Purchasing management applicable to manufacturing and service organizations, including policies, procedures, new product development, make or buy decisions, sourcing, pricing, contracts, negotiations, special purchases, legal and ethical considerations, inventory and related topics.

 This course covers the preaward purchasing processes of conducting advance purchasing planning, locating and identifying potential suppliers; preparation of the specification/statement of work; selection of the appropriate method of procurement and type of contract; preparation and issuance of the solicitation; procedures for assessing supplier financial and other responsibility; the evaluation and selection process, including price and cost analysis; negotiation of the contract price, delivery, quality, and other terms and conditions; contract and purchase order preparation and award of contract or purchase order..  Inasmuch as there is a separate course on Contract Administration and another on International Purchasing, this course focus is domestic preaward purchasing (sometimes called “Procurement”).

 Course Goals

 In this course, we study the critical components of purchasing and materials management as practiced currently in the corporate world. The fundamental concepts concerning the purchasing process and supply chain management including business to business e-commerce and analytical tools and techniques for purchasing and materials management are covered.

 Course Objectives

 The purpose of this course is to provide students with an in-depth understanding of the theoretical as well as practical aspects of purchasing and materials management, particularly, how it fits into an overall supply chain management strategy.   Students who complete this course will acquire the necessary skills to:

  •        Integrate purchasing operations into the overall supply chain strategies of an organization.
  •        Evaluate the role of materials management systems in operations strategy.
  •        Identify and analyze the impact of information technology (IT) on purchasing operations.
  •        Explain how purchasing planning systems are developed.
  •        Design and implement controls for materials management systems.
  •        Analyze how global sourcing affects purchasing strategies.

 Course Content

What is purchasing and materials management?

Evolution and Development of Purchasing;

Purchasing Process;

The Purchasing Cycle;

Improving the Purchasing Process;

Purchasing and Supply Chain Organization

Organizing for Purchasing Management

Purchasing Policy and Procedures;

Purchasing Linkages;

Buyer-Seller Relationships;

Cross-Functional Sourcing Teams;

Types of Purchasing strategies

Insourcing/Outsourcing Decision Process;

Supplier Evaluation and Selection Process;

Key Supplier Evaluation Criteria;

Cost and Price Analysis

Supplier Quality Management;

ISO 900 and Baldrige Award;

Supply Base Optimization.

International Sourcing Process;

Managing International Currency Risk;

Progressing from Domestic to Global Sourcing;

Purchasing and Supply Chain Tools;

Value Engineering and Value Analysis;

Process Mapping.

Strategic Cost Management;

Cost Analysis Techniques;

Target Pricing and Cost Based Pricing.

Negotiation Framework;

Negotiation Planning;

International Negotiation;

Domestic and International Purchasing Law

Contract Administration

Managing Supply Chain Inventory;

Creating the Lean Supply Chain;

Approaches for Controlling Inventory Investment;

Purchasing Transportation services;

Controlling and Influencing Transportation;

Supply Chain Information Systems;

Enterprise Resource Planning Systems;

Purchasing Databases and Data Warehouses;

Electronic Data Interchange;

Business to Business Electronic Commerce;


Advanced Supply Chain Systems and Applications;

Performance Measurement and Evaluation

Purchasing and Supply Chain Changes and Trends



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