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.