OPM 591: Strategic Procurement

During the last decades, the value sourced from suppliers and innovation stemming from the supply base have increased substantially in many industries. Consequently, purchasing’s role has shifted from a clerical support role in the corporate hierarchy to a truly strategic and proactive role that drives growth, innovation, and value creation. Today, most organizations consider the management of their suppliers as a key strategic issue. Given its potential to contribute significantly to firm performance, the procurement function receives strong top management attention. This module provides a broad survey of modern procurement theory and practice from a strategic perspective. Topics include the design and implementation of procurement strategies, processes, organizational structures, and performance measurement systems, as well as the management of supplier portfolios, buyer-supplier relationships, and supplier innovation to meet firms’ strategic supply needs. The module consists of regular lectures and exercise classes in which extended and short cases will be discussed. High-caliber guest speakers will serve as a rich source of practical insights.

Learning outcomes
This course is recommended for anyone seeking an introduction to procurement and, more generally, a better understanding of upstream supply chain operations. The main intended learning outcome is to obtain the basic knowledge that enables further steps in procurement research and practice. Based on current theories and a broad coverage of topics, participants will learn how to analyze, structure, and tackle strategic problems surrounding the procurement function. Participants will obtain:

  • the fundamental knowledge that enables further steps in purchasing and supply management research and practice
  • the ability to analyze, structure, and tackle strategic problems surrounding the procurement function,
  • an overview on structured approaches and tools applicable in practice.

Necessary prerequisites

Recommended prerequisites
Basic knowledge in supply chain and/or operations management

Forms of teaching and learningContact hoursIndependent study time
Lecture2 SWS8 SWS
Exercise class2 SWS5 SWS
ECTS credits6
Graded yes
Form of assessmentWritten exam (90 min)
Restricted admissionno
Further information
Performing lecturer
Prof. Dr. Christoph Bode
Prof. Dr. Christoph Bode
Frequency of offeringFall semester
Duration of module 1 semester
Range of applicationM.Sc. MMM, M.Sc. Bus. Edu., M.Sc. Econ., M.Sc. Bus. Inf., M.Sc. Bus. Math., MAKUWI
Preliminary course work
Program-specific Competency GoalsCG 1, CG 2, CG 3
LiteratureThere is no mandatory textbook. All relevant course materials will be provided.
Auxiliary readings:
  • Cousins, P.D., Lamming, R.C., Lawson, B., Squire, B., 2008. Strategic Supply Management: Principles, Theories and Practice. Prentice Hall, Harlow, UK.
  • Johnson, P.F., Leenders, M.R., Flynn, A.E., 2010. Purchasing and Supply Management (14th ed.), McGraw-Hill, New York, NY.
  • Monczka, R.M., Handfield, R.B., Giunipero, L.C., Patterson, J.L., 2015. Purchasing and Supply Chain Management (6th ed.), Cengage, Florence, KY.
  • van Weele, A.J., 2014. Purchasing and Supply Chain Management (6th ed.), Cengage, Florence, KY.
Course outlineModule 1: Introduction to strategic procurement
Module 2: Procurement strategy and strategic alignment Module 3: Operating model of procurement
Module 4: Category management
Module 5: Strategic supplier management