Name all stages of the Procurement Cycle? - correct answer 1) understand need and develop a high-level specification
2) market/commodity options
... [Show More] including make vs buy assessment
3) develop strategy/plan
4) pre-procurement market tests and market engagement
5) development of required documentation, e.g request for quotation (RFQ)
6) supplier selection to participate in an invitation to tender (ITT) exercise
7) issue ITT/RFQ
8) bid/tender/quotation evaluation and validation
9) contract award and implementation
10) warehouse logistics and receipt
11) contract performance review and continuous improvement
12) supplier relationship/contract management
13) asset management/end of life
what is a performance specification? - correct answer specifies what the product or service will do or achieve. this covers the outputs required, tolerances and any functions the product/service may have to perform
what is a technical/conformance specification? - correct answer specifies which standards a requirement must meet or exceed
what does variance mean? - correct answer the difference between the budgeted amount and the actual spend
what is a commodity? - correct answer a raw material that can be bought or sold e.g oil, gas, coffee
What are Porter's Five Forces? - correct answer - rivalry among existing competitors
- threat of new entrants
- threat of substitutes
- bargaining power of suppliers
- bargaining power of buyers
what are core competencies? - correct answer the processes that are critical to an organisation achieving success and competitive advantage
What is outsourcing? - correct answer contracting an external company to supply goods or services that were once produced internally
what are the benefits to outsourcing? - correct answer - saves money
- reduces overheads
- reduces headcount
- using external knowledge
- focusing internally on core competencies
- helping with shortfalls in labour/expertise
what are the disadvantages to outsourcing? - correct answer - losing some control within an organisation
- relying on external organisations
- reducing quality
- losing some internal knowledge
what is the STEEPLE analysis used for? - correct answer it is an effective way to evaluate the external environment. this helps buyers to assess which factors could affect their need and helps them to develop the plan accordingly
what does STEEPLE stand for? - correct answer Social
Technological
Economic
Environmental
Political
Legal
Ethical
what does SWOT stand for? - correct answer strengths, weaknesses, opportunities, threats
what is a request for quotation? - correct answer a request for a supplier to give a quotation against a given specification
what is an invitation to tender? - correct answer a structured process requesting a supplier to provide a bid against a specified set of terms, usually to carry out a service, by a stated deadline
what should you consider during the pre-procurement market tests and market engagement? - correct answer - stakeholder engagement for feedback
- supplier engagement
- market research
- any new legislation/regulations
- currency fluctuations
- competitors' actions
what is the public sector? - correct answer a sector of the economy that is owned, financed and run by the government
what is the private sector? - correct answer a sector of the economy that is owned, financed and run by private individuals
what documentation is needed to send out to potential suppliers? - correct answer - [Show Less]