If I Were To Take The Test Flashcards
The 5 (R)ights of purchasing?
time: needs to be ordered at the right moment and delivered when needed
place: needs to be ordered from the right supplier and delivered to the right storage, store, department etc
quantity: the right amount needs to be ordered, products need to be ordered when the stock hits a certain predetermined amount
quality: needs to be of quality that matches the brand of the company if being used to resell or to serve its purpose in the business if to be used in house
price: negotiation can be used to find the best prices, right supplier should be chosen for same reason
What are ethics?
Rules based on morals that show whats right and wrong in the business environment
Whats use of info in ethics?
Use of information: protecting confidential information and making sure all info given to other ppl is truthful
Whats fair dealing in ethics?
If theres an error in an invoice, or a potential to pay late or if one vendor is favored over another in some cases. Dont use deception or unfairness
What are conflicts of interest in ethics?
Dont accept offers or gifts that would maybe be perceived as a way to influence a business decision. This can be seen as bribery and corruption
Whats fraud in ethics?
Accepting kick backs or deliberately sending back goods that have been paid for jus so the seller can sell them again. Dont lie for monetary gain
What are the CIPS code of ethics?
The ethical standard and disciplinary framework to be followed in the procurement industry
Mention some rules in CIPS
All possibilities of conflicts of interest must be disclosed
Only small value items can be accepted as gifts
All confidential info must be kept as such
Whats a cross functional team?
Bringing ppl with diff skills and specializations so that their knowledge and experience can be shared to meet a common goal
Why are cross functional teams becoming more popular?
More involvement of procurement staff in strategic decisions
The belief that more can be done as a team is being adopted by more companies
Increasing complexity of the global market and tech
Cons of cross functional teams
Having so many diff specializations in one team can make tasks more time consuming
Teams take time to develop and overcome conflicts, build trust, allocate roles etc
Can be hard to organize meetings due to practical issues like work patterns, locations, time zones even
What is building rapport?
Increasing the sense of relationship and trust between one person and another
How do u build rapport?
Matching their posture, body language and or voice volume (their mannerisms)
Being a good listener
Picking up on how they express themselves
Picking up on their use of metaphors, technical words and using them in ur own way
Pros of centralized purchasing
Specialization of procurement staff- buyers can focus their skills in one area and get good at what they do
Potential of of consolidation: orders can be placed in one big invoice, saving transport costs and gettin bulk deals
Procurement process can run smoother: since all is being done in one centralized unit, standardization can be done quicker and applied easier
Control of activity: KPIs are easier to measure, budgets easier to manage
Pros of centralization
Gives procurement staff the ability to specialize in they do and focus on their specific tasks
Allows the company to consolidate their orders when possible, which can lead to lower shipping costs and bulk deals
Kpis are easier to measure
