The main target of the module supply management is to educate students to have the first understanding to take up the job of a commodity buyer in the strategic sourcing department of a firm. Specifically, after the completion of the course and its components tactical buying, strategic sourcing, assignment, experiment and research project, students are able to:
- explain the year cycle of purchasing (taking into consideration the commercial, economic and legal aspects of purchasing)
- describe how the sourcing process works from demand identification over contracting to performance evaluation.
- describe the tactical and strategic issues at commodity level.
- have the knowledge of how to prepare for negotiations, make strategic decisions and how to claim and create value in negotiations.
- advise management on how an integrated purchasing organization operates, including the skills to apply this knowledge and draft decision memo's for management regarding purchasing decisions
- set up and carry out purchasing processes (in a serious game), exceeding those of their non-specialised peers, which provides them with advantages in applying for a job in a purchasing department.
- describe , reflect and apply social interactions between individuals and firms relevant for supply management using behavioural methodologies in academic research, in an experimental setting.
- set up an academic research that meets the basic standards in terms of a literature study to identify interesting research questions relevant for both practice and academia. In addition, student will be familiarized with the basics in developing propositions and hypotheses and methodologies. Students write an academic paper.
The relationships between a firm and its suppliers are crucial in acquiring resources that are essential for achieving firm-level competitive advantage. It is argued that the nature of competition has shifted from interfirm competition toward supply chain versus supply chain struggles. In an average industrial firm in Central Europe 60% of the turnover is purchasing volume. For firms to be successful, it is thus essential to professionally manage their main cost block. Thus, the supply management function of a firm plays an essential and increasing role in attaining firm level competitiveness. However, there are few opportunities for students to prepare for taking a job in purchasing. The course supply management – SUM is one of them.|
The SUM module will mainly consist of four integrated components, content wise covering the year cycle of a purchaser and preparing an understanding of the work of a “commodity buyer”, i.e. a buyer responsible for sourcing a certain group of materials:
Tactical buying: This component covers the period from demand identification, over supplier selection till negotiation and contracting. This part also covers how to prepare for negoations, what to consider and strategic decision making, how to negotiate, create and claim value, and how to maintain a good relationship still while staing firm on positions.
Strategic sourcing: This component covers the supplier performance evaluation, as input for new commodity group strategy formulation and the required organisational and operational knowledge for its implementation. Tactical buying and strategic sourcing represent the main knowledge transfer part of the elective.
Supply management experiments/game: The students conduct experiments which covers a different topics from the “tactical buying” and “strategic sourcing” components. The aim of this skill development component is to familiarize students with behavioural methodologies and to provide a deeper understanding of the social interactions involved in supply management. The experiment stream includes a serious game.
Project Research on leading topics: The project will form the backbone of the module. In the project the students can apply the knowledge and skill gained in the individual components described above and expand it on particular topics. Students will conduct a research on leading topics in both practice and academia such as preferred customer status, public procurement, sustainable procurement, innovation driven procurement, purchasing – r&d interface and strategic supply management. The end product has the form of an academic paper which the students write in a project group. This paper will be presented on closing seminar where all students present their findings. The groups are supervised by content tutors that are expert in the defined topics as well as in academic methods. In this seminar project the students are also trained in professional business presentation.
|(additional) requirement(s) for minorstudents: Basic knowledge required about subjects like Organisation, Operational Management, Strategy, Marketing, Bookkeeping and Finances and Statistical Computer Skills. Please see the module description.|
IBA students who did not choose this module as an elective yet, can choose this module as a minor.
|Bachelor International Business Administration||Verplicht materiaal|
|Purchasing and Supply Chain Management, 6th edition. Handfield et al, ISBN 978-1-285-86968-1|
|Further material divulgated in class|
|Assignments & experiments|