Richard France explores four strategic areas of expertise required of a buyer in today's environment:
Financial analysis of suppliers - this includes understanding the financial aspects of a buyer's own organisation as well as analysing key suppliers and how to use information to gain a negotiating edge.
Pricing, costing and cost modelling - including costing methods and their application and how an understanding of these can give a buyer a greater understanding when dealing with supplier quotations.
Managing resources - including budgeting and sources of finance. This shows how budgets are drawn up and the importance of understanding the implications of the buyer's decisions on a supplier's cash flow forecast.
Capital and revenue purchasing decisions and techniques - covering standard investment appraisal techniques and how these can be used for deciding on the best deal from a choice of suppliers for both capital items as well as a standard long term parts supply contract.