LO2 Structured Proc Process

Question 1

What is meant by a structured procurement (StruProc.) process?

*This similar to basic question:
Why do you follow a structured process?

Answer 1

• StruProc invo. create rules
• On how Proc -should be done
• Contrast to reactive / maverick spending
• StruProc is due to company policy +
• External Regs or
• Try to achieve Competitive Advantage

Question 2

Give an Example of StruProc. process

*Hint: £500 < £ < £1000

**Also what does this example should apart from structure???

Answer 2

• E.g. Org set procedures for ordering items of different spend like:
• E.g. Proc. Assistants can purchase items <= £500 .
• Bet. £500-£1000 req. manager’s approval
• > £1000 req. a written Business Case in order to procure

** Means StruProc. uses e-proc. tool.

Question 3

Give an Example of E-Proc in StruProc. process

Answer 3

E.g. Org insist all tenders
- To use certain online Sys. +
- Invoices sent via X Sys. within 30 days

Question 4

List 5 reasons of why StrucProc. process is important???

Answer 4

• Maintains consistency
• Prevents conflicts + suboptimal behaviour
• Efficiency
• Better Managerial Control
• Compliance (laws + Standards)

Question 5

Why is StruProc. important?

Answer 5

• Ensures tasks need to be done are done
• Stru. processes = have step-by-step guide
• On how to procure. =
• Well co-ordinated activities +
  no effort duplications + conflicts
• Inc. assign diff. people to diff. roles
• Ensure nothing is forgotten
• e.g. 1 for requisition, Another approves it

Question 6

How StruProc. Process….

Maintains consistency ?

Answer 6

• = Standardised processes means…
• Each Proc. exercise follows same process
• Inc. stand. template for a requisition / ITT
• Consistency saves times + ↓errors made
• Ensure all (inc. supp. partners)
• Familiar with the processes

Question 7

How StruProc. Process….

Prevents conflict and suboptimal behaviour

Answer 7

• Org using StruProc. process = all do same
• Means no conflict
• E.g. A person doing things diff. to another
• Would argue which`s best way
• Ensures no one can do Proc. ‘wrong’

– StruProc. inc. written guides + procedures - To follow, useful for new starters

Question 8

How StruProc. Process….

Efficiency

Answer 8

• If there`s standard procedures results
• Time + £M saved
• No need to plan each proc. activity indiv.

Effi. StruProc. Processes may involve:
* Explain ‘Consolidate Demand’ with E.g.
* Use Stationary/Cleaning Prods
* E.g. Order per Quarter saves….

Question 9

Better managerial control

Answer 9

Managers have more oversight
- When using StruProc.

• Clear rules when managers need to:
• Be involved + provide sign-off

Question 10

How visibility contribute to better managerial control?

Give as Example
* How visibility is for managers

Answer 10

• Eases their deci-ma
• They have visibility over all processes
• Allows early intervention if person needs assistance
• ∴↓ maverick + fraudulent spending
• E.g. Illegal actions / kickback to supp.
• Due to clear processes + audit trails

Question 11

Compliance (with laws and standards)

Answer 11

• Especially Public Sector with rules and regs - For proc. practices
• Standardised processes allows Org to:
• Show compliance with appropriate Legis.
• Protects from ‘challenge’

Question 12

Compliance (with laws and standards)

*Using an example (Bidder), how StruProc having Standardised process, protect Org from ‘Challenge’ ???

Answer 12

E.g. An unsuccessful Bidder challenges deci - In Award contract to someone else
- StruProc. allows Org. to show they:
- Correctly Procured item
- ∴ Challenge is baseless