L4M1 Deck 4

Question 1

QUICK PROCESS
TRACEABLE
LOW RISK OF MONEY GOING MISSING
HIGH LEVEL OF CONTROL

Answer 1

What are the advantages of E-PAYMENT

Question 2

What are the disadvantages of E-PAYMENT

Answer 2

Risk of hackers
Reliant on technology
No personal relationships

Question 3

Explain 2 ways in which procurement differs from purchasing

Answer 3

PROCUREMENT: a WIDER term, a BROADER process which is more STRATEGIC
PURCHASING: more REACTIVE and TRANSACTIONAL, more OPERATIONAL

Question 4

Name 5 STOCK procurements and 5 NON-STOCK procurements

Answer 4

STOCK: COAL, COTTON, OIL, RUBBER, WHEAT

NON-STOCK: CLEANING SERVICE, PHONE SYSTEM, BROADBAND, INSURANCE, MARKETING CAMPAIGNS

Question 5

Name 4 innovative strategies to achieve cost reduction and added value through the supply chain

Answer 5

JUST IN TIME
OUTSOURCING
SUPPLY CHAIN MANAGEMENT APPROACHES
TAICHI OHNO’S 7 WASTES (TIMWOOD)

Question 6

How can contract management add value after the contract award stage of the sourcing process

Answer 6

STRONGER COLLABORATION
BUYER CAN MEASURE USING KPIs or SLAs
DECISIONS USUALLY MADE AT THE RIGHT TIME, NOT TOO EARLY OR LATE

Question 7

Name 3 activities that take place post-contract award

Answer 7

EXPEDITING
PAYMENT
CONTRACT OR SUPPLIER MANAGEMENT
POST-CONTRACT ‘LESSON LEARNING’

Question 8

Describe FIVE sequential stages of a typical tendering process

Answer 8

EVALUATION OF THE SUITABILITY OF TENDERING
IDENTIFICATION OF THE NEED
PREPARATION OF DETAILED SPECIFICATIONS
DETERMINING A REALISTIC TIMETABLE
ISSUING OF AN ITT

Question 9

FIVE reasons why it is important to maintain effective governance standards within the procurement function

Answer 9

Large sums of money being managed = high risk
Duty of care
Anti-fraud/system misuse for personal gain
Encourages a fair system
Reputation of the profession and/or organisation

Question 10

What are the 4 grades of benchmarking

Answer 10

INTERNAL BENCHMARKING “Better than we have before”
WORLD CLASS BENCHMARKING “Better than anyone”
COMPETITIVE BENCHMARKING “Better than competitors”
CUSTOMER BENCHMARKING “Better than customers’ expectations”