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L4M4 - Ethical and Responsible Sourcing > Chapter 2.2 - Identify they key processes used for obtaining quotations and tenders > Flashcards

Chapter 2.2 - Identify they key processes used for obtaining quotations and tenders Flashcards

1
Q

What is the aim of RFQ & ITT

A

To establish which supplier can offer the goods and services for the best value for money

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2
Q

Name 4 aspects of RFQ

A
  1. Less formal
  2. Generally used for less complex requirements
  3. Less detailed than an ITT
  4. Low-to-medium value contracts
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3
Q

Name 4 aspects of an ITT

A
  1. More formal
  2. Generally used for more complex requirements
  3. More detailed than an RFQ
  4. Medium-to-high value contracts
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4
Q

Name 4 factors that determine the way organisations advertise their requirements

A
  1. Value of contract
  2. Strategic importance of contract
  3. Urgency of contract
  4. Resources available
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5
Q

Name 5 locations where advertisements for ITTs are usually placed

A
  1. Professional magazines
  2. Business journals
  3. Newspapers
  4. Supplier websites
  5. Specialist tender portals
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6
Q

How do the public sector usually advertise?

A

A centralised, government-sponsored procurement portal

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7
Q

Name 6 pieces of information an ITT advertisement should include

A
  1. Awarding body/company
  2. Overview of awarding company/body
  3. Project description
  4. Experience/qualifications/accreditations
  5. Deadline
  6. Contact
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8
Q

RFI (request for information)

A

A document used to gather information about suppliers and their capabilities prior to a formal procurement process

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9
Q

Name the 3 steps of the RFI process

A
  1. Buyer - Procurement seeks information from potential suppliers with the objective of creating a list of capable suppliers
  2. Supplier - they submit response in the required format answering the questions and providing relevant information to highlight its suitability
  3. Buyer - procurement receives the RFI response and evaluates the information to pre-qualify or reject the supplier
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10
Q

Name 5 pieces of information RFIs gather

A
  1. Financial position
  2. Capabilities
  3. Capacity
  4. Mission and vision
  5. Ethical and sustainability practises
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11
Q

Name 7 pieces of data RFIs gather

A
  1. Number of capable suppliers
  2. Number of suppliers with capacity
  3. Amount of supplier competition
  4. Amount of product/service competition
  5. Acceptable lead time
  6. Any market trends
  7. Any expected changes in the marketplace
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12
Q

Five rights

A

The original ‘five rights’ of procurement are traditionally: the right quantity, the right quality, at the right time, from the right place at the right price

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13
Q

What do RFIs allow procurement to do

A

Create a suitable strategy for sourcing and begin to plan for negotiation

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14
Q

Name 8 pieces of information RFQs should include

A
  1. Specifications
  2. Technical drawings
  3. Samples
  4. Quantities
  5. Delivery requirements
  6. Length of contract
  7. Terms and conditions
  8. Details of how the supplier’s quotation will be evaluated
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15
Q

What does RFQ attempt to assess

A

Which supplier can achieve the five rights of procurement for the buyers defined need

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16
Q

Name the 4 purposes of an RFQ

A
  1. To align corporate strategy
  2. To ensure a fair and transparent process
  3. To allow opportunities for many suppliers to bid
  4. To enable procurement professionals to evaluate the market and obtain the best value for money
17
Q

name 5 factors of RFIs

A
  1. Objective is to learn about suppliers
  2. Sent to large and varied supply base
  3. Helps to develop strategies
  4. Relatively informal process
  5. Generic
18
Q

Name 5 factors of RFQs

A
  1. Objective is to obtain costs for comparison
  2. Can be sent to pre-qualified supplier base
  3. Helps to achieve best value
  4. Structured formal process
  5. Specific
19
Q

Name the 12 steps of the tender process

A
  1. Develop tender and evaluation criteria
  2. Send out RFI to all potential suppliers
  3. Create a pre-qualified supplier list
  4. Issue an invitation to tender to pre-qualified suppliers
  5. Hold a tender briefing cross-functional team meetings
  6. Receive bids from supplier and evaluate
  7. Create a supplier shortlist from the bids
  8. Carry out further due dilligence
  9. Select the best value bid
  10. Offer the contract
  11. Supplier accepts the contract
  12. Award the contract
20
Q

When is the restricted tender approach used?

A

Where the interest is expected to be higher and so the buyer meeds a method of de-selecting unsuitable bidders and creating a shortlist of acceptable organisations

21
Q

Name 5 departments that you may need input from during a tender process

A
  1. Finance
  2. Engineering
  3. Sales
  4. Logistics
  5. Operations
22
Q

Cross-functional team

A

Teams that involve individuals from different departments who work together towards a common goal. This could be a group of people working on a defined project who come from different functions or departments of the company. It can also include members who are from outside the company, such as suppliers

23
Q

Can crossfunctional teams include external stakeholders?

A

Yes

24
Q

General data protection regulation (GDPR)

A

European regulation which sets out how personal data must be managed, applying to any data relating to any person in the EU - and the UK following Brexit - whether they are a European citizen or not, and to all organisations doing business in Eurpoe, regardless of the nationality of the business ownership

25
Q

Conflict of interest (COI)

A

Where an individual is unable to remain impartial due to a personal, professional or public interest

26
Q

Name the 16 stages of a best practise tender arrangement

A
  1. Preparation
  2. Approach
  3. Timescales
  4. Advertising
  5. Documentation
  6. Consistency
  7. Submission
  8. Analysis
  9. Decision
  10. Verification
  11. Negotiation
  12. Contract preparation
  13. Contract awarded
  14. Notification
  15. Feedback
  16. Debrief
27
Q

Post Tender Negotiation (PTN)

A

Negotiation that occurs after the best value supplier has been chosen. This is to see if any further improvements can be made before the contract is awarded

L4M4 - Ethical and Responsible Sourcing (12 decks)

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