Management and Study Unit

COVER UNISA CENTRE FOR BUSINESS MANAGEMENT PROGRAMME IN PURCHASING AND SUPPLY MANAGEMENT STUDY GUIDE FOR MODULE 2 PURCHASING AND SUPPLY MANAGEMENT PPSM026

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© 2011 University of South Africa All rights reserved Printed and published by the University of South Africa Muckleneuk, Pretoria Author: Ms Irma Fourie

PPSM026/1/2011-2013

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PURCHASING AND SUPPLY MANAGEMENT (PPSM026) CONTENTS TOPIC 1: THE PURCHASING FUNCTION: AN OVERVIEW The purchasing function in perspective The task of purchasing and supply management Purchasing processes and procedures

Study unit 1: Study unit 2: Study unit 3: TOPIC 2:

MANAGING THE SUPPLY BASE Purchasing and supply strategy and policies Evaluation and selection of suppliers

Study unit 4: Study unit 5: TOPIC 3:

KEY PERFORMANCE INDICATORS Sustainable purchasing and supply management The management of quality in purchasing and supply management Purchasing price determination and cost analysis Purchasing quantity and inventory management

Study unit 6: Study unit 7: Study unit 8: Study unit 9:

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MODULE AIM The aim of the module is to introduce you to purchasing management in the broader strategic supply management context, to help you understand the tasks and processes of the purchasing function in organisations and some of the key performance indicators thereof. MODULE OUTCOMES You should be able to • • • • • • • • • • • put the purchasing function in perspective fully explain all the supply management approaches list and clarify purchasing management tasks illustrate and explain the purchasing process discuss purchasing and supply strategy compile purchasing and supply policies participate in the process of the selection and performance evaluation of suppliers discuss sustainable purchasing and supply management discuss purchasing price determination and cost analysis fully explain the management of quality in purchasing and supply clarify purchasing quantity and inventory management

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PREFACE