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ECTS Course Overview



Purchasing Management

* Exchange students do not have to consider this information when selecting suitable courses for an exchange stay.

Course Unit Code116-0507/02
Number of ECTS Credits Allocated3 ECTS credits
Type of Course Unit *Choice-compulsory
Level of Course Unit *First Cycle, Second Cycle
Year of Study *
Semester when the Course Unit is deliveredWinter Semester
Mode of DeliveryFace-to-face
Language of InstructionEnglish
Prerequisites and Co-Requisites Course succeeds to compulsory courses of previous semester
Name of Lecturer(s)Personal IDName
SIW009Ing. Markéta Zajarošová, Ph.D.
MIT0085Prof. Mgr. Maciej Mitrega, PhD.
Summary
The course is focused on explaining the position of purchasing in the system of business functions and analysis of its basic activities. Modern business purchasing includes management, marketing, sales and logistics activities. Key attention is paid within the subject to purchasing categories, purchasing strategies, quality management and supplier selection and evaluation activities. Students will learn about modern purchasing management systems, requirements placed on the buyer and modern trends of purchasing such as electronic auctions.
Learning Outcomes of the Course Unit
1. Formulate the politics of purchasing and the run of purchasing process.
2. Explain management and regulation of purchasing process.
3. Evaluate the purchasing strategy and its goals.
4. Explain citeria, approaches and methods of supplier selection.
5. Consider the options of purchase organization improvement in organizations.
Course Contents
1. Category Management:

Category Management. Strategic Sourcing Supply chain selection. Critique of Category Management
Case Study : Analyse of the new buyer

2. Purchasing Strategy:
Strategies for successful purchasing. Performance prism OAS statement. What is the “right” strategy. Performance measurement. Three modes of Measurement. Linking purchasing strategy to corporate competitive strategy Supply strategy implementation.
Case Study : Analysis of the Energy strategy
3. Supplier selection and Decision making:
Multi-criterion supplier selection methods Multi-criteria decision making approaches for supplier evaluation and all selection: A need of information. The process before a buyer make a big decision.
Case Study – A choice of supplier and the decision.
4. Purchasing performance measurement :
Balanced score card - Performance measurement of supply chain management: A balanced scorecard approach. Purchasing performance measurement: Supply chain performance measurement. Negative Impact of Purchasing performance measurement.
Case Study: JV: A system for measure the organization’ Performance
5. Transactional purchasing (TBD)
E-Auctions - Online reverse auctions Common myths versus evolving reality.Traditional Purchasing methods. Purchasing practices to choose from for your supply base. Life-cycle purchasing methods. Integrating product life cycle and purchasing strategies
Case Study: Analyses of an unsuccessful e-auction.

6. Relational Purchasing
Supplier integration. Finding an optimal configuration.
Joint development. Supplier integration into new product development- coordinating product, process and supply chain design. Implementing Supplier innovation. Vertical integration and quasi-integration
Case Study : Analyses Good and bad integration of supplier.

7. Global sourcing
Achieving excellence in global sourcing. International purchasing and global sourcing- what are the differences .On risk and cost in global sourcing

8. Commodity Purchasing
Commoditization. Myth of commoditization – Best-practice in Commodity purchasing. A strategy for managing commodity price risk. Commodity hedging. Fuel Hedging in the Airline Industry. The Case of Southwest Airlines
Case Study- Buying process of Electricity Simulation

9. Behavioral supply chain:
Behavioral supply management: a taxonomy of judgment and decision-making biases. Debasing Strategies in supply management decision-making.
Case Study –Cognitive buying process

10. Negotiation and Conflict resolution:
Negotiation : How to handle extreme negotiations with suppliers. Negotiation. Getting past yes
Conflict resolution: How management teams can have a good fight
11. Centralization- Decentralization of purchasing
Global sourcing in integrated network structures: The case of hybrid purchasing organizations. Pendulum swings. Supply structure. The pendulum in action. Contingency approach. Global purchasing strategy Conceptualization and measurement
Case Study Purchasing officer organization proposal.

12. World Class buyer competencies

Supply management evolution. Key skill sets for supply manager. The changing role of procurement Developing professional effectiveness a contingency approach of procurement competences and attitudes
Case Study: Unskilled and Unaware

13. Rewarding Buyers:

Achieving purchasing competence through purchasing performance system design. Reward alignment. Rewarding with money. The importance of pay in employee motivation. Discrepancies between what people say and what they do.
Case study: Using stretch goals to promote organizational effectiveness and personal growth- General Electric and Goldman Sachs

14. Summary –Making yourself Indispensable
Recommended or Required Reading
Required Reading:
GUTH, Stephen. Project Procurement Management: A Guide to Structured Procurements. North Charleston: Create Space Independent Publishing Platform, 2016. ISBN 978-1522937074.
LYSONS, Kenneth and Brian FARRINGTON. Procurement and Supply Chain Management. Ninth Edition. New York: Pearson Education, 2016. ISBN 978-1-292-08611-8.
MONCZKA, Robert M. et al. Purchasing and Supply Chain Management. Boston: Cengage Learning, 2016. ISBN 978-1-285-86968-1.
GUTH, Stephen. Project Procurement Management: A Guide to Structured Procurements. North Charleston: Create Space Independent Publishing Platform, 2016. ISBN 978-1522937074.
LYSONS, Kenneth and Brian FARRINGTON. Procurement and Supply Chain Management. Ninth Edition. New York: Pearson Education, 2016. ISBN 978-1-292-08611-8.
MONCZKA, Robert M. et al. Purchasing and Supply Chain Management. Boston: Cengage Learning, 2016. ISBN 978-1-285-86968-1.
Recommended Reading:
CHRISTOPHER, Martin. Logistics and Supply Chain Management. Fifth Edition. New York: Pearson Education, 2016. ISBN 978-1-292-08379-7.
MENA, Carlos, Remko van HOEK, Martin Christopher. Leading Procurement Strategy: Driving value through the supply chain. London. Kogan Page, 2014. ISBN 978-0-7494-7033-3.
CHRISTOPHER, Martin. Logistics and Supply Chain Management. Fifth Edition. New York: Pearson Education, 2016. ISBN 978-1-292-08379-7.
MENA, Carlos, Remko van HOEK, Martin Christopher. Leading Procurement Strategy: Driving value through the supply chain. London. Kogan Page, 2014. ISBN 978-0-7494-7033-3.
Planned learning activities and teaching methods
Lectures, Tutorials
Assesment methods and criteria
Tasks are not Defined