LEARNER GUIDE

Faculty Management Sciences

Department Logistics & Supply Chain Management

Course Diploma in Logistics

Title Procurement Management

Compiled By Dr G Mothibi

Year 2023

NQF Level 6

Credits 15

TABLE OF CONTENTS

TABLE OF CONTENTS....................................................................................................i
1. WELCOME TO VUT....................................................................................................1
2. LECTURER’S TEACHING & LEARNING PHILOSOPHY.............................................1
2.1 TEACHING & LEARNING METHODOLOGY.........................................................2
3. CONTACT PERSONS.................................................................................................3
4. RATIONALE FOR THE MODULE................................................................................3
4.1 GRADUATES ATTRIBUTES..................................................................................3
5.VIRTUAL CLASS..........................................................................................................3
6. STUDY MATERIAL......................................................................................................4
6.1 HOW TO STUDY...................................................................................................4
6.2 ASSESSMENT PLAN............................................................................................4
6.2.1 Consultation Hours..........................................................................................4
6.2.2 Class Attendance............................................................................................5
6.2.3 Tests and Assignments...................................................................................5
6.2.4 Plagiarism........................................................................................................6
6.2.5 Submission of Assignments.............................................................................6
6.3 KEY ICONS............................................................................................................7
6.4 ACTION VERBS..................................................................................................viii
6.5 PREREQUISITES...................................................................................................ii
6.6 LEARNING MATERIAL..........................................................................................ii
7. THE PURCHASING 2.1 (BBICX2D) MODULE WILL RUN THROUGH SEMESTER 1 OF 2022 4
8. THE PURCHASING 2.2 (BBICY2D) MODULE WILL RUN THROUGH SEMESTER 2 OF 2022 9
APPENDIX..................................................................................................................... 13
DIX 1: ASSIGNMENT SEMESTER 1&2.........................................................................13
MARKING GUIDE FOR ASSIGNMENT.................................................................14
1. WELCOME TO VUT
The Department of Logistics & Supply Chain Management welcomes you as a learner to
the Faculty of Management Sciences at the Vaal University of Technology.
You came to the right place. We will help you awaken your potential and to realise that
everything you need to succeed is within you and we will be with you every step of the
way. This learning guide is designed to transform and inspire your mind, heart and soul,
helping you to develop knowledge, skills, positive values, attitudes and behaviours
required for success.

2. LECTURER’S TEACHING & LEARNING PHILOSOPHY

My values, beliefs, and aspirations as a lecturer are:
 Learner centeredness, encourage mastery, competency, transformational learning,
lifelong learning, general transference of skills, & critical thinking.
 Developing course materials, lesson plans, activities, assignments, and assessment
instruments that are user friendly, and.
 Encourages self-reflection and promotes independent and critical thinking,
professional writing, problem solving in class.

I will be using various methodologies like case studies, group work, simulations,
interactive or maximum participation of learners in class. I will endeavor to stimulate new
ideas or strategies to encourage leaners to start own business and volunteer to work in
established companies to gain experience and I will always portray a positive attitude
towards advising and mentoring students, mothering and nurturing them to unleash their
potential in a conducive environment; .and have an open-door policy for consultation.
Learner assessment with be focused on ensuring student growth and in various ways
grading on a percentage scale (criterion referenced) or on a curve (norm referenced).
Various types of assessments will be used (i.e., traditional tests, projects, portfolios,
presentations, case studies) for learners to put theory into practice so they can be able
to apply that in the workplace. In terms of my professional growth, I will ensure
continuous learning (self-development) to be up to date with current changes in terms of
4IR and use online teaching with VUTELA. On a monthly basis student will complete
evaluation forms that will assist me to improve my teaching. Students’ final results and
application of what they learned will indicate to me that I have taught them effectively.
Finally, I endeavor to create lifelong learners.
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2.1 TEACHING & LEARNING METHODOLOGY
At this level we use an interactive teaching and learning methodology that encourages
self-reflection and promotes independent and critical thinking. Key to this approach is an
understanding of adult learning principles, which recognise the maturity and experience
of participants, and the way that adult students need to learn.

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3. CONTACT PERSONS

Title and Surname Office Number Telephone number and e-

mail address
ACT HOD: Dr M Matsheke E006/1 016 950 9520
matshekem@vut.ac.za
Secretary: Ms. Elizabeth Motaung E307 016 950 6883:
elizabethl@vut.ac.za
Lecturer: Dr Gloria Mothibi N207 016 950 7636
gloriam1@vut.ac.za

4. RATIONALE FOR THE MODULE

On completion of this module, you should have a basic knowledge and understanding of
purchasing, its evolution, perspectives, functions, strategies, objectives, policies and
procedures. You should also have a detailed knowledge and understanding of a wide
range of business disciplines. This module relates closely to all the other modules in the
programme since it ought to improve your ability to understand the learning contents and
formulate your assignments and examination answers. Failure to acquire these skills
can hamper your success towards becoming a competent supply management
practitioner.

4.1 GRADUATES ATTRIBUTES

5. HYBRID CLASSES

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6. STUDY MATERIAL
6.1 HOW TO STUDY
The study guide has been arranged to take you through the subject in logical stages.
Sections are then arranged in sequence. Facilitation of cross-linkages will include:

Online Activities

Online Group
Discussion

Case Studies

6.2 ASSESSMENT PLAN

Assessment takes place on a continuous basis by means of a variety of methods and

may include the following:

Formative assessment Group assignment

Test 2 MCQ test 3

The above-mentioned assessment will determine the year mark. The final examination
will consist of a three-hour examination paper. To gain access to this examination a year
mark of at least 50% is expected. A sub-minimum of 50% is required in the final
examination. Assessment methods and criteria should be aligned with the outcomes.

The final mark will be determined as follows:

Year Mark Exam mark Total Pass mark for this module
50% 50% 100& 50%

6.2.1 Consultation Hours

Consultation hours will be announced in class and will as a rule be posted on the door of
the lecturer’s office. We urge each one of you to take advantage of these times when

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you can consult your lecturer on a number of issues relating to your work. Should you
need to see the lecturer at any time outside the consultation times you will need to make
an appointment with the lecturer concerned.

6.2.2 Class Attendance

The rules of the university determine that each student must attend at least 70% of her
or his classes. If you attend less than 70% of your classes, the university reserves the
right to bar you from writing the examination, despite the fact that your year-mark may
make you eligible for the examination.

The department feels that classes will definitely help students to better their proficiency
in Logistics Management. Therefore, this rule will be enforced. A roll call list will be
circulated during lecture periods, and you will be expected to sign the list.

6.2.3 Tests and Assignments

The dates of the class tests that will be written will be arranged as follows with the
students very early in the semester.

1ST SEMESTER 2023

TEST TIME DATE VENUE
1 TBA 8 March 2023 TBA
2 TBA 06 April 2023 TBA
3 TBA MCQ 16 May 2023 TBA

2ND SEMESTER 2023

TEST TIME DATE VENUE
1 TBA 22 August 2023 TBA ONLINE
2 TBA 20 September 2023 TBA ONLINE
ASSIGNMENT TBA MCQ 24 October 2023 TBA ONLINE

The only accepted reasons for absence from a scheduled class test are (1) a copy of a
medical certificate, indicating the reason for your absence and the dates you were
excused or (2) a copy of a death certificate or a copy of a funeral notice indicating that
you attended the funeral of a close relative or friend. If you are absent without excuse
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from a scheduled class test, you get 0%. Please take note there is no such thing as a
second chance test! Hand in this documentation within 3 days after the date that you
were absent.

Date for delivering projects or handing in assignments will also be determined very early
in the semester. Once we have agreed upon a date for handling in of an assignment, the
date is fixed and cannot be changed. Again, it is the responsibility of the student to
arrange with the lecturer if something unexpected comes up that hinders the handing in
of the assignment.

Students should hand in assignments during their normal class periods decided upon for
the handling in of assignments. VERY IMPORTANT No assignments may be handed in
the corridors or during the periods of other students or at the department’s secretaries.
Our secretaries are instructed not to accept any assignments by students. Assignments
need to be marked off the class lists, to ensure that they were handed in properly.
Therefore, an assignment handed in at the secretary is not treated as an assignment
handed in – it was not marked off the class lists. The Harvard referencing technique
must be used in all assignments.

6.2.4 Plagiarism
A strict policy of zero tolerance against plagiarism will be followed. In all cases,
candidates should note that they will be heavily penalised for using a company that
already exists and for copying (plagiarising) information from the Internet or other
sources without applying their own thoughts to their presentations and without
acknowledging the original sources. Higher scores will be awarded to candidates who
write their own thoughts using their own words.

6.2.5 Submission of Assignments

All assignments will be submitted via VUT Blackboard/VUTELA

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6.3 KEY ICONS

Additional Study Time Group Caution Digital Zoom Session

Articles
Reading Discussion Team meeting

Test Your Introduction Key points Case Study Summary Video

Presentation
Knowledge Clip

Remote teaching Digital Formative Learner & Lecturer Learner

Assessment

These icons to be understood

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 6.4 ACTION VERBS

Discuss Comment on something in your own words. Often requires debating two
viewpoints or two different possibilities. [Example: Distinguish between a
positivistic and hermeneutic view of science.]
Essay An extensive description of a concept is required. [Example: Write an
essay about the value of philosophy for the nursing researcher.
Example A practical illustration of a concept is required. [Example: Give an
example of a descriptive study.]
Explain/clarify Clarify or give reasons for something, usually in your own words. You
must prove that you understand the contents. It may be useful to use
examples or illustrations. [Example: Briefly explain the following research
methods: The experiment correlation studies.]
Illustrate Draw a diagram or sketch the representation of a phenomenon or idea.
[Example: Explain the menstruation cycle. Write a short essay and
illustrate the cycle.]
Motivate You should give an explanation of the reasons for your statements or
views. You should try to convince the reader of you view. [Example:
Write an essay about your own philosophical viewpoint on health.
Motivate your answer.]
Summarise Give a structured overview of the key (most important) aspects of a topic.
This must always be done in your own words. [Example: Give a summary
of the core characteristics of an explanatory study].
Compare/ Point out the similarities and the differences between objectives, ideas or
Contrast points of view. When you compare two or more objectives, you should do
so systematically – completing one aspect at a time. It is always better to
do this in your own words. [Example: Compare the Christian philosophy
with the American philosophy.]
Debate Logically formulate an argument by discussing opposing viewpoints, such
as similarities and dissimilarities; pros and cons; advantages and
disadvantages on a given topic. Follow a question attitude and hold a
formal argument. [Example: Debate the acceptability of abortion as a

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 means of birth control in South Africa.]
Criticize This means that you should indicate whether you agree or disagree with a
certain statement or viewpoint. You should describe what you
agree/disagree with and give reasons for your view. [Example: Write
critical comments about a Christian world view for Africa.]
Evaluate This means that you should analyse a theory, article, prescribed book,
etc. to determine its worth or value. You should constantly indicate
whether you agree or disagree with statements made and motivate your
point of view. [Example: Evaluate the effectiveness of self-regulated
learning.]
Draw a mind Outline the main concepts pertaining to the study material by drawing a
map/diagram/ diagram and completing the concepts in telegram style. Also indicate the
Figure relationships between the different concepts. [Example: Draw a mind
map of self-regulated learning.]

6. 5 PREREQUISITES

For admission to this module, you must have successfully passed the Procurement 1.1
and Procurement 1.2 modules.

6.6 LEARNING MATERIAL

The content of this learner guide is the primary source of your learning material.

Additional Learning Material

Apart from the learner guide it is of utmost importance that you gain access to the
following sources that were reserved in the library for your convenience:

Prescribed Learning Material:

1. Lysons, K. & Farrington, B. 2016. Procurement and Supply Chain Management.
9th Ed. England: Pearson Education.

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 SEMESTER 1
PROCUREMENT MANAGEMENT 2.1
(BBPUX2A)

MODULE PLAN

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7. THE PURCHASING 2.1 (BBICX2D) MODULE WILL RUN THROUGH SEMESTER 1
OF 2022

MIND MAP: Outline the main concepts pertaining to the study material by drawing a
diagram and completing the concepts in telegram style. Also indicate the relationships
between the different concepts. [Example: Draw a mind map of self-regulated learning.]

C
R
U
O F&
SIN
G
D
H
A
M
T
W
L
P
E
Y

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 UNIT 1
CHAPTER 1 SCOPE AND
INFLUENCE OF
PROCUREMENT

LEARNING OUTCOMES

THE LEARNER WILL BE ABLE TO:

1.1 Understand How to define procurement
1.2 Explain the Strategic roles of procurement
1.3 Describe the Procurement as organizational buying
1.4 Outline the evolution of purchasing through to procurement
1.5 Discuss Procurement and change
1.6 Explain World-class procurement

UNIT 2: CHAPTER
4: ORGANISATIONAL
AND SUPPLY CHAIN
STRUCTURES

LEARNING OUTCOMES

THE LEARNER WILL BE ABLE TO:

4.9 Describe Centralised procurement
4.10 Discuss Decentralised procurement
4.11 Explain Cross-functional procurement

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 UNIT 3-
PROCUMENT
CHAPTER 5: POLICIES
PROCEDURES AND
SUPPORT TOOLS

LEARNING OUTCOMES

THE LEARNER WILL BE ABLE TO:

5.3 Create Procurement procedures
5.4 Apply E commerce, e business, E SCM, e-procurement
5.5 Describe Evolution of e procurement models
5.11 Understanding e payment
5.13 Evaluate procurement manuals
5.14 Analise Supplier manuals

UNIT 4-
CHAPTER 9 MATCHING
SUPPLY WITH
DEMAND

LEARNING OUTCOMES

THE LEARNER WILL BE ABLE TO:

9.1 Understand Inventory, logistics and supply chain management
9.2 Explain Reasons for keeping inventory
9.3 Describe Inventory classifications
9.4 Outline Scope and aims of inventory management
9.5 Evaluate Some tools of inventory management
9.15 Apply Just-in-time (JIT)
9.16 Discuss Materials and requirements planning (MRP))
9.21 Understand Vendor-managed inventory (VMI)
9.22 differentiate Procurement and inventory

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 UNIT 5 :
SOURCING, SUPPLIER
CHAPTER 10: : SELECTION AND
PERFORMANCE
MANAGEMENT

LEARNING OUTCOMES

THE LEARNER WILL BE ABLE TO:

10.1 Define What is sourcing?
10.2 Discuss The strategic sourcing process
10.3 Outline Sourcing information
10.6 Define E-sourcing
10.7 Indicate how to Locate suppliers
10.13 Describe Outsourcing
10.14 Understanding Outsourcing manufacturing
10.15 Outline Outsourcing services
10.16 Explain Drivers of outsourcing

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 SEMESTER 2
PROCUREMENT MANAGEMENT 2.2
(BBPUY2A)

MODULE PLAN

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8. THE PURCHASING 2.2 (BBICY2D) MODULE WILL RUN THROUGH SEMESTER 2
OF 2022

MIND MAP: Outline the main concepts pertaining to the study material by drawing a
diagram and completing the concepts in telegram style. Also indicate the relationships
between the different concepts. [Example: Draw a mind map of self-regulated learning.]

P
R
M
E
U
C
O
LD
W
A
H
N ,-ro
SIT
FB
G
Y cu
tem
n

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 UNIT 6 :
SOURCING, SUPPLIER
CHAPTER 10: SELECTION AND
PERFORMANCE
MANAGEMENT

LEARNING OUTCOMES

THE LEARNER WILL BE ABLE TO:

10.17 Discuss the Types of outsourcing
10.18 Understand Benefits of outsourcing
10.19 Explain Problems of outsourcing
10.20 Discuss how to Handle an outsourcing project
10.21 Outline Sub-contracting
10.22 Define Partnering
10.29 Describe Sourcing decisions
10.30 Understand Factors in deciding where to buy

UNIT 7:
Procurement PRICE
CHAPTER 11: MANAGEMENT AND
LONG-TERM COST-IN-
USE

LEARNING OUTCOMES

THE LEARNER WILL BE ABLE TO:

11.1 Understand What is price?
11.2 Explain Strategic pricing – an introduction
11.3 Outline The buyer’s role in managing purchase prices
11.4 Discuss Supplier pricing decisions
11.5 Describe The supplier’s choice of pricing strategy

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 UNIT 8:
CHAPTER 13 : GLOBAL
SOURCING

LEARNING OUTCOMES

THE LEARNER WILL BE ABLE TO:

13.1 Understand the Terminology
13.2 Compare Motives for buying offshore
13.3 Identify Sources of information for offshore suppliers
13.5 Outline Incoterms
13.7 Explain Custom and excise
13.11 Discuss Counter trade

UNIT 9 :
CHAPTER 16: CATEGORY AND
COMMODITY
PROCUREMENT

LEARNING OUTCOMES

THE LEARNER WILL BE ABLE TO:

16.1 Define categories
16.4 Understand Category management risk profiling
16.7 Explain Capital investment procurement
16.8 Describe Production materials
16.9 Outline Raw materials
16.11 Discuss Methods of commodity dealing

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 UNIT 10:
WOLD CLASS
CHAPTER 17 PROCUREMENT TO
ENHANCE BUSINESS
PERFORMANCE

LEARNING OUTCOMES

THE LEARNER WILL BE ABLE TO:

17.16 Understand Environmental aspects of procurement

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APPENDIX

ASSIGNMENT SEMESTER 1

FACULTY OF MANAGEMENT SCIENCES

DEPARTMENT OF LOGISTICS

PROCUREMENT MANAGEMENT CASS

SEMESTER 1 Group Assignment

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 MARKING GUIDE FOR ASSIGNMENT

Criteria Outstanding Good Adequate Weak Unacceptable

5 4 3 2 1
EVIDENCE OF CONTROLLING PURPOSE – Central idea
or argument clear

ENGAGEMENT WITH THE TEXT-

Cleat that the student read and understood the source
texts that inform the assignment/project

USE OF SOURCE MATERIAL –

Source materials are introduced, contextualized, and made

relevant to the purpose of the assignment/report

ORGANISATION-

Establishes clear pattern of development, so the

assignment/report feels organized and orderly from
beginning to end

SUPPORT –

Develops specific ideas in depth with strong and

appropriate supporting examples, data, experiences, etc.

STYLE –

Words are well chosen and phrasing is apt and precise

COMMAND OF SENTENCE-LEVEL CONVENTIONS –

Few, if any, errors of punctuation, spelling and grammar

EFFECTIVE CONCLUSION –

that does more than simply sum up the assignment

VISUALS –
student includes graphs/charts/illustrations that add
content and clarity to the assignment/report

REFERENCES/PARENTHETICAL

CITATIONS in Harvard style of referencing

GRAND TOTAL/

50 Assignment mark

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APPENDIX

ASSIGNMENT SEMESTER 2

FACULTY OF MANAGEMENT SCIENCES

DEPARTMENT OF LOGISTICS

PROCUREMENT MANAGEMENT CASS

SEMESTER 2 Group assignment

WILL BE
UPLOADED ON VUTELA

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