Purchasing Procurement Management

Purchasing and Procurement Management is a course that investigates the development and management of strategic sourcing relationships and the strategic role of supply management in effective supply/demand/value chain operations. Purchasing and supply management play an essential role in the ability of the firm to operate efficiently and be competitive in the contemporary global business environment.

The objective of Purchasing and Procurement Management is to make students aware of the demands placed upon purchasing professionals, and to understand the impact of purchasing on the competitive success and profitability of the firm. The course also ensures an understanding of legal and ethical considerations which affect purchasing decision-making.

• Obtain an understanding of the importance of Purchasing and Sourcing management in modern day business, and understand the key role the supply function plays on the competitive success and profitability of modern organizations.
• Obtain an understanding on the function of Strategic Procurement and how it plays a critical role in a company as well as its influence and interdependencies with other corporate functions, such as R&D, manufacturing, accounting, finance, etc.
• Obtain an understanding of the importance of the procurement function in supply chain design and function through its responsibility for the firm’s sourcing strategy.
• Obtain an understanding of the strategic sourcing process, including supplier performance management methodologies, supplier identification, selection, and development, total costs, materials management, transportation and inventory decisions, and environmental and social responsibility issues.
• Be able to explain the role of global sourcing and the procurement process in supply chain management.
• Be are aware of the ethical, contractual, and legal issues faced by procurement professionals, and can distinguish between ethical and nonethical sourcing practices
• Apply latest research and developments in the field to real-life issues, opportunities, decisions, and problems faced by practitioners

A basic understanding of math is recommended, but there are no prerequisites for this course.

Students will be assigned 7 homework assignments, and 1 final exam. 

Chapter 1: Introduction to purchasing and supply management:

Chapter 2: The purchasing process:

• Purchasing objectives and responsibilities
• E-Procurement and the procure to pay process
• Improving the purchasing process

Chapter 3: Fundamentals of Procurement – Overview

• Purchasing to Procurement
• Procurement Basics
• Purchasing to Procurement
• Purchasing as Integral to Supply Chain Management
• Materials and Supplies Purchased
• Services Purchased

Chapter 4: Tactical and Strategic

• Tactical Purchasing Objectives
• Tactical Buying
• Purchasing Functions
• Tactical and Strategic
• Tactical Buying versus Strategic Sourcing
• Organizational Design Considerations
• Centralized versus Decentralized
• Various Roles within Purchasing

Chapter 5: Strategic Sourcing

• Sourcing and Strategic Sourcing
• Strategic Sourcing Objectives
• Strategic Sourcing Activities
• Sourcing Process Steps
• Make-or-Buy Decision
• Cost Avoidance Analysis Training Exercise
• Spend Analysis
• Spend Analysis Documents

Chapter 6: Suppliers

• Supplier Relationships
• Sourcing Alternatives
• Supplier Scoring and Assessment
• Supplier Selection Cost Comparison
• Categories of Supplier

Chapter 7: Pricing

• Overview of Pricing
• Break-Even Analysis
• Discounts
• Purchase Quantity Discount
• Negotiation Objectives
• Design Collaboration
• Advantages of Collaborative Supplier Involvement

Chapter 8: Supplier Relationship Management

• Supplier Relationship Management (SRM)
• Traditional Purchasing versus SRM
• Benefits of Supplier Relationship Management
• Implementing SRM Strategy

 This course is Instructor-led and delivered through our award-winning online Learning Management System.