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2020/2021  KAN-CCMVV2503U  Global Sourcing Management

English Title
Global Sourcing Management

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Quarter
Start time of the course First Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 90
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Britta Gammelgaard - Department of Operations Management (OM)
Main academic disciplines
  • Globalisation and international business
  • Supply chain management and logistics
Teaching methods
  • Blended learning
Last updated on 04-06-2020

Relevant links

Learning objectives
Overall, the course objective is to provide students with concepts, models and frameworks to analyse and develop global sourcing management practices. Specifically, the learning objectives are the following:
  • Identify relevant organizational challenges in management of global sourcing and discuss the impact on the organization as a whole
  • Identify processes, techniques and assessments in order realise global sourcing synergies
  • Explore and discuss effective category management strategies and processes in order to balance cost, risk, and value
  • Structure relationships with suppliers and prepare negotiations
  • Analyze and discuss the impact of digitalization on global sourcing management
Examination
Global Sourcing Management:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Max. 15 pages
Assignment type Project
Duration Written product to be submitted on specified date and time.
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Autumn
Make-up exam/re-exam
Same examination form as the ordinary exam
* if the student fails the ordinary exam the course coordinator chooses whether the student will have to hand in a revised product for the re-take or a new project.
Description of the exam procedure

The project must be prepared by the student within the framework of the course plan and syllabus. The project should take its point of departure in a self-chosen case of global sourcing management. 

Course content, structure and pedagogical approach

Identifiying buying synergies across the organization is the basis of global sourcing management. Based on these synergies, buying tasks are categorized - most often by the procurement department - in order to capture maximum value from complex global sourcing activities. The course therefore first and foremost deals with the various challenges and management dilemmas the procurement category manager is facing when sourcing globally. Examples of such dilemmas are whether sourcing should take place from a local or global organizational unit and what type of supplier relationship should be developed for a specific category.

 

The course also digs into how products and suppliers may be categorized as well as impact of the choices made. Contract management and compliance is further discussed as well as approaches to negotiations with suppliers. Last, but not least, digitalization of procurement practices through f. ex. AI and e-procurement is discussed.

 

Real-life category managers will present real-life challenges as they experience them in their organizations in class. We will then discuss these cases by applying the theoretical concepts and models to expand the understanding and learnings from particular cases to more general global sourcing management situations.

Description of the teaching methods
Lessons are a combination of practice case presentation and discussions of these cases. Preparation for class is a prerequisite for full benefit of class activities.
Feedback during the teaching period
Oral feedback on case discussions in class.
Student workload
Preparation of lectures 125 hours
Lectures 33 hours
Exam - writing a project 48 hours
Further Information

This course is part of the Minor in Strategic Procurement but can be taken separately. 

Expected literature
  • Andersen, P.H., Rask, M. (2003), “Supply chain management: new organizational practices for changing procurement realities”, Journal of Purchasing & Supply Management, 9, pp. 83-95

  • Arnold, U. (1999), “Organization of global sourcing: ways towards an optimal degree of centralization”, European Journal of Purchasing & Supply Management, vol. 5, pp. 167-17

  • Cox, A. (2015), “Sourcing Portfolio Analysis and power positioning towards a “paradigm shift” in category management and strategic sourcing”, Supply Chain Management: An International Journal, 20(6), pp. 717-737

  • Gelderman, C.J.; Semejin, J., (2006): “Managing the global supply base through purchasing management”, Journal of Purchasing and Supply Management, 12(4). 209-217

  • Gonzalez-Padron, T.; Hult, G. T. M.; Calantone, R. (2008): “ Exploiting innovative opportunities in global purchasing: An assessment of ethical climate and relationship performance", Industrial Marketing Management, January, 37(1), pp. 69-82

  • Hartmann, E., Trautmann, G., Jahns, C., (2008), “Organisational design implications of global sourcing: a multiple case study analysis on the application of control mechanisms”,Journal of Purchasing & Supply Management, 14, p. 28–42

  • Heikkilä, J.;  Kaipia, R. (2009), “Purchasing Category Management – From Analyzing Costs to a Proactive Management Practice”, IPSERA Conference, Wiesbaden

  • Hultman, J.; Johnsen, T.; Hertz, S. (2012); “An interaction approach to global sourcing: A case study of IKEA”, Journal of Purchasing & Supply Management, 18(1), pp. 9-21

  • Jorgensen, F., Johansen, J. and Mikkelsen, O.S.. (2008), ‘‘Commodity Team Motivation and Performance’’, Journal of Purchasing and Supply Management, 18(4), pp. 42-57

  • Kraljic, P. (1983), “Purchasing Must Become Sourcing Management”, Harvard Business Review, September, 61(5), pp. 109–17

  • Luzzini, D.; Longoni, A.; Moretto, A.; Caniato, F.; Brun, A., (2014), “Organizing IT purchases: Evidence from a global study”, Journal of Purchasing and Supply Management, 20 (3), pp. 143-155

  • Monczka, R. M.; Trent, R. J.; Petersen, K.J. (2006): “Effective Global Sourcing and Supply for Superior Results” CAPS Research

  • O’Brien, J., (2012), “Category Management in Purchasing”, United Kingdom: Kogan Page Ltd.

  • Rozemeijer, F. 2000. "How to Manage Corporate Purchasing Synergy in a Decentralised Company? Towards Design Rules for Managing and Organising Purchasing Synergy in Decentralised Companies", European Journal of Purchasing & Supply Management , 6(1), pp. 5-12

  • Schiele, H.; Philipp Horn, P; Bart V. (2011): “Estimating cost-saving potential from international sourcing and other sourcing levers; Relative importance and trade-offs", International Journal of Physical Distribution & Logistics Management, Vol.41(3), pp. 315-336

  • Smart, A.; Dudas, A., (2007),"Developing a decision-making framework for implementing purchasing synergy: a case study", International Journal of Physical Distribution & Logistics Management, 37(1), pp. 64 – 89

  • Trautmann, G; Turkulainen, V.; Hartmann, E.; Bals, L. (2009),  “Integration in the Global Sourcing Organization – An Information Processing Perspective”,Journal of Supply Chain Management, 45( 2), pp. 57-74

  • Trautmann, G., L. Bals and E. Hartmann. ‘‘Global Sourcing in Integrated Structures: The Case of Hybrid Purchasing Organizations,’’ Journal of International Management, 2009, 15(2), pp. 194-208

  • Trent, R.J. 2004. "The Use of Organizational Design Features in Purchasing and Supply Management", Journal of Supply Chain Management, 40(3), pp. 4-18

  • Quintens, L., P. Pauwels and P. Matthyssens. (2006), ‘‘Global Purchasing: State of the Art and Research Directions,’’ Journal of Purchasing and Supply Management, 12(4), pp. 170-181

  • Voss, F.G.S. et al (2016), “Does global sourcing pay-off? A competitive dynamics perspective”, Journal of Purchasing & Supply Management, 22(4), pp. 338-350

  • Wynstra, F. et al, (2017), “How is service procurement different from goods procurement? Exploring ex ante costs and ex post problem s in IT procurement”, Journal of Purchasing and Supply Management, forthcoming.
     
Last updated on 04-06-2020