiveness of their inventory management techniques.
Inventory Management Systems
- Understand how demand influences replenishment model selection;
- Distinguish the strategic, operational and performance differences between PUSH and PULL inventory forecasting systems;
- Explain how a Collaborative Planning, Forecasting, and Replenishment system can be used to advantage in forecasting inventory requirements.
- Discuss the strategic value-adding role warehousing plays in the logistics system.
- Explain the basic rationale for warehousing in light of transportation consolidation, product mixing, service, contingency protection, and smoothing.
- Develop an analytical framework for basic warehousing decisions.
- Distinguish between the different warehouse activities requiring space in the warehouse design.
- Discuss the major principles of warehouse layout design.
- Compare the use of private versus public warehousing.
- Explain public warehousing services, regulations, and pricing.
ERP and SRM Systems
- Business process automation
- CRM, Customer Relationship Management systems
- ERP, Enterprise Resource Planning systems
- SRM, Supplier Relationship Management systems
Book Title -: Introduction to Materials Management (7th Edition)
Author/s -: J. R. Tony Arnold, Lloyd M. Clive
Publisher -: Pearson Education, Upper Saddle River, NJ, 2011
Book Title -: Essentials of Supply Chain Management, (Third Edition)
Author/s -: Michael H. Hugos
Publisher -: John Wiley and Sons, 2011