CIPS L4M1 Scope and Influence of Procurement and Supply P1/4 QUESTIONS & CORRECT SOLUTIONS(GRADED A)
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Course
CIPS L4M1
Institution
CIPS L4M1
Procurement - ANSWER Procurement is a strategic function of the business, includes the elements such as : Added Value, Cost, Inventory, Logistics, Purchasing, Quality, Supply.
Purchasing - ANSWER Purchasing is the act of physically ordering and buying something. It can be can be tangible or inta...
CIPS L4M1 Scope and Influence of
Procurement and Supply P1/4
QUESTIONS & CORRECT
SOLUTIONS(GRADED A)
Procurement - ANSWER Procurement is a strategic function of the business, includes the elements such
as : Added Value, Cost, Inventory, Logistics, Purchasing, Quality, Supply.
Purchasing - ANSWER Purchasing is the act of physically ordering and buying something. It can be can be
tangible or intangible.
Supply - ANSWER Supply is the infrastructure which ensures that products or services get from supplier
to customer.
Procurement can be direct and indirect, tangible and intangible, stock or non stock. - ANSWER
Procurement can be direct and indirect, tangible and intangible, stock or non stock.
Procurement - ANSWER Procurement
Added Value
Cost
Supply
Logistics
Purchasing
Inventory
Quality
The Objectives Of Procurement - ANSWER Internal customer service: need to service internal & external
customers sourcing products to satisfy their input needs.
, Risk management: the org cannot function without inputs, : purchasing must ensure that risks or failure
of supply are minimized
Cost control & reduction in order to make a profit or to provide services effectively, an org needs to
control its costs services effectively
Relationship & reputation management: procurement is an important interface or touch -point between
the org & outside world point.
Purchasing & Supply - ANSWER What does the procurement function do?
Supply market monitoring
Supplier evaluation & selection
Processing procurement or stock replenishment requests Helping with the preparation of specs
Negotiation, buying & developing contracts
Expediting & contract management
Purchasing 5 rights - ANSWER Purchasing can be defined in various ways, depending on perspective.
The purchasing function of an org involves the acquisition of suppliers or inputs to the org's activities
In some orgs, there is a purchasing department which has responsibility for carrying out this function,
while in others it may be carried out by individuals & teams in other departments
The basic objective or purpose of purchasing is manage the 5 rights.
The "Right Quality": ...
The "Right Quantity": ...
The "Right Place": ...
The "Right Time": ...
The "Right Price":
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