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Cip > L4 8 > Flashcards

L4 8 Flashcards

L1

1
Q

What are the stages of the CIPS procurement cycle?

A
  1. Understand the need
  2. Market or commodity
  3. Develop strategy
  4. Pre procure
  5. Develop document
  6. Supplier selection
  7. Issue RFQ/ITT
  8. Bid or tender
  9. Contract award
  10. Warehouse logistics
  11. Contract performance
  12. SRM and SC management
  13. Asset management
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2
Q

On what 2 areas can specifications be focused?

A

Performance or conformance

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3
Q

What do Perfomance specification state?

A

It state what the product or service must do or how it should perform but leave the supplier the freedom to achieve this however they wish

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4
Q

Conformance specification?

A

Give clear instructions to the supplier about what is required and how it should be achieved. Eg chemical formulae, recipes and technical drawings

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5
Q

What are the differences between performance specifications and conformance specifications?

A

Perfomance

Allow supplier innovation
Promote competition in the market place
The supplier bears the risk
Buyer may not know exactly what they will be getting
Shorter document
Quicker to prepare
Takes advantage of supplier expertise

Conformance
No supplier innovation

Reduce competition

The buyer bears the risk

Buyer knows exactly what they are getting

Longer, complex document

More time consuming to prepare

Disregards supplier expertise

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6
Q

Porters Five Forces

A

RIVALRY AMONG EXISTING COMPETITORS

  • Threat of new entrants
  • Bargaining power of suppliers
  • Threat of substitutes
  • Bargaining power of buyers
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7
Q

A procurement professional can use Carter’s Outsource Matrix when deciding whether to make or Buy. Identify the 4 stages of the Matrix

A
  1. Strategic alliance
  2. Retain
  3. Eliminate
  4. Outsource
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8
Q

What is outsourcing?

A

Contracting an external company to supply goods or services that were once produced internally.

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9
Q

What are the benefits of Outsourcing?

A

Saving money

Reducing overheads

Reducing headcount

Using external knowledge

Focusing internally on core competencies

Helping with shortfalls in labour expertise

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10
Q

What are the disadvantages of Outsourcing?

A

Losing some control within an organisation

Relying on external organisations

Reducing quality

Losing some internal knowledge

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11
Q

Name the STEEPLE themes

A 
Social
Technological
Economic
Environmental
Political
Legal
Ethical
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12
Q

What is STEEPLE analysis used to do?

A

It is used to evaluate the external environment. This helps buyers to assess which factors could affect their need and helps them to develop the plan accordingly.

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13
Q

What does SWOT analysis comprise?

A

Strengths- areas that perform well within an organisation

Weaknesses- areas that need improvement- lack of skills/resources

Opportunities- areas outside the orgn that could contribute favourably or help with success

Threats- areas related to external factors that could pose problems for the organisation

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14
Q

Supplier selection

Suppliers can be evaluated according to Carter’s 10Cs, which are as follows;

A 
Competency
Capacity
Consistency
Control
Cost
Commitment
Cash
Clean
Culture
Communication
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15
Q

A requisition can take the following forms

A

Verbal
Handwritten
E-mail
Automated

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16
Q

MRP systems generate requisitions for procurement based on the activity within the manufacturing organisation. Which elements are included?

A

Bill of Material (BOM)

Minimum Order Quantity MOQ

Current stock levels

Sales demand or planning run

Cycle time

Lead time

17
Q

Market analysis and testing

What is included in analyzing and testing the market?

A 
STEEPLE analysis
SWOT analysis
Porters five forces
Levels of supplier competition
Supply and demand
Push and pull
Supplier segmentation
Product life cycle
Ansoff matrix
Early supplier involvement
Make or buy
Offshoring
18
Q

Supplier evaluation

What other factors are considered when evaluating suppliers?

A

PRRECCBS

Pre-qualification questionnaires
Carter's 10Cs
Credit checks
Ethics
Sustainability
Benchmarking
Relationships
19
Q

What is the purpose of a Tender?

A

To invite potential suppliers to bid to supply a product or service to the buying organisation

20
Q

Name the 7 stages of Tendering process?

A
  1. Decide which style of tender to use
  2. Prepare invitation to tender
  3. Send ITT
  4. Buying organisation receives bids
  5. Evaluate bids
  6. Award contract and give feedback
  7. Contract management
21
Q

Name the 4 types of tender used within the procurement?

A

Open
Restricted
Negotiated
Competitive dialogue

22
Q

What are some of the ways which can be used to conduct supplier management?

A

Credit checks

Key Perfomance indicators

Service legal agreements -agreements btn the buyer and the supplier that define the level of service that is expected throughout the contract

Audits

Benchmarking

Cip (5 decks)

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