4 3.0 The Course — A Brief Introduction

3.0 The Course — A Brief Introduction

About this course

This is a 5-credit higher-level core major course within the Bachelor of Business in Logistics and Supply Chain Management (Hons) programme.

Have you ever wondered what are the roles and functions of Procurement in an organisation? In addition, what are procurement’s contributions to a success of an organisation? How does Procurement identify and select a new supplier? What are the procedures to purchase a new item?

This course introduces you to concepts and theories that will help you identify and analyse various aspects of procurement management. This course deals with procurement management as an important component of the total supply chain management. It covers procurement strategies, procurement processes and procedures, purchasing specifications, supplier evaluation and selection, negotiation and contract administration, e-procurement and outsourcing. This course also focuses on the interrelationships of procurement with the rest of the functional areas of the organisation. This course will enhance your ability to excel in your procurement or supply chain profession.

This course contains five study units. The first unit provides the overview of procurement management. Unit 2 focuses on procurement structures, processes and technologies. Unit 3 deals with specifications, strategies and supplier evaluation. Unit 4 is designed to acquaint students with contract administration and logistics management. Unit 5 covers capital equipment, service procurement and outsourcing. Each unit takes about 3 to 4 weeks and the courses take approximately 18 weeks to complete.

Icons used in course materials (with examples)

In the course materials, you will come across icons that are designed to inform you of the activities that you are required to do before proceeding to the next section. Please follow the guidelines in these examples as the content writers have included these icons in various activities of the course materials. The following icons and examples explain how these icons lead you towards a richer and more productive learning experience. Please note that this course may not use all these icons. The examples illustrated in the following table may not be applicable to all courses.


Course organisation

Units Titles Weeks Assessment activities
1 Procurement Management : An
3 TMA 1 (20%)
2 Structures, Processes and
3 Specifications, Strategies and Supplier Evaluation 3 TMA 2 (30%)
4 Contract Administration and Logistics Management 4
5 Capital Equipment, Service Procurement and Outsourcing 4
Total 18 (50%)


The objectives of this course are to:

1.  Develop competencies and excellence in procurement management.

2.  Explain how procurement is influenced by the business environmental factors and interrelated with the rest of the functional and other areas of the organisation with particular emphasis on the interface with marketing, engineering, production and finance.

3.  Describe the procurement functions and processes together with their advantages and challenges.

4.  Explain how procurement and supply management has become increasingly visible in a world where supply is a major determinant of corporate survival and success.

5.  Explore the general and special operational concerns in the execution of the varied procurement and supply management functions.

6.  Discuss the expectations of procurement and supply professionals playing a strategic role in progressive organisations and the various general management duties undertaken.



By the end of this course, you should be able to:

1.  Identify the changing profile of procurement and its increasing contribution to profitability and strategic importance and its relationship with other functional areas.

2.  Explain how procurement decisions are determined by the organisation’s competitive priorities, its resource capabilities and the environment.

3.  Explain the various procurement organisational designs, the main activities and the intervention of technologies in the purchasing process.

4.  Identify the basic considerations for a procurement specification, supplier market research and for developing supply strategies for different supplier portfolios.

5.  Identify and select suitable suppliers for the organisation, the evaluation criteria, the challenges of buying from overseas and the importance of negotiating in procurement effectiveness.

6.  Identify and negotiate the essentials of a contract, the different Incoterms, the role of logistics and how to deal with difficulties relating to contractual default and disputes.

7.  Describe special procurement applications and buying situations in capital assets, services procurement, making in-sourcing and outsourcing decisions.


Course assessment

This course is designed to help you move easily from the stated objective through the required readings, self-tests, practice exercise and tutor-marked assignments (TMAs) to a final examination. In an assessment, you will be expected to:

1.  Demonstrate comprehension of the concepts you have learnt in the course.

2.  Integrate course concepts and knowledge with your own experience and observations.

3.  Apply course concepts you have learnt in the course to variety of situations.

The TMAs and an examination are designed to test and facilitate your progress. To complete the course successfully, you are required to pass both the continuous assessment and the final examination.

Tutor-marked assignments (TMAs)

You are required to complete all three TMAs for BLC 304/05 Procurement Management.

The TMAs are timed to allow for feedback on one TMA before the next one is due. Please submit the three TMAs on time.

The TMAs can be in the form of case studies or essay questions. You are expected to demonstrate understanding of course concepts and be able to apply the relevant concepts and frameworks to the assignments. The weightage of the TMAs are: TMA 1 (20%) and TMA 2 (30%).


Course delivery


Baily, P, Farmer, D, Crocker, B, Jessop, D and Jones, D (2008) Procurement Principles and Management, 10th edn, Prentice-Hall, Pearson Education Limited, England.

Supplementary readings

1.  Benton, Jr. W C (2007) Purchasing and Supply Management, 1st edn, New York: McGraw-Hill Irwin.

2.  Handfield, R B, Monczka, R M, Giunipero, L C and Patterson, J L (2009) Sourcing and Supply Chain Management, 4th edn, Canada: South-
Western, Cengage Learning.

3.  Lysons, K and Farrington, B (2006) Purchasing and Supply Chain Management, 7th edn, England: Pearson Education Limited.


Course materials and student support

Course materials are the primary source of content that WOU provides for you to study. They normally consist of all or some of the following:

•  Study Units [developed and written by course developer(s)].

•  Course Guide.

•  Self-tests and activities.

•  Instructions for 2 TMAs on WawasanLearn.

•  Specimen examination questions on WawasanLearn.

•  Other print and non-print media that may accompany the set of course materials.

Apart from WawasanLearn and tutorials, WOU is mindful of the need to support you throughout the course. Our Regional Offices are well-equipped and staffed to attend to your queries whenever they arise. We have Regional Office Directors and tutors who will be glad to listen to you. The Regional Office staff will link you to the relevant person when there is a need. The Regional Offices have access to the WOU campus in Penang and are also able to contact the Course Coordinator when required to do so.

Learning management system

This course is supported by the Learning Management System (LMS). You can find the TMAs and the latest course information in the LMS known as WawasanLearn. Access to WawasanLearn is by way of a single login password entry into the Student Portal and you can “click” into the course sites and associated e-forums. You can also communicate with your tutors, the Course Coordinator and your coursemates using WawasanLearn.

Self-help groups

You are advised to organise informal meetings between your coursemates from the same tutorial group. We want to emphasise the benefits of such activities as the collaboration and interaction will be most useful in supporting your efforts to complete your TMAs and to form a learning community. These meetings which are purely voluntary provide a way for you to help one another.

WOU MyDigitalLibrary

Additional supplementary readings specific to the course is available from WOU E-Library. You are advised to go to WOU MyDigitalLibrary, E-Course Reserve and look for your course. The supplementary readings are organised according to each units. You are to click on the units to locate the supplementary reading materials. Please note that your student ID and password are required for access to the supplementary reading materials.


BLC 304/05 Procurement Management Copyright © 2009 by Wawasan Open University. All Rights Reserved.


Comments are closed.