The document discusses the evolution of purchasing skills from a clerical function in the 1960s to a strategic function facing increased competition. It analyzes research from the 1990s that identified important purchasing skills like technical, managerial, interpersonal, and individual skills. The document then defines key practical purchasing skills, such as analytical skills, computer literacy, communication skills, interpersonal skills, managerial skills, negotiation skills, and technical and financial skills.
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Practical purchasing skills
1.
2. WHY
• Several organizations have transformed their
purchasing capabilities into competitive
advantage tool.
• Facing an intensified international competition,
an increase in outsourcing and technological
advances the purchasing function evolved
radically from a basic clerical to a tactical
strategic function
3. PRIOR CONCEPTS
• In 1960’s purchasing was refer to be an clerical
function of an organization.
• In 1980’s evolved from a clerical function to
operational function.
• In 1990’s purchasing consider as the imp. Tool
for profit maximization.
4. VARIOUS RESEARCH
• Kolchin and Giunipero (1993)
• Killen and Kamauff (1995)
• Down & Liedtka (1994)
• Cavinato (1987)
• Murphy (1995)
• Stephen C Carter, 2011
5. • Until 2000, only a few articles in academic journals
addressed purchasing skills.
• Kolchin and Giunipero (1993) used a sample of
131 supply management executives to identify the
skills that are essential for supply management
professionals.
• They identified a list of 18 skills and divided these
skills into four categories.
1. Technical
2. Management
3. Interpersonal/group
4. Individual
7. Analytical skill
• Analytical skill is the ability to visualize,
articulate, conceptualize or solve both
complex and uncomplicated problems by
making decisions that are sensible given the
available information.
8. Computer literacy
• Computer literacy is the ability to use
computers and related technology efficiently,
with a range of skills covering levels from
elementary use to programming and
advanced problem solving.
9. Communication skills
• communication skills in the workplace is all
about being able to convey information to
people clearly and simply, in a way
that means things are understood and get
done. It's about transmitting and receiving
messages clearly, and being able to read your
audience.
10. Interpersonal skills
• The skills used by a person to properly
interact with others. In the business domain,
the term generally refers to an employee's
ability to get along with others while getting
the job done. Interpersonal skills include
everything from communication and listening
skills to attitude and deportment.
11. Managerial skills
• The ability to make business decisions
and lead subordinates within a company.
12. Negotiation skills
• Negotiation is a dialogue between two or
more people or parties intended to reach a
mutually beneficial outcome, resolve points of
difference, to gain advantage for an individual
or collective or to craft outcomes to satisfy
various interests.
13. Technical skills
• It include :-
1. Knowledge of materials,
2. Production systems and technologies,
3. materials management and inventory
systems, and JIT,
4. Quality systems and options,
5. Contract manufacturing relationships,
6. Costing
14. Financial skills
• In include:-
1. Financial analysis
2. Activity based costing
3. Understanding profit and loss accounts and
balance sheets
4. Understanding cash flow
5. Understanding break-even analysis
