Module 3

Question 1

WHAT IS A CONFLICT OF INTEREST?

Answer 1

• WILL YOU GAIN FINANCIALLY?
• DO YOU HAVE ANY PERSONAL RELATIONSHIPS WITH COLLEAGUES OR SUPPLIERS?
• ARE YOU DOING A SIMILAR ROLE FOR A COMPETITOR

Question 2

WHAT ARE THE FOUR WAYS OF HANDLING A CONFLICT OF INTEREST

Answer 2

DISCLOSE
DISTANCE
DELEGATE
DISASSOCIATE

Question 3

WHAT IS INCLUDED IN THE PROCUREMENT CODE OF ETHICS

Answer 3

BRIBARY ACT
HUMAN RIGHTS
FAIR TRADE
ENVIRONMENT
ILO - INTERNATIONAL LABOUR ORGANISATION
ETI - EUROPEAN TRADING INITIATIVE
MODERN SLAVERY

Question 4

WHAT ARE THE STAGES FOR LEGISLATION TO EMPLOYEES

Answer 4

• LEGISATION
• POLICIES
• PROCEDURES
• WORK INSTRUCTIONS

Question 5

WHY HAVE PROCUREMENT POLICIES AND PROCEDURES

Answer 5

ENSURE CONFORMANCE
ENSURE COMPLIANCE
PROTECTS FROM BRIBARY, COERCION AND FRAUD
PROTECTS THE ORGANISATION
ENSURES CONTINUITY OF SUPPLY
PROMOTES EFFICIENCY
PROMOTES ETHICAL BEHAVIOUR
PROVIDES REFERENCES
ASSISTS WITH AUDITS
AIDS WITH LEGAL CASES

Question 6

WHAT ARE THE 3 TYPES OF PROCUREMENT STRUCURES

Answer 6

DEVOLVED
HYBRID
CENTRALISED

Question 7

WHAT ARE SOME ADVANTAGES AND DISADVANTAGES OF HYBRID OUTSOUCING

Answer 7

ADVANTAGES

• REDUCED COST
• REDUCED OVERHEADS
• REDUCED TRAINING
• ECONOMIES OF SCALE
• ACCESS TO SKILLED BUYERS
• FOCUS ON CORE TASKS

DISADVANTAGES

• HARDER TO MANAGE
• LACK OF CONTROL
• TIME MANAGING OUTSOURCE MUST BE LESS THAN TRAINING COST SAVING
• SYSTEMS INTEGRATION TROUBLES
• REDUNDANCIES
• SUPLIER RELATIONSHIP DIFFICULT

Question 8

WHAT ARE THE DISADVANTAGES OF CONSORTIUM PROCUREMENT

Answer 8

ADVANTAGES

• CREATE FRAMEWORK AGREEMENTS - SIMPLIFIED ADMIN
• ECONOMIES OF SCALE
• POOL KNOWLEDGE

DISADVANTAGES

• DIFFICULTY PROMOTING TRANSPARANCY BETWEEN MEMBERS
• CAN CAUSE LONG NEGOTIATIONS
• MEMBERS ARENT ABLIGED TO PURCHASE TO AGREED SPEC
• ALL MEMBERS HAVE TO STAY LEGAL AND FOLLOW REGS CAN BE DIFFICULT.

Question 9

WHAT 4 FACTORS LEAD TO VALUE FOR MONEY

Answer 9

5 RIGHTS
CUSTOMER SERVICE
INNOVATION
TOTAL LIFE COSTS

Question 10

WHAT IS INCLUDED IN P2P

Answer 10

EDI - ELECTRONIC DATA INTERCHANGE
EXPEDITING BY EXCEPTION - FLAGS OVERDUE TO CHASE
ELECTRONIC PAYMENT
DATABASE INFORMATION
CONTRACT MANAGEMENT
RECEIPT AND INSPECTION
ONLINE TRACK AND TRACE

Question 11

INVENTORY MANAGEMENT OBJECTIVES

Answer 11

ENSURE SUPPLIERS ARE AVAILABLE
FORECASTING DEMAND
ENSURE SUPPLIES ARE REPLENISHED
ENSURE STOCK IS SAFE AND SECURE
DEVELOP COST EFFECTIVE SYSTEMS AND PROCEDURES
CONTROLLING RECEIPT INSPECTION AND STORAGE
AVOID OVERSTOCKING