PS2S74 - Commercial Procurement 01 Sep 2019 - 31 Aug 2027 | Version 3
Associated Module Information
| Module Code: | PS2S74 | ||
|---|---|---|---|
| Module Title: | Commercial Procurement | ||
| Faculty: | Faculty of Business and Creative Industries | ||
| Faculty Group: | Operations Management | ||
| Faculty Sub Group: | Operations Management | ||
| Module Leader: | Victoria Pledger | ||
| Module Team: | Simon Thomas, Luke Evans | ||
| First Intended Intake: | SEP 2016 | Final Year of Intake: | |
| Date Closed: | |||
| Credit Value: | 20 | Credit Level: | 5 |
| Language: | English | ||
| Percentage of Module Taught in Welsh: | 0 | ||
| Equivalent Module: | |||
| HECOS codes: | 100078 - business and management | ||
| HECOS Code Weighting: | 100 | ||
Document Version Information
| Version | 3 |
|---|---|
| Valid From | 01 Sep 2019 |
| Valid To | 31 Aug 2027 |
Module Aims
This module explores the theory and practical application that underpins the processes involved in formation of commercial agreements and relationships with external organizations.
The module will examine the current and relevant approaches to achieve an effective commercial agreements by identifying with and critically evaluating the activities and documentation involved; the legal processes and terms and the main contractual arrangements required for a commercial agreements and relationship with customers and / or suppliers.
As commercial agreements and contract management are the foundation of the procurement and supply chain management process and indeed any subsequent customer-supplier relationship, this module aims to prepare and continuously develop students for the management complexities that can be faced in the commercial world of purchasing and supply chain management.
This module therefore aims to provide students with a thorough understanding of the theoretical context of the any commercial and contract management approaches, (i.e. integrative or distributed), involved in the preparation and implementation within a customer supplier relationship. This theoretical underpinning will be synthesised with practical knowledge gained from industry through a variety of examples of the practice from the current commercial environment.
Content Summary
Understanding commercial negiotation and contract management is essential to developing a commercial relationship between supplier and customer in the procurement and supply chain process. The indicative content involved in this module will therefore include: -
Developing Commercial Agreements
• Understanding the legal requirements of a commercial agreement.
• The quotations & tendering process.
• Effective specification formulation.
• The role of relevant Key Performance Indicators (KPIs).
• Contractual terms & schedules in a commercial agreement and relationships
Legal Issues in Creating Commercial Agreements
• Elements of a binding commercial agreement.
• Invalid & incomplete agreements
• Key issues involved in offers & acceptance.
• Standard terms of contracts
• The implications of international law.
Contractual Agreements for Supply
• Understanding the types of contractual arrangements that could exist in a commercial relationship
• The role and importance of the Small and medium-sized enterprise (SME) supplier in commercial & contractual agreements
• The Supply of Goods and Services Act 1982 & the Sale of Goods Act 1979 / 2009
• Service contracts and outsource contracts
Understanding the micro and macro environmental factors that impact and commercial relationship
• Cost & Price analysis for a commercial agreement
• Environmental factors for a commercial agreement
Understanding the role of politics and power in a commercial relationship
• Power and influence in a commercial agreement
Analyse the application of commercial negotiations in the work of procurement and supply
• Definitions of commercial negotiation
• Negotiation in relation to the stages of the sourcing process
• Sources of conflict that can arise in the work of procurement and supply
• Team management and the influence of stakeholders in negotiations
Compare the types of approaches that can be pursued in commercial negotiations
• Win-win integrative approaches to negotiations
• Win-lose distributive approaches to negotiation
• Lose-lose approaches in negotiations
• Setting targets and creating a best alternative to a negotiated agreement (BATNA)
Explain how the balance of power in commercial negotiations can affect outcomes
• The importance of power in commercial negotiations
• Sources of personal power
• Organisational power: comparing the relative power of purchasers and suppliers
• How suppliers gather information on purchasing organisations
• How purchasers can improve leverage with suppliers
Understand how to prepare for negotiations with external organisations
Explain the economic factors that impact on commercial negotiations
Explain the main variables that can be used in a commercial negotiation
Explain the stages of a commercial negotiation
Evaluate the main methods that can influence the achievement of desired outcomes
Evaluate the main communication skills that help achieve desired outcomes
Explain how to analyse the process and outcomes of the negotiations to inform future
practice
Learning and Teaching Methods
| Activity Type | Hours |
|---|---|
| Lecture | 10 |
| Tutorial | 30 |
| Independent Study | 90 |
| Directed Study | 60 |
| Formative Assessment - Independent | 2 |
| Groupwork | 8 |
| Total Hours Selected | 200 |
Learning Outcomes
| # | Learning Outcome |
|---|---|
| LO1 | To understand and evaluate the key commercial procurement factors impact a commercial agreement for the supply of goods and services. |
| LO2 | Understand the legal issues that relate to the formation of contracts |
Module Requisites
N/A
Assessment Criteria
| Assessment Category | Assessment Type | Description | Duration | Word Count | Weight (%) | Best of? | Pass Mark |
|---|---|---|---|---|---|---|---|
| Written Assignment (CW) | Essay (CW) 2 | Assignment 2 | 0 | 2500 | 50 | No | 40 |
| Synchronous Onsite Oral Assessment | Presentation (Synchronous Onsite) 1 | Presentation | 10 | N/A | 50 | No | 40 |
Assessment Matrix
| Assessment Type | Learning Outcomes | ||
|---|---|---|---|
| LO1 | LO2 | ||
| Essay (CW) 2 | ✔ | ✔ | |
| Presentation (Synchronous Onsite) 1 | ✔ | ✔ | |