Questions from L4M1 Flashcards
What type of procurement is specific to a CAPEX budget?
How is procurement directly attributed to the end product referred to?
What are the five rights of procurement and supply?
Explain what an extension of supply chain is
Describe the matrix that maps stake holders, giving examples
List the stages of the CIPS Procurement Cycle
Describe the life cycle process for products
Explain the difference between implied and express contract terms
What is the difference between SCM and SRM?
How is the response from a supplier to an ITT referred to?
What are the four questions used to identify potential conflicts of interest?
Evaluate the advantages and disadvantages of the different types of procurement structure for a national police force, a global chain of restaurants and a small manufacturing firm with two factories
Explain why variance reporting is crucial to procurement and accountability
What is the difference between economic and industrial classifications?
Explain how you would calculate the gross and net profit of a business
Which economic sector and which industrial sector does a buying group for animal feed sit in?
Describe the role and powers of the Charity Commission
What are the four types of procurement procedure used by the public sector?
Explain the difference between procurement, purchasing and supply
Explain why the procurement department should be consulted before an organisation spends money
Describe one example of each of the following costs from within an organisation with which you are familiar
- fixed costs
- variable costs
- direct costs
- indirect costs
For an organisation in an industry of your choice, list the primary and secondary products it uses
Consider an organisation with which you are familiar and describe a product or service provided by each of the supplier in the Kraljic matrix. State whether the procurement is direct, indirect, stock or non-stock
What should a procurement professional consider when sourcing a capital purchase?
Discuss why it is important to include a very detailed specification in service procurement contracts
Why should a service specification contain as much detail as possible?
A procurement professional received two quotations in response to her RFQ for 100 items.
Supplier 1 quotes $2 per unit and states that the price is net EXW
Supplier 2 quotes $2.50 per unit and states that the price is net and CPT
What should the buyer do before placing an order and why?
Describe why the five rights of procurement and supply are important to the procurement professional
What are direct and indirect costs?
a. Evaluate which elements of the TCO are relevant to procuring a new lorry for a transport fleet
b. Identify which costs are direct and which are indirect
What is the other right of procurement and supply?
Write one qualitative and one quantitative KPI to help a supplier achieve the right quality and the right quantity
What is innovation?
What are TCO and TCA?
Describe five factors that contribute towards getting value for money when procuring goods or services
Describe in detail five factors that contribute towards getting value for money when procuring goods or services
Define procurement and supply
What sector does a procurement professional fit into?
Explain which of the five elements within the supply chain model feature in both the upstream and downstream stages, and why
Explain two difference between a supply chain and a supply chain network
What is the difference between internal and external stakeholders?
Using the checklist questions, identify the stake holders in an organisation with which you are familiar
who is affected directly and indirectly by the organisation’s actions?
who has power to influence the organisation’s decisions?
who would be concerned if the project/organisation succeeded or failed?
who has a personal interest in the project/organisation?
who will benefit from the success of the project /organisation?
who could help solve problems?
who sets the regulations that must be adhered to?
who carries out related actions?
What does MRP stand for?
What is logistics?
Why does an organisation need both internal and external stakeholders?
What is the ISO accreditation for quality?
Using Mendelow’s matrix, identify where the internal and external fit within the model
What are the differences between a performance and a conformance specification?
An organisation sells heavy-duty padlocks to an established customer base. The organisation has manufacturing capabilities, a warehouse facility and skilled workers with years of experience making padlocks.
Explain which of the goods or services listed below should be made and which should be bought, giving reasons for your decisions.
- best-selling padlock sold to several core customers
- worst-selling padlock sold to spot customers
- cleaning contract
- recruitment of temporary staff
Why might bids or quotations differ between suppliers even though all have received the same documentation? Why might bids or quotations differ between suppliers even though all have received the same documentation?
What are Carter’s 10 Cs?
- Competency
- Capacity
- Commitment
- Control
- Cash
- Cost
- Consistency
- Culture
- Clean
- Communication
Define the total cost of ownership
What is the purpose of a KPI?
Think of a product within an organisation which you are familiar and discuss what level of SCM is required and why
Which element within the procurement cycle is place between the pre-contract award stages?
Which aspects of the procurement cycle are included in the sourcing process?
Explain why it is important to understand the laws of the country in which a buyer is carrying out a procurement activity
Name four areas of a supplier’s performance that are monitored by KPIS.
What takes place during stages 7-9 of the procurement cycle?
What is a supply chain and which parties are involved within it?
Explain three problems a buyer could face if they award a contract to a supplier that they have not evaluated.
What information is included in the ITT/ RFQ documentation that a buyer sends to evaluated and selected suppliers?
How is added value achieved in procurement?
Select three stages of the CIPS Procurement Cycle and explain how they add value to the sourcing process
Describe two advantages and two disadvantages of using e-requisitioning systems
What is MPR? Explain its purpose.
Discuss why you think e-negotiation might be problematic in a negotiation for a strategic product or service
What other e-auction websites are you aware of?
Select one area of e-procurement and justify how it could reduce costs of an organisation
Describe how an EDI system could improve the procurement process
What is corporate governance?
Explain why any potential conflict of interest should be disclosed
Explain how a code of ethics could support a buyer
Explain how a code of ethics could support a buyer
What information may be used to write policies and procedures?
Select and explain two reasons why documented policies and procedures are needed within procurement
Explain how procurement professionals can hold themselves accountable within their role
Explain how the status of procurement and supply chain management has evolved and what has contributed towards this
Identify three purposes of policies and procedures
Why do you think an expeditor or junior buyer could not conduct the tender below
is the tender estimated value above $10,000?
Yes No
Job titles below DO NOT have authority to conduct this tender. Job titles below do have authority to conduct this Expeditor tender.
Junior buyer Buyer
Refer project to someone with authority Senior Buyer
Procurement Manager
Research what regulatory bodies exist in your country
Explain in detail two advantage and two disadvantages of using procurement manuals
Describe how an organisation you are familiar with involves internal functions to aid the souring process
Describe why you think it is important that procurement professionals are aware of the ILO’s core conventions
What are economies of scale?
What are the common functions that can be structured as shared services?
Select one disadvantage of lead buyer procurement strategies and justify why it could cause a problem for an organisation
Compare the benefits and drawbacks of outsourcing the procurement function
What is a hybrid structure?
What are four categories of stakeholders according to Medlow’s Stakeholder Matrix?
What are the four supplier types identified in Kraljic’s matrix?
Justify the reason for building rapport with suppliers of bottleneck products or services
What constitutes value for money?
What areas are included in total life costing?
Explain why public sector organisations must have value for money outcomes?
What is a P2P system?
Apart from faster payments, explain three other ways in which P2P has an impact on the sourcing process
What is materials requirement planning?
Explain the benefits of using electronic inventory management systems
What modules are available in relation to ERP systems?
Explain how an ERP system with a supply chain management module could benefit an organisation
Select three advantages of using IT-based communications and justify your reasoning.
What is a sector?
Describe the services provided by the public sector in your country
Explain why public sector organisations have to be accountable for their actions
Research which Ltd and Plc companies operate in your country
What are the main differences between the public, private and third sectors?
Who funds the public sector
Why do you think private sector regulations are less strict than public sector regulations?
Research regulations that may impact on procurement and supply within you country
Research the public sector regulations within your country
Consider whether public sector regulations are positive or a negative factor in procurement
Using Porter’s Five Forces model, explain how the threat of new entrants could affect the public sector
Research how public sector spending is regulated in a country different from your own
How are private sector organisations funded?
Using table 4.9, explain which mobile device seller had the largest market share and which showed the most growth.
How can a strong brand identity add value?
What is the role of the third or not-for-profit sector?
Explain the difference in objectives between a charity and a buying group
Research how charities are regulated in your country
Explain the role of the Charities Commission
