Supply Chain Management

SC0019 Supply Chain Management 4

SC0020 Outsourcing 4
SC0021 Food Supply Chain Management 4
SC0022 Inventory Management 4

SC0023 Global Logistics and Supply Chain Management 4

SC0024 Category Management in Purchasing 4
SC0025 Purchasing and Contracting for Projects 4
SC0026 Supply Chain Cost Management 4

Course Code- SC0019 Course Title- Supply Chain Management

Course Objectives:
The course “Supply Chain Management” of MBA 3rd Semester helps students to learn about the
fundamental of Supply Chain Management.

After studying this subject, the student should be able to:

 Conceptualise supply chain designs, which are aligned with business models for manufacturing
and service companies
 Align supply chain integration strategy with the uncertainty of supply and demand.
 Determine when and how a supplier should be integrated into the new product development
process.
 Determine the IT infrastructure requirements and IT integration strategy for supply chain
management.
 Determine the decision support system requirements for supply chain management.
 Evaluate the risks and advantages of international supply chains.
Unit 1- Introduction to Supply Chain Management: Overview of Supply Chain Management,
Supply chain management decisions, Key issues in Supply Chain Management, Strategic Fit
and Strategic Scope, Achieving strategic fit, Strategic scope.
Unit 2- Role of Transportation in the Supply Chain: Modes of Transportation, Air
transportation, Surface transportation, Water transportation, Intermodal transportation, Factors
Affecting Transportation Decision Carriers Customers, Design Options for a Transportation
Network, Tradeoffs in Transportation Design Transportation and inventory cost trade-off,
Transportation cost and customer responsiveness trade-off, Routing and Scheduling in
Transportation Heuristic approach, Exact approach Interactive approach Combination
approach.
 Unit 3- Facility Location Decisions and Network Design in the Supply Chain: Factors
Influencing Network Design Decisions, Models for Facility Location and Capacity
Allocation, Network optimisation model, Capacitated plant location model, Network Design
Decisions in Practice.
Unit 4- Inventory Management and Risk Pooling: Managing Inventory in Supply Chain
Management, Inventory costs, Calculation of inventory costs, Inventory management
techniques, Demand Forecasting for Optimal Inventory Holding, Risk Pooling.
Unit 5- Purchasing Process: Understanding the Purchasing Process, Relationship Between
Purchasing and Other Functional Areas, Types of Purchases and Purchasing Strategies,
Vendor Relationship Management, External Environment and Purchasing Strategies.
Unit 6- Supplier Evaluation, Selection and Measurement: Criteria for Supplier Evaluation,
Quality, cost, service and delivery, Dickson’s selection criteria, Constructs of Supply Chain
Quality Management, Framework of SCQM, Measuring Supplier Performance

Unit 7- Value of Information: Importance of Information in Supply Chain, Bullwhip Effect,

Reasons for bullwhip effect, Methods for coping with the bullwhip effect, Effective Forecasts,
Information and Coordination of Systems, Locating Desired Products, Lead Time Reduction,
Information and Supply Chain Trade-offs.

Unit 8 - Supply Chain Integration: Push, Pull, and Push-Pull System, Push-based supply
chain, Pull-based supply chain, Push-pull supply chain, The Impact of the Internet on Supply
Chain Strategy, Distribution Strategy, Centralised versus decentralised control.
Unit 9 – Strategic Alliances Supply Chains: Framework for Strategic Alliance, Third-Party
Logistics (3PL), Retailer-Supplier Partnership (RSPs), Types of retailer-supplier partnership,
Requirement for RSP, Distributor Integration (DI).

Unit 10 - Procurement and Outsourcing Strategies: Outsourcing Benefits and Risks, New
opportunities in SCM outsourcing, Outsourcing risks, Framework for Buy/Make Decision, E-
Procurement, Types of e-procurement, Various formats used in e-procurement, E-
Procurement activities, Latest development in electronic procurement, Benefits of e-
procurement.
Unit 11 - International Issues in Supply Chain Management: Risks and Advantages of Global
Supply Chain, Risk mitigation strategies for unknown-unknown, Risk mitigation strategies for
controllable risks, Risk mitigation strategies for counterfeit products , Advantage of global
supply chain, Issues in Global Supply Chain Management.

Unit 12 – Coordinated Product and Supply Chain: Design for Logistics, Supplier Integration
into New Product Development, Supplier integration approach, Increasing role and impact of
suppliers, Mass Customisation, Key factors for success of mass customisation system, Mass
customisation strategies, Supply chain and mass customisation.

Unit 13 – Information Technology for Supply Chain Management: Information Technology

Infrastructure, E-commerce, Impact of e-commerce on SCM, E-commerce and ERP, Relation
 between e-commerce, ERP and SCM, Integrating Supply Chain with Information
Technology, Framework for IT integrated SCM, Impact of integrating IT with SCM.

Unit 14 - Decision Support Systems for Supply Chain Management: Decision Support System
(DSS), Components of a DSS, Types of decisions, Processing information, Specific types of
DSS, Information Technology (IT) Support System for Effective Supply Chain Decision
Making.

References:
1. Chopra, S. (2010). Supply Chain Management, 4th ed. India: Pearson Education.Inc.
2. Shah, J. (2009). Supply Chain Management: Text and Cases. India: Pearson
Education.Inc.
3. Farahani, R.Z. (2009). Facility Location Concepts, Models, Algorithms and Case Studies.
Physica-Verlag.
4. Harrison, T.P., & Neale, J. (2005). The Practice of Supply Chain Management Where
Theory and Application Converge. NY: Springer Science & Business Media, Inc.
5. Monczka, R.M. (2010). Purchasing and Supply Chain Management. Cengage Learning
EMEA.
6. Blecker, T., & Kersten, W., & Gertz, C. (2008) Management in Logistics Networks and
Nodes. Berlin: Erich Schmidt Verlag.
7. Mohanty, R. P., & Deshmukh, S. G. (2008).Supply Chain Management Theories and
Practices. New Delhi: Biztantra.
8. Basu, R., & Wright, N. (2008). Total Supply Chain Management. Elsevier

Course Code- SC0020 Course Title- Outsourcing

Course Objectives:
The course “Outsourcing” of MBA 3rd Semester helps students to learn about the relationship
between Supply Chain Management and outsourcing.

After studying this subject, the student should be able to:

 Identify the challenges of outsourcing and manage them.
 Apply outsourcing as a management strategy.
 Develop a global outsourcing strategy.
 Identify outsourcing opportunities.
 Create outsourcing teams.
 Use checklists while engaging with outsourcing partners.
  Analyse the costs involved in outsourcing.
 Manage outsourcing relationships.
 Evaluate the impact of outsourcing in an organisation. Align supply chain integration strategy
with the uncertainty of supply and demand.

Unit 1- Introduction to Outsourcing: An Overview of Outsourcing, History of outsourcing,

Relationship between supply chain management and outsourcing, Uncovering the Core,
Benefits of Outsourcing, Redefining Management, Challenges of Outsourcing and Ways to
Manage them, Outsourcing failures, and Outsourcing barriers.
Unit 2- Outsourcing to Business Process Outsourcing: Business Process Outsourcing,
Working from the Customer-In, Functional Process Outsourcing, Breaking down Barriers,
Transaction, Technology and E-Sourcing, Scaling and Integrating the Supply Chains,
Commercialising the Hidden Value
Unit 3- Offshoring: Factors Global Markets – Global Sourcing, Offshoring’s Value Model,
Demand Forecasting for Optimal Inventory Holding, Placing the Jobs Issue in Perspective.
Unit 4- Outsourcing Value Model: Principles for Capturing the Value of Global Outsourcing,
Employing Sourcing as a Strategy, Improving the Value Model, Zero-based Sourcing,
Market-Driven Decision Making, Outsourcing as a Management Discipline.
Unit 5- Developing a Global Strategy: Top-Down Approach, Bottom-Up Approach,
Outsourcing Decision Matrix, Evaluating a Company’s Activities, Advantages of Integration.

Unit 6- Outsourcing Opportunities: Riding Outsourcing’s Waves, Seeing Opportunities in

Process Terms, Prioritising the Best, Gauging and Overcoming Risk, Outsourcing at the
Customer Interface.

Unit 7- Creating Teams for Outsourcing: The Outsourcing Process, The Outsourcing Teams,
The Outsourcing Project Leader.

Unit 8 - Outsourcing is More Like Hiring Than Buying, Capturing and Communicating
Requirements, Approaches Other than Request for Proposals (RFP), Creating the Scorecard,
Deciding on Providers. Competencies, Capabilities, Relationship dynamics, Checklist Used
for Engaging the Outsourcing Partner.
Unit 9 – Outsourcing Economics: Capturing Current Costs, From Budgeted Costs to Full
Costs, Forecasting Outsourcing Benefits, Making Intangibles Tangible, Setting Conversion of
Intangibles to Tangibles in Practice.

Unit 10 - Pricing, Contracting and Negotiating: Identify Checklists for Negotiation: The
Relationship Continuum, The Modular Contract, Terms Section, Scope of Services, Pricing
Section, Negotiation Principles, Checklist for an Outsourcing Contract.
Unit 11 - Managing the Impact of Outsourcing on People: The Value of Communication,
Employees’ Perspective, Achieving Employee Support, Managing the Transition, Managing
Public Perception of Outsourcing.
Unit 12 – Managing the New Relationships: Shifting to Outsourcing, Interdependent
Management, Interdependent Planning.

Unit 13 – The Future of Outsourcing: Employees as Specialists, Specialised companies and

specialised employees, From cost centre to profit centre, Staying competent, Self-employment
model, Executives Become Integrators, Lateral leadership, Project and process leadership,
Global leadership, Impact of Outsourcing on Enterprises, Outsourcing for innovation
Knowledge management, Networked risk
Unit 14 - Outsourcing in Action: Case Studies Bharti Airtel, Mahindra and Mahindra, Tata
Nano, Boeing, General Motors (GM), Regional Bell Operating Centre (RBOC), Sun
Microsystems, IBM, Dell.

References:
1. Burt, Dobler, & Starling. (2003). World Class Supply Management: The Key to Supply
Chain Management, 7 th ed. Tata McGraw-Hill
2. Corbett, M. F. (2004). The Outsourcing Revolution: Why It Makes Sense and How to Do
it Right. Dearborn Trade Publishing.
3. Brown, D., & Wilson, S. (2005). The Black Book of Outsourcing. Hoboken, New Jersey:
John Wiley & Sons, Inc.
4. Corbett. F M. (2004). The Outsourcing Revolution. Dearborn Trade Publishing.
5. Mclvor, R. (2005). The Outsourcing Process: Strategies for Evaluation and Management.
Cambridge University Press, U.K.
6. Power, M.J., Desouza K.C., & Bonifazi C. (2006). The Outsourcing Hand Book. Great
Britain: Kogan Page Ltd.

Course Code- SC0021 Course Title- Food Supply Chain Management

Course Objectives:
The course “Food Supply Chain Management” of MBA 3rd Semester helps students to learn
about the concept and elements of Food Supply Chain Management.

After studying this subject, the student should be able to:


Unit 1- Introduction to the Food Supply Chain: Food Supply Chain Environment, Activities
in food supply chain, Levels of the food supply chain, Key Factors of the Food Supply Chain,
Food Supply Chain in the Indian Economy.
Unit 2- Food Consumer and Supply Chain: Food Consumption, Different Types of Buying
Decisions, Factors Influencing Consumer Choice, Stages in the Buying Decision Process,
 Consumer Segments, Limits on Choice, The Future.
Unit 3- Perceived Risks and Product Safety in the Food Supply Chain: Consumer Perceptions
of Food Safety, Responsibility of Food Safety in the Food Supply Chain, Managing Risks in
Food Supply Chain, Psychological Theories of Perceived Risks, Behavioural Theory of
Perceived Risks
Unit 4- Procurement in the Food and Beverage Industry: Overview of Procurement, Contract
Farming, Just-In-Time (JIT), Total Quality Management (TQM), Form and Structure of
Procurement Relationships.
Unit 5- Indian Livestock System: Characters of Livestock Supply Chains, Geographical
Distribution and Business Structures of Livestock Farms, Dairy Supply Chain, White Meat
Supply Chain, Red Meat Supply Chain.

Unit 6- Indian Crop Production: Crop Production in India, Agricultural Policy, Potato Supply
Chain, Sugar Supply Chain, Post Harvesting Technologies or Management.

Unit 7- Food Manufacturing: Role and Importance of Food Manufacturing, Structure and
Composition of Food Manufacturing Industry, Large-Scale Food Manufacturers, Small and
Medium-Scale Food Manufacturers.

Unit 8 - Food Retailing, Wholesaling and Catering: Scope and Size of Food Retailing,
Wholesaling and Catering, Food retailing, Food wholesaling, Food catering, Changing
Structure of the Sectors, Market concentration, Food safety issues, Responsiveness to
customers, Potential Future Patterns of Development, Initiatives to improve food supply
chain, Critical issues to be researched, Constraints and drivers of growth, Challenges.
Unit 9 – Partnerships and Alliances in Supermarket Supply Networks: Structure of
Supermarket Supply Chains, Nature of Collaboration in Supermarket Supply Chains, Theory
of Buyer-Supplier Relationships.

Unit 10 - New Product Developments and Information Technology in Food Supply Chain
Management: Food Product Development Project Types, Food Product Development Process,
Volume of Product Development Activity, Application of Information Technology in Food
Supply Chain Management.

Unit 11 - Third Party Logistics in Food Supply Chain: Role of Third Party Logistics Service
Providers, Challenges and Emerging Trends in Food Logistics, Warehousing and
Transportation Trends in Food Industry, Growth of Logistics Outsourcing in the Food Sector,
Benefits of Outsourcing Logistical Activities.

Unit 12 – Temperature Controlled Supply Chains: Overview of Temperature Controlled

Supply Chain, Importance of Temperature Controlled Supply Chains, Changes in
Temperature Controlled Supply Chains, Issues in Temperature Controlled Supply Chains,
Future Developments and Constraints.
 Unit 13 – Factors Influencing Supply and Demand for Organic Foods: Understanding
Organic Farming, Need for organic farming, Choice of crops and rotation, Composting and
green manure, Weed control, Current scenario, Organic Food Market, Market Prediction
Models
Unit 14 - Future of Food Supply Chain Management: Increase of Logistics Externalisation,
Formation of Fourth Party Networks, Agility in the Food Supply Chain, Sustainable
Integration and Coordination in the Food Supply Chain, Green and Reverse Supply Chains,
Collaboration and Partnerships between Members of the Food Chain, Role of the Internet in
the Food Supply Chain
References:
1. Bourlakis, A.M, & Weightman, W.H. (2004). Food Supply Chain Management.
Blackwell Publication.
2. Emmett, S. (1998). Excellence in Warehouse Management. Wiley.
3. Evans, J. A. (2008). Frozen Food Science and Technology. Blackwell Publishing
Limited.
4. Gustafsson, K., & Jonson, G., et all. (2006). Retailing Logistics & Fresh Food Packaging.
Thomson-Shore, Inc.Corbett, M. F. (2004). The Outsourcing Revolution: Why It Makes
Sense and How to Do it Right. Dearborn Trade Publishing.
5. Bourlakis, M.A., & Weightman, P.W.H. (2004). Food Supply Chain Management.
Blackwell Publisher.
6. Burch, D., & Lawrence, G. (2007). Super Markets and Agri-Food Supply Chains. UK:
Edward Elgar Publishing LimitedCorbett. F M. (2004).

Course Code- SC0022 Course Title- Inventory Management

Course Objectives:
The course “Inventory Management” of MBA 3rd Semester helps students to learn about the
concept and elements of Food Supply Chain Management.

After studying this subject, the student should be able to:


Unit 1- Inventory Objectives and Policies: An Overview of Inventory Management, Purpose
of inventory management, Inventory functions, Inventory systems, Inventory goals,
Objectives of Inventory Management, Inventory Categories, Category based on source of
demand, Category based on position of inventory, Category based on function of inventory,
Types of Inventories.
Unit 2- Inventory as both Tangible and Intangible Object: Need of Inventory, Inventory cost,
Purpose of Inventory, Electronic Data Interchange.
Unit 3- Independent Demand Inventory System: Inventory Information Systems,
Manufacturing Environment, Independent Demand Inventory Replenishment Models,
 Environments and their Effects on Inventory Management, Order Cycles and Lead Times.
Unit 4- Inventory Management Tools and Techniques: Forecasting and Determining Inventory
Levels, Principles of forecasting, Forecast inventory needs, Determining inventory levels,
Inventory Lot Sizing Model – Economic Order Quantity (EOQ), Determining Inventory
Needed, Standard Deviation, ABC Analysis, Objectives of ABC analysis, Control policies of
ABC items, Advantages of ABC analysis, Determining Inventory Costs, Lot Size and Safety
Stock, Lot size considerations, Safety stock, Managing safety stock.
Unit 5- Inventory Management Models: Economic Order Quantity (EOQ) Model Derivation,
Need for Safety Stock, Optimal Safety Stock Calculation, Safety stock computations for
inventory management, set safety stock level, Determine optimal safety stock policies,
Production Model for Inventory Derivation, Application of EOQ and Production Models.

Unit 6- Inventory Accounting Principles: Accounting for Inventories, How Inventory is

Valued, Inventory on the Balance Sheet, Inventory on the Income Statement, Inventory on the
Cash Flow Statement, Obsolete Stock, Disposal of obsolete stock, Ways to manage obsolete
stock, Carrying Cost and Purchasing, carrying cost, Relationship of procuring costs to
carrying costs, Purchasing.

Unit 7- Inventory Management and Financial Analysis: Financial Control of Inventory, The
Basic Manufacturing Equation, Financial Ratios, Profitability ratio, Liquidity ratio, Activity
ratio, Leverage ratios, Identifying Suppliers with Potential Cash-Flow Problems, Costed Bill of
Materials, Allocation of Factory Overhead and Activity-Based Costing, Product costing
allocation methods, Approaches to allocate overhead costs, Activity-based costing for selling
and administrative expenses, Activity-based costing in service businesses.

Unit 8 - Physical Location and Control of Inventory: Common Locator Systems, Common
Item Placement Theories, Inventory stratification, Family grouping, Special consideration,
Location Address and Stock Keeping Units (SKU) Identifiers, Factors for the success of
inventory systems, Steps for binding SKUs and location addresses.
Unit 9 – The Warehouse Environment: Warehouse Layout for Optimal Efficiency, Gather data
and develop requirements, Develop layout using block diagram, General layout concept,
Detailed warehouse layout, Costs of Warehousing, Picking cost, Packing cost, Loading cost,
Setting up a Warehouse System.

Unit 10 - Distribution Inventory - Planning and Control: Food Product Development Project
Types, Food Product Development Process, Volume of Product Development Activity,
Application of Information Technology in Food Supply Chain Management.

Unit 11 Basics of Bar Coding: Elements of a Barcode, Symbologies – Bar Coding Structural
Rules, Popular Symbologies Found in the Inventory World, Scanning Basics, Barcode
Applications

Unit 12 – Planning and Replenishment Concepts: Replenishment Costs, Inventory Types,

Independent demand inventory, Dependent demand inventory.
 Unit 13 – Causes and Remedies for Failure of Inventory Systems: Inventory System Failures,
Metrics, Inventory Record Accuracy (IRA), Fill rate, Tools to Uncover System Dysfunctions,
Run charts, Flow charts, Logic charts, Variance reports, Cycle Counting, Control group cycle
counting method, Location audit cycle counting method, Random selection cycle counting
method, Diminishing population cycle counting method, Product categories cycle counting
method, ABC analysis cycle counting method
Unit 14 - Protecting Inventory: Legal Duties, Plan, Protect an inventory system, Planning
team, Assessment, Factors to assess the probability of occurrence of risks, Impact of risks,
Theft, Types of theft threats, Assess threats, Counter threat.
References:
1. Chopra, S. (2010). Supply Chain Management, 4th ed. India: Pearson Education.Inc.
2. Donald, C., & Waters, J. (2003). Inventory Control and Management. England: John
Wiley and Sons Ltd.
3. Muller, M. (2003). Essentials of Inventory Management. USA. American Management
Association Emmett, S. (1998). Excellence in Warehouse Management. Wiley.
4. Gattorna, J.L. (2003). Handbook of Supply Chain Management, 5th ed. USA: Gower
Publishing.
5. Ross, D.V. (2000). Distribution Planning and Control. The Netherlands: Kluwer
Academic Publisher.
6. Wisner, J.D., & Tan, K. C, & Leong, G.K. (2008). Principles of Supply Chain
Management, 2nd ed. USA: Cengage Learning.

Course Code- SC0023 Course Title- Global Logistics and Supply Chain
Management

Course Objectives:
The course “Global Logistics and Supply Chain Management” of MBA 4th Semester helps
students will develop the capability to identify the risks and types of documentation associated to
global logistics

After studying this subject, the student should be able to:

 analyse global trade environment
 conceptualise the logistics around the world
 evaluate the transportation infrastructure of India and the world
 describe ocean shipping and chartering ocean carriers
 explain significance of air and surface transportation in global logistics
 determine the significance of sales and payment terms in global logistics
 analyse the future issues of global logistics
Unit 1- Global Trade Environment Structure: International Global Trade Environment,
 International Contracts and Legal Issues, Global Logistics Operator National and
international logistics compared, Logistical Packaging.
Unit 2- Logistics and Global Supply Chain Management: Managing Logistics in the
Dynamic World Market concentration Production dispersion, Product line diversity, Strategic
Approaches to Global Supply Chain Management, Coordinating Roles of Global Logistics in
SCM, Market-accommodation flow, Global Supply Chain Collaboration.
Unit 3- Logistics in Different Parts of the World: Cultural Differences and Impact on
Logistics, Logistical Development in Different Countries, Factors influencing logistics, State
of logistics in different countries, Trading Blocs
Unit 4- Transportation Infrastructure: Seaports, Airports, Canals, Tunnels and Bridges.
Unit 5- Ocean Ships and Shipping: Types of Cargo, Vessel, their Types and Characteristics,
Shipbuilding.

Unit 6- Chartering Bulk Ocean Carriers: World’s Bulk Shipping, Supply of Shipping, Charter
Agreement for Shipping, The Charter Arrangement.

Unit 7- The Ocean Liner Contract System Structure: Ocean Liner Conferences, Conference
Members, Conferences and Competition, Conference Association with Shippers, Conference
Association with Governments.

Unit 8 - International Air Transportation: Aviation Development 8.3 Commercial Jet

Aircrafts, Air Cargo Containers, Rate Making Factors affecting air freight rates, Cargo
Documentation and Insurance.
Unit 9 – Surface Transport: Movements to Port, Intermodal Transport, Advantages of
intermodalism, Intermodal containers, Development of intermodal traffic, Intermodal carriers ,
Surface intermodal facilities, Air–ocean movements, Land Transportation in India, Road
transportation in India, Rail transportation in India, Dry ports in India.

Unit 10 - Global Logistics Functions and Intermediaries: Outbound Logistics Functions,

Inbound Logistics Functions, Total Logistics Activities, Logistics Intermediaries.

Unit 11 - Terms of Sale and Payment: Terms of Sale, Selling terms, Incoterms, Terms of
Payment, Payment Methodology, Wire transfer, Money order, Automated Clearing House
(ACH).

Unit 12 – Documentation and Insurance: Documentation, Cargo Insurance, Hull Insurance,

Air Shipment Insurance, Land Transport, Settlement of Insurance Claims.

Unit 13 – Managing Logistics of Export Products: International Transaction Channel

Activities, International Distribution Channel, Governing Bodies of Logistics and Trade,
Hazardous Materials Transportation 13.6 Friction or Fraud in the Distribution Channel.
Unit 14 - Global Sourcing: Why Source Internationally, Designing a Global Sourcing
 System, Global Sourcing and Procurement, Planning, Specification, Evaluation, Relationship
management, Transportation and inventory holding costs, Implementation, Monitoring and
Improving, Issues in Importing and Exporting.
Unit 15 - Future Issues in Logistics: World-Class Logistics Practices, One-Stop Shopping
Concept and Amodalism, Environmental Issues, Internet and Integrated Supply Chain
Management System
References:
1. Gattorna, J. (1998). Strategic Supply Chain Alignment. England: Gower Publishing
Limited.
2. Lan, Y., & Unhelkar, B. (2006). Global Integrated Supply Chain Systems. USA: Idea
Group Inc (IGI).
3. Kamarulzaman, N.H., & Nawi, N.M. (2009). The Use of Internet Applications in
Managing Logistics Activities among Palm Oil Industry Participants. Journal of
Economics and Management, 262-277.
4. Robeson, J.F. (1994). The Logistic Handbook. New York: The Free Press.
5. Wood, D. F., & Barone, A. P., & et al. (2002). International Logistics. New York:
Amacom. Emmett, S. (1998). Excellence in Warehouse Management. Wiley.

Course Code- SC0024 Course Title- Category Management in

Purchasing

Course Objectives:
The course “Category Management in Purchasing” of MBA 4th Semester helps students will
develop the capability to create categories for generating value through the supply chain, initiate
the category management process, determine future sourcing strategy and trace out latest
developments like e-auctions.

After studying this subject, the student should be able to:

 determine the category management process duration
 analyse the supplier’s pricing approach
 develop a high-level implementation plan
 create a detailed implementation plan of the sourcing strategy
 explain the importance of supplier relationship management
 establish programme governance structure
 determine the future implications for purchasing
Unit 1- Introduction to Category Management: Category Management, The Need for
Category Management, Technological Revolution, Consumer Pressure to Drive Down Costs,
Generating Value through the Supply Chain Management, Creating the Categories.
 Unit 2- Fundamentals of Category Management: Three Foundations, Sourcing strategically,
Managing the market, Driving change, Four Pillars, Breakthrough thinking, Customer focus,
Cross-functional team that works, Facts and data.
Unit 3- Stages of Category Management: Circular Process, Five Stages, Reviewing Process,
Full Process, Process Duration.
Unit 4- Initiation: Initiating the Process, Initiation Toolkit, Scoping the Category Project,
Opportunity Analysis, Securing the Project Sponsor.
Unit 5- Forming the Team: Recruiting the Team Members, Team Charter, Stakeholder
Mapping, Communication Planning, Gaining the First Insights into the Category, Project
Planning

Unit 6- Gaining Insight: Introduction to Data Gathering, The Insight Toolkit, Gaining
Confidence in Suppliers, Gathering Internal Data, Gathering Supplier Data, Researching the
Current as well as Potential Markets, Understanding the Supplier’s Pricing Approach.

Unit 7- Gaining Further Insight: Identifying the Value Adding Points in the Supply Chain,
developing a Cost vs. Price Breakdown, Identifying Possible Technological Change, Analyzing
the External Environment, Understanding Market Competitiveness, Determining Potential
Sources of Leverage, Supplier’s Perspective on the Relationship, Portfolio Analysis with
Supplier Preferencing.

Unit 8 - Driving Innovation: Determining the Future Sourcing Strategy, Steps Towards
Innovation, Summarising the Analysis, Strategic Option Generation, Strategic Option
Evaluation and Selection.
Unit 9 – Building Upon Innovation: Building the Chosen Option, Risk and Contingency
Planning, High-Level Implementation Planning, Creating the Strategic Source Plan, Features of
source plan, Significance of source plan, Relationship between innovation and source plan,
Source Plan Sign-Off.

Unit 10 - Implementing the Sourcing Strategy: Realising the Sourcing Strategy, Logistics,
creating a Detailed Implementation Plan, Project Management, Managing Change.

Unit 11 - Tendering and Contracting: Contract Planning, Tendering Process, E-auctions,

Supplier Selection, Negotiation, Finalising the Legalities

Unit 12 – Bringing Improvement: Continuous Improvement, Lessons Learnt Review Supplier,

Relationship Management, Continuous Innovation, Market Analysis, Realignment.
Unit 13 – Making Category Management Happen: Senior Management Support for Category
Management, Establishing Programme Governance, Significance of programme governance,
Characteristic features of a good programme governance, Creating the Programme Plan,
Strategies in programme plan, Main components included in category management
programme plan, Measurement, Tracking and Reporting, Programme Communications.
 Unit 14 - The Future of Category Management: The Challenges, Future Implications for
Purchasing, Corporate Social Responsibility, Globalisation, Future Role of Category
Management.
Unit 15 - Success Stories of Category Management: General Mills - Expanding Beyond the
Categories, The Hershey Company – Consumer Insights and Customer Strategy, Category
Management at Pantaloon, Miller Brewing – Use of Category Management for a Competitive
Advantage
References:
1. Nielsen, A. C., Karolefski, J., & Heller, A. L. (2006). Consumer-Centric Category Management -
How to Increase Profits by Managing Categories Based on Consumer Needs. New Jersey: John
Wiley & Sons, Inc.
2. O’Brien, J. (2010). Category Management in Purchasing. New Delhi: Kogan Page India.
3. Monczka, R.M., & Handfield, R. B., & Guinipero, L.C., Patterson, J.L., Walters, D. (2010).
Purchasing and Supply Chain Management., United Kingdom: South Western Cengage Learning.

Course Code- SC0025 Course Title- Purchasing and Contracting for Projects

Course Objectives:
The course “Purchasing and Contracting for Projects ” of MBA 4th Semester helps students will
develop the capability to create knowledge of purchasing, negotiating and contracting projects.
After studying this subject, the student should be able to:

Unit 1- Introduction to Purchasing and Contracting: Procurement, Purchasing, Buyer.

Unit 2- Purchasing and Project Management: Purchasing and Procurement Context,

Purchasing process, Participation of users, Organization option, Risk, Rules and
Relationships.
Unit 3- Contracting Strategies: Overview of Contracting Strategies, Influencing Factors,
Division of Work, Performance of the Work.
Unit 4- Contracting I: Three Contract Categories, Client Risk Contracts, Shared Risk
Contracts, Contractor Managed Risk Contracts.
Unit 5- Contracting II: Fixed Price versus Reimbursable, Other Contract Expressions,
Alliances and Joint Ventures

Unit 6- Contract Law: Meaning of Words, Contents of a Contract, Formation of a Contract,

Terms and Conditions, Issues in Contracting, Discharge of a Contract, Performing a Contract.

Unit 7- Communicating the Requirements: Material Requisition, Scope and Work Definition,
Specification and Standards, Importance of Words, Questions and Tenderers Conference.

Unit 8 - Selecting the Tenderers: Tender List, Choosing the Tenderers, Pre-Qualification.
Unit 9 – Enquiry Process, Methods and Document, Enquiry Process, Enquiry Methods, Open
tendering, Selective tendering, two stage tendering, Serial tendering, Negotiated tenders or
contracts, Enquiry Document.

Unit 10 - Payment Strategies: Terms of Payment, Payment Security, Contract Security.

Unit 11 - Evaluating the Tenders: Selection and Evaluation Processes, Evaluating Tenders,
Issues in Detailed Appraisal, Reaching a Conclusion.

Unit 12 – Incentives: Incentive Mechanisms, Bonus Incentive Schemes, Negatives of Cost

Incentives, Disincentives.
Unit 13 – Influences: Politics, Facilitation Payment, Bribery and Corruption, Controlling the
Money Flow.
Unit 14 - Finalising the Deal and Delivering: Negotiation, Finalising the Deal, Expediting
and Inspection, Delivery.
Unit 15 - Administering, Monitoring and Closing the Project: Administering the Order or
Contract, Commissioning, Setting to Work, Start-Up, Completion and Claims, Smaller
Projects, Post Project Appraisal and Learning for the Future, Purchasing Plan and Checklist
References:
1. Marsh, P.D.V. (2000). Contracting for Engineering and Construction Projects. United States:
Gower Publishing Limited.
2. Ward, G. (2008).The Project Manager’s Guide to Purchasing. United Kingdom: Gower Publishing
Limited O’Brien, J. (2010). Category Management in Purchasing. New Delhi: Kogan Page India.
3. Fuller, G. (2002). Purchasing Contracts: A Practical Guide, 2nd ed. London: Spiro Press Limited.
4. Kochanek, S. A. Business and Politics in India, USA: University of California Press.
5. Ward, G. (2008). The Project Manager's Guide to Purchasing: Contracting for Goods and
Services. Great Britain: Gower Publishing Limited.
6. Domberger, S. (2002). The Contracting Organization - A Strategic Guide to Outsourcing. New
York: Oxford University Press Inc.

Course Code- SC0026 Course Title- Supply Chain Cost Management

Course Objectives:
The course “Supply Chain Cost Management” of MBA 4th Semester helps students will develop
the capability to create knowledge of cost analysis at different levels to flow of goods.
After studying this subject, the student should be able to:
 analyse the challenges in supply chain cost management
  utilise monitoring and feedback to improve supply transaction performance
 prepare for cost management strategy-building session
 develop strategic options for selected cost drivers
 describe the process of addressing various types of risks
 explain the benefits of leveraging ideas of cost management
 calculate the various types of supply chain costs

Unit 1- Introduction to Supply Chain Cost Management: The Challenge of Supply Chain
Costs, Reducing the Cash-to-Cash Cycle Time, Aligning Supply Chains with Customers to
Create More Value.
Unit 2- Structural Cost Management in Supply Chains: Strategic Cost Management, Strategic
cost management framework, Strategic cost management programme, Strategic cost
management enablers , Sourcing: Make, Buy or Ally, Supplier Selection, Supplier
identification, Supplier evaluation, Negotiation process, Supplier contracting, Supplier
monitoring, Design of the Buyer/Supplier Relationship, Classifications of buyer/supplier
relationship, A contingency model for buyer/supplier relationship, Joint Product Design, Joint
Process Design,Inventory Cost Management.
Unit 3- Executional Cost Management in Supply Chains: Supply Transactions: Financial
Performance Measurement, Supply Transactions: Non-Financial Performance Measurement,
Supply Transaction Performance: Monitoring, Feedback, and Improvement, Assessing the
Sustainability of Supply Chains.
Unit 4- Building Cost Management Models Structure: Supply Contracts and Transaction, Cost
Interdependencies, Supply Chain Management - Decision Support Systems, Activity Based
Costing, Facility Location and Capacity Allocation Models.
Unit 5- The AIM & DRIVE Process of Cost Management: Prior to the Breakthrough,
Leveraging volume, Analysing price, Analysing costs, A Brief History, An Overview of the
Eight-Step Process, Organising an AIM & DRIVE Exercise

Unit 6- Agreeing on the Need to Manage Costs: Establishing Leadership in the Supply Chain,
Cost Management Strategies – Objectives, Cost Management Strategy Preparation-Building
Session, Establishing Team Goals.

Unit 7- Identifying Critical Costs in the Supply Chain: Mapping the Process, Critical Costs
Identification, Critical Costs to be Managed – Selection.

Unit 8 - Measuring Secondary and Tertiary Costs: Measuring Costs – Methods, Allocation
based systems, Management based systems, Evolving Cost Drivers in Formula–Based
Costing, Secondary and Tertiary Cost – Writing a Formula.
Unit 9 – Defining the Key Cost Drivers and Developing the Strategic Options: Review the List
of Current Cost Drivers, Selection of the Key Cost Drivers, Identification of key cost drivers by
observation, Identification of key cost drivers using a model, Weighted values of cost drivers,
Potential for Improvement, Developing Strategic Options for Selected Cost Drivers.
 Unit 10 - Reducing, Eliminating, or Changing Activities Causing Cost Escalation: The Risk-
Return Model, Constraints Identification, Strategy Statement Creation, Evaluating Risk and
Benefits from Different Perspectives, Prioritizing Strategies for Implementation.

Unit 11 - Implementing the Action Plan: Creating Clear and Detailed Action Plans, Addressing
Risks, Confirming the Feasibility of the Action Plan, Assigning Responsibilities and Setting
Timelines, Developing Contingency Plans, Selling the Plan to Stakeholders.

Unit 12 – Verifying the Plan with Cost Monitors: Guidelines, Project Co-Ordinator
Responsibilities, Regular Team Meetings, Monitoring Performance and Avoiding
Negotiations, Documenting the Benefits and Reviewing the Goals, Modifying the Action
Plans, Grading the Team and Sharing the Learning Process.
Unit 13 – Eternally Improving and Leveraging the Process: Expanding the Strategy,
Leveraging Ideas, Using an AIM & DRIVE database to store the worksheets of various
teams, Conducting idea-sharing sessions, Using Web 2.0 technology to communicate the
successful ideas, Critical Success Factors, Support and participation of the top management,
Commitment of the top management of the supplier, Visits to important supplier, Sharing of
cost savings, Measuring and Rewarding Success, Measuring success, Rewarding success.
Unit 14 - Driving Out Costs from the Healthcare Supply Chain: Lessons from Mass
Streamlining the Healthcare Supply Chain, Keys to Success, Understand the complexity of
healthcare, Promote cost transparency, ‘Bundle’ services only when it improves efficiency
and price, Address regulatory barriers, Future Opportunities, Prescription drugs, Over-the-
counter, health products, Supplies used for simple medical procedures.
Unit 15 - Impact of Packaging Design on Supply Chain Costs: Basic Calculations, Cost
Calculations, Corrugated box cost calculation, Shipping cost calculation, Inventory cost
calculation, Insurance cost calculation, Material Cost, Transportation Cost, Warehousing
Cost, Reduced Costs through Packaging Redesign
References:
1. Bender, A. E. (2000). An Introduction to Mathematical Modeling. U.S.A: Dover Publications Inc.
2. Denison, E., & Cawthray, R. (2010). The Big Book of Packaging Prototypes. Switzerland:
Rotovision SA.
3. Dorf, R. C., & Kusiak, A. (1994). Handbook of Design, Manufacturing and Automation. USA.
Kochanek, S. A. Business and Politics in India, USA: University of California Press.
4. Anklesaria, J. (2008). Supply Chain Cost Management, The Aim and Drive Process for Achieving
Extraordinary Results. U.S.A: Amacom.
5. Lynch, S. G. (2009). Single Point of Failure: The Ten Essential Laws of Supply Chain Risk
Management. New Jersey: John Wiley and Sons.
6. Seuring, S., & Goldbach, M. (2002). Cost Management in Supply Chains. New York.
7. Skipper, J., & Hanna, J. (2009). Minimizing Supply Chain Disruption Risk Through Enhanced
Flexibility. International Journal of Physical Distribution & Logistics Management..