CIPS L4M1 EXAM SOLVED 100% CORRECT!!
Stakeholders
In any activity an organization undertakes, whether strategic, operational or tactical, the activity can only be successful with the input, commitment and support of its key stakeholders. Gaining and maintaining the support and commitment of sta...
In any activity an organization undertakes, whether strategic, operational or tactical, the activity can only
be successful with the input, commitment and support of its key stakeholders. Gaining and maintaining
the support and commitment of stakeholders requires a continuous process of engaging the right
stakeholders at the right time and understanding and managing their expectations.
Global Supply Chains
a dynamic worldwide network when a company purchases or uses goods or services from overseas. It
involves people, information, processes and resources involved in the production, handling and
distribution of materials and finished products or providing a service to the customer.
Whole Life Costing
takes into account the total cost of a product or service over its lifetime, from concept through to
disposal including purchase, hire or lease, maintenance, operation, utilities, training and disposal. It is
important for procurement to take all these elements into consideration when making decisions and
comparing the costs of buying, renting or leasing equipment particularly. In most cases the purchase
costs are only a small proportion of the cost of operating it.
Stakeholder mapping
A systematic way to identify the expectations, needs, importance, and relative power of various
stakeholders.
Value Generation
Creating value from the supply base can be achieved by not only focusing on price but also increasing
operational performance, driving efficiencies, working collaboratively or developing continuous
improvement activities.
Procurement Cycle
the cyclical process of key steps when procuring goods or services.
Steps of the Procurement Cycle
1. Understand Need and develop High level Spec.
2. Market/Commodity and options (inc make or buy assessment).
3. Develop Strategy/plan
4. Pre-procurement market test and market engagement.
5. Develop documentation, PPQ/detailed spec/combine with 1.
6. Supplier selection to participate in ITT/RFQ/negotiation.
,7. Issue ITT/RFQ.
8. Bid/Tender Evaluation and validation.
9. Contract award and implementation.
10. Warehouse logistics and receipt.
11. Contract performance review and continuous improvement.
12. SRM and SC management and development.
13. Asset management/end of life and lessons learnt.
Contract Management
delivers a great amount of data and intelligence that support the smooth running of a business.
Historically, the purpose of a contract as a legal document was to protect the parties from negative
consequences of its breaches. Today, when companies are facing increasing pressures to reduce costs
and improve financial and operational performance, forming and managing new trading relationships is
critical for success. How well an organisation manages its relationships with partners defines the two
core elements of bottom line performance: increasing revenues and decreasing costs. ... plays an
important role by ensuring the smooth running of operations, protecting the organisation from risks and
shaping the buyer-supplier relationships (Aberdeen Group, 2007; Saxena, 2008).
Application of Technology
E-Procurement systems can be utilised in the Request for Information (RFI), Request for Proposal (RFP)
and Request for Quotation (RFQ) process as well as for e-Tendering, e-Auctioning, vendor management,
catalogue management, purchase ordering, order status, shipment status, e-invoicing, e-payment and
contract management.
eSourcing / eProcurement systems P2P
relates to the electronic procurement of products or services via the internet. Other systems such as
electronic data interchange (EDI) and enterprise resource planning (ERP) are also forms of...
International Labour Organisation
The only tripartite U.N. agency, since 1919 it brings together governments, employers and workers of
187 member States , to set labour standards, develop policies and devise programmes promoting decent
work for all women and men.
Supplier evaluation & appraisal
is conducted at the tender stage and can be in the form of either a questionnaire, interview or site visit
to assess the supplier's capability in terms of capacity, financial stability, quality standards, performance
and organisational structure and processes in place. Both existing and potential suppliers are scored on
suitability and either approved or rejected to be added onto the approved supplier list (ASL). This helps
to improve existing suppliers performance and also can periodically ensure you have the right sized and
fit of suppliers on you approved list.
Supplier Selection
is an important organisational process: purchased products represent between 40% and 60% of end
product sales and have a direct impact on the cost and quality of products. In addition, even a small cost
, gained by selecting a good supplier can have great impact on benefits (Aiter et al., 2011).
It relies on multiple assessment techniques which include both quantitative and qualitative methods
(Choi and Hartley, 1996). At the same time, many organisations continue to select suppliers based on
experience and intuition - selective and unreliable approaches (Kontio, 1996). The most common
evaluation criteria used to select suppliers are: financial health, expertise, operational performance
metrics, business processes and practices, enabling behaviours or cultural factors and risk factors (Aiter
et al., 2011).
eSourcing
automates contract lifecycle management (CIPS: Electronic Commerce and e-Business). Today, eSourcing
and eProcurement form the core of the e-Purchasing cycle (BuyIT, 2004). eProcurement is the process
through which employees of the purchasing organisations access supplier online catalogues, select
items, conduct the purchasing process and communicate directly with suppliers (Leenders et al., 2002).
ESourcing, on the other hand, is a broader concept as it incorporates the key elements of the buying
process, such as knowledge, specification, requests for quotation/tender/e-auction,
evaluation/negotiation and contract (CIPS: Electronic commerce and e-Business).
The Purchase to Pay (P2P) Process
underpins many sub-processes from sourcing and negotiating terms, ordering, receipting and payment,
through to contract and relationship management (Lysons and Farrington)
supply chain governance
the system of directing the behaviors and decisions of procurement within an organization via legislative,
executive and judicial processes. Procurement also needs to establish effective governance of the supply
chains they put in place.
Centralized Procurement
implies that purchasing decisions are made either by company headquarters or some regional or
divisional level
Decentralized Procurement
an organisation's activities are spread over a number of plants or locations.
Procurement Policy Development
developed in order to establish the rules of how procurement should be conducted specific to the
organisation.
Procurement Strategy Development
developed in order to establish the direction of how procurement should be organised in order to
implement the procurement policy.
Global Standard for Procurement and Supply
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 ACADEMICAIDSTORE. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
