GRADUTE DIPLOMA IN PURCHASING AND SUPPLY
A. Purchasing Environment
To provide an introduction to current issues impacting on the competitive position of the
organisation. Topic covered are as followed
1. Business Purpose
a) Organisational objectives in context
b) Stakeholders in the modern mixed economy
2. The Competitive Environment
a) Demand and supply in a purchasing and supply context
b) Market structure and its impact on purchasing and supply decisions, including strategic
options and elasticity
c) Competition and regulation
3. Threats and Opportunities
a) Interpreting environmental signals
b) Dealing with environmental threats and opportunities from analysis to adaptation and
active management of the business environment
4. Understanding the Broader Business Environment
a) Economic (macro-economic factors)
b) Political, legal and social factors
c) Impact of technology
5. Corporate Responsibility and the Purchasing Environment
a) Business ethics: stakeholder theory, social norms, and the ethics business
b) Corporate responsibility and the role of the procurement specialist in dealing with
natural environment issues
c) Ethical implications of developments in eBusiness
B. Business Organisation and Processes
To provide an understanding of how organisations are structured and function to best fit with their
changing environment. Topic include :
1. Types of Organisation
a) Reasons for organisations
b) The framework of organisations in the private sector
c) Characteristics of organisations in the public and 'not for profit' sectors
2. Organisation Structures
a) The use of metaphor in understanding organisational behaviour
b) Classical, modern and post-modern organisational configurations
c) Aspects of internal structuring and functioning: span of control; delegation;
d) Centralisation vs. decentralisation
e) Intra-organisational structures
3. Factors Affecting Organisational Design
a) Influence of the external environment
b) The use of technology
c) The life cycle
d) Power, authority, mission, aims and objectives
4. Communication Systems and Information Technology
a) Communication channels and flow in and between organisations
b) Communication media and barriers to communication
c) Technological influences on information communication systems
d) Information technology (IT) systems and their role in purchasing and supply
e) Managing information flows, issues of performance and planning
5. Quality Management
a) Introduction to quality management issues
b) Influences on business processes
c) Sharing best practice
d) Benchmarking performance internationally
6. Organisational Development and Change
a) Factors affecting change
b) Organisational development
c) Models of change management
7. Review and Application
a) The Purchasing Environment
b) Managing Human Resources in Purchasing and Supply
c) Business Analysis in Purchasing and Supply
d) Legal and Procurement Processes
e) Introduction to Supply, and Materials Management
C. Managing Human Resources in Purchasing and Supply
To provide the underpinning knowledge to enable a purchasing and supply professional to
contribute to the management of people.
1. Recruitment and Selection
a) Describing the job
b) Specifying the skills and attributes required
c) Attracting the candidates
d) Selection methods
e) The legal and regulatory framework
2. The Leadership and Management of Teams
a) The importance of teams in developing supply chains
b) The dynamics of team working, including Belbin's analysis
c) Building a successful team to add value in the supply chain
d) The role of leadership in effective teams
3. Management Skills
a) Methods of effective communication
b) Time management
c) Conflict resolution
d) Managing change and resistance to change
4. Motivation and Job Design
a) Theories of motivation
b) Forms of job design
c) Empowerment and delegation
d) Management of stress, and health and safety
5. Performance Management
b) Appraisal techniques
c) Staff training and development
d) Performance management techniques
D. Business Analysis in Purchasing and Supply
To provide an introduction to financial analysis and statistical and accounting techniques for use
by the purchasing professional.
1. Sources of Finance
a) Private sector
b) Public sector
2. Analysing suppliers' data as part of the pre-purchase order/contract award stage
a) Trading profit and loss account
b) Balance sheet
c) Budget and cash flows
d) Application of ratio analysis to supplier financial data
e) Auditing of supplier performance
3. Prices and Costs
a) Elements of costs
b) Fixed and variable costs
c) Direct, indirect and standard costs
d) Process costs
e) Costs and margins
f) Breakeven analysis
4. Capital Buying
a) Capital buys analysis - determination of requirements for a capital purchase, including
roles of all departments/functions in the decision process, and the links to purchasing
b) Total life cycle costs analysis
c) General investment appraisal techniques
5. Statistical Methods for Purchasing Analysis
a) Descriptive statistics
b) Inferential statistics
c) Forecasting methods
d) Statistical methods for quality control
E. Legal and Procurement Processes
To provide an introduction to the provisioning and legal aspects of supply chain management.
1. Legal Aspects
a) Contracts - essentials of a valid, legally binding contract
b) Dispute resolution
c) Common law and statute
d) Battle of the forms
e) Examples of model terms and conditions
2. Analysing the Need
a) Main characteristics of specifications
b) Quality control and quality assurance
c) Customer service
3. Costing the Need
a) Capital and revenue purchasing techniques
b) Tendering procedures
c) EU procurement directives
d) Quotation analysis
4. Providing the Need
a) Supplier evaluation
b) Ethical sourcing
c) Supplier relationships
d) Introduction to commercial relationships
F. Introduction to Supply & Materials management
To provide an introduction to the role of supply chain management in the organisation
1. Materials Management Concepts
a) Terms - materials management, supply chain management, logistics.
b) Inventory policies.
c) Valuation of stock.
d) Stock inventory, stocking to order, and stocking to forecast.
2. Supplies Management in Different Environments
a) Resource needs in the primary, secondary and tertiary sectors.
b) Resource needs for MRO, capital goods, resale goods and services.
c) The concept of materials management in all sectors.
d) Lean supply and the supply chain's contribution to customer delight.
3. Obtaining the Supply
a) Introduction to standardisation and variety reduction.
b) Analysis of total acquisition costs and methods.
c) Introduction to dependent and independent demand.
4. Organisation of Supply Chain Management
a) The need for coordinated and defined ordering procedures.
b) Relationships with internal and external customers.
c) Supplier relationship concepts.
d) Organisational ethics.
5. Logistics in the Supply Chain
a) Transport systems.
b) Location of stores facilities.
c) Outsourcing the transport function.
d) Internal movement of goods.
e) Stock location and layout.