Course Description

This course prepares students for careers in business by teaching principles of purchasing, negotiating skills, and SAP Enterprise Requirements Planning software procure to pay business process.

Learning Outcomes

Students completing this course should be able to:

1. Understand the role of purchasing and supply chains in achieving business strategy and objectives.
2. Gather and analyze data to make informed decisions on making or purchasing materials and services and insourcing or outsourcing the supply of materials and services.
3. Identify and specify the needs of those requisitioning materials and services including quality, quantity, environmental, transportation, and 3PL logistics provider requirements.
4. Selecting suppliers, examining competitive bids, analyzing whether to forward buy and accept discounts and understanding the “total cost of ownership”.
5. Understand the procure-to-pay process and be able to perform basic procure-to-pay transactions in the SAP ERP software suite.
6. Apply sound strategies in negotiating deals.
7. Have an appreciation for the State of Texas and governmental purchasing practices.
8. Identify strategic suppliers and practices to measure and manage performance.

Textbook

• This textbook is recommended but not required.
  • Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher, William L. Ury, and Bruce Patton
    • ISBN 978-0-14-311875-6
• This textbook is neither recommended nor required.
  • Purchasing and Supply Management, 17th Edition by P. Fraser Johnson
    • ISBN10: 126532249X; ISBN13: 9781265322496
• Negotiation Exercises will be paid for by students. Instructions will be provided by the instructor.
• The Procurement Exercise will be provided by the instructor.
• Access to SAP materials will be arranged by the instructor.

Plan for Engagement

• This is a distance learning (DLS) course that has virtual class meetings on Tuesdays from 6:00 to 7:20 pm. Since you are not required to attend class meetings it is also being taught as if it were an online (ONL) course.

  We will call students who attend class DLS or distance learning students.

  • DLS students will participate in Lectures and complete some assignments in class meetings
  • DLS students will also watch some Video lectures, take all quizzes and exams, and complete some assignments outside of class using online course materials.
  • If you miss a class, watch Videos or complete assignments as if you were an ONL student.

  We will call students who do not attend class ONL or online students.

  • ONL students will watch Videos, take quizzes and exams, and complete assignments online.
• Read the weekly email announcement sent at the end of the week. eMail announcements will be available in Announcements. Weekly announcements will include:
  • current course grade breakdown
  • past due assignments
  • next week's assignments
• Review your current grade in the course and see grades for all completed assignments in Grade Center
  • grades on auto-graded quizzes and exams will be immediately available if taken by the due date on the Schedule.
  • late assignments will be given a "0".
  • assignments may be turned in late without penalty provided they are submitted by the last day of the semester...scores of "0" will be replaced with the score earned at the end of each week.
• Review comments for the Procurement Exercise. if you receive less than full credit, resubmit the Project after addressing reasons points were deducted to increase your score.
• Respond to email messages sent by the instructor.

Getting to Yes Ch 1 - 8

State of Texas Procurement

Module 1

Description

Discuss sourcing strategy, the State of Texas Procurement Guide, needs specification, quality & quantity requirements, transportation, logistics providers, and vendor selection. 

Learning Objectives

• Purchasing 1 - Introduction (Purchasing Textbook Ch 1 - 3, 14) 

1.1.1. Understand the role of purchasing in achieving supply chain strategies and objectives.

1.1.2. Understand the role of supply chains in achieving business strategies and objectives.

1.1.3. Discuss approaches for aligning purchasing, supply chain, and business strategies and objectives.

1.1.4. Compare global purchasing organizational structures.

1.1.5. Compare and contrast the above learning outcomes in Texas Procurement

• Purchasing 2 - Sourcing Strategy (Purchasing Textbook Ch 5) 

1.2.1. Discuss when to make or purchase materials and supplies.

1.2.2. Discuss when to insource or outsource the supply of materials or services.

1.2.3. Examine local and global sources of supply.

1.2.4. Examine purchasing directly from suppliers or indirectly through wholesalers or distributors.

1.2.5. Examine techniques for gathering and analyzing data needed to make informed sourcing decisions.

1.2.6. Discuss insourcing and outsourcing in Texas procurement

1.2.7. Compare and contrast the above learning outcomes in Texas Procurement

• Purchasing 3 - State of Texas and Governmental Procurement (State of Texas Procurement & Contract Guide)

1.3.1 Outline the State of Texas Procurement Certification and Training program.

1.3.2. Discus ethics, laws, and professional standards

1.3.3. Describe the Historically Underutlized Business Program

1.3.4. Review the procurement process.

1.3.5. Analyze procurement planning

1.3.6. Analyze and select procurement methods.

1.3.7. Explain the solicitation process.

1.3.8. Review the vendor selection process

1.3.9. Examine contract formation and award

1.3.10. Examine the transition from contract foprmation to contract management

• Purchasing 4 - Needs Specification, Quality Requirements (Purchasing Textbook Ch. 6, 7) 

1.4.1. Discuss how to gather requirements for materials or services being purchased.

1.4.2. Understand quality requirements and the process for measuring the quality of products and services that will be purchased.

• Purchasing 5 – Quantity Requirements, Transportation, Logistics (Purchasing Ch 8, 9)

                       1.5.1. Understand quantity requirements, demand forecasting techniques, and ways to improve forecast accuracy.

                       1.5.2. Understand the need for lean and resilient supply chains.

                       1.5.3. Understand supplier-managed inventory programs (e.g. VMI).

                       1.5.4. Discuss when the purchasing organization should select transportation modes and carriers and freight terms.

                       1.5.5. Discuss use of 3PL (third party logistics) and 4PL (fourth party logistics providers) logistics providers.

Module 2 

Description

Discuss supplier evaluation and supplier relationship management. Examine State of Texas procurement practices.

Learning Outcomes

• Purchasing 6 - Vendor Selection (Purchasing (Ch. 4, 10)

                       2.6.1. Examine competitive bidding.

                       2.6.2. Discuss reverse auctions and where they can be best used.

                       2.6.3. Analyze when to accept supplier discounts and forward buy more than Economic Order Quantities (EOQ).

                       2.6.4. Examine target pricing.

• Purchasing 7 - Supplier Evaluation & Relationships (Purchasing Ch 13)

                       2.7.1. Examine ABC analysis of vendors and how “A” vendors are managed.

                       2.7.2.  Examine ways to evaluate supplier performance.

• Purchasing 8 - AI for Procurement

                       2.8.1. Examine generative AI.

                       2.8.2. Explore GenAI for procurement including procurement prompts

• SAP 1

                       2.11. 1 Explore SAP ERP Software Suite  

• SAP 2

                      2.12.1 Understand how to process SAP Procure to Pay Transactions

Module 3 

Description

Discuss the problems with positional bargaining and the importance of separating people from problems when negotiating agreements. Discuss how to invent options for mutual gain and the importance of objective criteria.  Discuss techniques for getting suppliers to participate in principled negotiations and how to overcome unprincipled negotiation tactics.

Learning Outcomes

• Yes Ch 1 - The Problem with Positions

3.1.1. Explain the problems with positional bargaining.

3.1.2. Discuss 3 criteria for a wise negotiation:  agreement is possible, process is efficient, and relationship of parties is sustained.

3.1.3. Discuss outcomes of arguing.

3.1.4. Explain why positional bargaining is worse when there are multiple parties.

3.1.5. Consider why being nice is not an answer.

3.1.6. Explain an alternative to hard and soft negotiating.

• Yes Ch 2 - People from  Problems

3.2.1. Recognize that negotiators are people first.

         3.2.2. Describe two interests of negotiators…substance and relationship.

         3.2.3. Recognize that deals require differences in thinking to be understood.

         3.2.4. Examine why feelings are more important than talk in resolving bitter disputes.

         3.2.5. Understand the critical role of communication in negotiations.

• Yes Ch 3 – Focus on Interests, not Positions

            3.3.1. Analyze why reconciling interests vs. positions produces wise solutions.

            3.3.2. Explain ways to discover interests.

            3.3.3. Discuss best practices for talking about interests.

• Yes Ch 4 – Invent Options for Mutual Gain

          3.4.1. Create multiple options

          3.4.2. Separate inventing from deciding by following the 4-step circle chart.

          3.4.3. Use creative problem-solving techniques.

          3.4.4. Explore positions that make it easy for the other party and you to decide.

• Yes Ch 5 – Insist on Using Objective Criteria

          3.5.1. Illustrate why objective criteria and principled negotiation produces wise agreements.

          3.5.2. Examine techniques for creating objective criteria.

          3.5.3. Discuss 3 ways to introduce objective criteria in negotiations.

          3.5.4. Practice using objective criteria in a negotiation with a party using positional bargaining.

• Yes Ch 6 – What if They are More Powerful?

             3.6.1. Examine using Best Alternative to a Negotiated Agreement (BATNA to protect yourself.

             3.6.2. Using BATNA to make the most of your assets and increase your negotiating power.

• Yes Ch 7 – What if they Won’t Play?

           3.7.1. Evaluate 3 approaches for getting the other party to engage in the negotiation.

           3.7.2. Examine negotiation jujitsu approaches.

           3.7.3.  Assess the one-text approach for reaching agreement on requirements.

           3.7.4. Examine the ‘change the game’ strategy for getting another party to negotiate.

• Yes Ch 8 – What if They Use Dirty Tricks?

           3.8.1. Discuss remedies for dealing with dirty tricks.

• Negotiation 1 - Sally Soprano; Negotiation 2 - MultiSearch Software

                       3.NEG.1. Practice concepts learned in Getting to Yes in a negotiation exercise

Module 1

Description

Discuss sourcing strategy, the State of Texas Procurement Guide, needs specification, quality & quantity requirements, transportation, logistics providers, and vendor selection. 

Learning Objectives

• Purchasing 1 - Introduction (Purchasing Textbook Ch 1 - 3, 14) 

1.1.1. Understand the role of purchasing in achieving supply chain strategies and objectives.

1.1.2. Understand the role of supply chains in achieving business strategies and objectives.

1.1.3. Discuss approaches for aligning purchasing, supply chain, and business strategies and objectives.

1.1.4. Compare global purchasing organizational structures.

1.1.5. Compare and contrast the above learning outcomes in Texas Procurement

• Purchasing 2 - Sourcing Strategy (Purchasing Textbook Ch 5) 

1.2.1. Discuss when to make or purchase materials and supplies.

1.2.2. Discuss when to insource or outsource the supply of materials or services.

1.2.3. Examine local and global sources of supply.

1.2.4. Examine purchasing directly from suppliers or indirectly through wholesalers or distributors.

1.2.5. Examine techniques for gathering and analyzing data needed to make informed sourcing decisions.

1.2.6. Discuss insourcing and outsourcing in Texas procurement

1.2.7. Compare and contrast the above learning outcomes in Texas Procurement

• Purchasing 3 - State of Texas and Governmental Procurement (State of Texas Procurement & Contract Guide)

1.3.1 Outline the State of Texas Procurement Certification and Training program.

1.3.2. Discus ethics, laws, and professional standards

1.3.3. Describe the Historically Underutlized Business Program

1.3.4. Review the procurement process.

1.3.5. Analyze procurement planning

1.3.6. Analyze and select procurement methods.

1.3.7. Explain the solicitation process.

1.3.8. Review the vendor selection process

1.3.9. Examine contract formation and award

1.3.10. Examine the transition from contract foprmation to contract management

• Purchasing 4 - Needs Specification, Quality Requirements (Purchasing Textbook Ch. 6, 7) 

1.4.1. Discuss how to gather requirements for materials or services being purchased.

1.4.2. Understand quality requirements and the process for measuring the quality of products and services that will be purchased.

• Purchasing 5 – Quantity Requirements, Transportation, Logistics (Purchasing Ch 8, 9)

                       1.5.1. Understand quantity requirements, demand forecasting techniques, and ways to improve forecast accuracy.

                       1.5.2. Understand the need for lean and resilient supply chains.

                       1.5.3. Understand supplier-managed inventory programs (e.g. VMI).

                       1.5.4. Discuss when the purchasing organization should select transportation modes and carriers and freight terms.

                       1.5.5. Discuss use of 3PL (third party logistics) and 4PL (fourth party logistics providers) logistics providers.

Module 2 

Description

Discuss supplier evaluation and supplier relationship management. Examine State of Texas procurement practices.

Learning Outcomes

• Purchasing 6 - Vendor Selection (Purchasing (Ch. 4, 10)

                       2.6.1. Examine competitive bidding.

                       2.6.2. Discuss reverse auctions and where they can be best used.

                       2.6.3. Analyze when to accept supplier discounts and forward buy more than Economic Order Quantities (EOQ).

                       2.6.4. Examine target pricing.

• Purchasing 7 - Supplier Evaluation & Relationships (Purchasing Ch 13)

                       2.7.1. Examine ABC analysis of vendors and how “A” vendors are managed.

                       2.7.2.  Examine ways to evaluate supplier performance.

• Purchasing 8 - AI for Procurement

                       2.8.1. Examine generative AI.

                       2.8.2. Explore GenAI for procurement including procurement prompts

• SAP 1

                       2.11. 1 Explore SAP ERP Software Suite  

• SAP 2

                      2.12.1 Understand how to process SAP Procure to Pay Transactions

Module 3 

Description

Discuss the problems with positional bargaining and the importance of separating people from problems when negotiating agreements. Discuss how to invent options for mutual gain and the importance of objective criteria.  Discuss techniques for getting suppliers to participate in principled negotiations and how to overcome unprincipled negotiation tactics.

Learning Outcomes

• Yes Ch 1 - The Problem with Positions

3.1.1. Explain the problems with positional bargaining.

3.1.2. Discuss 3 criteria for a wise negotiation:  agreement is possible, process is efficient, and relationship of parties is sustained.

3.1.3. Discuss outcomes of arguing.

3.1.4. Explain why positional bargaining is worse when there are multiple parties.

3.1.5. Consider why being nice is not an answer.

3.1.6. Explain an alternative to hard and soft negotiating.

• Yes Ch 2 - People from  Problems

3.2.1. Recognize that negotiators are people first.

         3.2.2. Describe two interests of negotiators…substance and relationship.

         3.2.3. Recognize that deals require differences in thinking to be understood.

         3.2.4. Examine why feelings are more important than talk in resolving bitter disputes.

         3.2.5. Understand the critical role of communication in negotiations.

• Yes Ch 3 – Focus on Interests, not Positions

            3.3.1. Analyze why reconciling interests vs. positions produces wise solutions.

            3.3.2. Explain ways to discover interests.

            3.3.3. Discuss best practices for talking about interests.

• Yes Ch 4 – Invent Options for Mutual Gain

          3.4.1. Create multiple options

          3.4.2. Separate inventing from deciding by following the 4-step circle chart.

          3.4.3. Use creative problem-solving techniques.

          3.4.4. Explore positions that make it easy for the other party and you to decide.

• Yes Ch 5 – Insist on Using Objective Criteria

          3.5.1. Illustrate why objective criteria and principled negotiation produces wise agreements.

          3.5.2. Examine techniques for creating objective criteria.

          3.5.3. Discuss 3 ways to introduce objective criteria in negotiations.

          3.5.4. Practice using objective criteria in a negotiation with a party using positional bargaining.

• Yes Ch 6 – What if They are More Powerful?

             3.6.1. Examine using Best Alternative to a Negotiated Agreement (BATNA to protect yourself.

             3.6.2. Using BATNA to make the most of your assets and increase your negotiating power.

• Yes Ch 7 – What if they Won’t Play?

           3.7.1. Evaluate 3 approaches for getting the other party to engage in the negotiation.

           3.7.2. Examine negotiation jujitsu approaches.

           3.7.3.  Assess the one-text approach for reaching agreement on requirements.

           3.7.4. Examine the ‘change the game’ strategy for getting another party to negotiate.

• Yes Ch 8 – What if They Use Dirty Tricks?

           3.8.1. Discuss remedies for dealing with dirty tricks.

• Negotiation 1 - Sally Soprano; Negotiation 2 - MultiSearch Software

                       3.NEG.1. Practice concepts learned in Getting to Yes in a negotiation exercise