UNIT TITLE: STRATEGIC PURCHASING AND SUPPLIES
UNIT CODE: PSM 632
Relationship to Occupational Standards:
This unit covers the unit standard
Duration of Unit:
CREDIT HOURS: 3
Unit Description
This course is intended to equip the learner with the knowledge, skills and attitudes needed to
effectively manage the procurement function.
Summary of Learning Outcomes
By the end of the unit, the learner should be able to:
1. Demonstrate the understanding of strategic issues in purchasing and supplies management
2. Describe the strategic planning process in supply chain management
3. Develop supply chain strategies for an organization
Learning Outcome Content
Demonstrate Introduction to strategic management
understanding of
Meaning of strategic management
strategic management
Concept and purpose of strategic management
in purchasing and
Alternative views of strategy development
supplies
Levels of strategy
Nature of strategic supply chain management
Demonstrate the Strategic planning process
process of strategic
Meaning of strategic planning
planning in purchasing
Steps in strategic planning process
and supplies
Strategic choice
Tools used in environmental analysis
Strategy formulation process
Factors in strategy selection
1
Factors to be considered in implementing strategic planning
Strategy evaluation, control and feedback process
Purchasing and Meaning of purchasing and supply strategy
Models of supply chain strategies i.e. BCG, Ann soft matrix, SWOT
supply chain
Analysis, Potters, 7s Mackenzie etc.
strategies The contribution of purchasing and supply chain strategies to corporate
strategy
Purchasing and supply strategies
3 generic strategies in purchasing and supply
Purchasing and Definition of organizational structures
supply organization Approaches to organizational structures
Factors considered in designing an organizational structure
purchasing and supply organization
Organization of purchasing and supply activities
Assessment of purchasing and supply structures
. Measuring Meaning and concept of performance measurement in purchasing
purchasing and Factors to consider in measuring purchasing and supply performance
supply performance Methods of measuring purchasing and supply performance
Emerging trends and Emerging issues in purchasing and supply
issues in purchasing Challenges posed by the emerging trends and issues in purchasing
and supplies and supply
Strategies to counter new developments
Suggested Delivery Methods
Class Lectures
Group discussions
Journal Article analysis and presentation
Case study analysis
2
Recommended Resources
1. Baily, P., Farmer, D., Crocker, B., Jessop, D., Jones, D. (2015). Procurement, principles &
management (11th ed.). Harlow, England: Financial Times Press/Pearson Education
Ltd.
2. Benton, W.C. (2014). Purchasing and supply chain management (3rd ed.).New Delhi, India:
Tata
McGraw-Hill.
3. Humbert, P. & Mastice, R.C. (2014). Contract Risk management for supply chain
management
Professionals. New York: Paul Humbert.
6. Leenders, M., Johnson, P.F., Flynn, A., & Feraon, H. (2011). Purchasing and supply
management.
(14th ed.).New Delhi, India: Tata McGraw-Hill.
7. Lysons, K. & Farrington, B. (2016). Purchasing and Supply Chain Management (9th ed.).
Upper
Saddle River, New Jersey: Pearson Higher Education.
8. O’ Brien, J. (2019). Category management in purchasing: A strategic approach to maximize
Business profitability (4th ed.). Melbourne: Kogan.
9. Piper, C. E. (2018). Contract and procurement fraud investigation guidebook. New York:
Routledge.
3
Work -Based Assessment.
Instructions to candidates.
i. Write your name, and your full ADM NO.
ii. Write the Unit name and code.
iii. Write the submission date.
1 a) Explain the current trends in supply chain management
b) Explain the challenges posed by the current trends and strategies to cope with such
challenges.
2. a) Explain the concept of performance measurement in purchasing and why it is essential for
organizational effectiveness.
b) A company is experiencing delays and high costs in its procurement process. Explain how
performance measurement can help identify and address these issues
c) Explain key factors to consider when measuring purchasing and supply performance.
d) A procurement manager wants to evaluate supplier performance over the past year.
Recommend and justify the most suitable measurement methods.