In this topic we discuss

Understand procurement as securing the provision of resources, choosing strategies for obtaining best value from supply chains.

Learning outcomes

  1. Understand the purpose and importance of a procurement strategy – and – Know the typical contents of a procurement strategy.
  2. Know the stages of a supplier selection process, including how to plan the procurement process and conduct negotiations (for example ZOPA, BATNA and ‘Win Win’).
  3. Know the features of different contractual relationships – and – Understand why different methods of supplier reimbursement are used and when it is appropriate to use them (including fixed price, cost plus fee, per unit quantity and target cost).