International Purchasing notes – KNEC Diploma

INTERNATIONAL PURCHASING

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

• Diploma in Supply Chain Management – Module III

Introduction

This module unit is intended to equip the trainee with necessary knowledge, skills and attitudes that will enable him/her to handle purchasing operations effectively in international markets.

General Objectives

By the of the module unit, the trainee should be able to:

• Explain the importance of international purchasing is supph chain management
• Describe the procedures and documentation involved in international purchasing
• Apply the sourcing strategies used in international purchasing
• Explain the commercial aspects related to international purchasing
• Outline the payment procedures and instruments used in international purchasing
• Describe the role of institutions that are concerned with promoting international purchasing

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

Topic 1: Introduction to International Purchasing

• Nature of international purchasing
• Reasons for international purchasing
• Challenges faced in international purchasing
• Overcoming challenges in international purchasing
• Distinction between global sourcing and international sourcing

Topic 2: Procedures and Documentation in International Purchasing

• Methods of specifying requirements in international purchasing
• Procedures involved in international purchasing
• Methods of certifying quality of goods for international markets
• Factors considered in selecting international modes of transport
• Settling disputes in international purchasing
• Procedure for clearing and forwarding goods from overseas suppliers
• Documents used in international purchasing

Topic 3: Sourcing Strategies in International Purchasing

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• Sourcing strategies used in international purchasing
• Effects of globalization in international purchasing

Topic 4: Commercial Aspects in International Contracting

• International commercial terms
• Aspects to be considered in commodity markets
• Issues involved in international contract negotiation
• Financing arrangements in international purchasing
• Ethical issues in international purchasing

Topic 5: Payment Procedures and Methods in International Purchasing

• Factors to consider in processing payment in international purchasing
• Payment procedure in international purchasing
• Methods of settling payments in international purchasing
• Conveyance documents in international purchasing

Topic 6: Institutions Involved in Promoting International Purchasing

• Institutions involved in promoting international purchasing
• The role of institutions in promoting international purchasing
• The role of government in promoting international purchasing
• Regional blocks involved in international purchasing

Topic 7: Emerging Issues and Trends

• Emerging issues and trends in international purchasing
• Challenges posed by issues and trends in international marketing
• Coping with challenges posed by issues and trends in international marketing