The theory of procurement is widely varied, even as it is mostly made in a time in which the theory was not always linked to procurement. This section gives you an insight in the theories from Monczka (the Michigan State University or MSU-model), Kraljic (portfolio management) and several models from Porter.
As well, we will discuss the theories and complications of the Total Cost of Ownership (TCO) and make-or-buy decisions.
The theoretical framework helps you to understand the landscape and helps to make sense of the specific world you are into. It also broadens the view you have of the world (at least, that’s my hope) and helps you to ask the right questions: internal and external.