Procurement ====== Course length ====== This course is one-week long. ====== Marks overview ====== * Assignment 1 25% 50% * Assignment 2 25% * Daily activities 10% * Final exam 40% ====== Textbook ====== * See [[textbooks#procurement| Procurement]], 6th ed. ====== Assignments ====== * A1 due on day 5 * Details of the [[procurement_assignment_1 | assignment 1]] * A2 due on day 4 * Details of the Procurement assignment 2 ====== Index in the 6th edition ====== ++++ Note: The page numbers in the 7th ed. of the book would be shifted by a few pages | * Ch 1 pp. 8—11 * Ch 2 pp. 41—45 and 63—73 * Ch 3 p. 104 * Ch 5 pp. 171—173, 180 * Ch 6 pp. 193—204, 227, 228—229, 231, 230—235, 236 * Ch 7 p. 264 * Ch 8 pp. 285—321, 288, 303 * Ch 9 pp. 332—339, 340-342 * Ch 11 p. 409, 412—418, 428—438, 458, p. 444 * Ch 13 p. 504 * Ch 15 pp. 580—581 * Ch 17 pp. 691—692 ++++ ====== Valuable resources ====== ++++Tools and definitions | * For statistics, tools, country indicators, Project Mgmt tutorials and courses, etc. see **[[resources]]** * [[https://templatelab.com | Template Lab]] - (see also [[https://templatelab.com/requisition-forms/ | Requisition forms]] and [[https://templatelab.com/purchase-order-templates/|Purchase Order Templates]]) ===== Definitions ===== > “CIPS Australia motivated a debate on an agreed procurement lexicon. The following statements were proposed: > > Procurement is the business management function that ensures identification, sourcing, access and management of the external resources that an organisation needs or may need to fulfil its strategic objectives. > > Procurement exists to explore supply market opportunities and to implement resourcing strategies that deliver the best possible supply outcome to the organisation, its stakeholders and customers. > > Procurement applies the science and art of external resource and supply management through a body of knowledge interpreted by competent practitioners and professionals. > > [...] > > The author provides two more definitions of procurement. > > Procurement is a pro-active, strategic corporate activity to ensure a continuing supply of goods and services to enable world-class organisational performance. > > Procurement manages supply chain risks through the effective negotiation of contracts, cost and price models, quality and other essential supply characteristics.” (Lysons & Farrington, 2016) * To supply the organisation with a flow of materials and services to meet its needs. * To ensure continuity of supply by maintaining effective relationships with existing sources and by developing other sources of supply either as alternatives or to meet emerging or planned needs. * To buy efficiently and wisely, obtaining by ethical means the best value for every pound spent. * To maintain sound cooperative relationships with other departments, providing information and advice as necessary to ensure the effective operation of the organisation as a whole. * To develop staff, policies, procedures, and organisation to ensure the achievement of these objectives. (Baily, Farmer, & Crocker, 2015) ++++ ---- ====== Day 1 ====== ===== Learning Objectives ===== * Analyse the history of purchasing * Understand the importance of purchasing * Describe the stages within the purchasing process * Understand the objectives, which impact purchasing * Explain the various types of purchasing documents (RFI, RFP, RFQ) ---- ====== Day 2 ====== ===== Learning Objectives ===== * Explain aligning objectives strategy components and their importance * Analyse a supply management structure * Understand category strategy and its impact on supply management and commodity strategy development * Explain what spend analysis is along with the Pareto charts tool * Describe the various steps within the sourcing process * Understand the types of supply management strategies ++++Extras | ===== Recommended articles ===== * [[https://innovecs.com/blog/why-outsourcing-software-development/ | Tips and Tricks To Make Outsourcing Software Development Work For Your Business]] * [[https://innovecs.com/blog/how-to-choose-outsourcing-partner/ | How to Choose Outsourcing Partner For Reaching Your Goals]] ++++ ---- ====== Day 3 ====== ===== Learning Objectives ===== * Understand the supplier evaluation and selection process * Analyse supplier scorecards and their application to supplier evaluation * Describe key supplier evaluation criteria * Explain supplier quality ---- ====== Day 4 ====== ===== Learning Objectives ===== * Analyse cost reductions * Explain price and cost analysis * Describe what total cost of ownership is * Understand cost management * Analyse rationalization and optimization and impact on strategic cost management * Explain what a supplier development process map is and the value of it Assignment 2 is due today. ---- ====== Day 5 ====== * Final exam * Assignment 1 is due today ====== Works cited ====== * Baily, P. J. H., Farmer, D. H., & Crocker, B. (2015). //Procurement, principles & management//. London: Pearson. * Lysons, K., & Farrington, B. (2016). //Procurement and supply chain management//. * Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). //Purchasing and supply chain management// (6th ed.). Cengage Learning.