Strategic Sourcing: Key Risks and Critical Examination of Procurement Function and Sourcing Methods

Key Risks in Procuring Goods and Services

Task

Within the procurement process, strategic sourcing is employed to coordinate all procurement activities with a view to move from tactical procurement to strategic procurement and proactive long term planning. For this purpose organisations aim to constantly improve their sourcing process through collaborative relationships with external resources and productive supply markets to reduce their cost base and increase the value of goods and services for their consumers. However, it must be remembered that procurement is not a ‘risk-free’ activity and organisations must take care to ensure that risks are minimised and opportunities maximised in the procurement process.

(a)  To demonstrate the key risks that the selected organisation faces in procuring goods and services through the production of a risk assessment.

(b)  To critically examine the procurement function and sourcing methods.

Please follow a report format. Therefore, you should have a title page, contents page, sections and sub sections, page numbers, appendix section etc. Please note if you are uncertain on how to present and structure a report then visit the university library and ask for assistance.

Please do use diagrams, illustrations, tables, graphics etc. wherever these are helpful, and remember that these do not count towards your word limit. If you do use these, please do not put them in the appendices if they are part of your discussion. Appendices are the appropriate places to put supporting material, however, remember if the reader is satisfied with the main points of your discussion; the supporting information within the appendices may not even be reviewed.

Please try to use theory explicitly at all stages, but do not spend too much time describing a theory. While you must be explicit about the theories, models, techniques etc. that you use, you can assume that the reader is familiar with them. What the reader requires is evidence of your ability to understand and apply the theory and learn from in order to support the development of your findings and/or ideas.

You must cite all sources on which you have relied, for example textbooks, journal articles, web pages etc. using the Harvard Bibliographic referencing system. If you do not cite all sources, then you may be accused of plagiarism, and that may endanger your success in passing the module. If you are in any doubt about how to reference your work, please obtain guidance from the library and/or your academic librarian(s) for this module.

You will also need to take the following into account when completing your assignment:

• Quality of executive summary (does it give a brief complete summary of your paper for an executive to read?)
• Establishment of relevant theory (e.g. what do we mean by global sourcing?)
• Allocation of credit and sources used (have I included references and citations to the material I have used?)

Knowledge and Understanding

• Demonstrate an understanding of the importance of procurement for global organisations operating in complex market environments.
• Locate, synthesise and critically evaluate recent/current information from a wide range of published literature in the area of Procurement, Risk and Contract Management.
• Apply knowledge of the theory and practice of Procurement, Risk and Contract Management to develop insights into and solve current problems.
• Critically evaluate the use of complex models of Procurement, Risk and Contract Management; systematically and creatively making sound judgements based on the systematic analysis and creative synthesis of ideas.
• Critically and effectively assess the value of theories, concepts and models to the practice of Procurement, Risk and Contract Management.
• Demonstrate a sound understanding of the importance of risk management in the development and maintenance of sustainable procurement.

Practical, Professional or Subject Specific Skills

1. Leads by example - as high levels of self-awareness, emotional and social intelligence, empathy and compassion, and able to identify mental well-being in others. Work collaboratively enabling empowerment and delegation - acts with humility and authenticity, is credible, confident and resilient.
2. Judgement and Challenge - Takes personal accountability aligned to clear values. Demonstrates flexibility and willingness to challenge when making decisions and solving problems - instils confidence demonstrating honesty, integrity, openness, and trust.
3. Courage & Curiosity - is confident and brave, willing to innovate, seeks new ideas and looks for contingencies. Manages complexity and ambiguity, comfortable in uncertainty, and is pragmatic.
4. Valuing Difference - engaging with all, is ethical and demonstrates inclusivity, recognising diversity, championing, and enabling cultural inclusion. Empowers and motivates to inspire and support others.
5. Professional Reflects on own performance, demonstrates professional standards in relation behaviour and ongoing development. Advocates the use of good practice within and outside the organisation.