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2018/2019  KAN-CCMVV1725U  Performance Measurement in Procurement Organizations

English Title
Performance Measurement in Procurement Organizations

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 60
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Melanie Lucia Feldhues - Department of Accounting (AA)
Main academic disciplines
  • Accounting
  • Supply chain management and logistics
Teaching methods
  • Face-to-face teaching
Last updated on 13-08-2018

Relevant links

Learning objectives
  • Understand and explain the relationship between different roles of procurement and analysis techniques rooted in management accounting.
  • Explain how management accounting methods can be applied to solving specific decision problems within procurement.
  • Critically reflect on financial and non-financial performance metrics and evaluate in which context they are suitable to manage the procurement function.
Performance Measurement in Procurement Organizations:
Exam ECTS 7,5
Examination form Oral exam
Individual or group exam Individual exam
Duration 20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Preparation time With the listed preparation time: 20 Minutes
Grading scale 7-step scale
Examiner(s) Internal examiner and second internal examiner
Exam period Winter
Aids Open book: all written and electronic aids
The student is allowed to bring to the preparation room: Simple writing and drawing utensils, laptop/tablet as a reference book (NB: there are no electric outlets available), any calculator, books including translation dictionaries, compendiums, notes. PLEASE NOTE: Students are not allowed to communicate with others during the preparation time.
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure

Oral exam. 20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade.

Course content and structure

The overall aim of the course is to outline how decision problems in the procurement function of an organisation can be solved based on analysis techniques rooted in management accounting.


The course begins with a discussion of the different roles of the procurement function. Subsequently, management accounting methods to derive and analyse key performance indicators of the procurement function are discussed and illustrated based on Harvard Business School case studies. In addition to strategic cost management in procurement with a focus on financial metrics, non-financial performance indicators are covered in the course.


The highlight of the course is the Live-Case where selected theoretical content of the course will be applied to a practical problem. Students receive a presentation by company representatives and get the opportunity to ask questions. Thereafter, they have time to define and delimit the problem and to work on a solution. The solution is presented in front of company representatives where students receive individual and group feedback.


Description of the teaching methods
Lectures, case discussions, student presentations, and guest lectures.
Feedback during the teaching period
Class feedback during and after cases solved in class.
Student workload
Lectures 33 hours
Reading and preparation of cases 173 hours
Further Information

The course is part of the Minor in Strategic Procurement.

Expected literature
  • Cooper, R.; Slagmulder, R. (2003a): Interorganizational Costing, Part 1. In Cost Management Sept/Oct, pp. 14–21.
  • Cooper, R.; Slagmulder, R. (2003b): Interorganizational Costing, Part 2. In Cost Management Nov/Dec, pp. 12–24.
  • Cooper, R., and R. Slagmulder. 2004. Interorganizational cost management and relational context. Accounting, Organizations and Society 29 (1): 1–26.
  • Ellram, L. (1995): Total cost of ownership - An analysis approach for purchasing. In International Journal of Physical Distribution & Logistics Management 25 (8), pp. 4-23.
  • Hofmann, E.; Maucher, D.; Kotula, M.; Kreienbrink, O. (2014): Performance measurement and incentive systems in purchasing. More than just savings. Heidelberg: Springer.
  • Kaplan, R.; Norton, D. P. (2001): Transforming the Balanced Scorecard from Performance Measurement to Strategic Management: Part I. In Accounting Horizons 15 (1): 87-104.
  • Kaplan, R. S.; Norton, D. P. (2008): Mastering the Management System. Harvard Business Review January: 1- 16.
  • Lockamy, A.; Smith, W. I. (2000): Target costing for supply chain management: criteria and selection. In Industrial Management & Data Systems 100 (5), pp. 210–218.
  • Mena, C.; van Hoek, R. I.; Christopher, M. (Eds.) (2014): Leading procurement strategy. Driving value through the supply chain. London, Philadelphia: Kogan Page. Chapter 1.
  • Trent, R. J., and L. R. Roberts. 2010. Managing global supply and risk: Best practices, concepts, and strategies. Fort Lauderdale, Fla. J. Ross Pub. Chapter 4.
  • Wouters, M., J. C. Anderson, and F. Wynstra. 2005. The adoption of total cost of ownership for sourcing decisions - a structural equations analysis. Accounting, Organizations and Society 30 (2): 167–91.
Last updated on 13-08-2018