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2012/2013  KAN-CM_SU9G  Introduction to Purchasing in a Globalized Market (Intensive)

English Title
Introduction to Purchasing in a Globalized Market (Intensive)

Course information

Language English
Exam ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration Summer
Course period Summer
6 week course (3 weeks of classes, 3 weeks of exam). NOTE: The course scedule is at the moment ONLY available at www.cbs.dk
Time Table Please see course schedule at e-Campus
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Faculty - Rolando Tomasini
    Patricia Plackett - Department of Operations Management
Main Category of the Course
  • Supply Chain Management and Logistics
Last updated on 23-04-2012
Learning objectives
  • Understand the impact and strategic importance of the procurement function for an organization
  • Gain an understanding of the relationship between purchasing, logistics and supply chain management, and learn how they interact in positive and negative ways for the organisation
  • Analyze the potential gains and challenges in recurring to sourcing abroad, especially in emerging countries
  • Develop a sense of market intelligence by analyzing the different economic and financial factors that impact cost and prices
  • Be able to evaluate a supplier profile (finance, and technical), performance (quality and relationship), and added value (strategic fit and partnership potential)
  • Be able to formulate a procurement strategy in line with the different objectives of a company
A basic understanding of supply chain management, logistics, and/or finance would be very helpful to students taking this course. Additional experience or interest in sales or manufacturing may also be an asset for class discussions.
Introduction to Purchasing in a Globalized Market (Intensive)
Project/Home Assignment (Individually written), 15 A4 pages:
Type of test Home Assignment
Marking scale 7-step scale
Second examiner No second examiner
Exam period Summer Term
Aids Please, see the detailed regulations below
Duration Please, see the detailed regulations below
Mandatory feedback assignment to be handed in order to be able to write the project/home assignment.

The Project/Home Assignment (Individually written), 15 A4 pages,
will be given to the students in which they will analyze the procurement strategy of a company, review the financial performance of a set of suppliers and eventually propose a cost reduction/value added strategy for the organization.
Course content
This course is intended to provide students with an introduction to the increasingly important function of procurement. Through the different modules the students will understand the strategic role that purchasing can play to drive a firm’s competitiveness and its links to the other main functions.
For a global overview we will review the basics of finance, marketing, legal and operations management that relate to purchasing. For example, we will review of series of key financial ratios that provide an insight to a supplier’s situation, apply them to a set of suppliers, discuss how they affect a negotiation, how they can be applied to contractual agreements (different clauses to consider in a negotiation), and finally how to link the analysis with the supply chain. Throughout the course we will also share some industry best practices in tendering, and sourcing from emerging countries, and the link to sustainable development in an increasingly globalized economy.
Exercises will be based on case studies, publically available financial reports, and industry reports all leading you to final project that will count for the totality of your grade.
 Lecture TopicObjective
1Procurement: A Strategic FunctionUnderstand the impact procurement in the firm and how it fits with the different functions (marketing, finance, production, logistics, sales)
2FinanceReview some basics of finance related to procurement to analyze a supplier’s profile and determine the type of relationship the can be built with them
3Costs and IndexingFamiliarize with sources and use them to forecast their impact on cost and estimate future prices
4LCCDiscuss challenges and opportunities for working with emerging market suppliers
5Portfolio and Category ManagementGuest Speaker – to provide practical experience from an organizations approach to managing suppliers
6Supplier Relationship Management & Sustainable PurchasingUnderstand the emerging trend in the industry, its success and failures. Consider sustainable development and ethics as a part of the relation
7ContractsDiscuss different legal issues around formalizing the relationship with a supplier.
8Tenders and BiddersReview best practices for the process of calling for tenders and reviewing bids from suppliers
9Group PresentationsIn class exercise results from simulation
10Review and ExamProvide an overview of the course and discuss exam content, logistics, and expectations
The course’s development of personal competences:
Students in this course will learn to explore through quantitative and qualitative analysis the procurement function and its related disciplines (finance, sales, production, logistics, marketing). They will be asked to combine them and express them in a coherent manner for negotiations and board presentations.
Teaching methods
The course will be taught through a series of lectures, case studies and in-class individual/group exercises. In-class exercises will include evaluating financial reports of potential suppliers and their catalogues and prices. An industry guest speaker will be considered (pending availability) for an in-class presentation and panel discussion.
Expected literature
Literature still under review. 
Dolan,T. and Fedele, K. (2004). Strategic Sourcing: Reducing Cost and Supporting Diversity Goals. 89th Annual International Supply Management Conference, April 2004. pp. 1-6
Gocke, A., Lang, N., Lee, D., Mauerer, S., Pandey, A. “Bringing Under-Performing Suppliers” Supply Chain Management Review. Jan/Feb 2011. Pp. 38-44.
Gocke, A., Lang, N., Lee, D., Mauerer, S., Pandey, A. “Supplier Development: Bonanza or Burts”. BCG Report, March 2011. pp. 3-13
Brammer, S., Hoejmose, S., and Millington, A. “Managing Global Sustainable Supply Chains: A Review of the Body of Knowledge”. Network for Business Sustainability 2011. pp. 1-73.
“Value of Sustainable Procurement Practices. A quantitative analysis of value drivers associated with Sustainable Procurement Practices”. Presentation by INSEAD, EcoVadis, and PriceWaterhouseCoopers. 2010. P1-28.
Vodafone Code of Ethical Purchasing (Version 2.0). pp. 1-6
Last updated on 23-04-2012