Objective 2.3

Question 1

What is MEAT?

Answer 1

Most economically advantageous tender

Question 2

What will assessment criteria typically include?

Answer 2

• Price
• Whole life costs
• Total cost of acquisition
• Supplier compatibility
• Level of risk
• Environmental, social and governance (ESG) activities
• Ethical conduct and compliance
• Sustainable practices
• Method of contract delivery

Question 3

What is the purpose of assessment?

Answer 3

To evaluate which suppliers best meets the specification requirements in the tender documentation and to analyse the added value options, such as innovation opportunities.

Question 4

When assessing the suppliers proposals, the procurement professional must consider what following areas?

Answer 4

• the value of the product/service
• the positioning of the required product/service e.g. strategic, routine
• Existing supplier relationships
• Economies of scale
• The risks associated with moving suppliers

Question 5

Should a procurement professional spend large amounts of times assessing quotations if the value and risk is minimal?

Answer 5

No, they shouldn’t. Routine items such as stationary d consumables that are readily available and low value. The time should be spent assessing small value contracts could be better spent analysing more critical and high risk proposals.

Question 6

What category items should procurement professionals spend time assessing in terms of value?

Answer 6

• Routine items (low value, low amounts of time)
• Leverage and bottleneck items (mid value, mid amount of time)
• Strategic items (high value, high amounts of time)

Question 7

How can procurement professionals be fair and transparent throughout procurement?

Answer 7

A weighted system is one method that can help to keep decision-making transparent.

Question 8

What is a weighted point system?

Answer 8

A weighted points system is an evaluation procedure that enables fair comparison against set criteria. The weight of each criteria reflects it’s importance in the decision-making process and the total for all weights should equal 100.

Question 9

Outline the process of creating and conducting a weighted points system for assessment.

Answer 9

1) Define the criteria to be used in the assessment

2) decide on the weights of each of the criteria

3) determine a scoring system e.g. 10/100 poor, 20/100 average, 70/100 good.

4) Allocate a score to each criteria in each suppliers proposal

5) Calculate the total score for each supplier

6) Rank the supplier according to the highest score

Question 10

What are the advantages of using a weighted points system?

Answer 10

• practical approach
• allows transparency
• not easy to manipulate
• can involve cross-functional teams
• high stakeholder engagement

Question 11

What are the disadvantages of using a weighted point system?

Answer 11

• time consuming to create
• reliant on numbers
• may require software investment
• total objectivity is impossible
• training can be costly