Course outline
OROMIA STATE UNIVERSITY
COLLEGE OF FINANCE AND MANAGEMENT STUDIES
Department of Procurement and Property Management
Program: Procurement and Property Management
Course Title: Strategic Procurement Management
Course Code: PPMG242
Degree Program: BA in Procurement and Property Management
Year/semester: Year III Semester II
Pre-requisites: PPMG231
Status of the course: Major
Credit hours: 3
Course Description
Procurement plays a critical role in supply chain operations. As supply chains become more
globalized, procurement has evolved from a buying activity to a strategic business operation.
Progressive organizations leverage their procurement and sourcing processes to gain competitive
advantages. This course examines how firms set their procurement strategies – how they plan
and execute their procurement and sourcing activities to support corporate goals and business
objectives. Issues relating to supplier evaluation, selection and measurement will be
discussed. Furthermore, the course is designed to describe the nature and the scope of
procurement in the long, medium and short term.
Learning objectives
Up on the completion of the course, student
Describe the issues to be considered when developing a procurement strategy for an
organization
Articulate the objectives of a procurement activity for an organization
Conduct procurement spend analysis, supply risk assessments, demand and supply
market analysis
Model and implement strategies for significant procurement
Implement strategies for routine, volume, critical and strategic categories
Align systems, capabilities, and administrative processes with strategic objectives
Measure performance, outcomes and results
Understand the organizational procurement life cycle- process, practices, risks mitigation
and managing change.
Understand and have ability to maintain relationships with suppliers
Understand the demand management in integrated supply chain
Manage time and apply professional practices in the areas of applied analysis, creative
thinking, and communication
Administer the supplier selection and negotiation process
Apply research practices and research based knowledge
Course contents/Outline
CHAPTER ONE: INTRODUCTION STRATEGIC PROCUREMENT MANAGEMENT
1.1 Introduction
1.2 Corporate Planning
1.2.1 The Need for Corporate Planning
1.2.2 The Nature of Corporate Planning
1.2.3 The Contents of a Corporate Plan
1.3 Purchasing Planning and Strategies
1.3.1 Stages in the Development of a Corporate Plan for Purchasing
1.4 Corporate and Environmental Factors
1.5 Make or Buy decisions,
1.6 Ethical purchasing
1.7 Procurement agencies.
CHAPTER TWO: FUTURES OF PROCUREMENT AND SUPPLY
2.1 Introduction
2.2 Globalization
2.2.1 Politics 2.2.4 Climate
2.2.2 Infrastructure 2.2.5 Culture
2.2.3 Currency
2.3 Industry Consolidation
2.3.1 Strategic Alliance
2.3.2 The global providers
2.4 Technology Advancement and Supply Synchronization
2.5 Procurement Strategy
2.6 Future of procurement Technology
2.6.1 E-Commerce (Virtual Integration and Open Markets)
2.7 Suppliers Integration
CHAPTER THREE: PROCUREMENT RELATIOSHIP MANAGEMENT
3.1 Understanding relationships relative to today’s supply chain management
3.2 Purchasing Role in 21st Relationship Management
3.2.1 Overall role
3.2.2 Role with senior managers
3.2.3 Role with internal team members and customers
3.2.4 Role with suppliers
3.3 Conducting Your relationship Management Gaps Analysis
3.3.1 Identify critical relationship
3.3.2 Assessing personnel strengthens and Improvement areas
3.3.3 Steps to close gaps in the key areas
3.3.4 Setting yourself as a change agent
3.4 Driving supply chain Performance through effective relationship management
3.4.1 Understanding the role of Corporate Culture
CHAPTER FOUR: DEVELOPING PURCHASING ORGANIZATIONS
4.1 Introduction
4.2 Procurement as Competitive Advantage to be Developed for Success
4.3 The evolution of purchasing Function
4.4 Supply Market Management
4.5 The Organizational Fundamentals
4.6 Developing Purchasing Organizations: The People part of Organization
CHAPTER FIVE: HUMAN RESOURCE MANAGEMENT STRATEGIES IN
PROCUREMENT
5.1 Personnel planning
5.2 Supply Management Positions
5.3 Recruitment methods
5.4 Interview and Selection
5.5 Equal Opportunity and Diversity
5.6 Compensation
5.7 Knowledge and Skills Development
5.8 Team Based Skills
5.9 Performance Management
5.10 Disciplinary Issues
Course delivering methodology and strategy
The main teaching strategy of the course is to give activities which make the learners to drill throughout
the chapter and then assisting them while working. In addition:
Principles and the underlying concepts will be explained and discussed
Class lectures, discussions, dialogue, and sharing individual student experience as the learning-
teaching method
Encourage cooperativeness among learners
Problem Base Learning (PBL) where instructor’s role is to facilitate and students will be exposed
to problems and pass through each step until possible suggestions for problem solving are
formulated, tested and can be implemented in real business world
Classroom is used as a workplace to discuss concepts, principles and perform activities
Assessment Criteria
Proactive class participation
Working on each and every activities provided in a classroom or at home
Timely submission of each and every assignment provided
Analytical skills, language proficiency and reporting capacity for individual or group assignment
Level of compression of what is learned in class/lecture
Assessment Strategy
Based on the set criteria to assess the learning outcomes of students, the following shall be applied as
assessment strategies.
Continuous exercise are provided which helps the learners to achieve the expected learning
objectives and subsequent learner outcome
Students are required to propose and present possible solution(s) for the activities in oral or in
writing
Class presentation of groups what they learned from the reading and exercises
Neatness, clarity and preciseness of their work will be considered
Equal opportunity will be provided for students to reflect in class, ask questions, present solution
for the exercises and share their individual experiences
Sit examinations for closed book system
Course Policy
All students are expected to:
Abide by the code of conduct of students throughout this course.
No student is allowed to enter in to the class after the class begins.
Moving chairs, talking with friends and making any disturbance during class is completely
forbidden.
A student who is not feeling right (health problem) can go out of the class without disturbing
others.
Be active participants in class discussion, in doing assignments and in presenting assignments and
group works on time.
Attend classes regularly. A student who failed to attend more than 15% of the allotted class for
the course will not sit for final exam.
Switch off or make it silent of cell phones when joining the class.
Be active in reading all materials since they will be part of either exams or assignments.
Follow instructions in doing every activity provided accordingly
Assessment Methods
For the purpose of insuring how students meet the main objective of the course, the following evaluation
methods will be used:
Individual Assignment………………………..………………………………..10%
Group Assignment ……………………………………………………………………10%
Test 1………………..…………………………………………………………………………10%
Test 2 ……………………………………..………………………..……………………...20%
Final Examination ………………………………………………………….. 50%
Total………………………………………………………………………………………. 100%
Reference
1. Joseph L. Cavinato & Ralph G. Kauffman (2000).THE PURCHASING HANDBOOK A
Guide for the Purchasing and Supply ProfessionalSIXTH EDITION. McGraw-Hill
Companies.
2. Michael Quayle (2006). Purchasing and Supply Chain Management: Strategies and Realities.
IRM Press
3. Burt N. David, Donald W. Dobler and Stephen L. Starling (2003). World Class Supply
Management: TheKey to Supply Chain Management, 7th Ed. Tata McGraw-Hill pub. Co.,
Delhi
4. Nair N K, 2003. Purchasing and Materials Management. 2nd Ed. Vikas Publishing House,
New Delhi,
5. Leanders, Johnson and Flynntearon (2008). Purchasing and supply management 13th edition
McGraw-hill international edition.
6. Baily, Farmer, Jessop and jones (2005). Purchasing principle and management 9th edition
prentice hall.
7. Arjan J. van weele 2005 purchasing and supply chain management 4th edition.
8. Eindhoven University of technology, Netherlands.
