Important Note:

A) The Subject is Strategic Procurement.

B) The minimum required sources are 14 sources. The sources have to be from credible journal articles, books. No non-academic websites or Wikipedia, slideshare, scribed or other commercial websites, as well you need to put the page numbers for in text references.

C) Please do not forget to comprise List of References and In text References in the paragraphs with page number and check your references so do not miss any reference in both (In text and list of references).

D) The word limit is 2000 Words Maximum (Excluding the Headings and References).

E) Harvard Referencing Style.

Subject Description:

This subject focuses on the management of procurement of goods and services from a strategic perspective. Topics comprise procurement as a strategic function; key procurement issues like outsourcing, sourcing strategies and relationships, total cost of ownership, inventory management and negotiations; and applications of procurement like procurement of commodities, international and global sourcing, capital procurement, efficient consumer response, services procurement and corporate social responsibility and e-procurement and contract management.

Subject Objectives or Outcomes:

On successful completion of this subject students must be able to:

1) describe awareness of the strategic nature of the procurement function in organisations.

2) Discuss the broad range of influences acting on the design and management of the procurement function in a local and global context.

3) Develop understanding of technologies and methods associated to the procurement function.

4) Develop skills in designing and managing efficient and effective procurement systems.

Contribution to course aims and graduate attributes:

This unit focuses on the body of knowledge that is specific to the procurement of goods and services. Procurement is a significant function in all kinds of operations and is thus very relevant to the course. Procurement is being recognised increasingly as a strategic function in organisations. There is significant and expanding use of new technologies, like radio frequency identification, to decrease procurement costs and provide additional benefits for stakeholders. Issues like ethical and sustainable practice are becoming more prominent in procurement. This subject as well enables students who are undertaking, or plan to undertake, a career in procurement to gain the specific knowledge they require within the framework of the MBus in Operations and Supply Chain Management degree.

Content:

1) Fundamentals of procurement, comprises: purchasing objectives, strategic procurement and public sector procurement.

2) Key procurement issues, comprises: outsourcing, sourcing strategies and relationships, total cost of ownership, inventory management and negotiations.

3) Procurement applications, comprises: project procurement, procurement of commodities, international and global sourcing, capital procurement, efficient consumer response, services procurement and corporate social responsibility.

ASSIGNMENT INSTRUCTIONS:

Assessment Item:

Case: Neterama Pty Ltd

Neterama is engaged in the manufacture and supply of fixed and mobile communications networks. The company is mainly based in Australia and has two manufacturing plants, one in Sydney and other in Adelaide. Over the past 2-years there have been financial pressures on the company due to the wash-up from the global financial crisis. This has led to weaker markets in which the company operates and reduced revenues. The Chief Executive Officer has addressed this with a revised strategy aimed at enhancing the profitability and performance of the company.

You are the newly appointed Purchasing Manager and have been asked to submit a paper to the next Company Board Meeting.

You start to reflect on how suppliers are presently managed and decide to put your thoughts into list. These are:

a) There are no formal partnerships in place with any suppliers.

b) All key items are duel sourced for supply security.

c) All key items are tendered at least twice a year.

d) Reverse auctions have been introduced.

e) Usually relationships with suppliers are 'adversarial'.

f) Benchmarking exhibits that purchase prices are competitive.

g) When a supplier delivers late on three occasions they are dropped.

h) Supplier meetings only occur when there is a problem.

i) Technical staff don't trust suppliers enough to be open with them regarding Neterama’s technological ideas.

j) No supplier contracts commit to quantities.

k) Payments to suppliers have recently been moved from 30 days to 90 days without consultation.