Stratgic Procurement Planning PART 1 Flashcards
What strategic role does procurement play in disaster preparedness?
Ensuring the entity continues to get goods and services delivered appropriately at good prices
What service role does procurement play in preparedness?
It’s own role continues to function..eg. Documentation
What is phase 1 of disaster preparedness?
Readiness
Phase two of disaster preparedness
Activation and relocation
Phase three and four of disaster preparedness
Continuity operations (full execution at the new location) Reconstitution - terminate and resume normal operations
What are two decision points when you consider CBA?
Budget planning and acquisition
What is the difference between ROI and CBA?
ROI more tangible costs
CBA considers soft costs
What kind of goods are in Quadrant four of the supply positioning model, and what percentage of total expenditure do these represent?
High cost, high risk. Over 50% of total spend.
Define Supply Positioning
Analysis of the marketplace complexity, impact in delivery by considering risk and cost, makeup of marketplace etc.
What two forces impact procurement?
Risk of securing the good or service, and amount expended (cost)
What is the difference between strategic planning and SP2?
Strategic planning is determining long range goals, and how we are going to accomplish them.
SP2 is the transformation of these goals into measurable activities to manage the procurement function.
What is SMART
Specific Measurable Attainable Realistic Time based
What are tactical objectives?
Short term, day to day
Public procurement values?
Accountability Transparency Ethics Impartiality Professionalism Service
What is the planning evaluation framework (pyramid)
Mission, vision,goals, objectives, strategies, performance measurement, evaluation
What is the disadvantage of fixed price avg. method of forecasting?
Ignores the current trends
What should you do in the aftermath of a disaster?
Review and remediate its disaster plan
What should the “drive away kit” include?
Copy of COOP emergency procurement procedures Supplier list List of all contracts that have emergency function Agency resources
What two roles does procurement have in disaster preparedness?
Strategic and service
Definition of spend analysis
Process. Collecting and analyzing expenditure data from ALL sources within the organization.
(What am I spending, who am I spending it with, and am I getting what I was promised?)
What is the procurement profile?
Spend analysis plus market analysis and supply positioning
What is one of the greatest resources available to gain knowledge of market conditions?
A good relationship with your supplier
Explain the forecasting technique called the PMI.
An indicator that identifies the highs and lows of the economy.
Indicates what will occur in the future based on past trends.
Define forecasting, and what is it a key function of?
A tool used to determine future needs.
It is a key function of inventory management.
Are term contracts for a specific period of time, and what firms the basis for these contracts?
Specific period of time, and historical data is used.
What are six public procurement values?
Professionalism, accountability, transparency, ethics, impartiality, service.
What are the main obstacles to any plan?
Rapidly changing environment, and people’s resistance to the plan
Name the subset of strategies procurement planning that deals with analyzing how the organization obtains products and services.
Strategic sourcing
Strategic sourcing’s fundamental principles are what?
Continuous improvement, enhance effectiveness and efficiencyp
Make acquisitions in a manner that reflect the greater good of the organization.
Whose responsibility is it to make sure the correct funds are cited in a requisition?
The contracting officer
What are the three primary sources of procurement law?
Statutory
Administrative
Common law
What is common law based on?
Customs and traditions, codified through the legal system.
Define criminal, tort and budget laws?
Criminal imposes punishment
Tort allows people to sue
Budget prohibits a government from spending beyond its allocated amounts
What is the difference between apparent authority and inherent authority?
Apparent is when a Principle allows someone in a capacity that it gives the illusion that that person has authority
Inherent is the governments sovereignty to enter into contracts.
What legislation is the foundation for all procurement activities, and what does this legislation include?
Enabling legislation.
Includes constitutions, regulations, policies, ordinances and charters, statutes, policies.
What is a specification?
Physical or functional characteristic of a product. They are what is used to establish the RESPONSIVENESS of a bid.
What is lead time?
The time from the date or ordering to date of delivery.
When procurement receives a requisition, does the acquisition have to go through?
No. We have to review it to see if it is complete, then we can decide whether to initiate the acquisition. We may have surplus, we should see if we can bundle items, or decide what solicitation to use.
