NATIONAL UNIVERSITY OF SINGAPORE
NUS Business School
Department of Decision Sciences
BMA5234 – Procurement for Global Supply Chain
Lecturer
:
Adjunct Assoc Prof Sheila Wang
Session
:
Semester I, 2009/2010
Course Objectives
The course accomplishes the following five objectives:
1. Students learn to appreciate how Procurement plays a critical functional role in a
company and its influence and interdependencies with other corporate functions,
such as R&D, manufacturing, support, finance, etc.
2. Students learn the elements required in achieving a world-class procurement
organization and a competitive global supply base.
3. Students become well versed in the strategic sourcing process and the continued
supplier performance management methodologies.
4. Students are aware of the ethical, contractual, and legal issues faced by
procurement professionals.
5. Students are introduced the changing procurement environment and skill sets
with the advancements in technology, such as eCommerce and reverse auction
platforms.
This is a half module course with 3 class lecture hours per week. Coverage of topics are
focused around the following key themes.
1. Procurement operation, structure, organization, and impact in business
competitiveness. Topics to be covered:
a. Global supply chain management
b. Impact of procurement
c. Purchasing and supply chain
2. Building world-class procurement, covering:
a. The strategic procurement process – Translating corporate strategy into
procurement goals
b. Identifying and strategizing the competitive advantage
c. Strategic procurement v.s. commodity procurement
d. Outsourcing pro’s, con’s, and risk management
3. From sourcing to continued measurements, with topics on:
a. Supplier evaluation, selection, and audits
b. Quality and cost management
c. Purchasing laws, ethics, and contract management
d. Supplier performance management
Pre-requisite
BMA 5271 Supply Chain Management recommended or instructor’s permission
Course Outline
Week 1 Introduction to Global Supply Chain Management and Impact of Strategic
Procurement
Chapter 1 “Introduction to Purchasing and Supply Chain Management”, Chapter
2 “The Purchasing Process”, and Chapter 5 “Purchasing and Supply Chain
Organization"
Week 2 The Strategic Procurement Process – Translating Corporate Objectives into
Procurement Goals and Supplier Selection Processes
Chapter 4 “Purchasing Integration for Competitive Advantages”, Chapter 6
“Purchasing and Commodity Strategy Development” and Chapter 7 “Supplier
Evaluation and Selection”
Week 3 Supplier Performance and Cost Management
Chapter 11 “Strategic Cost Management” and Chapter 9 “Supplier Management
and Development: Creating a World-Class Supply Base”
Week 4 Purchasing Laws, Ethics, and Contract Management and Supplier Negotiations
Chapter 14 “Contract Management”, Chapter 15 “Purchasing Law and Ethics”
and Chapter 13 “Negotiations”
Week 5 Industry Speaker: Procurement Director, Sands Integrated Resort
Week 6 Final Examination
Synopsis
Procurement is much more than simply buying goods and services. Interest in the
performance of the procurement function has been fast growing in recent years with ever
increasing business competitiveness and the pressure to bring value to
stakeholders. Companies are turning their attention to effective global supply chain and
strategic procurement for survival and value creation. The amount of money flowing
through procurement spend is phenomenal; ranging from 50% to 85% of company
revenue. In the search for low cost, high quality goods and services, companies
worldwide have turned to Asia for various aspects of sourcing, ranging from sourcing to
procure-to-pay transactional processing. With Singapore’s strategic location and sound
business infrastructure, the attractiveness is not neglected by global companies in their
procurement initiatives. This MBA course works with literature publications, select case
studies, industry speakers, and student projects in building the fundamental knowledge
of global supply chain management and strategic procurement for students.
Assessment Methods
Class Participation
20%
Case
25%
Group Project
25%
Final Exam
30%
Reference Books
Compulsory Reading:
Purchasing and Supply Chain Management, Monczka, Trent, and Handfield
3rd Edition, 2005, ISBN: 0-324-20254-7