Strategic Sourcing

Online Certification

Michigan State University

Course Overview

Instructor: Sue Makarov

Course Description

How can you use supply management to get your products to market faster and with a competitive differentiation? In this course, we frame the strategic role of sourcing and supply management. We address the internal and external challenges when employing sourcing strategies, outline ethics and issues involved with global sourcing, delineate decision-making structures to aid in sourcing decisions, and explore techniques to select and evaluate suppliers.

Understand the fundamentals of strategic sourcing and supply management. Address the strategic and operational role of the purchasing/supply function within the organization and between firms. Explore issues related to procurement strategy; supplier selection, management and development; buyer-supplier relationships; global sourcing; negotiations; electronic procurement; cost/price considerations; and green purchasing and purchasing ethics.

Course Objectives 

After successfully completing this course, students will be able to:

  • Recognize and be able to assess key issues, principles, opportunities, strategies, techniques, and developments in strategic sourcing being pursued by leading-edge organizations to achieve competitive advantage

  • Identify and analyze the importance of developing a supply management strategy that is aligned with the firm’s overall competitive strategy, and understand internal and external challenges that affect sourcing strategy

  • Review the criteria and techniques for selecting new suppliers, and for assessing and evaluating existing suppliers, and understand how and when to build trust between participants across the supply chain

  • Outline and define issues involved in the make-or-buy decision, global sourcing, electronic procurement, the extended enterprise, negotiations, and ethics

  • Apply decision-making frameworks and problem-solving skills to determine the best course of action pertaining to above strategy areas

Students will meet the course objectives through the following actions:

  • Attending live lectures 

  • Completing learning content pages, which includes

    • Watching videos

    • Reading text and studying charts and tables

    • Listening to audio

  • Posting to the discussion board

  • Completing eight exams

Course Requirements


  • Internet connection (DSL, LAN, or cable connection desirable)

  • Access to Canvas

  • Microphone

  • Read content, watch videos, listen to audio, and complete assignments

  • Microsoft Excel

Course Structure

The content will be delivered in Canvas with a variety of media components. Students will need to play video, audio, and download Excel. They will also need to access video conference links for live lectures.

Course Outline/Schedule

Module 1: Introduction to Strategic Sourcing and Supply Management

  • Introduction, Part 1

  • Introduction, Part 2

  • Introduction, Part 3

  • The State of Supply Chain Management

  • Article Discussion – Strategic Sourcing

  • Supply Chain Strategy and the Role of Supply Management

  • Article Discussion – The Right Supply Chain for Your Product

  • Read the article Strategic Sourcing: From Periphery to the Core.

  • Read the article, “What is the Right Supply Chain for Your Product?”

Module 2: The P2P Process, Purchasing Organization, and Commodity Strategy Development

  • The Procure-to-Pay Process

  • Purchasing Organization and Structure, Part 1

  • Purchasing Organization and Structure, Part 2

  • Commodity Strategy Development: Introduction

  • Commodity Strategy Development: Process

  • Commodity Strategy Development: Considerations

Module 3: Supplier Evaluation and Selection and the Analytic Hierarchy Process

  • Supplier Evaluation and Selection, Part 1

  • Supplier Evaluation and Selection, Part 2
  • The Analytic Hierarchy Process: Overview and Example, Part 1

  • The Analytic Hierarchy Process: Overview and Example, Part 2

  • The Analytic Hierarchy Process: Exercise and Extensions

  • Article Discussion: Assessing Supply Chain Risks With AHP

  • Case Study: Spin Master Toys

  • Download the XanEdu Course Pack

  • Download AHP Excel FileRead the article "Assessing Supply Chain Risks with AHP”

Module 4: Supplier Performance Management, Quality Management, and Supply Base Integration

  • Supplier Performance Management, Part 1

  • Supplier Performance Management, Part 2

  • Supplier Performance Management, Part 3

  • Case Study: Metalcraft Supplier Scorecard

  • Quality Management for Strategic Sourcing

  • Supply Base Integration and Development

Module 5: Global Sourcing and Outsourcing

  • Global Sourcing, Part 1

  • Global Sourcing, Part 2

  • Global Sourcing, Part 3

  • Outsourcing

  • Case Study: LEGO Group

Module 6: Electronic Procurement and Strategic Cost Management

  • Electronic Procurement, Part 1

  • Electronic Procurement, Part 2

  • Electronic Procurement – Reverse Auctions

  • Strategic Cost Management, Part 1

  • Strategic Cost Management, Part 2

  • Strategic Cost Management, Part 3

Module 7: Negotiations, Law, and Contract Management

  • Negotiations, Part 1

  • Negotiations, Part 2

  • Negotiations, Part 3

  • Purchasing Law and Contract Management, Part 1

  • Purchasing Law and Contract Management, Part 2

Module 8: Ethics and Green Procurement

  • Purchasing Ethics

  • Case Study: IKEA

  • Green Procurement

  • Future of Purchasing

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