Subject Overview

An advanced study of procurement as a strategic logistics capability. The subject integrates sourcing, category management, commercial analysis, negotiation, contracting, supplier relationships, risk, sustainability, governance, analytics and digital procurement in global supply networks.

Learning Goal

Students will be able to formulate procurement strategies, evaluate sourcing decisions using financial and analytical methods, negotiate and govern contracts, develop supplier relationships, manage risk and ethical obligations, and lead data-driven procurement transformation.

Syllabus

1. Strategic Foundations of Procurement

Learning Objective: Explain procurement terminology, objectives, organisational structures, maturity levels and its relationship with logistics, operations, finance and corporate strategy; distinguish purchasing, procurement, sourcing, supply management and SRM.

Category: foundation

2. Procurement Theory and Strategic Alignment

Learning Objective: Apply transaction cost economics, agency theory, resource dependence, relational exchange, the resource-based view and the relational view to make-or-buy, outsourcing, governance and supplier relationship decisions.

Category: core

3. Procurement Planning, Demand and Spend Analysis

Learning Objective: Translate business requirements into procurement plans using demand forecasting, specification management, stakeholder analysis, spend cubes, Pareto analysis, supply-market intelligence and savings baselines.

Category: core

4. Category Management and Portfolio Strategy

Learning Objective: Develop category strategies using segmentation, Kraljic portfolio analysis, purchasing chessboard approaches, market structure analysis, value levers, sourcing waves and cross-functional governance.

Category: core

5. Source-to-Contract and Competitive Sourcing

Learning Objective: Manage RFIs, RFPs, RFQs, e-auctions, tendering, bid evaluation, supplier due diligence and sourcing governance; select suitable competitive, collaborative, single-source or multi-source approaches.

Category: application

6. Supplier Evaluation and Procurement Analytics

Learning Objective: Construct weighted scoring, total cost of ownership, lifecycle costing, should-cost models, price and cost analysis, sensitivity analysis, risk-adjusted evaluation and multicriteria decision models for supplier selection.

Category: core

7. Commercial Negotiation and Decision Making

Learning Objective: Plan and conduct principled and competitive negotiations using BATNA, reservation points, ZOPA, power analysis, concession strategies, game-theoretic reasoning, behavioural insights and cross-cultural negotiation practices.

Category: application

8. Contracting and Commercial Management

Learning Objective: Interpret and manage specifications, pricing models, service levels, warranties, indemnities, liabilities, intellectual property, confidentiality, change control, remedies, termination and dispute resolution across major contract types and Incoterms.

Category: core

9. Procure-to-Pay Operations and Working Capital

Learning Objective: Design requisition-to-payment controls covering purchase orders, receipt, inspection, invoice matching, exceptions and payment; optimise inventory, lead time, payment terms, cash conversion and process compliance.

Category: application

10. Supplier Relationship and Performance Management

Learning Objective: Segment suppliers, establish governance and communication routines, design scorecards and KPIs, conduct reviews, manage conflicts and develop strategic partnerships through trust, commitment, collaboration and joint value creation.

Category: strategic

11. Supplier Development, Innovation and Value Management

Learning Objective: Diagnose supplier capability, design improvement programmes, apply value analysis and value engineering, support quality and lean initiatives, manage supplier-enabled innovation and measure realised benefits.

Category: advanced

12. Supply Risk, Resilience and Global Sourcing

Learning Objective: Assess geopolitical, operational, financial, quality, cyber, logistics and concentration risks; use mapping, scenario analysis, FMEA, stress testing, continuity planning, dual sourcing, localisation and resilience metrics in global supply networks.

Category: advanced

13. Responsible Procurement, Ethics and Governance

Learning Objective: Embed integrity, transparency, segregation of duties, auditability and regulatory compliance while addressing bribery, conflicts of interest, fraud, human rights, modern slavery, diversity, circularity, carbon and ESG performance across supplier tiers.

Category: strategic

14. Digital Procurement, AI and the Future of SRM

Learning Objective: Evaluate e-procurement suites, marketplaces, contract lifecycle management, supplier platforms, robotic automation, advanced analytics, digital twins, blockchain and generative or predictive AI; address data quality, cybersecurity, explainability and human oversight while leading procurement transformation and preparing for autonomous sourcing and emerging supply ecosystems.

Category: contemporary