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CIPS M4L8 (Procurement and Supply) CHAPTER 2 STUDY GUIDE.
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CIPS M4L8 (Procurement and Supply) CHAPTER 2 STUDY GUIDE.
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CIPS M4L8 (Procurement and Supply) CHAPTER2 STUDY GUIDE.
It is best practice for the procurement professional to accept the offer in
writing. However, it is possible to accept in any of the following ways
✔✔- A telephone call
- An email
- A letter
- A face-to-face conversation
- A handshake
It is important that the terms of the contract are
✔✔finalized before the contract is agreed. If this does not happen, a
procurement professional could find themselves in a 'battle of the forms'
situation
A battle of the forms happens when
✔✔a buying and a supplying organisation are negotiating contractual
terms and each organisations response is based on its own terms
On agreement, the contract becomes legally binding and the two parties
can start work on contract
✔✔mobilisation
Contract mobilisation
✔✔when a contract shifts from one supplier to another
,Effective contract mobilisation includes
✔✔- Clear communication
- Setting clear objectives
- Liasing with stakeholders
- Managing change
- Looking for opportunities
- Managing relationships
The buyer should ensure that there are clear objectives set which explain
what is required from the new supplier.
If the new supplier is a manufacturer, some tooling may need to be moved
from the current supplier to a different site. Objectives for this could
include
✔✔- Having machinery set up and in working order by a specific date
- Providing documentation to show the workforce has been trained on the
machinery
- Creating a batch of sample products for quality control
The buyer should ensure that there are clear objectives set which explain
what is required from the new supplier.
If the contract is a service contract, the objectives could include
✔✔- Ensuring the staff are familiar with the building and its facilities
- Checking stock of consumables and providing the buying organisation
with a list of inventory at the start
- Providing documentation to show the workforce has completed the
health and safety site training
,Kotter's Eight Steps for Leading Organizational Change
✔✔Step 1 - Create a sense of urgency
Step 2 - Build a guiding coalition
Step 3 - Form strategic vision and initiatives
Step 4 - Enlist volunteer army
Step 5 - Enable action by removing barriers
Step 6 - Generate short-term wins
Step 7 - Sustain acceleration
Step 8 - Institute change
There are four types of leadership that suppliers may require
✔✔- Delegating
- Supporting
- Coaching
- Directing
TUPE (Transfer of Undertakings (protection of employment) regulations are
designed to
✔✔protect employees from losing their jobs if a contract is moved from
one supplier to another
The following outlines the new employers position in a TUPE transfer
✔✔Control: Takes over controls of all the employees contracts
Obligations: Takes over all obligations set out in the employees contracts
Agreements: Takes over any collective agreement made on behalf of the
employees while in their previous employment
, Terms: Must give the same or better terms as the previous contract
Communication: Must communicate with employee representatives to keep
them informed of the situation
The implementation of new contracts includes four stages
✔✔Stage 1 - Transition
Stage 2 - Start-up
Stage 3 - Operations
Stage 4 - Management
To ensure the mobilisation, implementation and management of the
contract are successful, these four stages should be followed
✔✔1. A good transition from the current to the new supplier
2. Clear guidance and support at the start-up stage
3. Operational compliance and guidance
4. Contract and supplier management
Managing contracts is all about making sure that goods and services are
delivered as the correct time and place and to the specifications required,
whereas supplier management is about
✔✔forming and developing relationships with suppliers and their
organisations
Pareto rule
✔✔also known as the 80/20 rule, meaning that 80% of the effects come
from 20% of the cases
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