Procurement & Sourcing Introduction

Supply Chain Management and Procurement October 25, 2025
Enquire About This Course

Introduction

This introductory course establishes the essential functions and processes of **Procurement and Sourcing** within a modern organization. It defines the differences between transactional purchasing and strategic sourcing, emphasizing the shift in focus from mere cost reduction to total value capture. Participants will be introduced to key concepts such as the purchasing cycle, supplier selection criteria, and the initial stages of negotiation. This course is indispensable for new team members or those transitioning into a procurement role who need a foundational understanding of how to manage organizational spend ethically and effectively.

Objectives

Upon completion of this course, participants will be able to:

  • Differentiate between the terms purchasing, procurement, and strategic sourcing.
  • Outline the complete procurement cycle from requisition to payment.
  • Apply the "Five Rights of Purchasing" to evaluate sourcing decisions.
  • Identify and evaluate various types of suppliers and selection criteria.
  • Understand the basics of spend analysis and category management.
  • Explain the importance of ethics, transparency, and legal compliance in procurement.
  • Describe the difference between single, dual, and multiple sourcing strategies.
  • Conduct basic preparation for a low-complexity supplier negotiation.

Target Audience

  • Entry-Level Procurement Assistants and Buyers
  • Administrative Staff handling purchase requests
  • Small Business Owners and Entrepreneurs
  • Managers from Finance or Operations moving to Procurement
  • Sales Representatives seeking to understand the buyer's perspective
  • New team members in Supply Chain and Logistics

Methodology

  • Group activity: creating a simple RFP document for an indirect spend item.
  • Case study analysis of a procurement ethics violation.
  • Role-playing a basic negotiation scenario to practice objective setting.
  • Individual exercise: charting the steps of the Purchase-to-Pay (P2P) process.
  • Discussions on the challenges of balancing cost and supplier quality.

Personal Impact

  • Clear understanding of the professional responsibilities of a buyer.
  • Enhanced ability to follow established procurement policies and procedures.
  • Skills to confidently engage in supplier communications and negotiations.
  • Improved ethical decision-making regarding organizational spend.
  • Foundation knowledge for career specialization in strategic sourcing.

Organizational Impact

  • Standardization and compliance with the core procurement process.
  • Reduction in maverick spending and improved spend visibility.
  • Mitigation of fraud and corruption risk through ethical guidelines.
  • More effective initial supplier selection based on defined criteria.
  • Increased professionalism in external supplier interactions.

Course Outline

Unit 1: The Procurement Function Defined

Procurement vs. Purchasing
  • Historical role of purchasing: transactional focus
  • Modern role of procurement: strategic and value-driven
  • The strategic goals of the procurement function (cost, quality, risk, innovation)
  • The difference between direct and indirect spend categories
The Procurement Cycle
  • Step 1: Identifying need and purchase requisition creation
  • Step 2: Supplier sourcing and solicitation (RFx)
  • Step 3: Evaluation, selection, and contract finalization
  • Step 4: Order management and payment (P2P process)

Unit 2: Spend Analysis and Sourcing Strategies

Understanding the Spend
  • Introduction to spend analysis and data classification
  • Identifying the top spend categories and suppliers
  • The importance of aggregating spend for leverage
Basic Sourcing Strategies
  • Single, dual, and multiple sourcing: benefits and drawbacks
  • Introduction to the Kraljic Matrix for segmenting purchased items
  • Make-or-buy decisions: basic considerations

Unit 3: Supplier Selection and Evaluation

The Selection Process
  • Developing clear requirements and specifications
  • Using Request for Information (RFI), Quote (RFQ), and Proposal (RFP)
  • Non-price supplier evaluation criteria (quality, capability, risk)
Due Diligence
  • Checking financial health and operational capacity
  • Introduction to supplier performance metrics

Unit 4: Procurement Ethics and Legal Basics

Ethics and Transparency
  • The importance of ethical conduct, fairness, and impartiality
  • Managing conflicts of interest and accepting gifts
  • The role of policy and codes of conduct in preventing corruption
Legal Fundamentals
  • Introduction to basic contract law and elements of a contract
  • Understanding terms and conditions (T&Cs) and warranties
  • Overview of liability and breach of contract

Unit 5: Introduction to Negotiation

Preparing for Negotiation
  • Defining key negotiation terms (BATNA, ZOPA)
  • Developing objectives and identifying trade-offs
  • Understanding different negotiation styles (e.g., win-win vs. win-lose)

Ready to Learn More?

Have questions about this course? Get in touch with our training consultants.

Submit Your Enquiry