PS3S87 - Commercial Procurement 04 Jan 2021 - 31 Dec 2026 | Version 1
Associated Module Information
| Module Code: | PS3S87 | ||
|---|---|---|---|
| Module Title: | Commercial Procurement | ||
| Faculty: | Faculty of Business and Creative Industries | ||
| Faculty Group: | Operations Management | ||
| Faculty Sub Group: | Operations Management | ||
| Module Leader: | |||
| Module Team: | luke evans, Tammy Laugharne, Claire Reed, | ||
| First Intended Intake: | FEB 2021 | Final Year of Intake: | 2026 |
| Date Closed: | |||
| Credit Value: | 20 | Credit Level: | 6 |
| Language: | English | ||
| Percentage of Module Taught in Welsh: | 0 | ||
| Equivalent Module: | |||
| HECOS codes: | 100093 - logistics | ||
| HECOS Code Weighting: | 100 | ||
Document Version Information
| Version | 1 |
|---|---|
| Valid From | 04 Jan 2021 |
| Valid To | 31 Dec 2026 |
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 negotiation 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 and tendering process.
Effective specification formulation.
The role of relevant Key Performance Indicators (KPIs).
Contractual terms and schedules in a commercial agreement and relationships
Legal Issues in Creating Commercial Agreements
Elements of a binding commercial agreement.
Invalid and incomplete agreements
Key issues involved in offers and 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 and 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
Learning and Teaching Methods
| Activity Type | Hours |
|---|---|
| Lecture | 10 |
| Seminar | 30 |
| Independent Study | 110 |
| Directed Study | 40 |
| Formative Assessment - Independent | 2 |
| Groupwork | 8 |
| Total Hours Selected | 200 |
Learning Outcomes
| # | Learning Outcome |
|---|---|
| LO1 | Understand and critically evaluate the key commercial procurement factors that impact on commercial agreements for the supply of goods and services. |
| LO2 | Identify ad 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 | Legal issues and contract formation. | 0 | 3000 | 50 | No | 40 |
| Synchronous Onsite Oral Assessment | Presentation (Synchronous Onsite) 1 | Individual Presentation | 15 | N/A | 50 | No | 40 |
Assessment Matrix
| Assessment Type | Learning Outcomes | ||
|---|---|---|---|
| LO1 | LO2 | ||
| Essay (CW) 2 | ✔ | ✔ | |
| Presentation (Synchronous Onsite) 1 | ✔ | ✔ | |