Purchasing Management notes – KNEC Diploma

PURCHASING MANAGEMENT

This unit or subject is examined by KNEC on those taking the following courses:

• Diploma in Supply Chain Management – Module II

Introduction
This module unit is intended to equip the trainee with knowledge, skills and attitudes that will enable him/her to manage the purchasing function effectively.
General Objectives
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By the end of the module unit, the trainee should be able to:

• manage quality in procurement of goods and services
• make sound sourcing decisions
• apply appropriate buying techniques and skills in specific purchasing situation
• demonstrate ethical purchasing behaviour

The topics that need to be covered as required by KNEC in this unit/subject are as follows:

Topic 1: Introduction to Purchasing

• Objectives of purchasing and supply function
• Importance of purchasing and supply functions
• Ways of organizing purchasing and supply functions

Topic 2: Purchasing Structure and Organisation

• Purchasing organisation structure
• Status of purchasing
• Centralization and decentralization
• New approaches

Topic 3: Quality Assurance

• Meaning of quality control and quality assurance
• Aspects in Quality Assurance
• Importance of Quality Assurance
• Role of Kenya Bureau of Standards in Quality Assurance
• Techniques of quality assurance
• Types of quality standards

Topic 4 : Sourcing

• Supplier development programme
• Building and maintaining suppliers
• Evaluation of suppliers

Topic 5 : Supplier and Market Behaviour

• Market structure
• Pricing strategies

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Topic 6 : Purchases and Contract

• Meaning of a contract
• Essentials of a valid contract
• Activities involved in contract formation
• Types of contract
• Rights, obligations and responsibilities of the parties to a contract
• Types of purchases
• Methods of controlling execution of a contract

Topic 7 : Support Tools for Purchasing Decision Making

• Tendering process
• Forecasting technique
• Investment appraisal techniques
• costing techniques
• Model and simulation

Topic 8 : Negotiation

• Meaning of negotiation
• Importance of negotiation
• Phases/stages of negotiations
• Negotiation styles
• Strategies and tactics of negotiation
• Composition of negotiation team
• Qualities of a negotiator

Topic 9 : Ethics and Integrity in Purchasing

• Meaning of integrity and ethics
• Importance of ethics
• Kenya Institute of Supply Management Code of Ethics
• Role of Kenya Anti-Corruption Commission (KACC) in public procurement
• Public officers code of ethics
• Causes of unethical practices and behaviors within the public sector
• Measures of eradicating unethical purchasing practices in the public sector
•  “Do’s” and the “don’ts” by the officers in public procurement

Topic 10 : Emerging Issues and Trends

• Emerging issues and trends in purchasing management
• Challenges posed by emerging issues and trends in purchasing management
• Coping with challenges posed by emerging issues and trends in purchasing management

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