Diploma in Procurement and Supply Chain Management

This module aims to provide a clear understanding of the key role that purchasing and procurement play within an organisation. The role is increasingly an important one; although marketing efforts do increase gross revenues, they also increase the cost of goods sold, while purchasing and procurement management efforts go directly to the bottom line profit by increasing net revenue. This transition can be clearly seen in the evolution of purchasing and procurement and supply from its roots as a purely clerical function in the early part of the last century, to its more traditional role of expense control through most of the century, and now to its additional role as a key enabler of managing cost within the organisation.

As the nature of the function has changed, so have the requirements for purchasing and materials management professionals. Organisations of all sizes need an effective and efficient purchasing and procurement management function as the financial performance of the organisation can be affected by the actions/decisions of purchasing and procurement.

“A key feature of the current business environment is the idea that supply chains compete, not companies” (Christopher, 1992). Usage of the term supply chain management (SCM) has become increasingly prevalent in business and academic circles. Its origins can be traced back as far as the late 1950s. Despite the extensive usage of the term, there is no universally accepted definition of SCM. This module investigates the origins of SCM and how it has evolved over time. It examines the ways in which effectively managed supply chains improve organisational competitiveness while maximising customer value.

This module aims to prepare learners for employment in the areas of procurement and supply chain management of organisations across a wide range of industries and service providers. This module is designed to provide learners with a clear insight and understanding of the wider area of the management of an organisation’s operations and how they integrate into organisational effectiveness, both nationally and globally.

This module is divided into two parts. Part 1 introduces the learners to quantitative analysis approaches in logistics and supply chain management. Learners will understand how to use spreadsheets to model various problems in supply chain and logistics management. Part 2 will see the learner investigate how the mainstream supply chain information systems work, how information technology can improve the efficiency of supply chain management, and what up-to-date information technology used in logistics and supply chain management allows for better integration and ‘leaner’ supply chains in more sustainable systems of control and delivery.

The aim of this module is to introduce the learner to relationship management and how they manage their commercial relationships both with suppliers and their internal customers, this may dictate the level of success or failure in the future as relationships are central to the way in which business is transacted. “Good” relationships with customers, suppliers, workers, local community, shareholders, regulators and a whole range of other stakeholders allow a business to continue its trading activities, whereas “bad” relationships have a negative impact on business processes, profitability and jobs. Purchasing and procurement professionals have a vital and strategic role in forming and managing commercial relationships. Management of a firm’s supply chain is specifically about the management of relationships across complex networks of organisations that, while legally independent, are in reality interdependent. Suppliers to an organisation, in turn, will have suppliers of their own. A poor relationship with any link in the supply chain can have disastrous consequences for all the other supply chain members. Successful supply chains are driven by the market and hallmarked with collective strategy development, open communications and win-win relationships that are based on both mutuality and trust.

As global supply chains continue to evolve, procurement professionals are required to manage increasingly complex supply and demand challenges. Strategic procurement is a pro-active corporate activity enabling world-class supply/demand matching, while managing supply chain risks through effective negotiation and management of supplier contracts. This module builds on the concepts introduced in the stage 1 Purchasing and Procurement module. It develops learners’ strategic and critical thinking and practical understanding of advanced procurement activities and strategies, which explore supply market opportunities to deliver the best possible outcome to an organisation’s stakeholders and customers

Highly effective negotiation skills are an essential element of any purchasing professional's toolkit. This module aims to equip learners with the resources and skills required to engage in highly effective negotiations. The module discusses and assesses the necessary tools and tactics required for a detailed, planned approach to negotiation. This allows the purchasing professional to evaluate their opponents and stakeholders in advance, and tailor their negotiation strategy depending on cultural differences, personality traits and the application of game theory.

Fee: EUR 6,350.00