Procurement and Inventory Management

Course Description

Two key features of all supply chains are procurement and inventory management. Stock needs to be acquired then effectively and efficiently managed so that the requirements of internal or external customers can be met. The aim of this unit is, therefore, to develop a learner’s understanding of the role of these related functions in a cost effective and resource efficient supply chain.

Course Objectives

Two key features of all supply chains are procurement and inventory management. Stock needs to be acquired then effectively and efficiently managed so that the requirements of internal or external customers can be met. The aim of this unit is, therefore, to develop a learner’s understanding of the role of these related functions in a cost effective and resource efficient supply chain.

Key Topics

1. LO1: Understand the fundamentals of procurement management.
2. LO2: Understand the relationship between procurement and the supply chain.
3. LO3: Understand the fundamentals of inventory management.
4. LO4: Understand the relationship between inventory management and the supply chain.

Course Outline

Learning Outcomes

1. LO1 Understand the fundamentals of procurement management.
2. 1.1 Differentiate between procurement and purchasing.
3. 1.2 Describe a procurement management cycle.
4. 1.3 Compare different methods of procurement.
5. 1.4 Assess the impact of procurement on the operations of a logistics business.
6. LO2 Understand the relationship between procurement and the supply chain.
7. 2.1 Describe a procurement process.
8. 2.2 Differentiate between procurement management and supply chain management.
9. 2.3 Illustrate how a business incorporates procurement into its logistics and supply chain operations.
10. LO3 Understand the fundamentals of inventory management.
11. 3.1 Differentiate between inventory management and inventory control.
12. 3.2 Describe an inventory management cycle.
13. 3.3 Compare different methods of inventory management.
14. 3.4 Discuss the importance of inventory management to a business and its supply chain.
15. LO4 Understand the relationship between inventory management and the supply chain.
16. 4.1 Explain how inventory management forms part of the supply chain.
17. 4.2 Explain how the supply chain affects inventory management.
18. 4.3 Assess the impact of inventory management on the supply chain of a business.