Purchasing and Supply Management

Abstract

The course expands the study of supply chain management theory and practice. It delves into the upstream side of the supply chain. It also discusses current topics including digitalization, automation and AI in purchasing and supply management, as well as supplier innovation and the role of startup companies as suppliers.

Objective

After completing this course: • Students can explain the importance of purchasing and supply management as a key process within firms’ supply chain management activities • Students can describe and evaluate fundamental purchasing and supplier management concepts • Students are able to apply tools and methods to analyze and structure a firm’s supplier portfolio and supplier relationships • Students learn how digitalization, automation and AI support and open up new opportunities for purchasing and supplier Management • Students are able to understand and assess the risks and opportunities that arise from ESG standards and risks in the upstream supply chain • Students can apply some analytical tools used in purchasing and supply management • Students know how purchasing performance should be assessed

Content

The value sourced from suppliers and the innovation stemming from the supply base has increased substantially in recent years. As a consequence, suppliers and the purchasing function have become critically important for firms in manufacturing and service industries. Purchasing and supply management (PSM) is on the agenda of top-management today. Top purchasing managers have moved up to CEO positions in companies such as Apple or Volkswagen. Evolving technologies, digitalization and AI create an entirely new environment for purchasing and supply management that provides excellent career perspectives for those who are prepared. This course is a study of foundational and advanced approaches used in the purchasing and supply management process within modern companies. It will familiarize students with modern purchasing and supplier management theory and practice. They will learn how to design and implement purchasing strategies, processes, structures and systems, and how to structure and manage supplier portfolios and buyer-supplier relationships to meet firms’ supply needs. The course will offer an integrated supplier management framework consisting of the management of the supplier base, supplier development and supplier integration. The course will also introduce performance measurement approaches and data-driven analytical tools used for decision making in purchasing and supply management. In practice, there is an increasing emphasis on outside-in innovation from the upstream supply chain. Therefore, the course will present how startups or entrepreneurial ventures become suppliers to established firms, respectively how established buying firms can tap the benefits offered by startup suppliers. These topics are discussed in light of the need to consider and balance goals around savings, availability, risks and disruptions, innovation, as well as environmental, social, and governance (ESG) standards. During this course, students have the chance to learn and discuss both overall trends and practical insights on development. The course furthermore encourages student involvement within lectures, in exchange with peers and with guest speakers from established firms and startup companies. Case study assignments and tools for self-assessment help students to learn actively and continuously throughout the course.

Resources