Aim
The purpose of the course is to provide a general understanding of issues related to industrial purchasing and supply management; to introduce a number of important theories, terminology and methods for purchasing; to identify, describe and analyse different parts of a company’s purchasing function and their supplier relationships; and to stimulate both the students’ critical analysis and their long-term interest in purchasing issues.

The course should provide the students with sufficient knowledge of purchasing to enable them to understand the purchasing function’s role in a company and to handle purchasing issues systematically. It will also provide them with deeper knowledge of methods and models supporting the strategic and operational purchasing work. This encompasses both how to analyse and how to plan the purchasing work, as well as knowledge of a number of techniques. Related to this, the students will practise their skills in a number of purchasing oriented activities. Finally, the course will provide an overall view of classical as well as modern purchasing theory.

Knowledge and understanding
For a passing grade the student must

• be able to use theories, models and tools both to analyse and evaluate the purchasing function, as well as independently plan and perform purchasing activities in an industrial context.

• independently describe and problematize the issues and challenges for the purchasing function

• describe in detail and independently analyse the purchasing process and its activities

• relate the purchasing department’s work to other departments/functions within the company, as well as to suppliers

• characterise and problematize different purchasing situations

• account for supply market analysis

• characterise and segment different product groups to be able to develop a foundation for strategic sourcing decisions

• relate and compare different types of supplier evaluations

• explain and compare different classic purchasing related theories

• understand and describe different pricing mechanisms

• problematize and analyse negotiation situations

• define a negotiation plan

• relate an appropriate purchasing organization to different situations

• understand issues of legal aspects of purchasing and public procurement

• define metrics and problematize issues of purchasing performance measurements

• problematize the relation between purchasing, environmental and ethical issues

• understand issues with, and impact of, electronic purchasing

Skills and abilities
For a passing grade the student must

• assess purchasing situations and develop purchasing strategies by applying purchasing theories and models

• apply negotiation techniques and preparation

• independently prepare oneself to analyse and assess the practical purchasing function at a company and compare this to theory

• assess, analyse and make a synthesis of purchasing theories

• independently start a master thesis within the purchasing area and be prepared to master the challenges involved in a first job at a purchasing department

• use terms established by the purchasing profession, and clearly communicate purchasing issues, analysis and solutions both to purchasing professionals and other students

• independently use reference literature and scientific publication to analyse and evaluate the practical purchasing work at a company

• orally and in writing explain and discuss both one’s own and other’s analyses

Judgement and approach
For a passing grade the student must

• be able to apply critical thinking and, hopefully, acquire a lasting interest for industrial purchasing. His/her attitude should be more ”professionalized”, and the student should have obtained insights regarding ethical and environmental dilemmas related to the purchasing function.

Contents
The role of purchasing within companies and in supply chains. Industrial buying behaviour: Decision making in purchasing. The purchasing process in companies. Purchasing strategy. Portfolio models for developing purchasing strategies. Make or buy? (outsourcing). Specification of what should be purchased. Supply market analysis. RFI & RFP. Supplier evaluation. Negotiation techniques. Legal aspects of purchasing. Supplier relationship and development. Purchasing organisation. Purchasing performance measurement. e-commerce and marketplaces. Purchasing of services. Public purchasing.

Literature
van Weele, A.J: Purchasing and Supply Chain Management. Analysis, Planning and Practice. 4th ed. 2004. ISBN 1-84480-024-5.
Shell, Richard G: Vinnande förhandling. 2001. Richters, or Fisher, R, Patton, B & Ury, W: Vägen till Ja. Liber, latest edition. (Which one will be decided before the course starts.)
Norrman, A: Compendium in "Industriellt Inköp". Teknisk logistik, LTH 2008.

Code: 0108. Name: Industrial Purchasing.
Higher education credits: 4. Grading scale: UG. Assessment: Pass the written examination. Contents: Covers literature and lectures.

Code: 0208. Name: Case.
Higher education credits: 3,5. Grading scale: UG. Assessment: Written papers and oral presentations and oppositions. The cases are carried out only in connection with the course, i.e. once a year. Case 1 and 2 are graded, and the final grade is dependent on the cases as well as on the written examination. Some more assignments to be passed are at hand (code 0304). Contents: In case 1 the students (in groups) should write a short report where some theoretical perspectives on purchasing are compared and analysed. In case 2 the students (in groups) should write a report describing and discussing a company's purchasing work. Both cases should be presented orally at a seminar. Both cases will be graded and this grade will be included in the final grade (0,4). Case 2 can only be carried out during the course period, i.e. once a year. More compulsory assignments to be passed are available. (0304).