Purchasing and Supply Management

Introduction

Purchasing and supply management (PSM) consitutes a key business function in many companies. In many companies, purchasing costs constitute over 50% of the cost of goods sold (COGS). Therefore, suppliers represent a substantial cost for companies but they also provide value and opportunities for innovation. In addition, suppliers play a key role in a company’s risk management and strive for sustainability. Companies therefore largely depend on their suppliers, and proper PSM is needed. A common challenge of the PSM function across industries and sectors, is the need to navigate in an environment that is besieged with challenges. These include compliance to new regulations and demands related to net zero ambitions, resource scarcity, volatile raw material prices, industry 4.0, and unexpected disruptions like pandemics, geopolitical issues, wars, natural hazard incidents, etc. How PSM can play a strategic role, by developing appropriate strategies, capabilities, processes, systems, and supplier relationships, is at the core of this course. The course is a mix of theoretical insights and high level analyses on the one hand, and application of practical tools and examples on the other.

Course content

• The role of purchasing and supply management in a company and society at large: definitions, trends, and challenges particularly related to sustainability
• Purchasing and supply strategy at multiple levels
• The purchasing process
• Conditions & applications