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Supply Management

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									Module Code         Module Title : Supply Management
                    (Supply Chain Management Stream)
ISCED               Pre-Requisite        Co-Requisite                Last Revision        ECTS Credits
Code                Module Code(s)       Module Code(s)              Date
                                                                     June 2010                     5

School:                   Management

Module author:           Margaret Farrell, M Sc, M.I.E., B Sc, Dip Eng

Module Description
Purchasing and Supply Management, as a discipline, has changed considerably for many companies
over the last few years. It is recognized that adoption of effective supply strategies has the potential to
contribute to or drive corporate strategy, thus impacting on the competitive success of modern
organisations. The need for effective Supply Management continues to grow in line with increasing
global competition, global sourcing and strategic outsourcing. The increasing significance of higher
quality bought in goods and services, mass customization, and the growing importance of speed of
delivery and adoption of just-in-time production are key considerations in strategic supply
management. Outsourcing is seen as a popular strategic solution within industry, but whose
advantages can be elusive. Quite often managers fail to fully appreciate the long term and high levels
of commitment associated with true strategic outsourcing

Getting full value out of supplier relationships is an elusive goal for many companies, even those with
robust supply management programmes. Partnerships and relationships must become embedded
within an organisation’s overall strategy. This is particularly true if the full benefits of strategic supply
and outsourcing are to be achieved.

This module seeks to generate an understanding of supplier management, strategic outsourcing and
partnering within a supply chain context. It will highlight the challenges involved, and route maps for
success and the potential rewards.


Module Aim

The module aims to position procurement within the supply chain and show how it can contribute to
the organisation’s business strategy and ultimate performance. It aims to explore the key procurement
operations and strategies, demonstrating their application within the supply chain, and to develop the
key purchasing decisions, implications and frameworks. The student will be exposed to a wide range
of outsourcing strategies, choices and methods as well as investigating and evaluating supply chain
relationships and partnerships. There will be an emphasis in the programme on methods for
developing and managing strategic supply management and outsourcing. This will enable the student
to evaluate the most optimal course of action for the business.
Module Code         Module Title : Supply Management
                    (Supply Chain Management Stream)
ISCED               Pre-Requisite        Co-Requisite             Last Revision       ECTS Credits
Code                Module Code(s)       Module Code(s)           Date
                                                                  June 2010                    5


Module Content

Procurement within the Supply Chain
The role of purchasing and supply in the organisation and within the supply chain, development
of the purchasing function; contribution of purchasing to effective supply chain management.
Organising and Managing the purchasing function - aligning procurement and supply strategies
within the organisation; policy and objective setting.
Strategic Procurement
Supply base reduction, supplier development, relationships, outsourcing, globalisation,
technology. Purchasing’s role in specification development, value analysis, technology, product
development, green issues, integration into the strategic plan, early supplier involvement.
Vendor Selection and Vendor Management (Operations & Documentation)
The procurement process, documentation (RFI, RFQ, PO, GRN…) and ICT.
Tendering and negotiation.
Implementing the strategic objectives, e.g., the seven rights, TQRDCEB. Contract, agreements,
terms and conditions. Balancing the seven rights. Total cost analysis, weighted point plan,
categorical analysis. Developing management metrics, supplier development. Supplier
performance appraisal; establishing supplier performance objectives and measurement criteria;
tools and techniques to monitor supplier quality and performance; how measuring quality of
services differ from measuring hard goods.
The Outsourcing Landscape
Outsourcing as the business trend, expanding to include operational, tactical and strategic.
Examine outsourcing initiatives in relation to the aims, scope, the rational and drivers, and the
benefits and costs. Identify the potential pitfalls. The Value Chain – implications of outsourcing.
Outsourcing Framework
 Examine the network of decisions that have to be evaluated before a final decision can be made,
e.g. planning, risk, core competency. Evaluate outsourcing decisions from strategic resources
perspective, from a transaction cost perspective & from short-term cost perspectives. Integrate
the business environment, strategic alignment and competitive advantage.
Outsourcing Process/ Methodology
compare and contrast available processes & match to outsourcing initiative. Examine each aspect
of process.
Forming strategic partnerships and alliances
 Traditional vs. contemporary understandings of supply chain relationships; Customer focus in the
supply chain; Alignment theory; Reasons for seeking partnerships Collaborative advantage – the
art of strategic relationships; Horizontal and vertical critical interfaces; Criteria for successful
relationships; Basis of partnership.
Strategic partnering
Interdependence indicators and assessment; Relationship/response issues as a function of the
extent of the relationship; Strategic partnering methodology; Supplier-distributor joint planning
activities; Problems in supply chain partnerships; Supplier development.

								
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