Exam (elaborations)
CIPS L4M2 EXAM/199 ANSWERED QUESTIONS/A+ GRADED
- Course
- Institution
CIPS L4M2 EXAM/199 ANSWERED QUESTIONS/A+ GRADED
[Show more]
Seller
Follow
Victorious23
Reviews received
Content preview
CIPS L4M2 EXAM/199 ANSWEREDQUESTIONS/A+ GRADED
Re-buy - -It is not necessary to specify a new specification or to source the
market. Call-off or framework agreement. A preferred supplier is in place
-Modified Buy - -Review of existing contract requirements and making any
necessary amendments such as to build additional benefits, streamline the
business or to establish new KPIs/SLAs. Where some of the specification or
requirements have changed.
-New Buy - -A new purchase outlines requirements that have not been
specified before. There is a higher risk involved in procuring a new purchase,
demand/supplier/market analysis should be conducted, and new specific KPIs
should be included in the specification.
-Business Needs - -The mission of the organisation determines its
requirements and therefore what procurement needs to source.
-R - regulatory (any legal requirements)
A - availability (supply of goods/services when required, risk, financial and
capacity)
Q - quality (consistency, repeatability, and fit for purpose)
S - service requirements (flexibility, support, availability)
C - cost (target costs, total cost of ownership, continuous improvement)
I - innovation (improving customer experience) - -A model that can be used
to identify business needs.
-Kraljic Matrix - -A matrix that allows procurement to prioritise spend in line
with business needs.
-Leverage - Kraljic Matrix - -Business needs met by using purchasing
department buying power to gain the best price and terms e.g. competitive
tendering.
-Example of Leverage item (Kraljic Matrix) - -Company cars or mobile
phones.
-Strategic - Kraljic Matrix - -Business needs met by developing long term
relationships such as partnerships to ensure security of supply.
-Example of Strategic item (Kraljic Matrix) - -Capital assets such as
premises
, -Routine - Kraljic Matrix - -Business needs met by trying to buy these more
efficiently through blanket ordering, e-procurement and vendor managed
inventory leadership in procurement and supply.
-Example of Routine item (Kraljic Matrix) - -Stationary
-Bottleneck - Kraljic Matrix - -Business needs met by developing appropriate
contracts (such as call off contracts, framework agreements) in which the
buyer can ensure that stock levels and maintained and speed of re-ordering.
-Example of Bottleneck item (Kraljic Matrix) - -Spare parts or oil for
machines
-Cost and risk - Kraljic Matric - -Low cost / high risk - Bottleneck
High cost / high risk - Strategic
High cost / low risk - Leverage
Low cost / low risk - Routine
-Total cost of ownership - -Is how much it costs to own the product over its
lifetime until disposal.
-Whole life costing - -Is a technique used to arrive at the total cost of
ownership
-Planning, preparation and implementation - -Three stages of WLC
-WLC - planning - -Determines the budget for the asset being purchased,
helps improve the specification to reduce cost, and simulation or decision
support models can be used to assist.
-WLC - preparation - -Testing the various models for calculating WLC and is
necessary to choose the best model.
-WLC - implementation - -Implements the model to get the results. A review
and intervals for regular recalculation.
-Acquisition, operation and disposal - -There is a vital difference between
purchase price and total cost of ownership. This includes 3 categories.
-Cost based pricing - -Allows the supplier to cover its costs and make a
profit.
-Limits to cost based pricing - -Ignores competition and other influences on
pricing and are quite inflexible. They also don't give a supplier an incentive
to reduce or manage costs.
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 Victorious23. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now