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2019/2020  KAN-CCMVV4051U  Procurement Strategy and Organizational Development

English Title
Procurement Strategy and Organizational Development

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Quarter
Start time of the course Second 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)
Please find contact information for Student Hub, student Guidance Services etc. on My.cbs.dk
Main academic disciplines
  • Supply chain management and logistics
Teaching methods
  • Face-to-face teaching
Last updated on 11-02-2019

Relevant links
Learning objectives
The overall aim of the course is to provide students with capabilities (through theories, models and frameworks) that make the value of strategic procurement visible to corporate management and further create the basis for changing the procurement organization from a tactical to a strategic level. Specifically, the learning objectives of the course are the following:
  • Discuss how value is created by and through procurement
  • Discuss how procurement knowledge and competences can be developed, managed and integrated into corporate strategy
  • Explore and discuss innovation and change management concepts and theories in relation to a procurement organization in its external environment
  • Critically reflect on leadership roles and values in strategic procurement.
  • Communicate results to stakeholders
Examination
Procurement Strategy and Organizational Development:
Exam ECTS 7,5
Examination form Oral exam based on written product

In order to participate in the oral exam, the written product must be handed in before the oral exam; by the set deadline. The grade is based on an overall assessment of the written product and the individual oral performance.
Individual or group exam Oral group exam based on written group product
Number of people in the group 2-4
Size of written product Max. 10 pages
Definition of number of pages:

Groups of
2 students max. 5 pages
3-4 students max. 10 pages

Note that the exam is a group exam. If you are not able to find a group yourself, you have to address the course coordinator who will place you in a group.

Students who wish to have an individual exam might be able to write a term paper in the course. Please see the cand.merc. rules for term papers for more information.
Assignment type Synopsis
Duration
Written product to be submitted on specified date and time.
20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Grading scale 7-point grading scale
Examiner(s) Internal examiner and external examiner
Exam period Winter
Make-up exam/re-exam
Same examination form as the ordinary exam
Re-take exam is to be based on the same report as the ordinary exam:

* if a student is absent from the oral exam due to documented illness but has handed in the written group product she/he does not have to submit a new product for the re-take.
* if a whole group fails the oral exam they must hand in a revised product for the re-take.
* if one student in the group fails the oral exam the course coordinator chooses whether the student will have the oral exam on the basis of the same product or if he/she has to hand in a revised product for the re- take.
Description of the exam procedure

A group synopsis describing, discussing and arguing for a practice based problem regarding procurement strategy and organizational development is the basis for the oral group exam. At the oral exam, the students present their theory-based solution for the examiners. The presentation style should be as an advisor of the Chief Procurement Officer (CPO). A discussion of strengths and weaknesses of this solution should be included.
Course content, structure and pedagogical approach

The course takes the perspective of the CPO, the chief procurement officer or equivalent. Firstly, it discusses the paradigm shift in the procurement literature towards strategic procurement thereby adding value to corporate strategy. It then addresses how this shift effects the procurement organization through different types of value creation, stakeholder management and communication, as well as competence development in procurement and of the procurement organization. Next, value creation through supplier relationships and innovation is discussed. A higher level of value creation requires knowledge of change management of the procurement function which is addressed next followed by the issue of how new digital technologies impact the procurement organization. Finally, CSR and ethics is touched upon together with a discussion of risks in procurement as well as how procurement reduce risk in the organization as a whole.

There will be a strong element of practice presentations and discussions in class with the purpose of understanding both practice and theory better.
Description of the teaching methods
Theoretical overviews combined with real-life practice cases presented by procurement organizations to illustrate and qualify theoretical discussions. Study groups are recommended.
Feedback during the teaching period
Oral feedback in class on case discussions
Student workload
Preparation of lectures 99 hours
Lectures 33 hours
Group synopsis 50 hours
Oral exam - including preparation 24 hours
Further Information

The course is part of Minor in Strategic Procurement.
Expected literature
  • Barney, J.B. (2012), “Purchasing, supply chain management and sustained competitive advantage: The relevance of resource based theory”, Journal of Supply Chain Management, Vol. 48(2), pp. 3-6
  • Brewer, B. L., Aschenbaum, B. and Carter, J. R. (2013), “Understanding the supply chain outsourcing cascade: When does procurement follow manufacturing out the door?”, Journal of Supply Chain Management, Vol. 49(3), pp. 90-110
  • Buchanan, D. and Badham (1999), “Politics and Organizational Change: The Lived Experience”, Human Relations, vol. 52(5), pp.  609-629
  • Driedonks, B.A., Gevers, J.M.P. and van Weele, A.J.  (2010), “Managing sourcing team effectiveness: The need for a team perspective in purchasing”, Journal of Purchasing & Supply Management, 16, pp. 109-117
  • Eltanawy, R., Giunipero, L. and Handfield R. (2014), “Strategic sourcing management´s mindset: strategic sourcing orientation and its implications”, International Journal of Physical Distribution & Logistics Management, 44(10), pp. 768-795
  • Fawcett, S.E., McCarter, M.W., Fawcett, A.M., Webb, G. S. and Magnan, G. (2015), “Why supply chain collaboration fails: the socio-structural view of resistance to relational strategies”, Supply Chain Management: An International Journal, Vol. 20(6), pp. 648 – 663
  • Fraser Johnson, P.; Klassen, R. D.; Leenders, M. R.; Awaysheh, A. (2007), "Selection of planned supply initiatives: the role of senior management expertise", International Journal of Operations & Production Management, 27(12), pp. 1280 – 1302
  • Gold, S., Trautrims, A., Zoe Trodd, Z. (2015) "Modern slavery challenges to supply chain management", Supply Chain Management: An International Journal, 20(5), pp.485 - 494
  • Hesping, F. H. and Schiele, H. (2015), “Purchasing strategy development: A multi-level review”, Journal of Purchasing & Supply Management, 21, pp. 138-150
  • Karjalainen, K. et al (2009), “Non-Compliant Work Behaviour in Purchasing: An Exploration of Reasons Behind Maverick Buying”, Journal of Business Ethics, 85:245–261
  • Kern, D., Moser, R., Sundaresan, N. and Hartmann, E. (2011), “Purchasing Competence:  Stakeholder-based Framework for Chief Purchasing Officers”, Journal of Business Logistics, Vol. 32 (2), pp. 122-138
  • Ketchen, D.J., T. R. Crook and Craighead, C.C. (2014), “From Supply Chains to Supply Ecosystems: Implications for Strategic Sourcing and Research Practice”, Journal of Business Logistics, 35(3), pp. 165-171.
  • Nair, A. et al (2016), “How environmental innovations emerge and proliferate in supply networks: A complex adaptive systems perspective”, Journal of Supply Chain Management, 52(2), pp. 66-86 
  • Oke, A., Prajogo, D. and Jayaram, J. ((2013), “Strengthening the innovation chain: the role of internal innovation climate and strategic relationships with supply chain partners”, Journal of Supply Chain Management, Vol. 49(4), pp. 43-58
  • Peireira, C. R., Christopher, M. and Da Silva, A. (2014), “Achieving supply chain resilience: the role of procurement”, Supply Chain Management: An International Journal, Vol. 19(5/6), pp. 626-64
  • Ramsay, J. and Croom, S. (2008), "The impact of evolutionary and developmental metaphors on Purchasing and Supply Management: A critique", Journal of Purchasing and Supply Management, vol. 14, no. 3, pp. 192-204.
  • Schuh et al (2012), “The CPO. Transforming Procurement in the Real World”, Springer, New York,
  • Smith, W.K., Lewis, M. W. and Tushman, M. L. (2016), ““Both/And” Leadership””, Harvard Business Review, May, pp. 63-70
  • Tassabehji, R. and Moorhouse, A. (2008), “The changing role of procurement: Developing professional effectiveness”, Journal of Purchasing & Supply Management, Vol. 14(1), pp. 55-68
  • Van Weele, A. J. and van Raaij, E.M. (2014), “The future of purchasing and supply management research: About relevance and rigor”, Journal of Supply Chain Management, Vol. 50(1), pp. 56-72

 
Last updated on 11-02-2019