International Purchasing KNEC Notes – Diploma

Introduction to the Module Unit

International Purchasing is a unit offered to diploma students in supply chain management to equip them with the right attitudes, knowledge and skills to handle purchasing operations effectively in international markets.

General Objectives

By the end of this module unit, the learner should be able to:

• Explain the importance of international purchasing in supply 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

Topics/Course Outline Required by KNEC

Topic 1: Introduction to International Purchasing

1.1. Nature of international purchasing

1.2. Reasons for international purchasing

1.3. Challenges faced in international purchasing

1.4. Overcoming challenges in international purchasing

1.5. Distinction between global sourcing and international sourcing

Topic 2: Procedures and Documentation in International Purchasing

2.1. Methods of specifying requirements in international purchasing

2.2. Procedures involved in international purchasing

2.3. Methods of certifying quality of goods for international markets

2.4. Factors considered in selecting international modes of transport

2.5. Settling disputes in international purchasing

2.6. Procedure for clearing and forwarding goods from overseas suppliers

2.7. Documents used in international purchasing

Topic 3: Sourcing Strategies in International Purchasing

3.1. Sourcing strategies used in international purchasing

3.2. Effects of globalization in international purchasing

Topic 4: Commercial Aspects in International Contracting

4.1. International commercial terms

4.2. Aspects to be considered in commodity markets

4.3. Issues involved in international contract negotiation

4.4. Financing arrangements in international purchasing

4.5. Ethical Issues in international purchasing

Topic 5: Payment Procedures and Methods in International Purchasing

5.1. Factors to consider in processing payment in international purchasing

5.2. Payment procedure in international purchasing

5.3. Methods of settling payments in international purchasing

5.4. Conveyance documents in international purchasing

Topic 6: Institutions Involved in Promoting International Purchasing

6.1. Institutions Involved in Promoting International Purchasing

6.2. The role of institutions in promoting international purchasing

6.3. The role of government in promoting international purchasing

6.4. Regional blocs involved in international purchasing

Topic 7: Emerging Issues and Trends in International Purchasing

8.1. Emerging issues and trends in International Purchasing

8.2. Challenges posed by emerging issues and trends in International Purchasing

8.3. Coping with challenges posed by emerging issues and trends in International Purchasing