Exam (elaborations)
L4M1 Chapter 2_ Key steps when procuring goods or services WITH COMPLETE ANSWERS
- Course
- Institution
L4M1 Chapter 2_ Key steps when procuring goods or services WITH COMPLETE ANSWERS
[Show more]
Seller
Follow
Content preview
10/2/24, 7:15 AMEUNICE
L4M1 Chapter 2: Key steps when procuring goods or
servicesWITH 100% SURE ANSWERS
Terms in this set (50)
What added value do structured Consistent best practice, less scope for laws and regs deviance, reduced opp for
procurement processes provide? duplicated effort, faster procurement
Coordination of effort and collaboration between parties; process and outcomes
Advantages of formal, systematic approach consistency; prevents conflict (reference point); mandating most efficient approach;
to structuring processes and procedures (8) good governance and managerial control; compliance with standards, laws ands regs;
documentation / sharing good practice.
1. Understand need, high level spec 2. Market / commodity options, make or buy 3.
CIPS Procurement Cycle (Sourcing / Pre- Strategy 4. Pre-proc, market test and engagement 5. Develop documentation 6.
contract) stages (9) Supplier selection to participate in ITT / RFQ 7. Issue ITT / RFQ 8. Evaluation and
validation 9. Contract award and implementation
STAGE 1 - Purpose and value of specification Encourage accurate bids; communicate expectations; fair bid evaluation; supplier
(5) performance measurement; generate competition
STAGE 2 - Supplier Appraisal, evaluation or Formal, systematic approach to collecting information and identifying capable
pre-qualification suppliers.
Supplier databases; catalogues (e-catalogues) and websites; trade/industry magazines
STAGE 2 - Possible sources of information
and procurement journals; Trade fairs and conferences; Procurement professional
about potential suppliers (5)
networking
Internal competence availability and capacity low = buy, if internal competence
STAGE 2 - Make (do) or Buy decision
availability and capacity low = buy
Value (extracting resources otherwise inactive); potential to reduce lead time; control
STAGE 2 - Key reasons for an organisation
(quality and production); confidentiality (production); Supply risk (unreliable suppliers
making a product or performing a service (5)
for essential items).
STAGE 2 - Why is the procurement function Supply market familiarity, supplier evaluation and selection, price negotiation, service
in a good position to add value through quality and spec, contract and relationship management.
assessing Make or Buy? (5)
Bidders submit form tenders legally capable of being accepted, strict instructions for
STAGE 3 - Formal bid, Invitation to Tender
compliant tenders (more complex goods/services)
1/3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller mbitheeunice2015. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77764 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now