Loyola Institute of Business Administration

(LIBA)
Loyola College Campus | Chennai 600034 | TN India

Sourcing and Supply Management 20 Sessions | 3 Credits

Term :V Faculty : Dr.L.Aravindh Kumaran

Batch : F 20 Period :

COURSE OVERVIEW

Sourcing and selection of suppliers can have great impact on a firm’s total cost and
help in this differentiation process. Increased levels of outsourcing and offshoring
make correct selection of suppliers and their quality, along with development of
relationships between suppliers and producers, more crucial than ever.

This course aims to provide students with an understanding of the impact that
sourcing and supply management have on the success and profitability of firms in
today’s business environment. We will look at some of the factors that need to be
considered when making sourcing and supplier management decisions (costs, prices,
ethics, globalization, risks), and discuss the influence that sourcing and supply
management have on other functional activities, such as product design, inventory
management, etc

Assurance of Learning (AoL)

The course can yield the following conceptual and practical assurance of learning

 (Understanding) Insight on importance of procurement and its

process in business
 (Create) Create a visibility in supply management integration
 (Apply) Prepare the optimization models in sourcing for specific
procurement
 (Apply) Compute solutions cost reduction using the
appropriate methods
 (Evaluate) Interpret the application of technology in sourcing
and procurement process.

COURSE OBJECTIVE

1. To develop an understanding of importance of procurement

2. To have a thorough knowledge on different perspectives relating to supply
management.

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 Loyola Institute of Business Administration
(LIBA)
Loyola College Campus | Chennai 600034 | TN India
3. To analyze resource management and capacity challenges in service
operations
4. To appreciate need for managing strategic orientation for sustained growth in
services business.

PEDAGOGY

Instructions would be based on suggested online material, discussions on theory,

framework and cases. Students are expected to demonstrate analytical skills in
business situations and bring in overall understanding of various service operations
functions, tools and techniques. Case discussion would be more based on analysis
among students and instructor would moderate. Students are expected to develop
thorough understanding of the concepts and tools and demonstrate the same in
approaching solution to cases.

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 Loyola Institute of Business Administration
(LIBA)
Loyola College Campus | Chennai 600034 | TN India

SYLLABUS AND SESSION PLAN

Syllabus

Unit – 1
Purchasing through procurement, Strategic procurement, Purchasing Importance,
Purchasing and Supply Chain Management – Procurement Process -Purchasing
objective and responsibilities , Service procurement

Unit - II
Supply management integration, Supply management strategies, Lead time and
compression, Category strategy and development, Improving procure to pay process,

Unit - III
Sourcing Management, Sourcing and supplier selection, Supplier evaluation, sourcing
strategies, Negotiation -Policy issues in sourcing-

Unit - IV
Worldwide sourcing, sourcing approach to cost reduction, Price and total cost
ownership (TCO), Contract management, Purchase ethics, Suppler Risk management

Unit - V
Overview of technology in Procurement, e-procurement models -e-procurement
models, e-sourcing, source to settle (S2S), Spend analysis, amount payable analysis,
Introduction of sourcing and procurement software

Session Plan

Sessions Unit Topic Pedagogy Sub topic and learning

1 1 Purchasing through Lecture Procurement and change 2
procurement and
examples
2 1 Strategic procurement Assigment Purchasing Importance 2
excercise procurement, portfolio
management
3 1 Purchasing and Supply Lecture Enablers of Purchasing 1
Chain Management and Supply Chain
Management
Scope of purchasing
supply management job
functions
4 1 Procurement Process Lecture Purchasing objective and 1,2
and responsibilities

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 Loyola Institute of Business Administration
(LIBA)
Loyola College Campus | Chennai 600034 | TN India
Sessions Unit Topic Pedagogy Sub topic and learning
discussion Service procurement
5 2 Supply management Activity Supply management 1
integration lecture strategies
6 2 Lead time and Lecuture Responsiveness to 3
compression and customer needs
problems
7 2 Category strategy and Lecture Category strategy 1,.2
development and development process
examples Category management
groupings
8 2 Improving procure to pay Lecture Purchase 1
process and Requisitions/Statement of
activity Work (SOW)
9 3 Sourcing Management Lecture sourcing strategies, back 4,3
and sourcing, in sourcing
examples
10 3 Sourcing and supplier Case Analysis of market 2
selection exercise condition and supplier
base
11 3 Supplier evaluation Problems Identify Potential Supply 1,2
and Sources
discussion
12 3 Negotiation Exercise Policy issues in sourcing 4,2
and
discussion
13 4 Worldwide sourcing Lecture procurement research 1,2
14 4 Sourcing approach to cost Problem Price and total cost 1,3
reduction and ownership (TCO)
lecture
15 4 Contract management Examples Purchase ethics, 1,3
and environmental issues
discusson
16 4 Suppler Risk management Lecture Nature and of risk and 4
Models fraud management
17 5 Overview of technology in Discussion Software packages and Open
Procurement technology available for source
sourcing and procurement
18 5 e-procurement models Lecture e-sourcing 2
and
examples
19 5 source to settle (S2S), Lectue Implementing an S2S 4
Process
20 5 Spend analysis, amount Discussion Spend analytics 4
payable analysis

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 Loyola Institute of Business Administration
(LIBA)
Loyola College Campus | Chennai 600034 | TN India

ASESSMENTS

Assignments/ Quiz - 20 Marks

Project presentation - 20 Marks
Class room activities - 10 Marks
Case Study Analysis - 20 Marks
End Term - 30 Marks

TEXT FOR THE COURSE

1. Purchasing and Supply Chain Management, Robert M. Monczka, Robert B.

Handfield, Larry C. Giunipero , James L. Patterson Cengage learning, fourth
edition 2016.

2. Procurement and supply chain management, Kenneth Lysons, Brain

Farignton, Pearson education ltd, Ninth edition, 2012.

3. Procurement principles and management, Peter Baily, David farmer.Barey

crocker, David Jessop, David Jones, Pearson education eleventh editon 2015.

4. The Procurement and Supply Manager’s Desk Reference Fred Sollish, John
Semanik , Jhon wily and sons Inc Second edition, 2012.

METHODOLOGY

Unit 1 will introduce the landscape of procurement, its relationship with sourcing,
purchasing and supply management and . It will be taught by a lecture of basic
concepts and discussion. An assignment to understand the leading company’s
purchase practices.

Unit 2 will deal with supply management integration and strategies. In addition to the
basic concept lecture, the students will be given an individual mini project about
indvidiual companies strategies be discussed

Unit 3 will contract sourcing management requirement of a company. The concepts

related to this topics will be dealt with a short lecture and an assignment to find the
optimal sourcing technique for a company .

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 Loyola Institute of Business Administration
(LIBA)
Loyola College Campus | Chennai 600034 | TN India
Unit 4 will introduce the topics to manage the worldwide sourcing process, sourcing
approach to cost reduction. The basics will be taught by small lecture and a problems
to study the surcing cost

Unit 5 will give the over view of technology used in procurement and supply
management. In addition to the basic in the form of lecture an assignment and s mini
project in spend analysis can be done

EVALUATION

Unit1-The student will be assessed based on the assignment in sourcing strategy of a

company in different industry sector.
Unit2-The student will be valued based on the project presentation on technology in
selected service industry
Unit3- The student will be assessed based on the optimization of supplier selection
and assessment.
Unit4- Assessment is based on cost reduction problems
Unit5- Assessment is based on an assignment on spend analysis

Guide to Case Analysis

Following is the procedure for a case analysis

1. As a first step in case analysis will require at least three readings to understand
the nature and structure & classification of the issues.
2. There is less chance that the answer for the full case will lie in the given case
content. So, take notes of the important information under different headings
and post questions in those information to kindle your thinking related to the
concepts
3. Do a situation analysis from the case contents to understand the problems.
Some of the information that is not available can be addressed through
assumptions
4. Identify and define the problem by posting the question “why?” .The problem
definition should be to the point, and it should provide a clear indication as to
what must be addressed to improve the performance of the organization.
5. Develop a set of strategic alternatives that have a reasonable potential to solve
the problem
6. The developed a set of realistic alternatives, should be evaluated like, how
well does the alternative address the problem or issue
7. Give recommendations relevant to the problem defined

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