CQUniversity Unit Profile
LOGS12004 Supply Markets and Procurement
Supply Markets and Procurement
All details in this unit profile for LOGS12004 have been officially approved by CQUniversity and represent a learning partnership between the University and you (our student).
The information will not be changed unless absolutely necessary and any change will be clearly indicated by an approved correction included in the profile.
General Information

Overview

This unit will allow you to develop an appreciation and understanding of the broader factors contained within the Procurement function, including global supply markets and establishing contracts with local and international suppliers. You will examine procurement from different perspectives at the organisational level, to critically evaluate aspects of procurement, including strategies for creating and sustaining value through dealings in supply markets and structuring contracts. The unit seeks to develop analytical skills for evaluating global supply markets and encourages the adoption of a critical perspective of the procurement processes.

Details

Career Level: Undergraduate
Unit Level: Level 2
Credit Points: 6
Student Contribution Band: 10
Fraction of Full-Time Student Load: 0.125

Pre-requisites or Co-requisites

There are no requisites for this unit.

Important note: Students enrolled in a subsequent unit who failed their pre-requisite unit, should drop the subsequent unit before the census date or within 10 working days of Fail grade notification. Students who do not drop the unit in this timeframe cannot later drop the unit without academic and financial liability. See details in the Assessment Policy and Procedure (Higher Education Coursework).

Offerings For Term 2 - 2019

Online

Attendance Requirements

All on-campus students are expected to attend scheduled classes – in some units, these classes are identified as a mandatory (pass/fail) component and attendance is compulsory. International students, on a student visa, must maintain a full time study load and meet both attendance and academic progress requirements in each study period (satisfactory attendance for International students is defined as maintaining at least an 80% attendance record).

Class and Assessment Overview

Recommended Student Time Commitment

Each 6-credit Undergraduate unit at CQUniversity requires an overall time commitment of an average of 12.5 hours of study per week, making a total of 150 hours for the unit.

Class Timetable

Bundaberg, Cairns, Emerald, Gladstone, Mackay, Rockhampton, Townsville
Adelaide, Brisbane, Melbourne, Perth, Sydney

Assessment Overview

1. Written Assessment
Weighting: 20%
2. Written Assessment
Weighting: 40%
3. Written Assessment
Weighting: 40%

Assessment Grading

This is a graded unit: your overall grade will be calculated from the marks or grades for each assessment task, based on the relative weightings shown in the table above. You must obtain an overall mark for the unit of at least 50%, or an overall grade of ‘pass’ in order to pass the unit. If any ‘pass/fail’ tasks are shown in the table above they must also be completed successfully (‘pass’ grade). You must also meet any minimum mark requirements specified for a particular assessment task, as detailed in the ‘assessment task’ section (note that in some instances, the minimum mark for a task may be greater than 50%). Consult the University’s Grades and Results Policy for more details of interim results and final grades.

Unit Learning Outcomes
On successful completion of this unit, you will be able to:
  1. Assess and discuss the role of procurement in an organisation, its value and effectiveness.
  2. Analyse the factors that affect procurement (including contract) decisions when operating in domestic and global supply markets.
  3. Compare and contrast organisational internal and external environments and the effects on relationships with suppliers.
  4. Critically analyse procurement and contracting theories and actual experiences to support the development of a procurement model for businesses in different countries, industries and with different organisation structures.
  5. Evaluate processes and measures of performance in procurement.
Alignment of Learning Outcomes, Assessment and Graduate Attributes
N/A Level
Introductory Level
Intermediate Level
Graduate Level
Professional Level
Advanced Level

Alignment of Assessment Tasks to Learning Outcomes

Assessment Tasks Learning Outcomes
1 2 3 4 5
1 - Written Assessment - 20%
2 - Written Assessment - 40%
3 - Written Assessment - 40%

Alignment of Graduate Attributes to Learning Outcomes

Graduate Attributes Learning Outcomes
1 2 3 4 5
1 - Communication
2 - Problem Solving
3 - Critical Thinking
4 - Information Literacy
5 - Team Work
6 - Information Technology Competence
7 - Cross Cultural Competence
8 - Ethical practice
9 - Social Innovation
10 - Aboriginal and Torres Strait Islander Cultures

Alignment of Assessment Tasks to Graduate Attributes

Assessment Tasks Graduate Attributes
1 2 3 4 5 6 7 8 9 10
1 - Written Assessment - 20%
2 - Written Assessment - 40%
3 - Written Assessment - 40%
Textbooks and Resources

Textbooks

Prescribed

Purchasing and Supply Chain Management

Edition: 3rd Ed. (2014)
Authors: W. C. Benton Jr.
McGraw Hill Education
New York New York , New York , USA
ISBN: 978 0 07 802411 5
Binding: Hardcover

Additional Textbook Information

Paper copies are available at the CQUni Bookshop here: http://bookshop.cqu.edu.au (search on the Unit code)

IT Resources

You will need access to the following IT resources:
  • CQUniversity Student Email
  • Internet
  • Unit Website (Moodle)
Referencing Style

All submissions for this unit must use the referencing style: American Psychological Association 6th Edition (APA 6th edition)

For further information, see the Assessment Tasks.

Teaching Contacts
Brian Carr Unit Coordinator
b.carr@cqu.edu.au
Schedule
Week 1 Overview of Purchasing in the Supply Chain Begin Date: 15 Jul 2019

Module/Topic

Investigate the key stakeholders in the procurement process.  Organising an integrated procurement process. 

Compare and contrast centralised and decentralised procurement systems.  

Chapter

Read Chapter 1

Events and Submissions/Topic

Week 2 Purchasing and Procurement Decisions and Strategy Begin Date: 22 Jul 2019

Module/Topic

Discuss the role of purchasing in corporate strategy.

Explore the most important elements of the strategic planning process for procurement.

Explain how sourcing is integrated into corporate strategy.

Learn how to develop a strategic procurement plan. 

Chapter

Read Chapter 2

Events and Submissions/Topic

Week 3 The Legal Aspects of Purchasing Begin Date: 29 Jul 2019

Module/Topic

Discuss the legal environment of the procurement function.

Understand the extent of the purchasing professional's legal authority and the implications in relation to ethics.

Discuss contract and leasing issues obligations regarding an offer.

Chapter

Read Chapter 3

Events and Submissions/Topic

Week 4 Purchasing Procedures E-Procurement and Systems Contracting Begin Date: 05 Aug 2019

Module/Topic

Identify the steps in conventional procurement practices.

Investigate structures and main activities of typical purchasing departments.

Identify the technical requirements for e-procurement.

Introduce the RFID technology.

Chapter

Read Chapter 7

Events and Submissions/Topic

Week 5 Supplier Selection and Evaluation in Service Markets Begin Date: 12 Aug 2019

Module/Topic

Identify the qualifications of good suppliers.

Learn the key elements of the make-versus-buy decision.

Discuss supplier relationship management.

Explore supplier evaluation in a variety of industrial environments.


Chapter

Read Chapter 8

Events and Submissions/Topic

Issue briefing note for A1

Students to read Case 25 in the text book Swisher Systems.

Vacation Week Begin Date: 19 Aug 2019

Module/Topic

Chapter

Events and Submissions/Topic

Week 6 Global Sourcing Begin Date: 26 Aug 2019

Module/Topic

Identify the drivers of increasing foreign trade.

Know  the basics of global sourcing.

Critically evaluate various global sourcing alternatives.

Know how to negotiate in different countries. 

Chapter

Read Chapter 9 and 10.

Events and Submissions/Topic

A1 Due 28 Aug.

Issue briefing note for A2.

Students to read Case 11 Offshore Supply Crisis - I need my steel. 


Increasing Costs at Swisher Systems Corporation Due: Week 6 Wednesday (28 Aug 2019) 11:45 pm AEST
Week 7 Supply Partnerships in Service Markets and Supply Power Begin Date: 02 Sep 2019

Module/Topic

Understand the relationship between procurement, supply partnerships and supply chain power.


Chapter

Read Chapter 11

Events and Submissions/Topic

Week 8 Bargaining and Negotiation in Supply Markets. Begin Date: 09 Sep 2019

Module/Topic

Understand the difference between bargaining and negotiations.

Identify the difference between the psychological and economic aspects of bargaining.

Implement effective bargaining strategies.

Chapter

Read Chapter 14

Events and Submissions/Topic


Week 9 Special Procurement Applications - Transport Services Begin Date: 16 Sep 2019

Module/Topic

Understand purchasing of transport services.

Discuss the nature of modern transport service delivery.

Know how to determine the appropriate price determination strategy for alternative transport modes.

Explain how third party relationships work.

Summarise the terms and conditions of transportation of merchandise.

Chapter

Read Chapter 15

Events and Submissions/Topic

A2 Due.

Issue briefing note for A3.

Students to read Case 21 in the text book The Art and Science of Purchasing Coal. 


Offshore Supply Crisis - I Need my Steel. Due: Week 9 Wednesday (18 Sept 2019) 11:45 pm AEST
Week 10 Special Procurement Applications - Equipment Acquisition and Disposal Begin Date: 23 Sep 2019

Module/Topic

Identify the issues in the capital equipment process.

Learn the three criteria applied to a cash flow analysis for equipment acquisition.

Discuss the role procurement plays in capital equipment acquisitions.

Chapter

Read Chapter 16

Events and Submissions/Topic

Week 11 Special Procurement Applications - Sourcing Professional Services Begin Date: 30 Sep 2019

Module/Topic

Understand the service sector characteristics and strategies.

Identify the activities involved in procuring professional services.

Discuss what is meant by scope of works and how professional services are priced.

Discuss how the critical path method is used to plan, and control complex projects.

Chapter

Read Chapter 18

Events and Submissions/Topic


Week 12 Total Quality Management and Purchasing. Begin Date: 07 Oct 2019

Module/Topic

Identify procurement's role in a firm within an overall quality assurance program.

Explore the various costs of a quality program and why it is difficult to measure these costs.

Know the mechanics of acceptance sampling for commodity purchasing.

Identify the advantages of statistical process control (SPC).

Chapter

Read Chapter 12.

Events and Submissions/Topic

A3 Due.

Course Assessment.


The Art and Science of Purchasing Coal Due: Week 12 Wednesday (9 Oct 2019) 11:45 pm AEST
Review/Exam Week Begin Date: 14 Oct 2019

Module/Topic

Chapter

Events and Submissions/Topic

Exam Week Begin Date: 21 Oct 2019

Module/Topic

Chapter

Events and Submissions/Topic

Assessment Tasks

1 Written Assessment

Assessment Title
Increasing Costs at Swisher Systems Corporation

Task Description

Swisher Systems is an industrial heating products company that was established in 1949. The company is an innovator of flexible heating products, especially with its knit and braided heating elements. This heating element is a multi-stranded resistance wire that is knit and braided with fiberglass and is the base technology for almost all of Swisher System’s products. Bill Simpson from the Engineering Department is distraught over a significant price increase for capacitors. Bill confronted the purchasing manager, Mike Watkins about the situation. Mike Watkins is the director of purchasing for Swisher Systems Corporation. Mr. Watkins is solely responsible for the purchasing activities throughout the company. Bill is expecting Mike to resolve the problems his staff are facing. As Todd Evans, the Summer purchasing intern, you are to address the following issues:


1 What are the responsibilities of an effective purchasing department? Using the case data evaluate the Bill Simpson complaint. How can the internal issues between Bill Simpson and Mr. Watson be resolved?

2 Evaluate the purchasing process at Swisher. If needed, what are your suggestions for improvement?

3 Discuss the concept of supplier relationship building at Swisher. Provide pros and cons to the current system.




Assessment Due Date

Week 6 Wednesday (28 Aug 2019) 11:45 pm AEST

On Line


Return Date to Students

Week 8 Wednesday (11 Sept 2019)

On Line


Weighting
20%

Assessment Criteria

1. A thorough knowledge and critical analysis of the problem(s) identified in the case study expressed within a well-developed academic essay.

2. A critical review of the academic literature relevant to the problem(s) identified in the case study. This should be embedded in the discussion, not presented separately.

3. Appropriateness of evidence-based responses to the case study questions including an effective analysis of the situation along with relevant commentary on the issues of concern.

4. Application of SIX (6) relevant academic journal articles and appropriate reference to the prescribed textbook.

5. Clarity of expression/grammar and correct spelling using Australian English.

6. Strict conformity to referencing style as set out in the Publication Manual of the American Psychological Association, Sixth Edition (Refer to the Abridged Guide to APA Referencing Style).

7. Appropriate presentation in an essay format within a maximum 1500 words (+/-10%) (penalties apply for exceeding this limit).


Referencing Style

Submission
Online

Submission Instructions
On Line through Moodle.

Learning Outcomes Assessed
  • Assess and discuss the role of procurement in an organisation, its value and effectiveness.
  • Evaluate processes and measures of performance in procurement.


Graduate Attributes
  • Problem Solving
  • Critical Thinking
  • Cross Cultural Competence
  • Ethical practice

2 Written Assessment

Assessment Title
Offshore Supply Crisis - I Need my Steel.

Task Description

Mr. Patton, vice president of purchasing for Code C, Inc., is concerned about a price increase from a Malaysian supplier. Last summer Code C was celebrating a 60 percent cost reduction based on replacing their major specialty steel supplier with Eastern Waves, in Kuantan, Malaysia. Eastern Wave is a small steel manufacturing company in Malaysia. It has several plants in Malaysia and China and produces various downstream steel products such as angle steel, I-beam, and round bar. The angle steel plant is located in Kuantan, Malaysia. The production method of the angle steel is called continuous rolling and the key raw material ingredient for angle steel production is billets. When operating at full efficiency, the annual capacity of the angle steel production is 10,000 MT. However, there are problems in relation to supply with the government’s trade barriers on billets. Furthermore, Eastern Waves difficulty in controlling their labour force makes it very difficult to adjust to the demand fluctuations of angled steel. Jon James is the director of global sourcing; he has been directed by the VP to resolve the issues of supply.  As the Director of Global Sourcing (DGS) students are to address the following issues:

1. As Jon James (DGS), write a critique analyzing the situation in Malaysia for Mr. Patton. What recommendations do you suggest?

2. How can Code C avoid future sourcing disruptions?

3. How should Code C critically analyze future global sourcing alternatives?


Assessment Due Date

Week 9 Wednesday (18 Sept 2019) 11:45 pm AEST

On Line


Return Date to Students

Week 11 Wednesday (2 Oct 2019)

On Line


Weighting
40%

Assessment Criteria

1. A thorough knowledge and critical analysis of the problem(s) identified in the case study expressed within a well-developed report.

2. Compelling expression of your evidence-based arguments. Appropriate and well structured, concise and clear expression of logistics management arguments.

3.Clear flow of thought throughout the business report, leading to key recommendations. Clear and succinct action plan.

4. Integration of relevant academic insights from at least EIGHT (8) relevant academic journal articles and appropriate reference to the prescribed textbook.

5. Clarity of expression, grammar, use of Australian-English, APA referencing, and in a Business Report format.



Referencing Style

Submission
Online

Submission Instructions
On Line through Moodle.

Learning Outcomes Assessed
  • Analyse the factors that affect procurement (including contract) decisions when operating in domestic and global supply markets.
  • Compare and contrast organisational internal and external environments and the effects on relationships with suppliers.
  • Critically analyse procurement and contracting theories and actual experiences to support the development of a procurement model for businesses in different countries, industries and with different organisation structures.


Graduate Attributes
  • Communication
  • Problem Solving
  • Critical Thinking
  • Team Work
  • Cross Cultural Competence
  • Ethical practice

3 Written Assessment

Assessment Title
The Art and Science of Purchasing Coal

Task Description

National Electric Power is a multinational energy company with a variety of energy assets. NEP is headquartered in Columbus, Ohio, and has a service area of approximately 197,500 square miles in Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia. In 2001, NEP had revenues of $61.3 billion and carried $47 billion in assets, making them the largest electricity generator in the United States.

Deon Houston, vice president for the National Electric Power (NEP) Commodity Trading Division, was in the process of producing her annual sourcing report for the companys three-year plan. While NEP seems to have had success using the competitive bidding process, reverse auctions may be the way of the future. Mrs. Houston was wondering if the reverse auction sourcing approach would work for purchasing the company’s coal requirements.

As purchasing manager for NEP, draft an executive report and an action plan for the VP that addresses:

   1.  Your evaluation of the various alternatives open to Deon for the purchase of coal?

   2. What recommendations would you make to Deon regarding the purchase of coal?


Assessment Due Date

Week 12 Wednesday (9 Oct 2019) 11:45 pm AEST

On Line


Return Date to Students

On Line. In accordance with University policy, feedback for A3 will be provided after certification of grades.


Weighting
40%

Assessment Criteria

1. A thorough knowledge and critical analysis of the problem(s) identified in the case study expressed within a well-developed report.

2. Compelling expression of your evidence-based arguments. Appropriate and well structured, concise and clear expression of acquisition of commodities.

3.Clear flow of thought throughout the business report, leading to key recommendations. Clear and succinct action plan.

4. Integration of relevant academic insights from at least eight (8) relevant academic journal articles and appropriate reference to the prescribed textbook.

5. Clarity of expression, grammar, use of Australian-English, APA referencing, and in a Business Report format.


Referencing Style

Submission
Online

Learning Outcomes Assessed
  • Analyse the factors that affect procurement (including contract) decisions when operating in domestic and global supply markets.
  • Compare and contrast organisational internal and external environments and the effects on relationships with suppliers.
  • Critically analyse procurement and contracting theories and actual experiences to support the development of a procurement model for businesses in different countries, industries and with different organisation structures.


Graduate Attributes
  • Communication
  • Problem Solving
  • Critical Thinking
  • Team Work
  • Cross Cultural Competence
  • Ethical practice

Academic Integrity Statement

As a CQUniversity student you are expected to act honestly in all aspects of your academic work.

Any assessable work undertaken or submitted for review or assessment must be your own work. Assessable work is any type of work you do to meet the assessment requirements in the unit, including draft work submitted for review and feedback and final work to be assessed.

When you use the ideas, words or data of others in your assessment, you must thoroughly and clearly acknowledge the source of this information by using the correct referencing style for your unit. Using others’ work without proper acknowledgement may be considered a form of intellectual dishonesty.

Participating honestly, respectfully, responsibly, and fairly in your university study ensures the CQUniversity qualification you earn will be valued as a true indication of your individual academic achievement and will continue to receive the respect and recognition it deserves.

As a student, you are responsible for reading and following CQUniversity’s policies, including the Student Academic Integrity Policy and Procedure. This policy sets out CQUniversity’s expectations of you to act with integrity, examples of academic integrity breaches to avoid, the processes used to address alleged breaches of academic integrity, and potential penalties.

What is a breach of academic integrity?

A breach of academic integrity includes but is not limited to plagiarism, self-plagiarism, collusion, cheating, contract cheating, and academic misconduct. The Student Academic Integrity Policy and Procedure defines what these terms mean and gives examples.

Why is academic integrity important?

A breach of academic integrity may result in one or more penalties, including suspension or even expulsion from the University. It can also have negative implications for student visas and future enrolment at CQUniversity or elsewhere. Students who engage in contract cheating also risk being blackmailed by contract cheating services.

Where can I get assistance?

For academic advice and guidance, the Academic Learning Centre (ALC) can support you in becoming confident in completing assessments with integrity and of high standard.

What can you do to act with integrity?