3.2 - Analyse the impact of organisational policies and procedures on procurement & supply

Question 1

What 4 things can policies be based on?

Answer 1

1. organisational objectives
2. Legislation
3. Regulation
4. Standards

Question 2

Name 5 aspects of procedure for procurement and supply

Answer 2

1. Responsibilities for procurement
2. Regulations relating to competition
3. Levels of delegated authority
4. Responsibilities for the stages of the sourcing process
5. Invoice clearance and payment

Question 3

Name 5 reasons why forwarding requisitions to people without authority could cause problems or delays for the customer

Answer 3

1. there may be a delay in goods or services being ordered/received
2. Goods or services may not be ordered
3. Incorrect goods or services may be ordered
4. Unevaluated or unapproved suppliers may be contracted with the possible loss of reputation
5. There could be financial implications such as agreeing too high a cost

Question 4

Name 4 competition policies

Answer 4

1. Intellectual property
2. Cartels
3. Merger controls
4. Monopolies

Question 5

Give 4 examples of regulators

Answer 5

1. Ofcom - communications regulators
2. Ofgem - gas and electricity markets regulator
3. Ofwat - water and wastewater services regulator
4. ORR - rail and road regulator

Question 6

Name 5 items that should be checked before clearing an invoice

Answer 6

1. Quantity received
2. Price involved
3. Tax rate applied
4. Transport costs
5. Payment terms

Question 7

Name 8 things that procurement policies include

Answer 7

1. Competition
2. Ethics
3. KPIs
4. Quality
5. Supplier appraisal
6. Supplier evaluation
7. Sustainability
8. Transparency

Question 8

Name 11 things a procurement strategy may be based on

Answer 8

1. Achieving cost reductions
2. Adding value within the supply chain
3. Encouraging local supply
4. Environmental issues
5. Ethical improvements
6. Fair trade
7. Just in time
8. Improved quality
9. Reducing the amount of suppliers
10. Achieve sustainable competitive advantage
11. Innovation

Question 9

Name 6 influences on procurement strategy

Answer 9

1. Operations
2. Forecasts
3. Competition
4. Organisational objectives
5. Economy
6. Budgets

Question 10

Step change

Answer 10

A radical and fast change, often a reaction to unexpected factors

Question 11

The Lewin Change Model

Answer 11

1. Unfreeze
2. Change
3. Refreeze

Question 12

Name the 2 types of change

Answer 12

1. Step change
2. Incremental change

Question 13

Name 5 functions that are involved in the sourcing process

Answer 13

1. Procurement
2. Sales
3. Finance
4. Human resources
5. Operations
6. Research and design

Question 14

Name 4 ways involving other functions in the sourcing process can reduce the risk

Answer 14

1. The sales department can advise on annual quantities
2. The finance department may advise on the allocated budget which can help to establish the costing of each unit
3. R&D functions may assist by creating drawings, suggesting materials to be used or advising what products are not suitable
4. The operations department, which physically handles the product, can advise what specification would most suit their needs and what style of packaging would fit best within the stores department

Question 15

What do economies of scale do

Answer 15

Reduce the cost per item