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PART 1
INTRODUCTION
Traditionally, procurement has been characterised primarily with transactional processing
with little or no strategic decision-making responsibility. Today procurement has evolved into
a strategic element and considered as a competitive tool for achieving company objective.
Procurement has developed as a valuable tactical element, overseeing the day-to-day
logistics operations with the supply base, while a new element in the procurement process,
sourcing, has taken the longer-range, strategic role: finding, qualifying, developing, and
contracting with domestic and global supply organizations.
In today’s increasingly competitive and globalized world, firms are trying to find ways to
improve their performance and differentiate themselves from their rivals. Clearly, suppliers
can have great impact on a firm’s total cost and help in this differentiation process. Increased
levels of outsourcing and offshoring make correct selection of suppliers and their quality,
along with development of relationships between suppliers and producers, more crucial than
ever. Whatever the supplier provides, the effective organization needs a robust system to
procure the correct goods and services at the best possible price for the organization. Once
the organization has made the decision to procure goods and services from another
organization, both organizations must clearly define the parameters of the relationship. This
course aims to provide students with an understanding of the impact that sourcing and supply
management has on the success and profitability of firms in today’s business environment.
1
COURSE OBJECTIVES (CO)
By the end of this course, students will internalize concepts and practice skills that will enable
them to:
1. Understand the importance of sourcing and supplier management in today’s business
environment.
2. Familiarize with the basic concepts, techniques, methods and applications of sourcing and
supplier management, including: supplier selection, sourcing decisions, managing supplier
performance, and negotiations.
3. Enhance analytical skills and ability to uncover problems and opportunities for
improvement in supply chain and overall organizational performance.
COURSE CONTENT
Purchasing and supply Process
Supply Management Integration
Supply Management Organization
Supply & commodity strategy
Supplier Evaluation & Selection
Supplier Quality
Supplier Development
Global Sourcing
Strategic Cost Management
Negotiation & Conflict Management
Purchasing Ethics
Services Purchasing
Supply Performance Management
2
OTHER REFERENCE MATERIALS:
a. Leenders, Johnson, Flynn & Fearon (2010) Purchasing and Supply Management, (13 th
Edition), TMH
b. Donald W Dobler & David N Burt, Purchasing and supply management : text and cases,
(6th Edition), TMH.
c. J.R. Tony Arnold, Stephen Chapman, Lloyd Clive (2010), Introduction to Materials
Management, (6th edition), Pearson
POLICY ON PLAGIARISM:
No tolerance towards plagiarism. If plagiarism is suspected in any academic work of students,
it shall be subjected to appropriate plagiarism checks and reported to PGP Office with
recommendations.
{a} END-TERM
Evaluation Weightage (%) Duration (in minutes) Open/close Book CLO tested
CLO 2 and
End-Term 40 120 Closed
CLO 3
3
PART 2: SESSION PLAN
Sessions
Topic Pedagogy Readings
No
Introduction to course and
1 Lecture Chapter 1
Live Project Kick-off
-- Purchasing and supply
Chapter 2 and 4
Process
2 Lecture “Purchasing Must Become Supply
-- Supply Management
Management” by Peter Kraljic (HBR)
Integration
Lecture and
12 Supplier Development Chapter 10
exercises
Quiz 1 (10%)
4
Sessions
Topic Pedagogy Readings
No
Chapter 11
Lecture and Strategic Sourcing – from periphery to
13
Global Sourcing exercises the core (HBR)
Quiz 2 (10%)
20 Course Wrap-up
5
PLG MAPPING FOR THE COURSE
Addressed CLO
PLG# Program Level Learning Goal by Course? No.
(Yes / No)
Application of Fundamentals
PLG1 Traits: Demonstrate application of functional / conceptual No N/A
knowledge to business situations
Problem Identification and Solution
PLG2 Traits: Demonstrate ability to identify a problem, critically assess Yes CLO 3
various alternatives and suggest appropriate solution
Integrative Thinking
Traits: Demonstrate ability to identify inter-linkages among
PLG3 Yes CLO 2
functional areas within an enterprise and assess the impact of
external environment on its performance
Effective Communication
PLG4 No N/A
Traits: Demonstrate proficiency in Oral and Written Communication
Ethical Responsibility
PLG5 Traits: Demonstrate awareness and assess impact of ethical No N/A
behavior on business
Leadership
PLG6 Traits: Demonstrate capability to take leadership role in a business No N/A
situation