Capstone project — Run the purchasing & supply chain of a small organization
- Goal: for a real or fictional company, carry out a complete diagnosis of its supply chain and an action plan — from the expressed need to risk-based steering.
- Material: the Purchasing & Supply Chain cheat-sheet below (reflexes, key formulas, watch points) to keep at hand.
- Method: one step per level. Frame the functions and stakes, structure the purchasing process, professionalize the supplier relationship, optimize stock, organize logistics, then steer by KPIs and risks.
⬇️ Download the Purchasing & Supply Chain cheat-sheet (TXT)
Step 0 · Level 0 — Frame it (L0)
Distinguish the three hats (purchasing/supply/supply chain) in the organization. Draw the chain end to end, spot the weakest link, and segment purchases (stake × risk) to know where to focus. Reason in TCO, not price alone.
Step 1 · Level 1 — Structure the purchasing process (L1)
Take a real purchase: formalize and challenge the need, write a simple statement of work, identify and qualify 3 candidates, run a compared consultation on a weighted grid, and lock the P2P cycle (PO → controlled receipt → matching).
Step 2 · Level 2 — Professionalize suppliers (L2)
Put in place scoring of your key suppliers on measured facts. Prepare a negotiation (objective, break point, BATNA, leverage). Screen your contracts against the key clauses and set up a performance review (SRM).
Step 3 · Level 3 — Optimize stock (L3)
Cost what your stock is worth, do the ABC, compute the reorder point and safety stock of your major items, measure rotation and service level, hunt down dormant items and build reliability (cycle counting, IRA).
Step 4 · Level 4 — Organize logistics (L4)
Audit and reorganize the space (zoning, addressing, slotting by rotation), optimize order picking, rationalize transport buying (consolidate, anticipate, insure) and build batch traceability. Handle delivery and returns if e-commerce.
Step 5 · Level 5 — Steer risks & performance (L5)
Build a KPI dashboard in pairs, assess the tooling need (process → data → tool), launch a continuous-improvement effort, embed CSR into the processes, and map risks to build a resilience plan.
Success criteria
- A clear framing: functions distinguished, chain mapped with its fragile link, purchases segmented by stake × risk, reasoning in total cost of ownership.
- A mastered purchasing process: challenged need, statement of work, compared consultation on a grid, locked P2P cycle (no purchase without a PO, no payment without matching).
- Steered suppliers (scoring on facts, negotiation prepared with a BATNA, key clauses checked, performance reviews) and optimized stock (ABC, reorder point, costed safety, rotation/service, reliability).
- Organized logistics (zoning/addressing/slotting, picking, transport, batch traceability) and installed steering (paired KPIs, continuous improvement, embedded CSR, mapped risks and a resilience plan).