Purchasing and Supply Chain Management
Table of content
Purchasing and Supply Chain Management ................................................................................................. 1
Week 1 .................................................................................................................................................................. 3
Video 1 ............................................................................................................................................................. 3
Video 2 ............................................................................................................................................................. 4
Video 3 ............................................................................................................................................................. 5
Book chapter 1.1 .............................................................................................................................................. 6
Book chapter 1.2 .............................................................................................................................................. 6
Book chapter 1.3 .............................................................................................................................................. 6
Book chapter 1.4 .............................................................................................................................................. 7
Book chapter 5.1 .............................................................................................................................................. 7
Book chapter 5.2 .............................................................................................................................................. 7
Book chapter 6.1 .............................................................................................................................................. 7
Book chapter 13.1 ............................................................................................................................................ 8
Lecture 1 .......................................................................................................................................................... 8
Week 2 .................................................................................................................................................................. 9
Video 1 ............................................................................................................................................................. 9
Video 2 ........................................................................................................................................................... 11
Video 3 ........................................................................................................................................................... 12
Book chapter 10.5 .......................................................................................................................................... 13
Book chapter 8.1 ............................................................................................................................................ 14
Chapter book 8.5 ........................................................................................................................................... 15
Chapter book 8.6 ........................................................................................................................................... 15
Chapter book 8.7 ........................................................................................................................................... 15
Chapter book 8.8 ........................................................................................................................................... 15
Chapter book 8.9 ........................................................................................................................................... 16
Chapter Book 12.1 ......................................................................................................................................... 16
Chapter Book 12.2 ......................................................................................................................................... 16
Chapter Book 12.3 ......................................................................................................................................... 17
Week 3 ................................................................................................................................................................ 19
Video 1 ........................................................................................................................................................... 19
Video 2 ........................................................................................................................................................... 21
Chapter Book 2.1 ........................................................................................................................................... 23
Chapter Book 2.3 ........................................................................................................................................... 24
Chapter Book 4.1 ........................................................................................................................................... 25
Chapter Book 3.1 ........................................................................................................................................... 25
Week 4 ................................................................................................................................................................ 28
Video 1 ........................................................................................................................................................... 28
Video 2 ........................................................................................................................................................... 29
Video 3 ........................................................................................................................................................... 30
Chapter Book 4.2 ........................................................................................................................................... 31
Week 5 ................................................................................................................................................................ 34
Video 1 ........................................................................................................................................................... 34
Video 2 ........................................................................................................................................................... 35
Video 3 ........................................................................................................................................................... 36
Chapter Book 9.1 ........................................................................................................................................... 37
Chapter Book 9.2 ........................................................................................................................................... 37
Chapter Book 9.3 ........................................................................................................................................... 38
, Chapter Book 9.4 ........................................................................................................................................... 38
Chapter Book 9.5 ........................................................................................................................................... 38
Chapter Book 10.4 ......................................................................................................................................... 39
Chapter Book 10.6 ......................................................................................................................................... 39
Week 7 (guest lecture) ....................................................................................................................................... 40
2
,Week 1
Video 1
Example of a supply chain of a car manufacture
Purchasing: need to buy from a supplier
Supply Chain Management: encompasses every activity associated with the transformation and flow
of goods from the raw material state to the end consumer.
What is purchasing management:
• The management of a firm’s external resources
• Ensuring the supply of goods, services, knowledge and capabilities
• To perform the firm’s primary and support activities
Purchasing today:
• From administrative to strategic function
• From buying materials/parts to buying competence
• From cost focus to performance focus
What is supply chain management:
• The management of upstream and downstream relations with suppliers and customers to
deliver superior customer value at lower cost to the supply chain as a whole
Shared focal concepts:
• Relationships between organizations
• Management of activities
• performance
Differences between
Purchasing and SCM:
3
, The literature presents various relationships, our course agrees with the unionist view.
Video 2
Outsourcing: the practice of delegating tasks to specialized suppliers, goods or service
Why outsource?
• Decrease production cost
• Access to good-quality suppliers
• Gain access to markets / circumvent trade barriers
• Gain access to scarce resource
Make or buy decisions = outsource
Make or buy decisions:
• Transaction cost theory (TCT)
o Decision-based on minimization of transaction cost
o Two criteria:
1. Asset specific: the extent to which assets are unique to a specific task
(tangible or intangible)
2. Potential for opportunistic behavior and related costs
High uncertainty: make
Low: buy
• Resource-based view (RBV)
o Sources of sustained competitive advantage
o Core competencies:
1. Valuable (recourse that adds value to market opportunities
2. Rare (resources cannot be owned or accessed by a lot of companies)
3. Inimitable (hard to replicate)
4. Non-substitutable (recourse that cannot be replaced by any other easily
accessible source)
The closer to the core, the more important to keep in-house
4
Table of content
Purchasing and Supply Chain Management ................................................................................................. 1
Week 1 .................................................................................................................................................................. 3
Video 1 ............................................................................................................................................................. 3
Video 2 ............................................................................................................................................................. 4
Video 3 ............................................................................................................................................................. 5
Book chapter 1.1 .............................................................................................................................................. 6
Book chapter 1.2 .............................................................................................................................................. 6
Book chapter 1.3 .............................................................................................................................................. 6
Book chapter 1.4 .............................................................................................................................................. 7
Book chapter 5.1 .............................................................................................................................................. 7
Book chapter 5.2 .............................................................................................................................................. 7
Book chapter 6.1 .............................................................................................................................................. 7
Book chapter 13.1 ............................................................................................................................................ 8
Lecture 1 .......................................................................................................................................................... 8
Week 2 .................................................................................................................................................................. 9
Video 1 ............................................................................................................................................................. 9
Video 2 ........................................................................................................................................................... 11
Video 3 ........................................................................................................................................................... 12
Book chapter 10.5 .......................................................................................................................................... 13
Book chapter 8.1 ............................................................................................................................................ 14
Chapter book 8.5 ........................................................................................................................................... 15
Chapter book 8.6 ........................................................................................................................................... 15
Chapter book 8.7 ........................................................................................................................................... 15
Chapter book 8.8 ........................................................................................................................................... 15
Chapter book 8.9 ........................................................................................................................................... 16
Chapter Book 12.1 ......................................................................................................................................... 16
Chapter Book 12.2 ......................................................................................................................................... 16
Chapter Book 12.3 ......................................................................................................................................... 17
Week 3 ................................................................................................................................................................ 19
Video 1 ........................................................................................................................................................... 19
Video 2 ........................................................................................................................................................... 21
Chapter Book 2.1 ........................................................................................................................................... 23
Chapter Book 2.3 ........................................................................................................................................... 24
Chapter Book 4.1 ........................................................................................................................................... 25
Chapter Book 3.1 ........................................................................................................................................... 25
Week 4 ................................................................................................................................................................ 28
Video 1 ........................................................................................................................................................... 28
Video 2 ........................................................................................................................................................... 29
Video 3 ........................................................................................................................................................... 30
Chapter Book 4.2 ........................................................................................................................................... 31
Week 5 ................................................................................................................................................................ 34
Video 1 ........................................................................................................................................................... 34
Video 2 ........................................................................................................................................................... 35
Video 3 ........................................................................................................................................................... 36
Chapter Book 9.1 ........................................................................................................................................... 37
Chapter Book 9.2 ........................................................................................................................................... 37
Chapter Book 9.3 ........................................................................................................................................... 38
, Chapter Book 9.4 ........................................................................................................................................... 38
Chapter Book 9.5 ........................................................................................................................................... 38
Chapter Book 10.4 ......................................................................................................................................... 39
Chapter Book 10.6 ......................................................................................................................................... 39
Week 7 (guest lecture) ....................................................................................................................................... 40
2
,Week 1
Video 1
Example of a supply chain of a car manufacture
Purchasing: need to buy from a supplier
Supply Chain Management: encompasses every activity associated with the transformation and flow
of goods from the raw material state to the end consumer.
What is purchasing management:
• The management of a firm’s external resources
• Ensuring the supply of goods, services, knowledge and capabilities
• To perform the firm’s primary and support activities
Purchasing today:
• From administrative to strategic function
• From buying materials/parts to buying competence
• From cost focus to performance focus
What is supply chain management:
• The management of upstream and downstream relations with suppliers and customers to
deliver superior customer value at lower cost to the supply chain as a whole
Shared focal concepts:
• Relationships between organizations
• Management of activities
• performance
Differences between
Purchasing and SCM:
3
, The literature presents various relationships, our course agrees with the unionist view.
Video 2
Outsourcing: the practice of delegating tasks to specialized suppliers, goods or service
Why outsource?
• Decrease production cost
• Access to good-quality suppliers
• Gain access to markets / circumvent trade barriers
• Gain access to scarce resource
Make or buy decisions = outsource
Make or buy decisions:
• Transaction cost theory (TCT)
o Decision-based on minimization of transaction cost
o Two criteria:
1. Asset specific: the extent to which assets are unique to a specific task
(tangible or intangible)
2. Potential for opportunistic behavior and related costs
High uncertainty: make
Low: buy
• Resource-based view (RBV)
o Sources of sustained competitive advantage
o Core competencies:
1. Valuable (recourse that adds value to market opportunities
2. Rare (resources cannot be owned or accessed by a lot of companies)
3. Inimitable (hard to replicate)
4. Non-substitutable (recourse that cannot be replaced by any other easily
accessible source)
The closer to the core, the more important to keep in-house
4
