In Unit 3, we will spring into action having bagged the fundamental understanding of the Procurement functions in the previous two units. We will begin by determining and specifying the different dimensions relating to the goods and services that an organisation needs to procure, the analysis of the various supply markets and then move on to develop supply strategies for different categories of products and services from the various supply sources.
Unit 3 is made up of 3 sections:
This section explains the involvement of the Procurement function in the specification and supply planning process. It examines the different approaches to producing a procurement description and the advantages and disadvantages of some of these approaches.
This section discusses the importance of understanding the overall supply market and assessing risks and opportunities to select the best supply markets based on the supply objectives and priorities that have previously been defined.
This section focuses on how to develop and use different supply strategies for an organisation’s different categories of products and services. It discusses issues about identifying the best possible suppliers as viable business partners. It also explores the opportunities for organisations to expand their supply bases to participate in global sourcing and the challenges of doing so.