Purchasing Management notes – KNEC Diploma

PURCHASING MANAGEMENT

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

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

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




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 7 : 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 8 : 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 9 : 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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