Practical Guide to World Class Buying

Practical Guide to World Class Buying

by Brian Farrington, Derek W. Waters




This is a practical guide to developing the skills, techniques and activities of the world class buyer. It is a highly accessible, step-by-step guide to buying and is invaluable to professional buyers seeking the competitive edge, as well as general managers who have a responsibility for buying and students seeking practical insight. Readers are guided from the absolute basics through a series of increasingly complicated situations, with frequent illustrations from real-world examples and case studies. The book traces the development of a typical buyer from running the consumables and catalogue purchasing desk throught to capital and production purchasing and finally begins to move into strategic and international buying. It is effectively a blueprint for becoming a world class buyer.

Product Details

ISBN-13: 9780412722103
Publisher: Cengage Learning
Publication date: 01/28/1996
Pages: 320
Product dimensions: 7.48(w) x 9.84(h) x (d)

Table of Contents

Foreword. Glossary. An introduction to the tools of the trade. Overview. The seven buyers' rights. Motivation. The sellers' rights. Cost v price. Works cost. The first six questions. Know your items. Know your systems. Circulation of the order. Draft order. The most frequently used tools. Policies and procedures. Terms and conditions of order. Draft completed order. Summing up. Memory joggers. The requisitioner is not always right. Overview. The buying record. Draft buying card. Analysis of supplier's performance. The min-max system. A production superintendant gives an opinion. The affair of the lap-top computer. A supervisor has a problem. Budgets: their use and abuse. The requisitioner is not always right. Memory joggers. Using buying skills. Overview. The quotation analysis in use. Basic negotiation tips. Longer term orders v spot buys. Buyers signature authority list. Specifying requirements. Lowest ultimate cost. Analysis purity v Baker-Charlie. A price reduction negotiation. Review of the negotiation. A cost benefit analysis. A basic contract. A lowest ultimate cost solution. Comparison of two systems. A definitive cost benefit analysis. Writing a contract. What if things go wrong?. The buyer as motivator. Memory joggers. Rationalization, quality and specification. Overview. A rationalization opportunity. Getting your ducks in a row. The use for political persuasion. The quality departments role. The quality survey. Speeds and feeds. Constructing a delivery schedule. Construction of a blanket order. Savings opportunities. Centralizing the stationery buy. The stationery questionnaire. Stationery supply options. Writing a specification. Check lists to construct a spec. Memoryjoggers. Paying a fair price. Overview. The policy guides. A fair profit?. A basic estimate. Analysis of a supplier's price. Increase justification. Short supply. Why marketing exists. Patents. "Ring"-pricing. Unfair tactics. The law. Memory joggers. Management by objective in operation. Overview. Seven characteristics. The buyer's job description. Identifying training needs. Structuring the MBO's. The range of tasks. Table of anniversary dates. Objective setting. Initial plans. The contract with Snibbo. The contract with Do-Do. Skeletons in the cupboard. Analysing supplier's contracts. A case for Sherlock Holmes. The stillage problem. A make v buy opportunity. Memory joggers. From consumables to capital. Overview. Some invaluable advice. An impending battle. The right way to buy a capital item. A most expensive blunder. A capital appropriation request. The appropriation request critiqued. What does the new machine do?. The Noccini quotation. A "neutral specification". Preparing an agenda. A preliminary skirmish. A cost break-down by major feature. Technical information. Uncovering supplier uncertainty. A lesson for the world class buyer. Creating a level playing field. Memory joggers. Writing an important contract. Overview. Working out a plan. Getting the reference material. Preparing the main contract clause headings. Drafting the main clauses. The legal department meeting. You brief the purchasing manager. Memory Joggers. A negotiation course. Overview. When should we negotiate?. Negotiation exercise 1. Negotiation exercise 2. Negotiation exercise 3. Negotiation exercise 4. Negotiation exercise 5. Negotiation exercise 6. Memory joggers. From capital to production. Overview. The new learning. Preliminary costings. Tool cost pitfalls. The key item process. The red-book. Buying against estimate. An open-book negotiation. A form of siege warfare. Use of value analysis. Make v buy. Controlling the supplier. Satisfaction criteria. Memory joggers. Increasing the buyers effectiveness in source selection. Overview. Asking the right questions. Tooling considerations. Ten questions. Analysing the ten answers. Final assessment. The commercial assessment. The commercial audit - 21 questions. Understanding the 21 answers. Uses of the commercial audit. Approved sources. The buyer's attitude. Memory joggers. A supplier study in mainland Europe. Overview. The message to Garcia. A strategic decision. Instructions to proceed. Letter of intent. Inflation and exchange rates - relationships. Modus operandi. A visit to Lille. A visit to Hamburg. A visit to Milan. The score sheet and comparative. Assessment. Memory joggers. A difficult negotiation made easier by the use of techniques. Overview. The tactical plan. The basic essentials. The tactical plan in operation. Which approach now?. Truth or dare?. A fair trade. The provisional contract. A sign of good faith. Summation. The German experience. Fighting fire with fire. Trading proposals. Failure to agree. Summation. The Italian job. A change of approach. An impasse. An approach to the shareholders?. A sea of "contras". Summation. The verdict. A letter of intent. The final assessment. Memory joggers. Applications of strategy. Overview. Some ideas for buying training. The nine essential qualities. Practical training. A forecast of UK economies. A saving forecast. Research. The twin-track becomes triple-track. A letter form close and lane. Policies and procedures revisisted. Another message to Garcia. Appendix 1: Inco-terms. Appendix 2: Code of ethics. Appendix 3: C.I.P.S. diploma course. Appendix 4: Management by objective. Further reading.

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