Strategic Sourcing and Procurement

Catalog description

Sourcing and procurement are vital components of a well-functioning and efficient supply chain. Obtaining raw materials, components, finished and semi-finished goods, critical technology, and essential services from different suppliers and countries with different languages, currencies, legal and cultural norms is a complex and risky task and made essential due to the value of these activities to the bottom-line of any global business today. Additionally, globalization raises issues involving not just costs but reliability, quality, credibility, product safety, product liability, and related social, ethical, governance, and environmental impact. In this course, students will learn and apply the concepts, principles, and techniques required to manage the sourcing process effectively. Topics include purchasing, outsourcing, materials management, inventory management, forecasting, price and cost analysis, transportation analysis, supplier selection, negotiation strategies, auctions, and legal framework. Students will apply the concepts covered in lectures, articles, case study analysis, a team project, and discussions. Additionally, a special component of this course will include participating in a multi-week real world procurement simulation where students will have an opportunity to interact in a purchasing process with senior industry procurement executives. The simulation will both teach and allow students to participate in developing and implementing bidding and negotiating strategies in real world vendor-customer relationships. Sophomore standing or higher.