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Subject 'Organisation of the Purchase Process'

Name in Estonian: Ostuprotsessi korraldamine

Year:   2018/2019    2019/2020    2020/2021    2021/2022    2022/2023    

State codeLOK005
Study languageEstonian
ChairPurchasing and Procurement Management
Credit points 3 ECTS
Grading method Grade prelim

General description

The subject introduces the processes of purchasing and procurement and teaches to analyse and digitalise them

General aim

In this subject you will learn how to solve everyday problems in purchasing and procurement processes:
• a huge amount of unstructured information
• communication problems between team members and stakeholders
• non-transparent processes
• delivery activities are time consuming and inflexible
• financial and time losses in purchasing and procurement processes
• team motivation is weak

Aim

The student knows and feels
• goals and tasks of purchasing activities
• purchasing strategies and policies
• the ways and principles of performing purchasing operations
• ordering systems and ordering methods
• the principles of purchasing negotiations
• purchasing and supply management
• ethical principles of purchasing
• the principles of performing the analysis of the efficiency of purchasing activities
• opportunities to increase the efficiency of purchasing activities
• opportunities to develop supplier relationships
• the links between purchasing and inventory management
• ways and means of assessing the supplier's capacity
• principles of purchasing and procurement processes digitalisation:
• can define and visualise business processes
• finds opportunities to improve processes
• conducts an analysis of process digitalisation

Literature

Lean Demand-Driven
Procurement
How to Apply Lean Thinking to Your
Supply Management Processes
By Paul Myerson
2019

Evaluation methods

Assessment is based on the following partial results:
• solving of classroom assignments – 20%
• solving of individual assignments – 50%
• reviewing an article published in a professional journal- 30%

Study outcome

The student is able to
• use an appropriate purchasing strategy and policy as appropriate
• identify the need to buy and set purchase criteria
• make inquiries, compare offers and identify the best offer (supplier)
• prepare procurement and purchase agreements
• identify purchase costs and assess their level
• calculate the total cost of the purchase
• organize the measurement of purchasing activities and evaluate the effectiveness of purchasing activities
• map and analyze processes using business process management software
• introduce and use digitization software for purchasing and procurement

Is taught in following curricula

2020: LO*  OK  
2019: OK  
2018: OK  
* Optional subject
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