Revision Session 2 Flashcards
Which sector is the food manufacturer operate in?
Private - privately owned.
Jane works in the procurement team in the Head Office of a large national food manufacturer,
where they manage all the procurement activity for all four of their factories.
To date, the organisation has bought in food that has already been prepared and is cooked in
sauces. However, they have recently won a new contract for raw packed food, and this has
resulted in a new business need.
Jane performed a stakeholder analysis to determine who had power and interest in relation to
the contract. As part of this process, she realised that although the CEO had a high level of
power, he had a low level of interest in this particular procurement due to the relative spend of
the contract. This told her how she needed to communicate with him.
Jane then set up a cross-functional team that consisted of a representative from sales,
marketing, operations, production, logistics and finance. The team had input into defining the
specification. The most important aspects they identified were shelf life, location and lead times:
they needed to be able to place an order at 10am and receive it by 4pm the same day. The team
also provided feedback on the plan that Jane developed, as well as reviewing her Make or Buy
analysis.
Jane prepared an RFQ and sent it out to several suppliers. One supplier in particular seemed to
be able to offer the best value for money – in addition to having the capacity and capability to
meet the criteria detailed in the specification, they were also able to offer longer shelf life than
stated in the specification and had the capacity to grow with the buying organisation.
Midway through the discussions with this supplier, Jane was advised by her contact that he was
leaving, and he introduced her to his replacement. Jane recognised her as someone that she’d
been at high school with, although they were in different years. She wasn’t sure if this
represented a conflict of interest, so she decided to check in with her manager
Which classification does the food manufacturer belong to?
Primary - manufacturing.
Which procurement structure does the food manufacturing organisation operate?
Centralised
Which of the following best describes the raw packed food that the manufacturer buys in
Stock procurement - the food is directly related to their business.
The shelf-life, location and lead times were the most important aspects of the contract. Which
of the three ‘rights’ do they relate to?
Right time, right place, right quality.
Jane performed a ‘Make or Buy’ analysis. At which stage of the CIPS Procurement cycle does this occur?
Market commodity options
Which of the following aspects represented added value in the contract?
b) Supplier was able to offer longer shelf life than stated in the specification
Based on Jane’s categorisation of the CEO as a stakeholder, how should she manage
communications with him?
Keep satisfied - this due to the level of spend required.
What is the first thing that Jane should have done when she found out that her old school
friend worked at one of the supplying organisations?
Disclose
