BUSI4AJ15: Strategic Sourcing (Mannheim)

• Strategic Procurement (BUSI4Y015)

• None.

• None.

• Participants will learn how to set up and manage sourcing projects while considering the broader strategic environment of their organization (competitive, functional, category, and supply base).

• Procurement is about the orchestration of a firms supplier relationships and mandated with the management of external spend. Achieving excellence in procurement is vital to long-term profitability and competitive advantage. This requires a clear strategic direction to distinguish a firms core and noncore activities as well as an appropriate procurement operating model (content of the Strategic Procurement module), but first and foremost excellent strategic sourcing operations, which are the focus of this module. Building on strategic procurement knowledge, this module provides the theoretical background and the practical tools of sourcing from demand analysis all the way to business award decisions and the management of the ensuing buyer-supplier relationships. All major pre-transaction activities
• demand analysis and need specification (specifications, statements of work)
• Supply market analysis
• the RFx process and quotation management
• negotiation and contracting as well as post-transaction activities
• as well as post-transaction activities
• execution of purchase-to-pay process (including its digital transformation)
• expediting
• relationship conflicts
• of sourcing will be covered. Special emphasis is put on advanced procurement approaches that aim at creating value beyond cost and on optimization levers both from a technical (e.g., product teardown analysis, cost modelling including Total Cost of Ownership) and a commercial (e.g., current negotiation concepts in procurement, reverse auctions) perspective as well as current research on supply base segmentation, buyer-supplier relationships, supplier satisfaction / preferred customer status, and inter-firm governance mechanisms.

Subject-specific Knowledge:

• By the end of the module, students should be able to:
• Develop critical understanding of the relationships between procurement strategy, category strategies, and supplier strategies
• Develop advanced knowledge of the frameworks and best practices related to demand and supply analysis
• Develop critical understanding of the role of mechanism design theory as used in reverse auctions
• Develop advanced knowledge of relevant analytical techniques to plan and manage supply chains
• Develop advanced knowledge and understanding of the different mechanisms to ensure that sourcing decisions are designed to make the supply chain resilient and sustainable.

Subject-specific Skills:

• By the end of the module, students should be able to:
• Develop category and supplier strategies in congruence with the procurement strategy and overall supply chain strategy
• Translate needs into requirement specifications and apply should cost modelling (should costing) approaches to support decision making and prepare negotiations
• Utilize frameworks and tools for supply market analysis
• Design and execute basic reverse auctions (procurement auction).

Key Skills:

• Effective written communication
• Planning, organising and time management
• Problem solving and analysis
• Reflecting and synthesising from experience and diverse perspectives.

• The module is delivered via online learning divided into study weeks with activities facilitated by the teaching team and specially produced resources. Facilitated activities will make use of a range of educational technologies to include digital collaboration spaces and live online sessions. Learning resources vary according to the learning outcomes but typically include: video content, directed reading, reflective activities and opportunities for self-assessment.
• The summative assessment portfolio will enable students to further develop their understanding and reflect on their acquisition of skills, articulation of their knowledge and understanding, their ability to apply what they have learned in a particular context, and synthesizing their learning from the module combining their own experience and diverse perspectives of team members.

The formative assessment serves to encourage students to study regularly and to monitor their learning progress. Students will undertake a series of activities aligned to the module content, which can include group presentations, case discussions, individual or group reflections on specific topics receiving ongoing feedback on theoretical knowledge and how it is applied. Tutors provide feedback on formative work and are available for individual consultation as necessary (usually by email and video call). Written feedback will be provided through email or on Learn Ultra.

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