Subject Overview

Purchasing & Procurement introduces the principles, processes, tools and professional practices used to acquire materials, services and capital items. It covers sourcing, supplier management, negotiation, contracting, cost analysis, procurement operations, risk, governance, sustainability and digital procurement within materials management.

Learning Goal

Students will be able to plan and execute compliant procurement activities, evaluate supply markets and suppliers, analyze costs, negotiate and administer contracts, manage supplier performance and risk, use procurement technologies and analytics, and support ethical, sustainable and value-focused organizational decisions.

Syllabus

1. Foundations of Purchasing and Procurement

Learning Objective: Explain purchasing, procurement, sourcing, supply management and materials management; distinguish strategic and operational procurement; identify objectives, categories, stakeholders, terminology and the procurement cycle.

Category: foundation

2. Procurement Organization, Policy and Planning

Learning Objective: Describe centralized, decentralized and hybrid structures; define authority, responsibilities, delegation, policies, procedures, budgets and procurement plans; align purchasing with production, finance, stores and organizational strategy.

Category: foundation

3. Need Identification and Purchase Specifications

Learning Objective: Convert user needs into clear specifications, statements of work and bills of materials; apply standardization, simplification, value analysis, quality requirements and make-or-buy analysis while avoiding restrictive specifications.

Category: core

4. Supply Market Research and Sourcing Strategy

Learning Objective: Conduct spend and market analysis; classify purchases using the Kraljic portfolio; assess competition, capacity and supply conditions; select single, multiple, local, global or partnership sourcing strategies.

Category: core

5. Supplier Identification, Evaluation and Selection

Learning Objective: Develop supplier databases, prequalification criteria and requests for information; evaluate technical, quality, capacity, financial, delivery, ESG and risk factors using weighted scoring, audits and due diligence.

Category: core

6. Solicitation, Tendering and Bid Evaluation

Learning Objective: Prepare RFQs, RFPs and tenders; manage quotations, sealed bids, e-auctions and public procurement procedures; conduct commercial and technical comparisons and document transparent award decisions.

Category: core

7. Cost, Price and Value Analysis

Learning Objective: Differentiate cost and price analysis; examine cost structures, break-even points, learning curves, indexes and should-cost estimates; calculate total cost of ownership, landed cost and procurement savings for evidence-based decisions.

Category: application

8. Negotiation in Procurement

Learning Objective: Plan and conduct supplier negotiations using objectives, BATNA, reservation points, bargaining ranges and concession strategies; apply ethical communication, cross-cultural awareness and negotiation documentation.

Category: application

9. Contract Formation and Commercial Terms

Learning Objective: Explain contract essentials, purchase orders, framework agreements and service-level agreements; manage pricing, delivery, payment, warranties, indemnity, liability, intellectual property, confidentiality, force majeure, termination and dispute-resolution clauses.

Category: core

10. Procure-to-Pay Operations and Materials Coordination

Learning Objective: Execute requisition, approval, ordering, expediting, receipt, inspection, invoice matching, payment and record retention; coordinate lead times, inventory levels, MRP, stores and quality control; manage returns, claims and emergency purchases.

Category: application

11. Supplier Relationship and Performance Management

Learning Objective: Segment suppliers, onboard and develop them, establish KPIs and scorecards, conduct reviews and corrective actions, and manage collaboration, quality, delivery, innovation and continuous improvement.

Category: application

12. Procurement Risk, Resilience and Global Sourcing

Learning Objective: Identify operational, financial, geopolitical, cyber, quality and logistics risks; use risk registers, probability-impact assessment, continuity plans and supplier diversification; address Incoterms, currency, customs and international sourcing considerations.

Category: advanced

13. Ethics, Law, Governance and Sustainable Procurement

Learning Objective: Apply procurement law, competition principles, approval controls, audit trails and segregation of duties; prevent conflicts of interest, bribery, fraud and bid manipulation; incorporate environmental, social, human-rights and circular-economy criteria.

Category: strategic

14. Digital Procurement, Analytics and Emerging Practice

Learning Objective: Use e-procurement, ERP, supplier portals, e-catalogues, contract repositories and dashboards; interpret spend, savings and performance data; understand AI-assisted sourcing, forecasting, document review and anomaly detection, including data quality, privacy, bias, cybersecurity and human oversight; examine automation, blockchain, digital twins and future procurement skills.

Category: contemporary