Strategy in Procurement

We will explain the scope of the procurement function and begin to show how it is playing a strategic role in organizations and its importance in projects.
In this we shall
• Consider key concepts in procurement including price, value, and cost
• Reflect on how procurement decisions taken in your organization, or others organizations you are familiar with
On completion of this Week you will be able to
• Explain the strategic role of procurement
• Explain the relationships between corporate goals and procurement strategies
• Critically review the impact of procurement
Lecturecast
In this lecturecast we will explain the scope of the procurement function and begin to show how it is playing a strategic role in organisations and its importance in projects
Reading
The reading this week focusses on the development of procurement, historically and current/future projections on how procurement still needs to change in light of the urgent climate crisis and related social inequalities. The reading encourages you to reflect on the opportunities for procurement to actively build supply markets that enable the circular economy to develop and to consider the role of procurement and innovation.
Required Reading
Cavinato, J. L. and Kauffman, R. G. (2000) The purchasing handbook. a guide for the purchasing and supply professional. 6th ed. McGraw-Hill.
Ellram, L.M., Harland, C.M., van Weele, A., Essig, M., Johnsen, T., Nassimbeni, G., Pagell, M., van Raaij, E., Rozemeijer, F., Tate, W.L. and Wynstra, F., 2020. Purchasing and supply management’s identity: Crisis? What crisis?. Journal of Purchasing and Supply Management, 26(1), p.100583.
Knight, L., Tate, W., Carnovale, S., Di Mauro, C., Bals, L., Caniato, F., Gualandris, J., Johnsen, T., Matopoulos, A., Meehan, J., Miemczyk, J., Patrucco ,A.S., Schoenherrm, T., Selviaridisn, K., Touboulic, A, and Wagner, S.M., 2022. Future business and the role of purchasing and supply management: Opportunities for ‘business-not-as-usual’PSM research. Journal of Purchasing and Supply Management, 28(1), p.100753.
Week 1 Discussion Forum
Briefly outline a project in your organisation (or one you are familiar with) covering the industry the organisation operates in, organisation’s competitive priorities (e.g. what it competes on – low price, high quality, differentiation etc), country/region, and project aim. Identify key goods and services that may be procured for this project. Comment on your own, and at least one other posted project, on the key considerations to ensure the procurement on this project achieves its strategic aims. Provide justifications for your suggestions.