NATIONAL UNIVERSITY OF SINGAPORE
NUS Business School
Department of Decision Sciences
BMA 5234 Strategic Procurement for Global Supply Chain Management
Lecturer : Adjunct Professor Sheila Wang
Session : Semester I, 2011/2012
SYNOPSIS
Procurement is much more than simply buying goods and services. With the need for ever increasing business competitiveness and the pressure to bring value to stakeholders, interest in global strategic procurement has been fast growing in recent years. Companies are turning their attention to strategic procurement and global supply chain for survival and competitive edge. The amount of money flowing through procurement spend is phenomenal; averaging 50% to 85% of the company revenue. In the search for low cost, high quality goods and services, companies worldwide have turned to Asia for a broad spectrum of sourcing, ranging from supplier identification, materials, services, to outsourcing. With Singapore’s strategic location and its business infrastructure, the country/region’s attractiveness is not neglected by global companies in their procurement initiatives. This MBA course introduces students, through literature publications, select case studies, industry speakers, and projects, to the knowledge, business interdependencies, and industry trends of strategic procurement in managing the supply chain globally.
AIMS & OBJECTIVES
The course accomplishes the following five objectives:
1. Students obtain an understanding on the function of Strategic Procurement and how it plays a critical role in a company as well as its influence and interdependencies with other corporate functions, such as R&D, manufacturing, accounting, finance, etc.
2. Students learn the requirements and challenges 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 to the evolving procurement environment and business transformational changes with advancements in technology, such as eCommerce
and reverse auction.
PREREQUISITES
BMA 5271 Supply Chain Management recommended but not required
TEACHING MODES
This is a half module course with 3 class lecture hours per week. Coverage of topics focuses
on 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 a world-class procurement function, covering:
a . The strategic procurement process – translating corporate strategy into
procurement goals
b. Identifying and strategizing the competitive advantage
c. Strategic procurement and commodity procurement
d. Outsourcing benefits, challenges, and risk management
3. From sourcing to continued improvement, with topics on:
a. Supplier evaluation, selection, audits, and metrics
b. Quality and cost management
c. Purchasing laws, ethics, and contract management
d. Supplier performance management
SCHEDULE
Week 1 Introduction to Global Supply Chain Management and Impact of Strategic
Procurement
Week 2 The Strategic Procurement Process – Translating Corporate Objectives into
Procurement Goals and Supplier Selection Process, Supplier Performance and Cost Management
Week 3 Supplier Performance, Cost Management, Purchasing Laws, Ethics, and Contract Management and Supplier Negotiations
Week 4 Industry Speaker: Intel Materials Procurement Manager, topic "Supplier
Collaboration: Leveraging Suppliers' Expertise and Innovation"
Week 5 Proto Industries and Technutronics Negotiations Note: We meet in Behavioral Lab 4-11( BIZ 2/4-11) for this session, your negotiations will be video taped.
Week 6 Final Research Project Due
Submit your final research project paper via IVLE and upload a copy to Turnitin
(www.cit.nus.edu.sg/plagiarism-prevention/) class ID 3272165, password NUSMBA
SYLLABUS
Title & Author / Edn/Year/ISBN / PublisherCOMPULSORY READINGS
Purchasing and Supply Chain Management
Monczka, Trent, and Handfield / Fourth Edition / Thomson
PRACTICAL WORK
Class Case Analysis and Presentation is due in groups. Each group is supplied the
Government E-Procurement case study to analyze, prepare and present to class in
the next class session. See assignment submission requirement on report format.
Final Research Project: This is an individual assignment. See assignment submission
requirement on report format.
Assignment Submission Requirement: The written report should be no more than
10 pages (inclusive of executive summary, table of contents, case/situation
background and problem identification, literature review, methodology, analysis and
findings, conclusion and recommendation, reference) and a power point
presentation at the beginning of class. Selected (*) submission is allowed 20 minutes
for the presentation of the studies and findings to the class. Following the
presentation, the floor is open for Q+A and class discussion. Each project is assessed
by the following criteria:
- Executive Summary (20%)
- Problem Statement and Situation Overview (10%* or 20%)
- Literature Review and Research (10%)
- Identification of assumptions and analysis (10%)
- Recommendation and action plans (10%* or 20%)
- Professionalism in report presentation (20%)
- Oral presentation* (10%)
- Handling of Q + A* (10%)
ASSESSMENT
Class Participation 20%
Class Case Analysis and Presentation 20%
Negotiations Preparation and Exercise 20%
Final Research Project 40%