T. A.

PAI MANAGEMENT INSTITUTE (TAPMI), MANIPAL

STRATEGIC SOURCING
Programme: PGDM
Batch: 2017-2019
Term: 6
Course Name: Strategic Sourcing – OPS 6010
Credits: 3 (20 sessions)
Course Instructor: Prof. Sayan Mukherjee (Core)

PART 1
INTRODUCTION
Traditionally, procurement has been characterised primarily with transactional processing
with little or no strategic decision-making responsibility. Today procurement has evolved into
a strategic element and considered as a competitive tool for achieving company objective.
Procurement has developed as a valuable tactical element, overseeing the day-to-day
logistics operations with the supply base, while a new element in the procurement process,
sourcing, has taken the longer-range, strategic role: finding, qualifying, developing, and
contracting with domestic and global supply organizations.
In today’s increasingly competitive and globalized world, firms are trying to find ways to
improve their performance and differentiate themselves from their rivals. Clearly, 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. Whatever the supplier provides, the effective organization needs a robust system to
procure the correct goods and services at the best possible price for the organization. Once
the organization has made the decision to procure goods and services from another
organization, both organizations must clearly define the parameters of the relationship. This
course aims to provide students with an understanding of the impact that sourcing and supply
management has on the success and profitability of firms in today’s business environment.

1
COURSE OBJECTIVES (CO)
By the end of this course, students will internalize concepts and practice skills that will enable
them to:
1. Understand the importance of sourcing and supplier management in today’s business
environment.
2. Familiarize with the basic concepts, techniques, methods and applications of sourcing and
supplier management, including: supplier selection, sourcing decisions, managing supplier
performance, and negotiations.
3. Enhance analytical skills and ability to uncover problems and opportunities for
improvement in supply chain and overall organizational performance.

COURSE LEARNING OUTCOMES (CLO)

Upon successful completion of the course the students will be able to:
CLO 1: Display familiarity with how sourcing and supplier management concepts can be
used to improve the competitive position of a firm
CLO 2: Supplier selection and measurement of supplier performance (PLG 3)
CLO 3: Evaluation of sourcing decisions in appropriate business contexts (PLG 2)

COURSE CONTENT
 Purchasing and supply Process
 Supply Management Integration
 Supply Management Organization
 Supply & commodity strategy
 Supplier Evaluation & Selection
 Supplier Quality
 Supplier Development
 Global Sourcing
 Strategic Cost Management
 Negotiation & Conflict Management
 Purchasing Ethics
 Services Purchasing
 Supply Performance Management

PRESCRIBED TEXT BOOK

Sourcing and Supply Chain Management
Author(s): Robert B Handfield | Larry C Giunipero | James L Patterson | Robert M. Monczka
ISBN: 9788131516690
Edition: 5th
Publisher: Cengage

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 OTHER REFERENCE MATERIALS:
a. Leenders, Johnson, Flynn & Fearon (2010) Purchasing and Supply Management, (13 th
Edition), TMH
b. Donald W Dobler & David N Burt, Purchasing and supply management : text and cases,
(6th Edition), TMH.
c. J.R. Tony Arnold, Stephen Chapman, Lloyd Clive (2010), Introduction to Materials
Management, (6th edition), Pearson

POLICY ON PLAGIARISM:
No tolerance towards plagiarism. If plagiarism is suspected in any academic work of students,
it shall be subjected to appropriate plagiarism checks and reported to PGP Office with
recommendations.

ASSESSMENT SCHEME AND WEIGHTAGE:

{a} END-TERM

Evaluation Weightage (%) Duration (in minutes) Open/close Book CLO tested
CLO 2 and
End-Term 40 120 Closed
CLO 3

{b} OTHER ASSESSMENTS

Unit of
Sl No. Evaluation item Weight Time CLO
Evaluation
1 Quiz 1 Individual 10% After 12th Session -
2 Quiz 2 Individual 10% After 18th Session -
Class
3 Individual 7.5% During session 4, 8, 9, 15 & 17 -
Participation
Case
4 Group 7.5% During session 4, 8, 15 & 17 -
Assignments
5 Project Group 25% Session 1 onwards -

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 PART 2: SESSION PLAN
Sessions
Topic Pedagogy Readings
No
Introduction to course and
1 Lecture Chapter 1
Live Project Kick-off
-- Purchasing and supply
Chapter 2 and 4
Process
2 Lecture “Purchasing Must Become Supply
-- Supply Management
Management” by Peter Kraljic (HBR)
Integration

3 Supply Management Org. Lecture Chapter 5

Procurement at Betapharm Procurement at Betapharm Corp. (A) -

Case
4 Corp. (A) HBS
Discussion

Supply & commodity

strategy Lecture and
5 Chapter 6
- Spend Analysis exercises
- Category Strategy
Interim
7 Live Project Status Review
Discussion
Supplier Evaluation &
Selection Lecture and
6 Chapter 7
- Supplier Selection using exercises
AHP
General Motors: Supplier Case General Motors: Supplier Selection for
8
Selection for Innovation Discussion Innovation - IVEY
Supplier Quality
Mini-case: Managing Lecture and
9 Chapter 9
Supplier Quality: Integrated Case
Devices
Live Project debriefing and
10 and 11 preparation of final joint Discussion
report

Lecture and
12 Supplier Development Chapter 10
exercises

Quiz 1 (10%)

4
Sessions
Topic Pedagogy Readings
No
Chapter 11
Lecture and Strategic Sourcing – from periphery to
13
Global Sourcing exercises the core (HBR)

Strategic Cost Management

- Total Cost of Ownership Lecture and
14 Chapter 12
model exercises

Scotts Miracle-Gro: The Scotts Miracle-Gro: The Spreader

15 Case
Spreader Sourcing Decision Sourcing Decision - IVEY

Negotiation & Conflict Lecture and

16 Chapter 13
Management exercises

Purchasing Ethics Lecture and

17 Chapter 15
Case: Purchasing Ethics Case

18 Services Purchasing Lecture Chapter 17

Quiz 2 (10%)

Supply Performance Lecture and

19 Chapter 19
Management exercises

20 Course Wrap-up

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 PLG MAPPING FOR THE COURSE

Addressed CLO
PLG# Program Level Learning Goal by Course? No.
(Yes / No)
Application of Fundamentals
PLG1 Traits: Demonstrate application of functional / conceptual No N/A
knowledge to business situations
Problem Identification and Solution
PLG2 Traits: Demonstrate ability to identify a problem, critically assess Yes CLO 3
various alternatives and suggest appropriate solution

Integrative Thinking
Traits: Demonstrate ability to identify inter-linkages among
PLG3 Yes CLO 2
functional areas within an enterprise and assess the impact of
external environment on its performance
Effective Communication
PLG4 No N/A
Traits: Demonstrate proficiency in Oral and Written Communication
Ethical Responsibility
PLG5 Traits: Demonstrate awareness and assess impact of ethical No N/A
behavior on business
Leadership
PLG6 Traits: Demonstrate capability to take leadership role in a business No N/A
situation