M4 Book

Question 1

What regulatory bodies and legislation exists in your country to protect workers

Answer 1

International labour organisation ensure globally working conditions are maintained.

Question 2

What are 4 types of sourcing

Answer 2

Sole
Single
Dual
Multiple

Question 3

What style of relationship is linked to each style of sourcing

Answer 3

Single sourcing collabrative
Dual sourcing collabrative
Multiple sourcing transactional

Question 4

Bids submitted after the deadline will not be considered by the buying organisation

Question 5

What are the different types of of tender approach that a procurement professional can use

Answer 5

Open
Restricted
Negotiated
Competive dialogue
Innovation partnership
Competitive procedure with negotiation

Question 6

Negotiated tendering is often used where there is only one bidder or where the buyers requirement is complex

Question 7

Explain the differences between open, restricted and negotiated tendering approaches

Answer 7

Open tender is used when limited interest and fewer bids to evaluate, advertised widely allowing any suppliers to bid.

Restricted tendering advertise the opportunity with an expression of interest. They are sent a PQQ. Successful suppliers will then receive an information to tender. Used when there is a high interest from bidder’s

Negotiated tendering is the same as restricted but may inly include one or a few that can supply a specific skill. Can be difficult to reach an agreement due to lack of competition

Question 8

What are the four stages of negotiation

Answer 8

Preparation
Information exchange
Bargaining
Closing

Question 9

What styles can a negotiator use

Answer 9

Competitive style
Collabrative style
Avoiding style
Accomdating style
Compromising style

Question 10

Explain how carter 10cs model may be used to choose potential suppliers

Answer 10

Competnecy - Does the supplier have the required skills to

Capacity - does the supplier have the space resources to deliver the contract

Cash - does the accounts seem stable

Clean - does the supplier act in an environmentally friendly way

Question 11

What are the types of specification

Answer 11

Performance and conformance

Question 12

Ohnose eight waste acronym is tymwoods

Answer 12

Transport
Inventory
Motion
Waiting
Over production
Over processing
Defects
Skills

Question 13

What are three selection criteria and explain their importance in the sourcing procrss

Answer 13

Social - do the suppliers employees have a good understanding of their right ?

Environmental - is the product composed of material that may cause harm or are not recyclable

Governance - does the supplier have the time and production line capacity to produce the product.

Question 14

Financial checks form part of due dilligance

Question 15

Macro environments can be remembered withe acronym STEEPLED

Question 16

What internal and external factors could have an effect on a suppliers performance

Answer 16

Internal factors could be customers, suppliers.

External factors - environment and economic (interest rates)

Question 17

Explain two risks if suppliers are not pre qualified and appraised

Answer 17

Poor quality - suppliers need clear descriptions to be able to provide a solution to supply product. Buyers could as for samples before selection.

Financial - financial stability is important to be able to them fulfill requirments on time. Reviews will be made prior.

Question 18

What are the common entries in a profit and loss account

Answer 18

(Income statement)

Total revenue
Cogs
Net profit

Question 19

Gross Profit = Total revenue - cost of sales

Answer 19

A balance sheet shows organisations financial position at a single point of time

Question 20

What are three types of cash flow activities

Answer 20

Operating activites - cogs
Investing activities -
Financing activities

Question 21

What should be reviewed when analysing prices on quotations

Answer 21

Rebates
Exchange rate
Payment terms (7 days etc)
Carriage included

Question 22

Explain why exw or ddp would be expected to be the cheapest incoterm

Question 23

Remember

Answer 23

Whole life cost includes all costs associated with owning an asset from acquisition to disposal

Question 24

Why should whole life costs be evaluated before awarding a contract to a supplier

Answer 24

WLC should be analysed before purchase as there may be on going costs such as wearing parts or deep cleaning

Question 25

What factors could a supplier offer to generate added value for a contract

Answer 25

Shorter lead time Innovation Improved quality Good reputation

Question 26

What companies do you know who have added value

Answer 26

Suppliers constantly delivering on time. Next day delivery .. out of stock updates etc

Question 27

Remember

Answer 27

Awarding criteria can be technical or commercial Technical - spec, delivery, quality Commercial - ethical, sustainbility

Question 28

Summary chapter 1

Answer 28

Make or buy or to outsource Which style of souricing - single dual or multiple Pre appraisal and evaluate on strict criteria Intracompany

Question 29

Remmeber

Answer 29

Suppliers can be categorised into abc according to their levels of importance and spend yo the buying organisation

Question 30

Explain which category of supplier you think needs to be managed closely within the pareto principle

Answer 30

NHT

Question 31

Remember

Answer 31

Commodities can be divided into five different trading categories

Question 32

Explain how much commodity pricing can affect how much goods and services cost a buying organisation

Question 33

Remember

Answer 33

Both primary and secondary data can be distorted

Question 34

Describe three types of secondary data that would be useful to consider when analysing the suitability of suppliers

Question 35

Remeber

Answer 35

Credit rating scores are weighted

Question 36

Describe how using a credit score can minimise the risk to which an organisation is exposed

Question 37

Explain how and why credit rating agencies obtain information about an organisation

Question 38

Which sector is most likely to advertise its contractual requirements

Question 39

Write an advertisement for a tender opportunity for a commodity product or service with which you are familiar

Question 40

What information is likely to be included in a ppq

Question 41

Which suppliers are rfqs sent to

Question 42

Remember

Answer 42

Five rights of procurment Quantity Quality Time Place Price

Question 43

Remember

Answer 43

Tendering is used for a wide range of requirements, most typically value and where requirements are more complex

Question 44

Remember

Answer 44

The restricted approach is used where the interest is expected to be higher and so the buyer needs a method of de selecting unsuitable bidders and creating a shortlist of acceptable organisations

Question 45

Which tendering approach would best be suited to a procurement function that did not know how it was going to deliver the solution to the business need

Question 46

Remeber

Answer 46

Cross functional teams enhance knowledge to help achieve goals

Question 47

Explain how cross functional team could aid a procurement professional when analysing bids

Question 48

Timescales are not suggesting in public sector sourcing. Organisations must be able to demonstrate that they have kept to them

Question 49

Remember

Answer 49

There should be no conflicts of interest in the tendering process

Question 50

Explain why each stage ina tender process should be formalised in its approach

Question 51

Choose two assessment criteria and explain why you think they are important when assessing tenders and quotations

Question 52

Which category of item requires the largest amount of time to be spent on assesing propasals

Question 53

Check Which category of item requires the largest amount of time to be spent on assessing proposals?

Question 54

Remember

Answer 54

The weight of each criteria reflects its importance in the decision making

Question 55

What should the total for all weights add up to in a weighted points system

Question 56

Create your own weighted points system to assess two or more supplier propals

Question 57

How can recommendations of a tender outcome be presented

Question 58

The recommended source of supply can be single, sole, dual or multiple

Question 59

Remember

Answer 59

Always abide by the cips code of conduct when carrying out tenders and awarding contracts, whether competitive or not

Question 60

Remember

Answer 60

Though price is a key driver in public sector, the quality of purchased goods/ services and the ethical practices followed in its production are also important. Poor standard may cause rep risk

Question 61

Go online and research the bsi kitemark for products. Explain three benefits for consumers who encounter this mark on particular product

Question 62

Similar regulations exist in many other countries and it is important that procurment professionals are familiar with those that apply to any sourcing they carry out

Question 63

Give ecamples of legislation in the following areas Data Ethical practice Health safety enviorment and worker rights Marketplace Product standards

Question 64

Research public sector tendering for another country. Where are contracts advertised and above what value ? How are the tender processes goverend ?

Question 65

Keeping stakeholders satisfied by meeting their needs is important, regardless of which sector an organisation belongs to

Question 66

Do you know which organisation in your country you can speak to for guidance with cases of fraud? Look this up on the internet and familiarise yourself with the support these organisations can provide

Question 67

Acording to the fraud triangle, what are three key influencers of fraud? Give one example of each of these. What forms can fraud take and why may these affect supply chains

Question 68

Remember

Answer 68

Obviously not every person with a conflict of interest is garunteed to behave in a corrupt way. Conflicts of intrest can leave decision makers open to potantial accusations that they have acted unethically

Question 69

remember

Answer 69

confilcits of interest are not declared to icnirminate individuals. Instead they are a good way for both parties to postiviley and openly declare the limits of their professional relationship. this means that others are able to support them, in making sure acivites are carried out fairily

Question 71

Give three examples of situations that may be considered potential conficts of intrest. what infor would you expect to be record ina conflict of interest register ? What damage could arise from a conflict of intrest not being raised between to business

Question 72

In 1948 ehich documnent was relaeased by the UN describing human rights ? How many human rights are listed in this document ? are human right garunteed in every country. Which organisations exist to provide support regarding potential human rights violations ?

Question 73

Choose 5 uk based suppliers witha turnover of more that 36m - check comoanies website too see if it displays anti slavery

Question 74

remember

Answer 74

Buyer should choose the appropiate process before inviting suppliers to tender and contimnue to follow this throughout in line with the law

Question 75

Describe the benefits of using each of the following procedures from the EU 2014 open procedure Restricted procedure competitve procedure with negotiation competitve dialogue Innovation partnership

Question 76

What three types of activities do NOGs in the non for profit sector undertake? Give examples of organisations that carry out these activities

Question 77

Remember

Answer 77

Language barriers may be a problem - ensure paperwork is in a comon language and that it can all be understood by customs officials at plints of exit and entry to prevent delays

Question 78

Describe the purpose of each of the following documents in international trade Purchase order bill of lading insurance cover certificate of origin Carnet

Question 79

Remember

Answer 79

Countries within the european union are required to implement european law into their own regulatory framework

Question 80

Consider an organisation with which you are familiar. Does the organsiation source from foreign suppliers? If so check the following Are different currencies used by both parties which company chosen currency has the most favourable Are suppliers paid before goods are received to secret.

Question 81

Remember

Answer 81

Transfer of ownership is the point where title of goods passes from one party to the other

Question 82

Remember

Answer 82

International trade can involve higher risk than domestic trade, but a good understanding of laws, cultural practices and trade documentation can help prepare for this.

Question 83

Explain the advantages and disadvantages of internagional souricng

Question 84

Remember

Answer 84

While intercoms are well known worldwide, it is still important to work closely with suppliers to ensure that both parties have interpreted them to mean the same thing