Chapter 2.3 - Identify the processes that can be typically used to assess quotations or tender Flashcards
MEAT
Most economically advantageous tender
Name 9 pieces of assessment criteria
- Price
- Whole life costs
- Total cost of acquisition
- Supplier compatibility
- Level of risk
- ESG activities
- Ethical conduct and compliance
- Sustainable practises
- Method of contract delivery
Name 5 areas procurement must consider when assessing suppliers proposals
- The value of the product / service
- The positioning of the required product / service
- Existing supplier relationships
- Economies of scale
- The risks associated with moving suppliers
What is a weighted points system?
An evaluation procedure that enables a fair comparison of set criteria. The weight of each criteria reflects its importance in the decision making process
Name the 6 steps to creating and conducting a weighted points system for assessment
- Define the criteria to be used in the assessment
- Decide on the weights of each criteria
- Determine a scoring systems
- Allocate a score to each criteria in each supplier’s proposal
- Calculate the total score for each supplier
- Rank the suppliers according to the highest score
Name 4 things the completed weighted point system shows
- The points allocated to each supplier against each criteria
- The calculation to create the weighted scores
- The weighted scores
- The total weighted scores
Name 5 advantages to the weighted pointed system
- Practical approach
- Allows transparency
- Not easy to manipulate
- Can involve cross-functional teams
- High stakeholder engagement
Name 5 disadvantages to the weighted pointed system
- Time consuming to create
- Reliant on numbers
- May require software investment
- Total objectivity is impossible
- Training may be costly
Fit and proper person test
Rules applied to football clubs in 2004 to ensure people are suitable to own a club. This has been extended to ensure people in health organisations are fit to hold a level of authority
Name the 7 questions that CIPS recommend you ask suppliers in relation to ESG
- Do your organisations leaders continuously work to improve conditions in the workplace to meet staff needs
- Are your staff part of a trade union and if so do they staff have their own representative
- What practises do you employ when hiring staff?
- Do you employ migrant workers and if so what is their legal status?
- What is your company’s process for handling cases of bribery or corruption?
- Have you encountered any cases of bribery and corruption in your operation and if so, how did you respond to this?
- How can fraud be prevented?
What does added value refer to?
Non-cash releasing benefits that can be generated via procurement processes such as supplier selection and supplier relationship management
Name 10 examples of areas of added value
- Good quality
- Short lead time
- CSR and ESG policies
- Environmental responsibilities
- Sustainability
- Strong communication
- Low levels of risk
- Positive relationship management
- Good reputation
- Positive brand awareness
What is the objective of a tender process
To establish which supplier can provide the contract and give the best value for money for the buying organisation
Name 2 ways tender decisions can be made
- Creating spreadsheets to compare data
- Using weighted points systems/scorecards
Name 4 ways to present recommendations of a tender outcome?
- Face to face conversations
- An e-mail
- By submitting a detailed report
- By presenting a business case
