PURCHASING AND SUPPLY MANAGEMENT

Description

The objective of the course is to give students an introduction to the key insights, knowledge and tools related to one of the most vital and fastest growing functions in the business: Purchasing and Supply Management. They would learn about supplier innovation, risk management in the supply chain, cost reduction and all the main tools and the vocabulary of the function. The central theme of the course is that purchasing can provide a major source of competitive advantage to the business be this cost, time or value advantage. Strangely enough it is a discipline often ignored in business schools. Purchasing costs can represent more than 80% of the sales turnover as firms concentrate on their core business and outsource everything else. So, suppliers and purchasing are in the first line of contributors to cost/profit performance (and as a result the focus of many strategy consulting performance projects, organizational turnarounds or mergers & acquisitions). Moreover, as many businesses become solutions “integrators”, major innovations would depend on suppliers’ capabilities and suppliers’ integration. So, purchasing impacts both parts of the equation: costs and growth. Purchasing main feature is complexity: worldwide suppliers to be integrated, internal functions to be aligned when on the other side what the customer expects is speed, agility, quality, efficiency, fair price, customization, service. How do you manage that complexity? What is the right strategy to adapt? What drives purchasing performance? These are some of the questions we will try to answer. Given the stakes the function represents, no business can afford to be less than excellent in purchasing and no manager can afford not to integrate that knowledge in the decision making process – it doesn't matter the perimeter of responsibilities. The success and survival of a firm would depend. And as the function cross the functional and national boundaries of the company and is one the most exposed to the “outside” and “inside” world, it becomes one of the most interesting functions to work at. It imposes constant challenge and requires a strong capacity to adapt and manage complexity, strong analytical skills, great understanding of each part of the value chain, polyvalence, great influencing and stakeholders management skills. Thèmes clés / Key Topics: Strategy, growth, risks management, sourcing, suppliers management, suppliers integration/involvement, outsourcing, open innovation, cost reduction, service improvement, agile and efficient supply chains, sustainability, Organisation du cours – plan détaillé / Course organization – detailed outline: Individual Preparation for the first session: Make or Buy Case Session 1: Introduction - Introduction on purchasing/strategic sourcing: Why it is a strategic function - Purchasing and suppliers contribution to growth, open innovation - Class discussion: Make or buy Case to prepare for the next session: Euroavionics Session 2: Purchasing Process - Typologies of risks to be managed by purchasing - The purchasing process - Case presentation: Euroavionics Case to prepare for the next session (individual): CISCO Session 3: Upstream Purchasing - Design and development of the products- Definition of requirements - The importance of purchasing involvement - The Design to Cost and Functional Analysis - Class discussion: CISCO Case to prepare for the next session: PQI Session 4: Market Analysis - Supplier Market Analysis - The purchasing strategy by category - Portfolio management - Case presentation: PQI Case to prepare for the next session: Lego Session 5: Supplier Management - The Supplier Management as a key core expertise - The Supplier Evaluation and development - The Supplier Relationship Management - The Total Cost of Ownership (TCO) - Case presentation: Lego Case to prepare for the next session: Mattel Session 6: Case and Exam - Case Presentation: Mattel - Exam Contenus ESG / ESG-related content (Environmental – Social – Governance): Environmental-r elated content Social-relat ed content Governance-re lated content 2. Moderate content 1. Minimal content 1. Minimal content Assessment Information: Pondération dans Outils / support / mode d’évaluation Durée et format la notation finale Tool/method of evaluation Duration Weight in the final grading Class Participation Individual 20% Case Studies Work in groups Group 20% Individual Exam Individual 60%