2.1 - Explain each stage of the CIPS Procurement Cycle Flashcards
What is referred to as the pre-contract award stage
All the elements in the procurement cycle that take place before the contract is awarded
What is referred to as the post-contract award stage
All the elements in the procurement cycle that take place after the contract has been awarded
What 4 pieces of information are needed to develop a specification
- Description of what is required
- Quantity of what is required
- Delivery time and place of what is required
- Quality of what is required
What 3 things should you evaluate when reviewing the market and the availability of goods
- The economic situation
- Currency fluctuations
- Supply and demand relate closely to price within the market
What 3 things should the strategy and plan outline
- Which type of suppliers to approach
- An evaluation of the competition
- Whether an ITT or an RFQ is more appropriate
Name 5 features of an ITT
- Document sent out to invite bids
- Formal
- Suppliers are often pre-evaluated
- Used when purchasing complex products or services
- Used when purchasing high-value products or services
Name 5 features of a RFQ
- Document sent out to invite quotations
- Informal
- Suppliers not usually pre-evaluated
- Used when purchasing standard, regularly used products or services
- Used when purchasing low-value products and services
Market engagement
A process to gain advance understanding of the market prices or trends
Name the 4 stages of the product life cycle
- Introduction
- Growth
- Maturity
- Decline
Name 5 things that should be included in an RFQ or and ITT
- Description and specification
- Quantity
- Delivery details
- Service Level Agreements
- Terms and conditions
Service Level Agreements
Document outlining the expected minimum level of service between a service provider and a client. It clarifies the scope of service, responsibilities of each party and how to escalate among other factors. A service level agreement is legally enforceable if it is referred to in a contract
Name 10 requests in generic PQQs
- Company history
- Financial activity
- Insurance
- Membership of professional bodies
- Quality accreditations
- Capabilities
- Health and safety
- CSR policy
- Code of ethics
- Conflict of interests (COI)
Conflict of interest (COI)
Where an individual is unable to remain impartial due to a personal, professional or public interest
What may RFIs refer to
Carters 10Cs
Name Carters 10 Cs
- Competency
- Capacity
- Commitment
- Control
- Cash
- Cost
- Consistency
- Culture
- Clean
- Communication
What is an RFI used for
To gather information before selecting which suppliers will be asked to bid
What is an RFQ used for
Formal invitation asking a supplier to submit a bid
Supplier relationship management
Holistic management of relationships formed between buyers and suppliers based on the criticality of the goods or services being procured
Name 4 pieces of criteria that the relationship between suppliers and buyers depend on
- Type of product/service supplied
- Length of contract
- Stage of contract
- The competitiveness of the marketplace
Supply chain management (SCM)
Management of the flow of goods, services and suppliers from raw materials to the consumption by the consumer, requiring a network of suppliers that link the supply chain together
Say the 4 ways the kraljic matrix can help manage supplier relationships
- Strategic supplier - managed closely through regular communication and performance reviews
- Bottleneck supplier - managed relatively closely but not as closely as a strategic supplier
- Routine supplier - Readily available and if one supplier is not able to deliver another can be found to replace it
- Leverage supplier - supplies high value items and so its worth a buyer taking their time to build a relationship
