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: …show more content…

Topic 2 relates to managing the supply base, and focuses on purchasing and supply strategy and policies, specifically targeting the strategic sourcing and outsourcing processes. It examines suppliers, particularly the various purchasing and sourcing decisions of suppliers, the performance evaluation and selection of suppliers, supplier certification and the various purchaser/supplier relationships. Topic 3 deals with the key performance indicators of purchasing and supply, such as the relationship between purchasing and supply management and corporate governance, and their impact on social responsibility, ethics, sustainability and risk management; the management of quality in purchasing and supply (including standardisation, value analysis and quality control); price determination and cost analysis; and the various tools required to manage purchasing quantity and inventories effectively and efficiently. ASSESSMENT You must answer all the assessment questions at the end of each study unit in your study guide. This is important for your preparation for the examination. You will notice that some questions are direct, while others are indirect and require insight and application skills. You can expect a mixture of these types of questions in the examination. The prescribed book also includes a list of self-evaluation and multiple-choice questions at the end of each chapter. For your own enrichment, attempt to answer all these questions. THE STUDY PROCESS As