L4M1

Question 1

Rapport involves mutual trust and understanding built on good communication

Answer 1

Having internal rapport and good interaction can avoid conflict as views and opinions are more clearly understood and they can be challenged in a professional manner to reach a shared understanding.

Question 2

Everyone in the business is responsible for customer service

Answer 2

Customer service is commonly perceived as a specific department within an organisation. However, customer service is more than that - it is the way in which an organisation and its employees conduct themselves.

Question 3

Just in time (JIT)

Answer 3

Is a system that contributes towards the reduction of waste in the supply chain.

JIT purpose is to make sure that inventory is not held unnecessary

Refining the method of how and when inventory arrives in a business helps to make an organisation more efficient.

Question 4

ERP stands for Enterprise Resource Planning and involves the whole organisation.

Answer 4

ERP is an IT system that co-ordinates and integrates business processes and automates back office procedures to enhance efficiency.

Holds all information relevant to the organisation and store it centrally for ease access and uniformity.

Reduces repetition of tasks across departments.

Remote access
Cloud Based System
Social Media Module

Question 5

M2M is machine to machine communication

Answer 5

Communication is an important part of procurement function. The use of IT systems has made significant difference in the way procurement professional interact with suppliers.

E-mail - common form of communication

It is now possible for communication to take place without any human involvement.

Question 6

The shares of a Private Limited Company belong to the owners and cannot be bought and sold on the stock exchange.

The shares of a Public Limited Company care traded on the stock exchange and belong to investors.

Question 7

The 3 economic sectors

Answer 7

Public
Owned by the Government; funded by taxes, levies; Has no shares; Provide the general public with services; Is administered by the Government; Employee benefits are job security and pension

Private
Owned by Private Investors; Funded by Investments, Loans; Has Shares; Provides goods and services, makes a profit, Is administered by own business eg senior management, Employee benefits are Competitive salary, bonuses, pensions

Third
Is owned by Trustees; Is funded by Donations, levies; Has no shares; Promotes and supports social, environmental and cultural objectives; Is administered by Employees and Volunteers; Employees benefits are helping the cause

Question 8

Tenders

Answer 8

Can be open, restricted, competitive dialogue, or competitive with negotiation.

Open: single stage process giving any supplier the chance to bid

Restricted: two stage process where suppliers are selected prior to being invited to bid

Competitive dialogue: multi stage process involving feedback from potential suppliers prior to bidding

Competitive with negotiation: multi stage process involving negotiations with the bidders

Question 9

A monopoly is a company or group with little or no competition.

Answer 9

The public sector frequently holds monopoly on the provision of certain services

Question 10

National Audit Office (NAO)

Answer 10

Value for money in the Public Sector is audited by the UK National Audit Office

The NAO evaluates value for money trough the following:

• Efficiency
• Economy
• Effectiveness
• Equity

Question 11

Market Share

Answer 11

Market share is the amount of ownership or control an organisation has over a particular area of the market through volume of sales or value of sales.