Logistic management case study

Chapter 8 – Procurement

There is a lot of detail in this Chapter and perhaps procurement could be considered a somewhat ‘dry’ topic, however it is very important in the context of SCM. Furthermore the material covered in this detailed and informative chapter lends itself very well to in-class exercises and class discussion which will engage the students.

In-class exercises and discussion points

The difference between buying and selling

A good way to introduce the subject of procurement, and the motivations of the different actors, is to look at the difference between buying and selling – see Table 8.1 / p144.

Ethical sourcing

Referring back to topics covered in earlier chapters, in particular globalisation (Ch 2) and outsourcing and offshoring (Ch 3), ask students to consider how important do they think ethical sourcing is in the context of global SCM (cf p159-160 in particular).

Procurement Risk

Ask students what criteria they would use to categorise suppliers – by location? by spend? by risk? (it’s important that they do get to the Kraljik matrix (Figure 8.1)).