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procurement

Procurement

Course length

This course is one-week long.

Marks overview

  • Learning Exercise 1 25%
  • Learning Exercise 2 25%
  • Daily activities 10%
  • Final exam 40%

Textbook

Learning Exercises

Index

  • 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

Other resources

  • For statistics, tools, country indicators, Project Mgmt tutorials and courses, etc. see resources

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

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

Learning Exercise 1 is due today.


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

Learning Exercise 2 is due today.


Day 5

  • Final exam

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.
procurement.txt · Last modified: 2021/07/09 22:54 by Eric Bright