CIPS Global Standard UK 4.0 May 2021

The Global Standard
for Procurement
and Supply
Version 4 – Published 2021
www.cips.org
Welcome What's in this guide?
The benefits of working with the 04

Now in its fourth edition, the Global Standard Standard
How the Standard is structured 06
for Procurement and Supply is a comprehensive
Using the Standard 08
competency framework that has been developed Using the Standard online 10
through consultation with an extensive panel of CIPS Self-Assessment online 11
practitioners and academics drawn from across the

INFRASTRUCTURE
world to represent the diverse sectors and skill sets
1. Position and Influence 12
within the profession. 2. External Environment 20
3. Technology 28
We aim to regularly review the Standard so that it remains
up-to-date and relevant to the global procurement and PROCESS
supply community. The Standard has been designed to help 4. Spend Management 34
individuals and teams within organisations to understand the 5. Contracting 42

6. Sourcing 49
intrinsic value that good practice will bring to their strategic
goals and serves as an aid to enhancing organisational and
PERFORMANCE
personal performance. 7. Delivering Outcomes 59
8. Metrics and Measurement 66
Building on the original content of previous editions, the 2021
publication includes updates to key terms and references,
PEOPLE DEVELOPMENT
legislation and other standards that are relevant to our 9. Developing Teams and 72
Individuals
profession.
10. Developing Self and Personal 82
Skills
This Standard offers consistency in behaviours and
11. Ethics 87
knowledge, showing what excellence should look like in
Contributors 94
procurement and supply practice. These are the building
blocks on which business can stand and succeed, and I urge
boards, CEOs and stakeholders to keep this free resource
to hand to understand the value of the profession and its
importance and sphere of influence.
We are dedicated to leading the profession and to helping

to evolve procurement and supply professionalism for
the future, regardless of who undertakes the associated
activity. This Standard is a key tenet of achieving this goal
and is a vital resource if we are to ensure that procurement
professionals have the most relevant skills and knowledge
to cope with volatile trading environments, the increasing
complexity of global operations and the influence of
digitalisation.
Ultimately the content in the Global Standard supports our

vision as the 'Voice and Standard' for the profession.
Amanda Boustred FCMI, FIoD

CIPS Group Professional Standards and Regulation Director
03
The benefits of working
with the Standard
Organisations and individuals can identify and measure their
own performance levels in procurement and supply.
Enhance organisational performance

The Standard can be used to produce a detailed analysis by benchmarking
procurement professionals against the knowledge and competencies. It identifies
gaps in team capability and corresponding development needs, therefore enabling
organisations to:
• Contribute to significant savings by putting in place a procurement team

development plan.
• Put in place cost-effective, targeted training and development to plug gaps
and meet organisational needs.
• Build a cadre of well-trained and motivated staff, reducing turnover and
making associated cost savings.
• Provide objective and measurable evidence of effective management in the
procurement function to senior managers, the board and shareholders.
• Influence and improve ethical practices in the supply chain through
implementing ethical procurement policies and practices across an
organisation.
Enhancing personal performance

The Standard can help to identify current competency levels and the knowledge
and capabilities needed to move onto the next career stage; this may be particularly
useful during a performance review as it enables individuals to:
• Develop and agree a personal development plan to address the gaps

identified in knowledge and capabilities.
• Implement the plan, including training, job shadowing and mentoring
opportunities.
• Continue to monitor progress against the plan by referring back to the
Standard to assess improvement.
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Creating procurement job descriptions,
advertising and performance reviews
Within each of the five levels of competency described in the Standard – Tactical,
Operational, Managerial, Professional and Advanced Professional – we have provided
detailed sample job designs online, including which capabilities an individual should
have at each competency level, providing invaluable guidance in preparing job
advertisements, writing job descriptions and carrying out performance reviews.
This guide will help organisations and

individuals to understand:
How an organisation can use the How an SME can use the Standard
standard to improve procurement to support their procurement
performance. function and related activities.
How an individual can use How to write job descriptions and

the standard to improve their advertisements.
performance in the workplace.
05
How the Standard is structured
The Standard has been developed using five competency levels which have been identified from Tactical through
to Advanced Professional. These levels represent the core skills and tasks that individuals should be capable of
at each advancing stage of the profession. The knowledge and capabilities can then be identified within the four
pillars and eleven themes for procurement and supply.
1. The five levels of competence
Advanced
Professional
Professional
Managerial
Operational
Tactical
Applies key tasks Provides advice and Develops, Formulates direction Leads procurement
associated with the guidance to key improves and fulfils and advice, manages teams within an
work of procurement stakeholders on organisational and change, and leads organisation and
and supply. the performance functional objectives and influences both influences the board
of organisational in procurement and internal and external to adopt leading-edge
procedures and supply. stakeholders in procurement strategies
processes connected procurement and and establish best
with procurement and supply. practice. Influences
supply. supply markets with
innovative sourcing
solutions.
Administrative Buyer, Procurement Senior Buyer, Chief Strategic Procurement Procurement Director,
Assistant, Purchasing Executive, Buyer, Category Manager, Senior Supply Chain Director,
Assistant, Contracts Procurement Specialist, Manager, Contract Category Manager, Commercial Director,
Administrator, Stock Contracting Officer, Manager, Contract Supply Chain Manager, Head of Sourcing, Chief
Controller, Inventory Supply Chain Analyst. Officer, Logistics Head of Logistics and Procurement Officer.
Planner, Assistant Manager and Supply Operations Manager.
Buyer and Assistant Chain Executive.
Contracts Officer.
Use the Standard online globalstandard.cips.org
www.cips.org
2. The four pillars and eleven themes for effective procurement and supply are further divided
into individual segments of key knowledge and capability.
People
Infrastructure Process Performance development
1 4 7 9
Position and Influence Spend Management Delivering Outcomes Developing Individuals and Teams
2 5 8 10
External Environment Contracting Metrics and Measurement Developing Self and Personal Skills
3 6 11
Technology Sourcing Ethics in Procurement and Supply
This granularity of information

is key to identifying not only
the professional knowledge
and capabilities required at the Knowledge
different competency levels, but
also how they will be applied to
the practical workplace.
Capabilities
Use the Standard online www.cips.org/careers
07
Using the Standard
The Standard can be used to identify the performance
level of any individual, anywhere in the world, who has
a responsibility for procurement full time or as part of
their job role including those with:
• Day-to-day responsibility for managing the procurement and supply function within an
organisation
• Strategic responsibility for ensuring the procurement and supply function complements and
enhances the overall goals of the organisation
• No dedicated procurement function or a job role that e ncompasses other responsibilities and
professional disciplines, such as administration, project support or finance.
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By identifying individual competency levels,
the Standard enables organisations to assess
how efficiently, effectively and ethically
procurement is being carried out.
For private sector organisations

...measuring procurement teams against the
Standard can help to improve organisational
performance, in terms of cost-effectiveness,
compliance with ethical best practice and
legislation, and the reputation of procurement
in itself with internal senior managers, board
members, suppliers, customers
and competitors.
For public sector organisations

...the Standard supports the cost-effective
and efficient use of funds that is so important
for public servants, government ministers
and members of the general public, who are
anxious to see ethical and good
use of public money.
For individuals
...measuring their own knowledge and
capabilities against the competency levels in
the Standard helps to identify development
needs, prepare for performance management
or reviews and plan a career
development programme.
Go online www.cips.org/careers
09
The Standard online
Developing and planning a professional development journey couldn’t be easier.
So far, over 75,000 professionals have used the Standard online to help with career
development planning.
Global Standard for Procurement and Supply
Step1: Choose a Level
Choose a Level
Tactical
Step1: Choose a Level
Operational
Choose a Level
Managerial
Tactical
Professional
Operational
Global Standard for
Procurement and Supply
Managerial
Advanced professional Step1: Choose a Level
Step1: Choose a Level Choose a Level

Professional Tactical
Choose a Level
Advanced professional Operational
Tactical Managerial
Operational Professional
Managerial Advanced professional
Professional
Advanced professional
Go to globalstandard.cips.org and follow the simple steps as illustrated below.
Step 1 Step 2 Step 3 Step 4

Choose your level of Choose a Choose a segment Review your chosen
competency theme from the theme segment and follow
the related links to
CIPS Knowledge, tools
and resources to help
fill your knowledge
and skills gap.
www.cips.org
CIPS self-assessment
online
Individuals can align themselves against
the Standard and plan their next
career move.

Using hundreds of live job roles advertised throughout the world, we’ve
created over 40 job profiles and mapped each role against the Standard Our online self-assessment is
themes and levels. By assessing their own skills and knowledge it helps a free member resource that
individuals to truly demonstrate their relevance and increase their value provides in-depth procurement
to employers. knowledge and capability
analysis that identifies levels of
Firstly, individuals explore the knowledge and capabilities identified competency to inform future
in the Standard then self-assess their own skills against the Standard, development opportunities.
create their own profile and measure it against the other procurement To self-assess your level of
job profiles. At the end of the assessment a personalised report will help competency we recommend
to create a learning and development plan. that you read through each
theme then select your level
based on your understanding.
You can then review your job
profile to see if it matches your
actual competency level.
Go online www.cips.org/careers
11
Pillar: Infrastructure Standards
Theme 1: Position and Influence of Procurement and Supply
This theme helps individuals to recognise the contribution that effective procurement and supply
can make in organisations and in supply chains. The sphere of influence of procurement and supply
chain personnel and functions should be promoted to all stakeholders, as the theme identifies good
practices to achieve greater recognition by individuals and teams at an organisational level.
TACTICAL COMPETENCY LEVEL

Segment 1.1 • Understanding the Role of Procurement and Supply
Knowledge: Will know and understand: Capabilities: Will be able to:
The different terms that relate to procurement, supply Explain the roles of procurement, supply chain
chain management and logistics management management and logistics management to colleagues
across the organisation
The roles of procurement and value of procurement and Explain the roles and value of procurement and supply to
supply to organisations colleagues across the organisation
The impact of procurement activity on costs, efficiency Demonstrate the contribution of effective procurement
and profitability across the organisation in improving profitability, savings and efficiencies for the
organisation
The typical proportion of costs accounted for by the Demonstrate and create the typical proportion of costs
procurement of goods and services and budgets accounted for by the procurement of goods
and services to colleagues and across the organisation
The 5 rights that relate to procurement and supply Explain how the 5 rights apply to commercial transactions
• Price/cost or agreements
• Quality
• Time
• Quantity
• Place
Internal and external customers and their priorities for Identify the different internal and external customers and
procurement and supply recognise the priorities for procurement and supply of
different customer groups
The main internal and external stakeholders in Identify the stakeholders that can influence the work of
procurement and supply and how they influence procurement and supply
procurement and supply activities
The different objectives of a procurement and supply Promote commitment amongst colleagues and
function stakeholders to achieve the objectives sought by a
procurement and supply function
Policies and procedures for procurement and supply Promote the organisation's procurement and supply
activities policies and procedures to stakeholders
The tiers of a supply chain Identify and assess the different organisations that
Different types of procurement, such as: are involved in the organisation's supply chain.
• Capital and revenue purchases procurement Advise internal stakeholders on the different types of
• Products, services and construction works procurement typically contracted for by the organisation
• Direct and indirect
• Outsourcing and insourcing
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Segment 1.2 • Apply Procedures that Regulate Procurement and Supply
The documentation typically used in procurement Advise colleagues across the organisation about the
and supply documentation used in procurement and supply.
• Requisitions Maintain documents relating to procurement and supply
• Orders across the organisation
• Delivery notes
• Invoices
• Other documents
The use of documented policies and procedures for the Take appropriate action to ensure internal customers and
work of procurement and supply, including: stakeholders comply with procedures
• The responsibilities for procurement
• Regulations relating to competition
• Levels of delegated authority
• Responsibilities for the stages of the sourcing process
• Invoice clearance and payment
The need for authorisation in the administration of Work to ensure that internal stakeholders obtain
requisitions, orders and invoices authorisation for the commitments to requisitions, orders
and invoices
The need for effective communication with suppliers and Use clear and effective verbal and written communication
customers, verbally and in writing, to clarify and confirm methods when dealing with suppliers and customers
understanding of requirements
The use of technology to effectively and efficiently Use technology to communicate effectively and efficiently
communicate with internal and external stakeholders with internal and external stakeholders
How to ensure requisitions, orders and invoices are Work to ensure that requisitions, orders and invoices and
a clear and accurate record of requirements, to help other documentation relating to procurement and supply
communication with stakeholders are clear and accurate
The use and importance of ethical codes in procurement Encourage the behaviour and actions of colleagues and
and supply other stakeholders to be in keeping with ethical codes for
procurement and supply
The principles of corporate governance that apply to Explain the main principles of corporate governance
procurement and supply that apply to the organisation’s procurement and supply
function
For more details on Value see Theme 4 Spend Management in Procurement and Supply
13
OPERATIONAL COMPETENCY LEVEL
Segment 1.3 • Advising Stakeholders on the Role of Procurement and Supply
The contribution internal and external stakeholders make Research, assess and prioritise stakeholders'
to procurement and supply activity requirements to ensure value outcomes and risk-assured
solutions
The potential conflicts of interest that may exist in the Manage any conflict of interest that may arise with
work of procurement and supply, and processes to stakeholders to ensure the objectives of procurement
manage potential conflicts of interest and supply are prioritised
The use of documented policies and procedures for the Advise stakeholders on the interpretation of procedures
work of procurement and supply, including: for procurement and supply
• Responsibilities for procurement and supply
• Responsibilities for the stages of the sourcing
process
Procedures for the separation and segregation of duties Advise internal stakeholders of the procedures that apply
to the separation and segregation of duties in performing
roles in procurement to prevent fraud and error
The use of codes of ethics in procurement and supply Monitor the work of internal stakeholders to ensure that
the codes of ethics in procurement and supply are upheld
Comparisons of centralised, devolved and hybrid Explain to colleagues and other internal stakeholders
organisation structures for carrying out procurement and the organisation structures that can be adopted for
supply activities procurement and supply activities, while recognising the
strengths and weaknesses of each structure
The use and purposes of financial budgets that impact on Advise internal stakeholders on procurement and supply
procurement and supply issues that impact on the creation and management of
financial budgets
The impact of procurement and supply operations on the Advise appropriate stakeholders on the implications of
organisation's and suppliers' cash and working capital the organisation's and suppliers' cash and working capital
through procurement and supply activities
For more details on Building Relationships with Stakeholders, see Theme 9 Developing Individuals and Teams
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Segment 1.4 • Improving the Role of Procurement and Supply within the Organisation
The design of typical organisation structures and Promote the position and potential influence of procure-
the position of procurement and supply within the ment and supply within the organisation
organisation
The main influences that shape an organisation's Identify the influences that shape the organisation by
behaviour considering the behaviours adopted by individuals,
groups and stakeholders
The behavioural characteristics of individuals that impact Recognise the different behavioural characteristics
on their management style with the procurement and of individuals and how these differences can shape
supply chain function management style appropriate to different situations
The importance of motivation for individuals involved in Motivate and support colleagues and other internal
the procurement and supply function stakeholders to achieve their commitment to the work
undertaken in procurement and supply
The importance of the use of documented policies and Contribute to the development and use of documented
procedures for the work of procurement and supply, policies and procedures for the procurement and supply
including: function and ensure their application by colleagues and
• The responsibilities for procurement stakeholders
The role of centralised, devolved and lead buying Explain to colleagues across the organisation the advan-
structures for procurement and supply functions tages and disadvantages of centralised, devolved and
lead buying structures for procurement and supply
For more details on Improving Performance, see Theme 7 Delivering Outcomes
15
MANAGERIAL COMPETENCY LEVEL
Segment 1.5 • Developing Supply Chain Management
Sources of competitive advantage, such as low cost, and Ensure the procurement and supply function aligns
sources of differential advantage, such as innovation, with the achievement of the organisation's sources of
product/service range, brand image and customer care competitive advantage
Methods of value creation that can be achieved from Create and implement plans with stakeholders to
effective supply chain management through: increase value from supply chain management
• Reducing prices and total costs
• Improving quality
• Reducing time to market and achieving deliveries to
required timescales
• Creating innovation
• Reducing risk and supply chain vulnerability
• Promoting sustainable procurement
The methods to develop integrated supply chains, supply Liaise with stakeholders to develop supply chains, supply
networks and supply chain management networks and supply chain management
The benefits and risks of using collaborative and Work with stakeholder to develop and implement
competitive strategies for improving supply chain appropriate strategies and plans for improving supply
management chain management and promote their use
The main risks that can impact on supply chains and how Work with stakeholders to mitigate or manage risks that
they can be mitigated can impact on supply chains
The importance and application of the standards and Work with stakeholders to eliminate bribery, corruption
legislation that apply to bribery, corruption and fraud in and fraud in supply chains
organisations
The effective use of communication technologies to Guide stakeholders to use technologies that help effective
achieve business outcomes communication to support the achievement of supply
chain business outcomes
For more details on Systems and Technology, see Theme 3 Technology
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PROFESSIONAL COMPETENCY LEVEL
Segment 1.6 • Leading the Procurement and Supply Function
The use of vision statements to improve procurement Create and implement an appropriate vision for the
and supply chain management organisation that promotes procurement and supply
chain management both internally and with external
stakeholders
The roles of a leader and the activities of leadership in the Demonstrate effective leadership skills with stakeholders
procurement and supply function by developing, communicating and promoting the
purpose, values and vision of improved procurement and
supply chain management across the organisation and
with suppliers
The importance and assessment of the sources of power Steer the procurement and supply chain function through
among internal and external stakeholders difficulties and challenge, recognising the sources of
power among internal and external stakeholders and
managing the impact on the organisation and its supply
chains
Leadership behaviours and styles Demonstrate leadership behaviours and styles to

promote procurement and supply chain management
with internal and external stakeholders
The distinction between transformational and Steer the procurement and supply chain function by
inspirational leadership skills adopting appropriate leadership skills to promote
procurement and supply chain management with internal
and external stakeholders
Difficulties and challenges to the function from Promote the benefits of the procurement and supply
stakeholders chain function to stakeholders dealing with difficulties
and challenges
Techniques for stakeholder mapping including primary, Evaluate stakeholders and execute plans to achieve
secondary and key stakeholder classifications effective procurement and supply chain management
The use of communication plans to enhance Create communication plans to achieve buy-in to
procurement and supply chain management the procurement plan from internal and external
stakeholders
The importance of an expenditure approval process Develop a policy and procedure for procurement and
supply expenditure approvals
The impact of policy, legislative and regulatory Communicate to stakeholders an understanding of

requirements on procurement and the supply chain policy, legislative and regulatory requirements affecting
procurement and the supply chain
The application of procedures and governance affecting Develop and implement relevant procedures and
procurement and supply chain activities governance for effective procurement and supply chain
activities with stakeholders
For more details on Leadership, see Segment 9.7 in Theme 9 Developing Individuals and Teams, and Segment 10.5 in
Theme 10 Developing Self and Personal Skills
17
Segment 1.7 • Developing the Strategy for Procurement and Supply within the Organisation
The main characteristics of strategic decisions in Use and apply strategic decision-making techniques to
organisations formulate improvements to procurement and supply
chain management
The alignment of corporate, business and Contribute to the development and implementation of
functional levels of strategy in organisations functional, business unit and corporate strategies
A range of approaches to the development of strategy in Evaluate the different approaches to strategy
organisations including: development and ensure that relevant issues, aligned
• Rational planning to the needs of the organisation, contribute to the
• Emergent and logical incrementalism development and implementation of strategy within the
procurement and supply chain function
The impact of globalisation on the development of Design and implement strategies for the procurement
strategy for effective Procurement and Supply and supply chain function that take account of the impact
of globalisation
The contributions the procurement and/or supply Promote the contributions that the procurement or
chain functions make to the achievement of corporate supply chain functions can make to achieving corporate
objectives objectives across the organisation, with stakeholders and
with the supply chain
Corporate governance for Procurement and Supply Work with internal stakeholders to establish an
appropriate and effective process and framework to
support corporate governance
The main methods for achieving cultural acceptance of Develop and implement plans and actions with
strategies in organisations stakeholders to achieve the cultural acceptance of
strategies that reflect effective procurement and supply
chain management
The importance of measuring the return on investment Evaluate how change management processes can
of procurement and supply chain activities address resistance to change and develop a change
management strategy that deals with resistance to
change
For more details on Change Management, see Theme 10 Developing Self and Personal Skills
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ADVANCED PROFESSIONAL COMPETENCY LEVEL
Segment 1.8 • Building Strategic Relationships with Stakeholders
The impact of policy, legislative and regulatory Uphold and explain policy, legislative and regulatory
requirements on the supply chain requirements affecting the supply chain to suppliers and
stakeholders
Procurement and supply as a consulting process with Assess and manage stakeholder expectations through a
internal stakeholders controlled and value adding process
The differences between consulting and counselling, Develop and implement approaches to convince
and the importance of consulting skills as a means to colleagues and other stakeholders to agree to plans or
influence organisational change take advice, and to achieve early engagement in strategic
issues affecting procurement or the supply chain
Approaches to managing relationships with external Promote effective relationships with suppliers and
suppliers and internal stakeholders internal stakeholders to secure their commitment to
processes, systems, practices and strategy objectives
The range of influencing styles that can be used with Adopt appropriate influencing styles so that stakeholders
stakeholders accept change, strategies or advice
Negotiation strategies and styles Apply effective negotiation styles and strategies to further
the aims of the procurement/supply chain function with
stakeholders and suppliers
The use of emotional intelligence in building effective Apply different aspects of emotional intelligence to
relationships improve relationships with stakeholders
Approaches to developing a competitive advantage Attract and retain the best suppliers to build competitive
through developing supplier relationships products, services and supply chain advantage
The strategic importance for stakeholders of measuring Evaluate return on investment assessments for changes
return on investment in procurement and supply that impact procurement and supply activities
For more details on Teams, see Segment 9.2 in Theme 9 Developing Individuals and Teams
19
Theme 2: External Environment in Procurement and Supply
This theme enables individuals to recognise how the external environment influences procurement
and supply. Personnel working in procurement and supply roles need to understand how markets
can be influenced by changes in the external environment to enable appropriate actions to be
taken to ensure that the organisation can develop opportunities, ensure compliance to regulatory
standards and minimise disruption with its suppliers and supply chains.

Segment 2.1 • Recognise the Different Sectors of Procurement and Supply
The roles of private, public and third sector organisations Explain the roles of private, public and third sector
organisations, recognising the sector that the
organisation, its suppliers and customers operate within
Recognise the objectives of private sector organisations, Recognise the objectives of private sector organisations,
their suppliers and their customers their suppliers or their customers
The different types of private sector organisations Identify the types of private sector organisation that the
such as: organisation deals with, either as a supplier or customer,
• Sole traders recognising the strengths and weaknesses of each type of
• Partnerships organisation
• Registered companies
• Incorporated and unincorporated companies
• Small and medium sized enterprises (SMEs)
• Multinational corporations
The objectives of public sector organisations to improve Recognise the impact the public sector may have on
services to the public such as: organisations, its suppliers and its customers
• Providing access to services
• Regulating organisations and individuals
The primary, secondary and tertiary sectors Identify the characteristics and sector that the
organisation, its suppliers and customers operate within
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Segment 2.2 • Recognise the Importance of the External Environment on Procurement and Supply
How markets can be defined in terms of size, scope and Identify the types of markets served by the organisation,
stages of development its suppliers and customers
The types of industry competition, such as perfect Recognise the type of competition that influences and
competition, imperfect competition, oligopoly, duopoly impacts the organisation, and its suppliers and customers
and monopoly
How demand and supply factors impact on organisations Recognise the potential impact of changing demand and
supply factors resulting from disruptive supply chains
and global events on the organisation, its suppliers and
customers
The impact of market change on organisations Identify how local, national and global market change
can impact on the pricing and availability of products and
services
Analytical tools to explain the impact of the external Describe how the application of STEEPLED (social,
environment on organisations’ supply chains such as: technological, economic, environmental, political,
• STEEPLED legislative, ethical and demographic) criteria and the five
• The five forces model forces model impact on an organisation, and its suppliers
and customers
Organisational impact of macro-economic factors such Identify the impact of interest rates, inflation, exchange
as: rates and the level of economic activity (GDP/GNP) on
• Interest rates pricing and availability of products and services
• Inflation
• Exchange rates
• Level of economic activity (GDP/GNP)
Legislation that impacts on organisations such as: Explain the impact of legislation on an organisation, its
• Quality environmental standards suppliers and customers
• Health and safety
• Employment law
The implications of corporate social responsibility on Explain the key aspects of corporate social responsibility
organisations that influences an organisation, its suppliers and
customers
For more details on Global Supply Chains, see Theme 7 Delivering Outcomes
21
Segment 2.3 • Understanding Market Management in Procurement and Supply
The different types of markets including economic and Distinguish how an organisation, its suppliers and
industrial sectors such as: customers are served by different types of markets
• Manufacturing
• Construction
• Retail
• Financial
• Agriculture
• Services
The competitive forces that influence markets, including Analyse the competitive forces and trends that influence
the bargaining power of suppliers and buyers, the markets that the organisation, and its suppliers and
availability of substitutes and the threat of new entrants customers operate within
How to identify supply chain disruptors that impact on Liaise with stakeholders to mitigate the impact of supply
markets and supply chains chain disruptors on the organisation, and its customers
and suppliers
The breakdown between direct and indirect costs Collate sources of information to estimate the breakdown
of direct and indirect costs for goods and services and use
the information to prepare budgets or to negotiate prices
Types of published data that can provide information on Research market data and use it to estimate and nego-
costs and prices tiate current and future prices and costs for goods and
services
Published reports and indices on markets Use published sources of information to agree variations
in pricing for goods and services
National and international legislation that impacts on Advise internal stakeholders on the impact of legislation
organisations such as: when dealing with suppliers to an organisation
• Quality standards
• Health and safety
• Environmental standards
• Employment law
The implications of corporate social responsibility on Advise stakeholders on key aspects of corporate social
organisations responsibility of the organisation when dealing with
suppliers, customers and other stakeholders
For more details on Corporate Social Responsibility, see Theme 11 Ethics
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Segment 2.4 • The Impact of Globalisation on Supply Chains
The main drivers of globalisation in supply chains Identify and explore opportunities for globalisation in the
procurement of goods and services
Potential conflict between the needs of stakeholders Contribute to the management of the procurement and
operating with globalised supply chains and certain supply chain function taking steps to mitigate challenges
methods of management and difficulties to resolve conflict within the organisation
and with its supply chains
The main implications of ethical and sustainable Advise colleagues and other stakeholders on how to
procurement in supply chains promote ethical and sustainable procurement in the
organisation and its supply chain
The main cultural and social issues in supply chains, such Advise colleagues and other stakeholders on cultural and
as: social issues that can affect supply chains
• Language and cultural barriers
• Labour standards and workers rights
• Inequalities between workers
• Health and safety and environmental standards
• Minimum/fair wages
• Modern slavery
Labour codes that impact on the globalisation of supply Develop and implement plans that address the implica-
chains such as standards set by the United Nations tions of labour standards that impact on the globalisation
(UN), the International Labour Organisation (ILO), the of supply chains
Ethical Trading Initiative (ETI) and Social Accountability
International standard SA8000
The impact of customs unions, trade areas and trade Evaluate the impact of customs unions, trade areas and
blocs such as: trade blocs have on any restrictions or opportunities for
• European Union (EU) global sourcing
• European Free Trade Association (EFTA)
• East African Community (EAC)
• African Union (AU)
• United States-Mexico-Canada Agreement (USMCA)
For more details on Global Supply Chains, see Theme 7 Delivering Outcomes
23
Segment 2.5 • Contexts of Supply Chain Management
The impact of social, technical, economic, environmental, Identify the potential impact of STEEPLED criteria on the
political, legislative, ethical and demographic (STEEPLED) organisation and its supply chain and draw up plans to
criteria on organisations and their supply chains maximise the benefits and mitigate difficulties
The impact of market change, supply chain shocks and Advise colleagues and other stakeholders on the impact
disruption on supply chains of market change on the supply chain
The main regulations that impact on the employment of Evaluate the impact of the main regulations on the
people in supply chains such as: employment of people in supply chains and develop
• Discrimination, equality and diversity plans to mitigate potential difficulties caused by
• Employee redundancy and dismissal regulations
• Working time and staff payment
• International labour codes
• Health and safety at the workplace
• Modern slavery
• Other country specific employment issues
The impact of mergers and acquisitions on supply chains Evaluate the potential effect of mergers and acquisitions
on the organisation’s supply chains and develop plans to
maximise benefits and minimise disruption
The effect of competition law on supply chains Analyse the effect of competition law on the organisation
and its supply chains to ensure compliance with
competition law
Regulatory requirements such as price and service Evaluate the implications of regulatory requirements
controls exercised by industry regulators and such as price and service controls exercised by industry
international bodies regulators and international bodies
The role of suppliers as key resources for the supply of Establish effective performance objectives by assessing
products and services and for new product development internal and external resources and associated
dependencies to create procurement plans for work with
suppliers
For more details of Competition Law and other Legal Aspects, see Theme 5 Contracting
www.cips.org
Segment 2.6 • Managing the Challenges of Global Supply Chains
The application of STEEPLED analysis in globalised supply Evaluate the impact of STEEPLED factors on globalised
chains supply chains and formulate recommendations to ensure
the organisation's strategy develops opportunities and
mitigates risks that result from changes to STEEPLED
factors
Standards that apply to ethical/sustainable sourcing and Monitor compliance with ethical practices and standards
human rights, including labour codes that impact on the that apply to global supply chains, taking appropriate
globalisation of supply chains such as: actions if any breaches by colleagues or other
• United Nations (UN) Trafficking Protocol stakeholders are detected
• International Labour Organisation (ILO)
• Ethical Trading Initiative (ETI)
• Social Accountability International Standard SA8000
• ISO 20400 Sustainable Procurement
• ISO 26000 Social Responsibility
Licensing and documentation for imports and exports Monitor and ensure compliance with the licensing and
documentation for imports and exports that affect the
organisation
Controls through tariffs and duties on imports and Provide advice to colleagues and other stakeholders on
exports the impact of tariffs and duties on imports and exports
arranging appropriate actions when necessary
The methods for managing the volatility of Evaluate and implement the use of appropriate
commodities and currencies in supply chains such as: instruments to manage the volatility of commodities and
• Hedging currencies in supply chains
• Spot
• Forward
• Derivative
• Other instruments
The main regulations that impact on the employment of Evaluate the impact of the main regulations on the
people in global supply chains such as: employment of people in global supply chains
• Discrimination, equality and diversity
• Employee redundancy and dismissal
• Working time and staff payment
• Modern slavery
• Other country specific employment issues
For more details on Global Supply Chains, see Theme 7 Delivering Outcomes, and on Ethical Procurement, Theme 11
Ethics
25
Segment 2.7 • Strategy in the Organisation and its Supply Chain
The levels of strategy in organisations – corporate, Contribute to the development and implementation of
business unit and functional business and corporate strategies through added value
procurement and supply chain management
The layers of the business environment and the impact dvise colleagues and other stakeholders on the impact
A
on the development of procurement strategy of the business environment on the organisation and its
supply chains
The challenges that impact different industries and Evaluate the challenges faced by the organisation and
sectors and the trends in the macro-environment its supply chains taking actions to mitigate risks and to
develop opportunities
The impact of changing markets, market volatility and Develop approaches to mitigate the impact of changing
supply chain disruptors on supply chains markets on supply chains and take actions to exploit
market opportunities
Cycles of competition and competitive strategies Critically assess pricing and competitive behaviour
undertaken by organisations in the supply chain and take
actions to improve or protect the organisation’s interests
The segmentation of markets Develop and implement the alignment of market

segmentation undertaken by the organisation with its
customers and suppliers
Modelling for the creation of strategic directions Critically assess the divergence of strategies undertaken
by organisations in a supply chain and advise senior
managers on strategies that can be adopted by the
organisation
Approaches to strategy evaluation Recommend strategic choices to improve the

organisation’s short and long term performance
Drivers of globalisation and international strategies Evaluate opportunities to deploy favourable global
strategies
The innovation - entrepreneurship framework and the Evaluate the value added activities of the organisation’s
contributions of supply chain supply chains and take actions to increase value
Methods of pursuing strategies such as: Critically assess the developments in strategies adopted
• Organic development by suppliers and advise senior managers on strategy
• Strategic alliances options
• Mergers and acquisitions
• Offshoring/onshoring
• Outsourcing/in-sourcing
• Make vs Buy analysis
The protection of intellectual property in the supply chain Advise colleagues, suppliers and other stakeholders
on issues affecting the supply chain relating to the
development and retention of intellectual property rights
The impact of mergers and acquisitions on supply chains Evaluate the effect of mergers and acquisitions on the
organisation and its supply chains and develop plans to
maximise benefits and minimise disruption
The use of business continuity planning to assess Assess suppliers' business continuity plans to mitigate the
financial impact and other risks to mitigate supply chain financial impact and other risks that might be caused by
interruption disruption to the organisation's supply chains
www.cips.org
Segment 2.8 • Finance in the Organisation and its Supply Chain
Sources of short term and long term finance Critically assess the financing options used by the
organisation and its supply chain and suggest actions to
mitigate financial risks
The analysis and interpretation of financial statements Monitor the impact of the supply chain on the financial
stability of the organisation and mitigate financial risks
The management of working capital Critically assess the impact of the supply chain on the
organisation’s working capital and liaise with senior
managers to work to ensure financial liquidity to mitigate
financial risks
The use of spot, forward and derivative instruments in Evaluate and implement the use of appropriate
foreign exchange for managing the volatility of currencies instruments to manage the volatility of commodities
and commodities in supply chains and currencies in supply chains
The sources of finance and the cost of capital and capital Monitor the impact of the sources of finance and the cost
structure of an organisation of capital on the supply chain, taking decisions that will
support the organisation's cash flow objectives
Dividend policies and shareholder value Assess the impact of dividends and shareholder value on
the financial performance of key suppliers or customers
Mergers, takeovers and the valuation of shares Advise senior managers on the impact of mergers or
takeovers on the supply chain and on the organisation
The implications of company location on corporate Advise senior managers on the impact of company
taxation location on corporate taxation and how this affects the
organisation or its supply chains
Analysis of funding options such as equity, joint ventures, Develop or contribute to business cases and advise senior
seed funding and outright acquisition management on supply chain investment decisions to
secure supplier innovation/intellectual property/delivery
capacity
The use of open book costing and adjustments Create policies and processes to understand cost through
the use of open book costing, making adjustments for
relevant categories of supply
The impact of procurement and supply operations on the Advise appropriate stakeholders on the implications
organisation's cash position and working capital of the organisation's cash position and working capital
through procurement and supply operations
27
Theme 3: Technology in Procurement and Supply
This theme enables personnel working in procurement and supply to develop their capabilities in
the use of systems, to identify opportunities for the development of systems technology to improve
procurement and supply chain management. The impact of internet based technologies and the use
of data base information technology systems is key to the ability of the organisation to manage its
expenditures on goods and services.

Segment 3.1 • Understanding Systems for Procurement and Supply
How to use systems technology and databases for Input data into systems to perform key tasks linked to
ordering and how this contributes to procurement and placing orders and other transactions in procurement
supply and supply
The importance of capturing data on expenditure and Identify, input and update into systems for controlling
keeping systems up to date the procurement of goods and services, and inform
colleagues and/or internal stakeholders when more data
is required
How to provide accurate data and why demand Ensure systems are updated with accurate data to meet
management is important in procurement and supply organisational information needs, while following organi-
sational processes and procedures
The use of the internet, intranets and extranets in Promote the use of the internet, intranet or extranet
effective procurement and supply management systems for performing tasks that relate to effective
procurement and supply management
How to use the internet to locate details about suppliers Use the internet to investigate information about suppli-
and customers and how this helps processes in ers, customers or other stakeholders
eSourcing and eTendering systems used in procurement Promote the use of E-sourcing or E-tendering systems
and supply to: to internal stakeholders to perform key tasks in
• Promote contract opportunities procurement and supply
• Pre-qualify suppliers
• Receive and evaluate quotations and tenders
The use of Purchase to Pay (P2P) systems including Use and explain to internal stakeholders Purchase to Pay
eRequisitioning, eCatalogues, eOrdering and (P2P) systems to perform key processes in procurement
eInvoicing, and their contribution to processes in and supply
The use of mobile technologies, video conferencing and Use, promote and advise on the use of mobile technol-
collaboration tools to communicate with stakeholders ogies, video conferencing and collaboration tools for
communication with stakeholders
www.cips.org
Segment 3.2 • Using Systems for Procurement and Supply
The use of systems, video conferencing and collaboration Work to ensure systems, video conferencing
tools that enhance internal and external communications and collaboration tools for internal and external
with stakeholders for procurement and supply communications in procurement and supply are used
and promoted
The use of Purchase to Pay (P2P) systems in procurement Operate and promote the use of P2P systems for key
and supply such as: processes in procurement and supply
• eRequisitioning
• eCatalogues
• eOrdering
• eInvoicing
The use and development of eMarket places Make use of and promote to stakeholders the benefits for
the organisation of relevant eMarket places and Trading
Exchanges
eSourcing and eTendering portals in Provide guidance to stakeholders and promote the use of
procurement and supply use of eSourcing or eTendering software in procurement
and supply
The use of eAuctions in sourcing processes Identify opportunities for the use of eAuctions and
organise eAuctions for relevant procurement activity
The use of systems for the control of inventory Operate and promote the use of systems for inventory
control
The use of enterprise resource management (ERP) or Guide colleagues and other stakeholders and promote
other systems for procurement and supply activities the use of ERP or other systems for procurement and
supply activities
29
Segment 3.3 • Developing Systems for Procurement and Supply
The use of ERP and other procurement systems and data Evaluate the capabilities of ERP and other procurement
bases for procurement and supply activities systems and databases for procurement and supply
activities, and make recommendations to senior
managers on the development and implementation of
systems
Development of P2P systems used in procurement and Investigate the use of P2P systems used in procurement
supply including: and supply and make recommendations to senior
• eRequisitioning managers on their development and implementation
• eOrdering
• eInvoicing
The development of eCatalogues in procurement and Investigate and make recommendations to senior
supply and how these can enhance key procurement and managers on the development of eCatalogues that can
supply processes be applied to procurement and supply
The development of eMarket places in the supply chain Explore opportunities for the use of eMarketplaces to
improve access to supplies and to improve outcomes for
the organisation
The use of data analytics in relation to supply chains to Work with key stakeholders, suppliers and customers
assist with planning, forecasting, decision making and to create data and reporting that improves spend
control transparency and supports informed decision making.
Be able to resolve issues where the data gathered is not
sufficient
The application of data integrity for effective procurement Examine the standards of data integrity in the use of
and supply decisions procurement and supply database systems and make
recommendations for improvements to colleagues and
other stakeholders
The use of integration tools in systems technology in Explore improvements that can be made to integrate
procurement and supply both internal systems and systems across supply
chains through data integration technology and make
recommendations to colleagues and other stakeholders
Developments such as: Assess developments in technology and make recom-

• Cloud computing mendations to colleagues and other stakeholders for
• Open-source software technologies that will improve procurement and supply
• Mobile telecommunications
• Remote working
• Video conferencing and collaboration tools
• Blockchain technology
• Convergence of technology platforms
The use of business continuity planning to mitigate supply Assess suppliers’ business continuity plans to mitigate
chain interruption disruption to the organisation’s supply chains
www.cips.org
Segment 3.4 • Develop the Use of Technology for Effective Procurement and Supply Chain Management
The use of systems to enable the organisation to better Identify opportunities for the development of systems
control of expenditure with suppliers to enable the organisation to better control expenditure
with suppliers
How to develop and implement projects to improve Create and implement projects to systems that enhance
systems capabilities for the organisation capabilities in procurement and supply
Ways of improving data analytics and data capture to Investigate opportunities to improve data analytics
achieve effective procurement and supply and data capture to clearly define and add value
in procurement and supply, making appropriate
recommendations to senior managers and other
stakeholders
How to improve systems integration within the Identify opportunities for systems integration within the
organisation or a merged/acquired organisation organisation to improve procurement and supply, making
appropriate recommendations to senior managers and
other stakeholders
How to improve systems integration with the Investigate opportunities to improve data analytics
organisation's supply chains and data capture to clearly define and add value
in procurement and supply, making appropriate
recommendations to senior managers and other
stakeholders
31
Segment 3.5 • Improving Systems Capabilities for Supply Chain Management
The use of bespoke systems and commercial off-the-shelf Critically evaluate opportunities for the development
systems (COTS) and workflows to enable organisations to of systems or procurement of commercial off-the-shelf
improve control of expenditure with suppliers systems (COTS) to enable organisations to improve
control of expenditure with suppliers
The use of database systems, data centres and data Investigate opportunities for the development of
warehousing for procurement and supply chain database systems, data centres and data warehousing
management used in procurement and supply chain management
and make recommendations to colleagues and
stakeholders
The development of big data analytics to assist decision Assess opportunities to develop and make use of big data
making analytics to improve supply chain planning, forecasting
and control
Contemporary enterprise resource planning (ERP) and Critically evaluate the capabilities and application
other procurement systems and business transformation of enterprise resource planning (ERP) and other
projects, and their impact on procurement and supply procurement systems, databases and business
chain management and the wider organisation transformation projects for procurement and supply
chain activities, and make recommendations to
senior managers on their selection, development and
implementation
The impact of P2P (Purchase to Pay) systems used in Maximise the use of P2P (Purchase to Pay) systems and
procurement and supply chain management make recommendations to senior managers on the
development and use of touchless transactions
Developments in systems technologies such as: Critically assess improvements that can be made to
• Intranets and extranets integrate both internal technologies and systems across
• Data centre management supply chains through data integration and make
• Cloud computing recommendations to colleagues and other stakeholders
• Open source software
• Convergence of technology platforms
• Mobile communications
• Remote working
• Video conferencing and collaboration tools
• Artificial intelligence (AI)
The use of integration tools and blockchain technology to Critically assess improvements that can be made to
improve supply chain management integrate both internal systems and systems across
supply chains through data integration or blockchain
technology and make recommendations to colleagues
and other stakeholders
The development of business continuity plans to mitigate Work with key stakeholders to assess the business
interruptions in the supply chain continuity plans created by key suppliers and provide
advice on potential improvements that can be made
www.cips.org
Segment 3.6 • Improving Data Integrity in Supply Chains
Data integrity in procurement and supply chain Evaluate improvements that can be made to data
management integrity for procurement and supply chain activities
and make recommendations to colleagues and other
stakeholders
The standards and storage of data and sources of Advise colleagues, suppliers and associated stakeholders
intellectual property on the standards, storage and passing of data affecting
the supply chain
The use of information assurance and information risk Advise colleagues, suppliers and other affected
management policies to protect the privacy of data for stakeholders on issues relating to the confidentiality
individuals, the organisation and the supply chain of data
Legal aspects relating to the protection of data such as: Advise colleagues, suppliers and associated stakeholders
• Data protection on legal aspects relating to the protection of sensitive
• Responsible data handling data affecting the supply chain
• Cyber security
Data disruption, the use of data resilience strategies and Assess and evaluate implications of data disruption on
disruption tolerant networks the organisation and the supply chain and develop plans
and processes to mitigate data disruption
The use of cyber security to protect the confidentiality, Work with key stakeholders to ensure robust cyber
integrity and availability of data with external security plans and processes are created and followed
organisations and individuals
33
Pillar: Process Standards
Theme 4: Spend Management in Procurement and Supply
The spend management theme helps personnel with roles in procurement and supply to develop
their capabilities in achieving value outcomes with the supply chain. All personnel associated with
procurement and supply can make positive contributions to the success of the organisation through
effective purchasing, effective inventory control, controlling expenditure and the use of strategic
procurement and supply techniques, including category management and strategic sourcing.

Segment 4.1 • Effective Purchasing Practice
The typical proportions of organisational costs accounted Explain the importance of procurements of goods and
for by procurements of goods and services services to the organisation
Different types of procurements such as: Explain the mix of direct and indirect supplies that
• Capital and revenue purchases are procured by the organisation. Advise internal
• Products, services and constructional works stakeholders about different types of procurement that
• Direct and indirect the organisation will typically contract
• Outsourcing and insourcing
The five rights of purchasing and definitions of value: Apply the five rights of procurement and value criteria to
• Price/total cost any purchase of goods or services
• Quality
• Time
• Quantity
• Place
Whole-life asset management criteria, including purchase Explain how the procurement of goods or services can be
price, servicing, repairs, consumables, disposal and other evaluated on the basis of whole-life asset management
end-of-life costs
The roles of procurement and supply professionals in Explain the importance of spending the organisation's
securing value with suppliers money with suppliers to achieve best value outcomes
The roles of staff with devolved responsibilities for the Identify staff with devolved responsibilities for the
procurement of goods and services procurement of goods and services and explain how they
can create orders and agreements with external suppliers
The main pricing methods used for the procurement of Explain the advantages and disadvantages of a range of
goods or services, including: pricing methods and apply these in the procurement of
• Fixed pricing, lump sum pricing and schedule of rates goods and services
• Cost-reimbursable and cost-plus arrangements
• Variable pricing
• Target pricing
• Risk and reward pricing
Data that relates to the pricing of goods or services Calculate basic financial analysis of costs and prices and
procured by the organisation, including: use this data to negotiate with suppliers
• Price changes compared to historic figures
• Margins and mark ups
• Whole-life asset management
• Open-book costing/accounting
For more details on Negotiation see Segment 6.6 and Theme 10 Developing Self and Personal Skills
www.cips.org
Segment 4.2 • Effective Inventory Control
The classifications of different types of inventory, such Explain to colleagues and other internal stakeholders
as: the classifications of inventories supplied by the
• Opening stock, work in progress and finished goods organisation
• Safety stocks
• ABC classifications of stock that may apply
• Dependent demand and independent demand of
items of stock
The direct and indirect costs of holding inventories Explain the direct costs and the indirect costs associated
with holding inventories. Take actions to reduce costs
while mitigating any negative impact on service levels
The main techniques associated with managing Compare inventory management techniques and use
inventories, including: appropriate techniques to manage inventories
• Reorder quantities
• Reorder levels
• MRP and MRPII
• Just-in-time
The use of bar coding in inventory operations Use bar coding to select and control the range of stock
items held by the organisation
The use of materials planning to manage inventories Carry out the effective and efficient planning and control
of inventories, such as by receiving, issuing, scheduling,
standardising and inspecting inventories
35
Segment 4.3 • Effective Logistics Control
The principles of stores and warehousing facilities such Explain how stores and warehouses can be designed to
as: ensure the efficiency and effectiveness of the locations of
• The effective and efficient flows of inventory inventories, inventory flow and space utilisation
• Reduction of life-cycle costs
• Space optimisation
Key aspects associated with the storage of inventories Explain the use of materials handling equipment and
palletisation and unit loads, packing and packaging, and
automation in warehouse management
The main modes of transportation in logistics Identify the strengths and weaknesses associated with
• Road the main modes of freight transportation
• Rail
• Air
• Sea
The documentation used in transportation of supplies, Check that documents used in the transportation of
such as: supplies are completed and authorised correctly
• The single administrative document
• Packing list, waybill, consignment and shipping notes,
bill of lading
• Certificate of origin
• Import/export licences, safety certificate, insurance
certificate
• Letters of credit and other financial documentation
The main types of Incoterms in international logistics E, Provide advice to stakeholders on the use of the
F, C and D terms different classifications of Incoterms in international
logistics
Legislation and regulations on supplies from Ensure compliance with legislation and regulations for
international sources supplies from international sources
www.cips.org
Segment 4.4 • Controlling Expenditures on Goods and Services
The typical breakdown of organisational costs Collate data and estimate the breakdown of
represented by goods, services or works organisational costs represented by goods, services or
works
The causes or triggers of expenditure with suppliers Evaluate opportunities to avoid expenditure with
suppliers
The sources of value that can be achieved through Advise colleagues and other internal stakeholders on
effective procurement and supply including: the main sources of value that can be achieved through
• Competitive pricing effective procurement and supply activities
• Reduced total costs of ownership
• Improved quality
• Delivery performance and time to market
• Reduced stockholding
• Quantities of resources
• Matching supply with demand
• Innovation
• Sustainable procurement
The use of the content of business cases to justify Develop and effectively present business cases to justify
expenditure on supplies, services or projects, including: expenditure. Advise colleagues and other stakeholders
• Costs of the contents and outcomes of business cases
• Benefits
• Options
• Alignment with organisational needs
• Timescales
The creation of financial budgets for the control of Estimate the costs and prices of procurement that may
procurement be required to complete the financial budgets operated
by colleagues or other internal stakeholders
The operation of financial budgets for the control of Advise internal stakeholders on the operation of
procurement financial budgets and assess the causes of variances
compared with planned expenditure related to the
procurement of goods or services
The main types of pricing arrangements in commercial Monitor pricing arrangements in commercial
agreements including: agreements to ensure effective price and cost
• Pricing schedules management
• Fixed pricing arrangements
• Cost plus and cost reimbursable pricing
arrangements
• Indexation and price adjustment formulae
• Incentivised gain share pricing
• Payment terms
• The use of open book costing and adjustments
For more details on Contracts, see Theme 5, Contracting
37
Segment 4.5 • Category Management
The main categories of expenditure that will be Develop hierarchies of categories for both direct and
subjected to category management activities indirect expenditure that can be subjected to category
management and strategic procurement activities
The main models for the adoption of category Evaluate and apply an appropriate methodology to
management improve category management by standardising
processes and systems across the organisation
Data typically analysed to develop a category plan Evaluate historical and forecasted data related to
categories of spend to help formulate options and make
recommendations to achieve the best value outcomes
The development of a sourcing plan for the category Create a category management plan that uses 'lots' or
methods to divide the category into a range of contracts
to be awarded. Manage internal stakeholders to secure
support for the approach
Tools and techniques that are typically applied to map Evaluate and provide advice to stakeholders about
categories of direct and indirect expenditures, such as: categories of direct and indirect expenditure
• Matrices for portfolio analysis and supplier
preferencing
• Supply chain mapping
• Porter's five forces model
• Market share / market growth
• STEEPLED and SWOT
• Technology route maps
Market factors that are typically assessed in the Develop a category management plan by analysing
development of a category management plan, including: market factors
• Industry dynamics
• Competitiveness
• Pricing behaviour
The soft and technical skills required for the Demonstrate effective use of soft and technical skills
implementation of a category management across the organisation, and with suppliers and other
methodology stakeholders, to achieve effective category management
Soft skills:
• Communication with stakeholders and suppliers
• Influencing skills
• Team working and cross-functional working
• Acting as a change agent
Technical skills:
• Financial management and cost analysis
• Supply chain analysis
• Supply base research
• Sourcing processes
• Risk management
• Negotiation
For more details on Sourcing, see Theme 6 Sourcing
www.cips.org
Segment 4.6 • Improving the Roles of Procurement and Supply within the Organisation
The contribution of supply chain management to Engage with colleagues and other internal stakeholders
elements of corporate and business strategy, such as: to promote the organisation's commitment to achieving
• Cost competitiveness effective supply chain management, emphasising the
• Improved quality and reliability contributions of supply chain management to corporate
• Product and service differentiation and business strategy
• Time to market
• Other order-winning criteria
The use of cost modelling Create dynamic cost models that can be used to assess
costs and margins, as well as competitive behaviour, in
the supply chain to protect the organisation's position
The use of techniques to create networked supply Lead the analysis and implementation of techniques to
chains to improve supply chain management such as: create networked supply chains
• Value stream mapping
• Network sourcing
• Network optimisation modelling
• Exploiting supplier innovation
The role of distribution systems in supply chain Improve the effectiveness and efficiency of the
management organisation’s distribution systems
The creation of lean and agile supply chains Lead the implementation of methodologies to achieve
lean and agile supply chains
Approaches to develop and implement industry-level Identify opportunities to develop collaborative

collaboration to achieve supply chain management relationships with the organisation’s supply chain and
optimisation lead stakeholders in their implementation
For more details on Supply Chain Management see Segments 7.6, 7.7 in Theme 7 Delivering Outcomes
39
Segment 4.7 • Developing Operational Expertise in Procurement
The sources of organisational competitive advantage Develop approaches to ensure that the procurement
such as: and supply function supports the achievement of the
• Low cost organisation's sources of competitive advantage
• Sources of differential advantage
• Product/service range
• Brand image
• Customer care
• Other order-winning criteria
The use of, and differences between, collaborative and Develop appropriate strategies and plans for the
competitive strategies to improve supply chains adoption of collaborative or competitive strategies
and promote their use to internal and external
stakeholders
The implications of ISO 11000 Collaborative business Develop and instigate approaches with stakeholders
relationship management systems standard and to support collaborative business relationships using
other frameworks that develop partnering and appropriate standards and frameworks
collaborative approaches to supplier relationship
management
Approaches to demand forecasting and balancing Create plans to improve demand forecasting to
demand with supply balance demand with supply
The use of technology transfer Take actions to develop and implement technology
transfer with suppliers
Making decisions on capital investment Contribute to investment appraisal and decisions

undertaken by internal stakeholders so that total costs
of ownership can be minimised and decisions that add
the most value can be made
Technologies for communicating across the Assess and implement the use of technologies to
organisation and with the supply chain improve communication across the organisation and
with the supply chain
For more details on Systems and Technology, see Theme 3 Technology
www.cips.org
Segment 4.8 • Developing Organisational Expertise in Category Management
The main models for the adoption of category Evaluate and apply an appropriate methodology by
management and procurement using contemporary techniques to improve category
management and sourcing
Segmentation of procurement spend and the use of Guide colleagues and other internal stakeholders to
techniques to profile expenditure understand the dynamics of the supply chain, and
recommend appropriate category management
strategies
Category team selection and methods of stakeholder Encourage collaboration between procurement/supply
engagement chain personnel with stakeholders to develop effective
category plans
The development of business cases, acquisition and Actively lead the development and promotion
category management strategies of effective business cases, and acquisition and
category strategies with stakeholders that align to
organisational objectives
Approaches to supply market research, early supplier Promote an understanding of the consequences of
engagement and pre-contract dialogue sourcing decisions on suppliers and supply markets, to
create a culture of innovative sourcing solutions
The implementation of category plans Analyse and respond to stakeholder feedback, and
implement appropriate category plans to standardise
processes and systems for the organisation
Strategic supplier relationship management Develop and maintain the use of structured
approaches to supplier relationship management
supported by colleagues and other internal
stakeholders
Approaches to category cost driver analysis Apply cost driver analysis across key categories of
spend to support the assessment of costs and value
creation
For more details on Sourcing, see Theme 6 Sourcing
41
Theme 5: Contracting in Procurement and Supply
The contracting theme enables personnel involved in procurement and supply to create robust
contractual arrangements with the organisation’s supply chain to ensure positive outcomes in
cost, time and quality. The theme includes specifying goods and services, developing contracts,
understanding the legal aspects for contracting goods and services, managing contractual risks and
contracting for major programs and projects.

Segment 5.1 • Contract Administration
The main types of contracts and agreements including: Contribute to the preparation of the main types of
• The use of spot purchases contracts and agreements
• Term contracts
• Framework agreements (or blanket orders/panel
agreements)
• Call offs
The documents that compose a contract for the Identify and explain to stakeholders the
procurement or supply of goods or services, including: documentation that comprises a typical contract
• The specification
• The key performance indicators (KPIs)
• The contract terms
• The pricing schedule
• Other schedules (e.g. for health and safety, use of
sub- contractors, non disclosure/confidentiality
agreements)
The stages involved in forming contracts for purchased Identify and explain to colleagues and other internal
goods or services stakeholders the key stages involved in forming
• Requests for quotations/information/tender contracts for goods and services
enquiries
• Quotations/tenders received
• Orders/acceptance of tenders
• Delivery notes/acknowledgements
• Invoicing and payment
The details that should be included in contractual Review draft contracts to ensure that contract
documents documents are detailed and accurate
Key tasks associated with contract administration to Deal with any queries raised by internal staff and
ensure the completion of contract documentation suppliers related to the completion of contract
documentation
The impact of stage payments and cash flows in the Recognise the importance of cash flows and stage
performance of contracts payments made in contracts with suppliers
The use of contract registers and other sources of data Publicise and promote the use of contract registers
on contracts let with suppliers with internal stakeholders
www.cips.org
Segment 5.2 • Developing Contracts with Suppliers
The main types of contracts and agreements including: Develop appropriate agreements with internal
• The use of spot purchases stakeholders that consider their short- and long-term
• Term contracts implications
• Framework agreements (or blanket orders/panel
agreements)
• Call offs
The documentation that is used to create commercial Contribute to the completion of documentation used
agreements for the supply of goods or services. How to form commercial agreements
to complete contract documentation, including:
• The specification
• Key performance indicators (KPIs)
• Contract terms
• Pricing schedule
• Other schedules (such as for health and safety, use
of sub-contractors, non-disclosure/confidentiality
agreements)
The sources of express terms that can be used to Select appropriate contract terms for the supply of
regulate contracts made for the supply of goods or goods or services, and provide advice about these to
services, including: colleagues and other internal stakeholders
• The use of standard or specialised terms of
procurement
• Model form contracts
• Bespoke contracts
The legal issues that relate to the creation of Review processes and procedures for creating
commercial agreements with customers or suppliers, contracts to ensure that all legal requirements are
including offers, counter offers and acceptance complied with and recommend any changes required
Core clauses in commercial agreements with Interpret the core clauses of commercial agreements
customers or suppliers, including: with customers or suppliers and provide advice to
• Indemnities and liabilities colleagues and other internal stakeholders on them
• Sub-contracting and assignment
• Insurances
• Guarantees
• Liquidated damages
• Payment
• Delivery and completion
Key provisions of legislation that relate to contracts for Ensure contracts for the supply of goods and services
the supply of goods and services including: comply with relevant legislation
• Quality
• Delivery
• Payment
• Passing of property
• Compensation
The importance of debriefing unsuccessful suppliers Ensure that approvals and debriefings are used
and of implementing transition arrangements to appropriately to inform future contract letting
commence contracts processes
43
Segment 5.3 • Specifying Goods and Services
Types of specifications used in the procurement Develop appropriate specifications for the
of goods or services, such as drawings, samples, procurement of goods or services
branded, technical, conformance, output- or outcome-
based specifications
Sources of information that can be used to create Research appropriate sources of information for the
specifications, such as published standards, the development of specifications for the short and longer
internet, suppliers and directories term
The typical sections of a specification such as scope, Develop and complete all required documentation for
definitions, descriptions of requirements, testing and the specification of through-life contracts
acceptance, change control mechanisms and remedies
The impact of specifications on the organisations’ cash Ensure that the design and performance of
input costs specifications avoids unnecessary costs for both the
organisation and suppliers
The risks that can result from inadequate Monitor the creation of specifications by colleagues
specifications, particularly from under or over and other internal stakeholders and work to ensure
specifying needs that risks are mitigated
The use of standardisation, value analysis and value Identify opportunities to regulate specifications both
engineering programmes to regulate specifications in the short and longer terms by the implementation
of standardisation, value analysis or value engineering
programmes and provide guidance to internal
stakeholders on their implementation
The use of social and environmental criteria in Research appropriate sources of information for the
specifications development of specifications that incorporate social,
environmental and sustainable procurement criteria
For more details of Ethical Sourcing, see Theme 11 Ethics
www.cips.org
Segment 5.4 • Legal Aspects of Procurement and Supply
The impact of legal agreements on the relationships Monitor and evaluate developments in legal
between different parties in a supply chain, including: aspects that affect sourcing decisions, explaining
• Principal and agency the implications to colleagues and other internal
• Assignment and sub-contracting stakeholders
• Novation
• Confidentiality and non-disclosure agreements
• Duress and undue influence
• Negligence
The use of express contract terms Provide advice to colleagues, suppliers and other
stakeholders on the interpretation of legislation
(such as the Uniform Commercial Code and the UN
Convention on Contracts for the International Sale
of Goods) and case law, recognising when to involve
other professionals for guidance
Legislation and case law that regulate contracts Provide advice on the interpretation of legislation
(such as the Uniform Commercial Code) and case
law to colleagues, suppliers and other stakeholders
recognising when to involve other professionals for
guidance
The implications of intellectual property rights (IPR) on Analyse and explain to colleagues and other internal
procurement and supply stakeholders the implications of Intellectual Property
Rights including licensing, royalties and non-disclosure
agreements with the supply chain
The main employment regulations that impact on Interpret and provide advice to colleagues and other
procurement and supply, such as those concerning: internal stakeholders on the main employment
• Transfer of Undertakings and (Protection of regulations that impact on procurement and supply
Employment) Regulations
• Redundancy and dismissal
• Discrimination in the workplace
• Restraint on trade
• International labour organisation and UN standards
relating to business and human rights
• Minimum/living wage
Competition law that impacts on procurement and Analyse and explain to colleagues and other internal
supply stakeholders the impact of competition law on the
organisation’s supply chains
Regulations that cover bribery and corruption Set standards for dealing with suppliers to ensure that
regulations relating to bribery and corruption are
upheld. To report any breaches of regulations to
senior management or responsible authorities
Insurance provision in contracts, such as: Provide advice to stakeholders on insurance provision
• Public liability
• Employers
• Professional indemnity
• Product liability
• Credit
• Cyber security and data protection
• Import/Export
• Travel
For more details on Bribery and Corruption, see Theme 11 Ethics
45
Segment 5.5 • Managing Contractual Risks
Legal issues relating to the formation of contracts with Analyse the legal and commercial implications relating
customers or suppliers such as: to the formation of contracts and explain these to
• Offers colleagues and other internal stakeholders
• Counter offers
• Acceptance
• Precedence of documents
The main express terms that are commonly applied in Interpret and revise key contract terms included in
contracts for the supply of goods or services such as: contracts
• Indemnities and liabilities
• Sub-contracting and assignment
• Insurances
• Guarantees
• Liquidated damages
• Payment
• Delivery and completion
The main remedies for the default or breach of Review contracts and recommend appropriate
contract action to be taken in the event of default or breach
of contract, including sub-contracting work without
agreement
The main provisions that cover variations, claims or Evaluate and recommend appropriate action to be
compensation events taken to resolve variations, claims or compensation
events
The main methods for dispute resolution including Evaluate and recommend appropriate methods to
negotiation, alternative dispute resolution through resolve disputes. Take action to resolve disputes
mediation, conciliation and expert determination,
adjudication, arbitration and litigation
Flow-down arrangements in supply chains that affect Apply relevant flow-down requirements in the supply
contracts chain
The use of key milestones in contract management Establish and review key milestones and implement
and project risk management appropriate risk management actions
The impact of supply chain risk on organisation Develop and manage approaches to mitigate
reputation the impact of supply chain risk on organisational
reputation, escalating significant issues as appropriate
For more details on Risk see Segment 6.10 in Theme 6 Sourcing, and Segment 8.4 in Theme 8 Metrics and
Measurement
www.cips.org
Segment 5.6 • Contracting for Major Programs and Projects
The development and implementation of contracts Advise and lead on the development and
implementation of contracts
The use and application of a range of contracting Evaluate the range of contracting options for major
options for major programmes, projects and complex programmes, projects or complex procurement
procurement activity activity, including the situations when each should be
used, taking account the full scope of the project and
the project outcomes
The use of standard model form contracts for Evaluate the range of standard model form contracts
procurement activity that are available for major programmes and projects.
Select the most appropriate for the programme or
project
The development of business cases, specifications, Create contracting plans with stakeholders that
contract terms and lotting strategies develop effective business cases, specifications,
contract terms and lotting strategies
Key clauses included in contract forms for major Interpret the key clauses included in contract forms for
programmes and projects major programmes and projects to provide advice to
colleagues and other stakeholders
The use of optional clauses and schedules Evaluate and make any necessary revisions to optional
clauses and schedules included in contract forms for
major programmes and projects
The use of pricing mechanisms for major programmes Evaluate the range of pricing arrangements available
and projects, such as: for major programmes or projects and recommend
• Fixed lump sum the most appropriate mechanism for the specified
• Activity schedule project, ensuring that the flows of money in the
• Bills of quantity performance of contracts are equitable
• Target costing methods
• Risk and reward pricing mechanisms
• Cost reimbursable
The use of partnering relationships in procurement Encourage stakeholders to form effective on-going
and supply relationships with their supply chains
The use of early warning notices and risk reduction Work to ensure suppliers perform contractual duties,
meetings in projects and programme management and encourage good practice in the management of
projects and programmes to avoid escalating costs
and delays
Mechanisms for managing risks with suppliers in Create risk registers and other mechanisms for
programmes and projects managing risks in programmes and projects, and
recommend arrangements for the sharing of risk with
the organisation's supply chain to minimise disruption
and costs
Timescales and approvals for contracts Streamline contracting processes that maximise
efficiency and effectiveness
47
Segment 5.7 • Leading Improvements in Contracting Practice
The impact of undertaking major programmes and Engage in forums, seminars and other events that
projects on supply chain relationships promote best practice in programme and project
management across supply chains
The use of project partnering and strategic partnering Encourage and lead the appropriate use of project
relationships in projects and programme management partnering and strategic partnering
The development and use of model form contracts in Participate in consultation activities and other events
the contracting environment to improve model form contracts and industry practice
Benchmarking of programmes and projects Liaise with organisations that have led innovative
programmes and projects and share best practice with
the organisation’s stakeholders
The risk appetite of the organisation, risk analysis and Encourage the adoption and use of standards that
impact of risks on the reputation and performance of identify, manage and mitigate risks in the supply chain
organisations
The use of financial levers such as payment Make effective use of payment and risk/reward
scheduling, gain share/risk and reward contracting sharing contracting approaches to minimise risk,
motivate performance, drive innovation and maximise
cash flow
Regulations that impact on sectors and organisations Provide advice to colleagues and stakeholders about
relevant regulations and compliance issues that affect
contracts within the supply chain
The principles, tools, processes and best practices in Make effective use of robust contract management
management of contracts and supplier performance disciplines, key performance indicators and service
level agreements to mitigate risk and ensure high
quality contract outcomes
The forms of dispute resolution such as litigation, Lead dispute resolution, transition arrangements
arbitration, alternative dispute resolution including and exit strategies with appointed contractors and
adjudication, mediation, conciliation and expert suppliers
determination and negotiation
The use of contract registers and the evaluation of the Promote the understanding of existing contracts and
associated data and information the relevance of key information contained within
them to internal stakeholders
For more details of Strategic Leadership, see Segments 10.4 and 10.5 in Theme 10 Developing Self and Personal Skills
www.cips.org
Theme 6: Sourcing in Procurement and Supply
The sourcing theme focuses on fundamental aspects of procurement and supply. The theme
enables personnel with roles in procurement and supply to formulate selection criteria and sourcing
strategies so that the organisation will achieve the appropriate choice of supplier for bought out
goods, services or works.

Segment 6.1 • The Stages of a Sourcing Process
The importance of reviewing and clarifying Liaise with internal stakeholders to review and clarify
requirements with internal stakeholders requirements to ensure that value is generated
through the sourcing of goods or services
The creation of requests for information or requests Ensure that all required details are included in re-
for quotations, including: quests for information, quotations or other documents
• Pricing used in the sourcing process
• Delivery timescales
• Required quality
• Required quantities
• Other site information
The analysis and comparison of quotations to assess Compare and evaluate quotations received from
opportunities for value generation when creating potential suppliers and deal with any queries or
purchase orders concerns about completed documentation
Order placement and contract award Make recommendations and obtain approvals within
delegated levels of authority for the award of contracts
Performance and delivery aspects of the sourcing Ensure that deliveries and commencement of work are
process in line with documented requirements
For more details on the Roles of Procurement and Supply see Theme 1 Position and Influence
49
Segment 6.2 • Effective Tendering
The development of invitations to tender comprising of Compile timely and accurate invitations to tender taking
specifications, applicable key performance indicators, into account the requirements of stakeholders
contract terms, pricing schedule and other schedules
Approaches to supply market research/early supplier Carry out and record discussions with suppliers and
engagement/pre-contract dialogue markets in appropriate circumstances to develop
improved commercial and technical solutions
The use of prequalification questionnaires Develop and transmit prequalification questionnaires

to potential suppliers and check the details included in
completed returns
Prequalification of suppliers using eRegistration or Review potential suppliers completing the prequalification
eTendering systems process. Make recommendations for participation in the
tendering process
The submission of tenders Check the details that have been included in tenders
completed by potential suppliers and refer any
discrepancies to colleagues or suppliers
Tender evaluation activities based on defined evaluation Assess tender proposals against defined evaluation
or award criteria criteria. Make recommendations for the tender award
based on outcomes of the assessment
The importance of communicating the acceptance of Complete tender award documentation notifying
submitted tenders to suppliers unsuccessful and successful suppliers
Regulations that impact tendering activities Advise on regulations that affect the tendering process
www.cips.org
Segment 6.3 • Effective Communication in Procurement and Supply
The importance of effective written correspondence to Create written correspondence in the form of letters,
colleagues, suppliers and other stakeholders emails, memoranda and reports
The use of mobile technologies, video conferencing and Use, promote and advise on mobile technologies, video
collaboration tools to communicate with stakeholders conferencing and collaboration tools for communicating
with stakeholders
How to prepare documents for the sourcing process, Complete electronic files and documents used in the
including: sourcing process
• Requests for information or quotations or invitations
to tender
• Lotting of requirements
• Tender evaluation documents
• Award documents
The importance of building rapport with internal Develop, maintain and improve relationships with
stakeholders internal stakeholders to promote effective procurement
and supply
The importance of building relationships with suppliers Develop, maintain and improve relationships with
and customers suppliers and customers to promote effective
The importance of negotiating with suppliers and Negotiate with suppliers and customers so that secure
customers agreements are in the interest of all parties
The importance of elements of the communication cycle Ensure that all communications with stakeholders and
suppliers are planned, appropriate, prompt and timely
For more details on Systems and Technologies, see Theme 3 Technology
51
Segment 6.4 • Sourcing Processes and Systems in Procurement and Supply
The impact of the organisation's procedures and Ensure compliance with organisational procedures and
regulations on the sourcing process, including: regulations relating to the sourcing processes
Use of portfolio analysis and supplier preferencing in the Apply matrices to manage suppliers and relationships
sourcing process
The development of sourcing options such as single, dual Recommend suitable sourcing approaches, including
and multiple sourcing arrangements the adoption of single, dual or multiple sourcing
arrangements with suppliers
The main types of contractual agreements made between Analyse the main types of contractual agreements that
customers and suppliers, including: can be made between customers and suppliers and
• One-off purchases identify the circumstances when each might be used
• Framework arrangements or agreements
• Mini competitions
• Call offs
• Services contracts
• Contracts for the hire and leasing of assets
• Outsourcing of work or services
Approaches to supply market research/early supplier Develop the information for the pre-engagement of
engagement/pre-contract dialogue as part of the overall suppliers, which could include publicising contract
sourcing process opportunities. Create feedback opportunities to capture
suppliers' innovations and include relevant innovations in
requirements
Analysis and planning involved in a sourcing process Create plans for sourcing processes, identifying the
process steps with the involvement of internal and
external stakeholders
The connection and distinction between supplier Create selection and award criteria appropriate to the
selection criteria and contract award criteria used in the procurement proposing any necessary weightings for the
sourcing process criteria
The evaluation of supplier's quotations or tenders to Evaluate submitted quotations or tenders using objective
assess criteria, such as: criteria, criteria weightings and the agreed scoring
• Total costs method
• Added value
• Technical merit
• Quality
• Innovation
• Sustainability
• Ethical sourcing
The impact of Purchase to Pay (P2P) systems on the Use the organisation’s Purchase to Pay (P2P) system and
sourcing process deal effectively with any queries raised by stakeholders to
improve the sourcing process
The impact of reverse auctions on the sourcing process Analyse the use of reverse auctions in the sourcing
process and advise suppliers and other stakeholders on
their use
The use of eMarketplaces for sourcing products and Make use of eMarketplaces and promote their use to
services stakeholders to improve leverage for the organisation
For more details on Contracts see Theme 5 Contracting
www.cips.org
Segment 6.5 • Conducting Supplier Appraisal
The use of pre-qualification criteria or processes for Evaluate the use and choice of pre-qualified suppliers,
appraising suppliers during the sourcing process pre-qualification criteria or processes for supplier
appraisal in the sourcing process taking into account
stakeholder requirements
Sources of information about suppliers, such as: Research information about suppliers using appropriate
• Financial reports sources of information to help select appropriate
• Credit rating agencies suppliers
• Social media
• Supplier websites
• Other appropriate publications and sources
The assessment of financial statements to evaluate Evaluate the financial, commercial and technical
the financial, commercial and technical capabilities of capabilities of potential suppliers
potential suppliers in the sourcing process
The assessment of the need for suitably qualified and Appraise suppliers' capabilities to provide suitably
experienced personnel, and security or safety measures qualified and experienced personnel, and security or
relevant to the procurement safety measures relevant to the procurement
The use of ratio analysis to evaluate potential suppliers Analyse key financial ratios indicating profitability,
liquidity, gearing and investment to evaluate the
suitability of potential suppliers
The use of scoring methods in the supplier appraisal Evaluate potential suppliers’ pre-qualification or pre-
process contract assessments, using criteria scoring to make
recommendations based on these assessments
The need for updating data on financial reports and Update data on financial standing and credit ratings
credit ratings during the whole life of contracts and take actions to
mitigate financial risks
53
Segment 6.6 • Effective Negotiation in Procurement and Supply
The importance of commercial negotiation in relation Negotiate with suppliers and other stakeholders to
to the sourcing process and of managing conflict with promote effective procurement in the different stages
suppliers and other stakeholders of a sourcing process, taking steps to overcome conflict
and other challenges
The types of approaches that can be pursued in Evaluate the range of approaches that can be used
commercial negotiation, such as: in commercial negotiations and use them when
• Collaborative (win/win) appropriate
• Distributive (win/lose)
• Pragmatic
• Principled styles of negotiation
The stages of a commercial negotiation, including Create plans and conduct clearly defined stages for
planning and preparation, opening, testing, proposing, commercial negotiations taking account of the need to
bargaining and agreeing be flexible in practice
Creating objectives, strategies and goals for a commercial Work with stakeholders to develop clear objectives,
negotiation strategies and goals for a commercial negotiation
The sources of power in commercial negotiations Analyse the sources of power in commercial negoti-
ations and promote the organisation's objectives to
achieve effective procurement and supply goals
Creating the right environment for a commercial Create the right environment for a commercial ne-
negotiation, including the choice of location, surroundings gotiation, using face-to-face communications, video
and timings, and conducting negotiations using video conferencing and other collaboration and communica-
conferencing and collaboration tools tion tools
Behavioural aspects of negotiation, including effective Demonstrate effective behaviours while conducting
listening, the use of persuasion methods and the use of commercial negotiations that will help to generate
tactics and influence positive outcomes for the organisation
The use of emotional intelligence in commercial Appreciate the different aspects of emotional intelligence
negotiations that can be applied to improve performance and
outcomes sought in commercial negotiations and create
development plans to improve key skills
The sources of added value to organisations that can Demonstrate and encourage best negotiation practice for
be achieved through effective negotiation, by improving delivering value
elements such as:
• Prices or total costs
• Timescales
• Quality
• Innovation
• Sustainability
• Other sources of added value
For more details on Negotiation see Theme 10 Developing Self and Personal Skills
www.cips.org
Segment 6.7 • Strategic Sourcing
The assessment of market factors in the development Evaluate market factors that influence the supply market
of a strategic sourcing or category management process to assist the development of appropriate sourcing plans
such as: that shape markets and improves commercial leverage
• Industry dynamics and pricing behaviour
• Financial data on suppliers
• Market demand and supply factors
Motivations, cost/margins and working practices of key Advise colleagues and internal stakeholders on the
suppliers implications of the motivations, cost/margins and working
practices of key suppliers
Techniques for assessing supplier performance and Undertake a strategic assessment of key suppliers using
capabilities modelling and techniques of analysis
The assessment of sourcing options for strategic Assess the sourcing options for supplies of products or
supplies of products or services, including: services establishing the capability of suppliers and the
• Make versus buy supply chain prior to commitment
• The type of contract
• The duration of contract
• Competitive/non-competitive sourcing
• Number of suppliers and lotting strategies
• The use of eSourcing
• Global sourcing/offshoring/low-cost country sourcing
or onshoring
Internal stakeholders' involvement in strategic sourcing Assemble cross functional teams and consult with
and category management internal stakeholders to agree sourcing options for any
specific category of purchase
The use of competition, direct negotiation or joint Develop and apply appropriate, objective selection
proposition improvement in strategic sourcing/ category and award criteria and use them to evaluate supplier
management proposals
The use of selection and award criteria relevant to the Develop and apply appropriate, objective selection
category of purchase and award criteria and use them to evaluate supplier
proposals
How to create presentations about category plans Develop category plans that define the approaches to be
taken to sourcing categories. Communicate these plans
to stakeholders
For more details on Category Management, see Segment 4.5 in Theme 4 Spend Management
55
Segment 6.8 • Developing Outsourcing
The use of outsourcing of work or services Evaluate the use of make-or-buy sourcing strategies,
considering core competencies, and identify the critical
success factors for the outsourcing or insourcing of work
or services
The use of outsourced procurement services and Generate opportunities for other organisations to make
consortium based services use of outsourced procurement services, or to contribute
resources for consortiums, or to buy in services from
other procurement organisations
The development of offshoring and low cost country Evaluate the development of offshoring and low cost
sourcing country sourcing applicable to the outsourcing of work or
services
Risks of outsourcing work or services, such as: Develop a risk assessment and risk mitigation plan for
• Loss of control the outsourcing of work or services taking into account
• Reputational damage feedback from stakeholders
• Increased costs
• Service performance
• Delays
How to develop the process to secure the outsourcing of Create an appropriate sourcing plan for the outsourcing
work or services of work or services and communicate it with stakeholders
Ways of taking into account ethical and sustainability in Create plans for the use of ethical and sustainable
outsourcing procurement with fair pricing and payment terms,
upholding relevant labour standards for the outsourced
work or services
For more details on Ethical Procurement, see Theme 11 Ethics
www.cips.org
Segment 6.9 • Developing Global Sourcing
The importance of creating competitive advantage, Evaluate opportunities for global and low cost country
including reduced costs, improved quality, reduced sourcing to contribute to the creation of competitive
time to market, and product and service differentiation advantage for the organisation
through global sourcing and low-cost country sourcing
How to identify value added activities and the value chain Analyse potential global supply chains to ensure that
in global sourcing by: external organisations contribute value
• Reducing costs
• Improving quality
• More reliable delivery
• Innovation
• Sustainability
How to assess supply chain risks in global sourcing, such Monitor potential risks across global sources in order
as: to develop and implement risk assessment and risk
• Country risk mitigation strategies for global sourcing, taking actions to
• STEEPLED factors exploit market opportunities
• Export and import controls and sanctions
• Bribery and corruption
• Fraud
• Counterfeiting
• Disruptive technologies
• Cyber attack
Positioning in local, regional and global supply chains Create and implement plans for the use of ethical
procurement
Sourcing decisions in supply chains and the sourcing of Develop appropriate sourcing strategies for categories of
rare earth commodities and other bottleneck items procurements including the mitigation of potential supply
chain risks
The co-ordination of commitments with different Establish plans that co-ordinate and share allocations of
suppliers to balance supply chain risks across the global expenditures across different suppliers when relevant
supply chain
The use of ethical and sustainable practices in global Create and implement plans for the use of sustainable
sourcing, including fair pricing and payment terms, and procurement
recognising relevant labour standards in global sourcing
Legal and regulatory requirements for successful Advise colleagues and internal stakeholders of changes in
international trading relationships international trading, legal requirements and regulations
Standards that apply to human rights, ethical and Monitor compliance with human rights, ethical and
sustainable sourcing, such as: sustainable practices and standards taking appropriate
• United Nations (UN) Trafficking Protocol actions in the event of any breaches
• International Labour Organisation (ILO)
57
Segment 6.10 • Evaluating and Advising on Risks in Strategic Procurement and Supply
The impacts of risks on the reputation of organisations Develop approaches to mitigate the impact of the supply
chain that could adversely affect the reputation of the
organisation and contribute to the use of risk pathways
by the organisation
The impact of supply chain disruptors and supply chain Develop approaches to mitigate supply risks and create
resilience resilience in supply chains
Sourcing decisions in supply chains and the sourcing of Develop and implement appropriate sourcing strategies
rare earth commodities and other bottleneck items for rare earth commodities and other bottleneck items
The use of risk assessments and approaches to manage Take calculated risks in the development and implemen-
risks in sourcing plans tation of sourcing plans to deliver innovative solutions for
the organisation, and assign risks to the party best placed
to manage them
The main implications of globalisation on supply chain Monitor and evaluate aspects of globalisation that affect
management and their bearing on risk, such as: the organisation's supply chains and advise colleagues
• Global logistics and strategic stakeholders about actions that can be
• Supply chain disruptors taken to mitigate risks
• Ethical sourcing
• The local versus global dilemma
Emerging risks, such as cyber security, disruptive Develop and communicate an assessment of risks and
technologies, counterfeiting and fraud use intelligence and alerts to manage emerging risks from
external influences, such as cyber security, disruptive
technologies, counterfeiting and fraud
The impact of key legislation and regulations impacting Monitor and evaluate developments in legal require-
on competition law, licensing, documentation, tariffs and ments and regulations that affect sourcing decisions in
duties on imports, and applicable law for international supply chains, and advise colleagues and strategic stake-
contracts holders on actions that can be taken to mitigate risks
The use of insurance for protection against risks in supply Develop and implement approaches to mitigate financial
chains, including business interruption, credit protection, risks that impact supply chains through the use of
import and export, public and employers' liability, and appropriate insurance arrangements
professional indemnity
The development of risk management frameworks such Support the adoption and use of frameworks such as
as enterprise risk management (ERM) ERM to mitigate risks in the supply chain
The use of international standards for risk management Support the adoption and use of standards that mitigate
risks in the supply chain
The risk appetite of the organisation Research market, and own organisations position on risk
and quantify risks providing recommendations to internal
stakeholders
Mechanisms for recording, managing and allocating the Monitor risk management registers and other associated
ownership of risks mechanisms and facilitate appropriate actions to
minimise supply chain disruption and cost
For more details on Risk Management see Segment 5.5 in Theme 5 Contracting, and Segment 8.4 in Theme 8 Metrics
and Measurement
www.cips.org
Pillar: Performance Standards
Theme 7: Delivering Outcomes in Procurement and Supply
The delivering outcomes theme focuses on the improvements to business performance that personnel
with roles in procurement and supply can generate for the organisation. These outcomes will be aligned
to the achievement of added value solutions and can include reduced prices and costs, improved quality,
achievement of timescales, required quantities, innovation and sustainable supplies of goods and services
provided by external suppliers.

Segment 7.1 • Delivering Value in Procurement and Supply
The 5 rights of procurement and supply: Apply the 5 rights of procurement and supply to any
• Price/cost required goods or services
• Quality
• Time
• Quantity
• Place
How to create value in procurement and supply Identify opportunities for purchasing goods and services
that create value outcomes
How to create savings and improve efficiencies through Create savings and improve efficiencies through
negotiation with suppliers negotiations with suppliers
The use of budgets and budget monitoring in Assist budget holders in capturing savings that contribute
procurement and supply to reductions in budgets
The use of targets in procurement and supply Analyse and work towards improvements in value
objectives
Contract management systems in procurement and Operate and support the implementation of contract
supply management systems, taking actions for controlling
variations from planned performance
For more details on the Roles of Procurement and Supply, see Theme 1 Position and Influence
59
Segment 7.2 • Effective Expediting in Procurement and Supply
The importance of assessing the costs of inventories and Monitor levels of inventory and take actions to mitigate
the costs of stock outs oversupply and minimise the risk of stock outs
The importance of undertaking expediting of deliveries of Undertake expediting as a planned process to ensure
goods or services the timely deliveries of goods or services purchased from
suppliers
The use of problem-solving techniques in expediting Diagnose the causes of scheduling difficulties and take
deliveries of products or services preventative actions to avoid their reoccurrence
The need for planning milestones and activities Identify targets for the scheduling of deliveries of goods
or services, taking into account feedback from suppliers
and other stakeholders
The need for tracking deliveries and documentation Take action to track deliveries and check relevant data
and documentation
The use of forecasting to achieve timely deliveries of Use historical data to calculate forecasts of demand
supplies that can be communicated to suppliers and other
stakeholders
Payment to suppliers and the importance of cash flow for Track any variations from planned payments and take
the organisation and suppliers remedial actions to mitigate disruptions caused by
difficulties with cash flow

Segment 7.3 • Achieving Competitive Pricing in Procurement and Supply
The use of competition to obtain quotations for prices Promote the use of competitive pricing with suppliers
through monitoring prices and obtaining quotations
when appropriate
The comparison of quoted prices with historical data Compare historical prices with newly quoted prices,
evaluate the reasons for any significant discrepancies
and take appropriate actions to secure competitive
pricing
The link between costs, prices, margins and mark ups Analyse available data and indices on the costs, prices,
margins and mark ups of submitted prices in order to
negotiate competitive prices
The use of open-book costing and adjustments Evaluate data supplied through open-book
arrangements and take actions to remedy any queries
or discrepancies
The role of negotiation to improve prices Negotiate with suppliers to reduce prices, whilst
retaining or improving other aspects of value such as
quality, availability and sustainability
The value of estimating whole-life costs Analyse the whole-life costs of purchased goods or
services and take actions to reduce or avoid ongoing
costs
For more details on Negotiation, see Segment 6.6 in Theme 6 Sourcing
www.cips.org
Segment 7.4 • Achieving Added Value Outcomes in Procurement and Supply
The importance of added value in procurement and Work with suppliers, internal customers or other
supply, including value by improving: stakeholders to achieve added value outcomes in
• Prices or total costs procurement and supply
• Timescales
• Quality
• Innovation
• Sustainability or other source of added value
The relationship between achieving compliance with Recognise the importance of compliance with
processes and achieving outcomes that generate value organisational processes and simultaneously take actions
to achieve added value solutions with suppliers or
internal stakeholders
The role of achieving competitive prices when procuring Follow good practice in sourcing activities and negotiate
goods and services to achieve competitive prices for goods and services,
including the use of open-book costing and adjustments
Achieving required delivery timescales when procuring Work with suppliers and internal stakeholders to achieve
goods and services quality requirements for procured goods and services
Achieving required delivery timescales for goods and Liaise with suppliers and other stakeholders and
services undertake proactive actions to ensure successful and
timely delivery of goods and services
Achieving required quantities of goods and services Ensure that quantities of procured goods and services are
delivered according to contractual agreements and take
appropriate actions to address any shortfall or excess
Achieving sustainability of goods and services and Monitor goods and services to ensure they comply with
promoting sustainability through effective procurement the standards set for achieving sustainable outcomes and
and supply take appropriate actions to address any issues
For more details of the Roles of Procurement and Supply, see Theme 1 Position and Influence
61
Segment 7.5 • Effective Contract Management in Procurement and Supply
The main types of risks in the performance of contracts Evaluate the potential risks that goods and services
such as internal, market, economic, legal, ethical sourcing may be subjected to, and liaise with suppliers and
and performance based risks stakeholders to create and implement plans to mitigate
the adverse effects of these risks
The responsibilities for contract management Allocate clear responsibilities with stakeholders for the
roles of contract management of delivered goods and
services
Demand management for contracts Forecast and plan requirements with internal
stakeholders and suppliers to ensure the supply of goods
and services matches demand taking into account actual
demand
The use of contractual terms, specifications, KPIs, Monitor the supply of goods and services to ensure that
reporting, governance, escalation and benchmarking in required performance standards and KPIs are achieved,
contract management and identify where changes in the contract or other
changes are required, taking actions to implement them
Payment responsibilities in contract management Certify costs of and monitor compliance with, taking
remedial actions where necessary, any variations from
contracted payment terms for procured and delivered
goods and services, managing any contracted risk and
reward mechanisms
Creating targets for assessing the performance of Formulate SMART targets for supplier performance
suppliers based on SMART (specific, measurable, and agree their application with suppliers and other
achievable, relevant and timely) targets stakeholders
Supplier relationship management and the use of Ensure that supplier relationship management processes
improvement plans and improvement plans are proactively executed to
correct defective performance of delivered goods or
services
Transition and exit arrangements for contracts Ensure security of supply is managed in any transition
period or during exit of contracts with suppliers
The importance of reviews at the end of contracts and the Conduct activities to close out contracts and evaluate
opportunities for organisational learning from the review learning from experience
The use of budgets in contract management Ensure budgets are monitored, instigate actions for
deviations from planned budgeted costs and assess the
impact on cash management
www.cips.org
Segment 7.6 • Achieving Effective Supply Chain Management
Knowledge: Will know and understand: Capabilities: Will be able to
The sources of added value and value generation for Identify and practice ways of generating added value
organisations that can be achieved through effective through effective supply chain management
supply chain management by improving:
• Prices or total costs
• Timescales
• Quality
• Innovation
• Sustainability or other sources of added value
The collaborative model of supply chain management Work with suppliers and other stakeholders to achieve
through partnering and strategic relationship partnering and strategic relationship management to
management deliver value for the organisation and its supply chain
The competitive model of supply chain management Evaluate circumstances for the application of competitive
relationships to improve value in the supply chain
The importance of establishing insourcing and Demonstrate added value to the organisation through
outsourcing arrangements for works, goods or services the implementation of either insourcing or outsourcing of
work or services
The development of global procurement, off shoring, low Demonstrate the added value to the organisation
cost country sourcing or onshoring and how these can through the implementation of global procurement, off
bring added value to the organisation and its supply chain shoring, low-cost country sourcing or onshoring, and
identify and mitigate any potential supply chain risks
The use of segmentation models to assess suppliers Apply segmentation models to prioritise and differentiate
approaches to supplier relationship management with
different tiers or types of suppliers
The use of business cases and return on investment Develop and apply robust business cases that seek
appraisals to achieve positive returns on investment from the
implementation of supplier relationship management
The use of supplier relationship management programs Implement supplier relationship management to achieve
to manage performance added value outcomes for the organisation taking care to
communicate performance and issues with stakeholders
The use of improvement plans in supplier relationship Ensure supplier relationship management processes are
management proactively executed to improve performance and service
levels of suppliers
For more details on Measuring and Developing Performance in the Supply Chain, see Segment 8.5 in Theme 8 Metrics
and Measurement
63
Segment 7.7 • Achieving Supply Chain Improvements
The importance of achieving total quality management Implement total quality management approaches with
approaches with the supply chain suppliers to improve the cost, quality or delivery of
purchased goods or services
The use of statistical analysis in developing the quality of Improve the cost, quality or delivery of purchased goods
supplies and services through the implementation of statistical
methods of analysis
Ways of achieving just-in-time approaches to Inventory Reduce inventory or work in progress by implementing
management just-in-time methods with supply chains
Achieve lean thinking and methods and lean supply with Reduce cost, time to market, inventories or work in
the supply chain progress by implementing lean thinking methods and
lean supply with the supply chain
The use of benchmarking in supply chains Research and create benchmarks for processes or
performance in the organisation’s supply chain
The use of business process re-engineering in supply Demonstrate added value solutions by implementing
chains methods of business process reengineering
Ways of achieving sustainability in procurement and Demonstrate improved sustainability by implementing

supply standards, processes or other actions with suppliers
Supplier relationship management and the use of Develop supplier relationship management processes
improvement plans with colleagues and key stakeholders, and ensure
improvement plans are initiated and investigated for the
effective delivery of delivered goods or services
Inputs from stakeholders which affect the procurement Seek and assess feedback from stakeholders to monitor
and supply process the success of procurement and supply activity
For more details of Stakeholder Engagement and Management, see Theme 1 Position and Influence
www.cips.org
Segment 7.8 • Applying Improvement Methodologies for the Supply Chain
How to specify data to support problem diagnosis and Investigate procurement and supply chain issues through
decision making application and analysis of data to create appropriate
recommendations
Deming’s plan, do, check, action (PDCA) cycle and Apply systematic approaches to improve procurement
approaches to quality management and supply chain management
The use of statistical analysis to developing supplies to Lead programmes to collate and analyse data to
examine issues affecting the performance of the supply formulate strategies and plans for solving issues in
chain procurement and the supply chain
Developing metrics to measure the performance of the Evaluate metrics that can be applied to measure
supply chain performance and develop improvement plans with
suppliers and stakeholders
Project identification and improvement strategies Evaluate development projects and create appropriate
strategies for their implementation
The importance of business case development and cost/ Create sound business cases for the procurement of
benefit analysis goods or services based on quantitative and statistical
evidence
Root cause analysis and the use of six sigma tools Apply root cause analysis to problems experienced
in procurement and supply chain management and
apply statistical methods for the development and
implementation of improvement plans
Methodologies and standards for the development of Select and instigate supply chain improvement
supply chains, such as: methodologies and standards
• ISO 22301 Business Continuity
• ISO 27001 Information Security
• ISO 14001 Environmental Management
• Balanced scorecard methodologies
• Supplier relationship management
65
Pillar: Performance Standards
Theme 8: Metrics and Measurement in Procurement and Supply
The metrics and measurement theme supports personnel with roles in procurement and supply
to collate information and data to communicate performance to suppliers and stakeholders. To
improve the organisations performance, critical aspects of procurement and supply such as prices
and costs, quality, timescales and other value added activities should be continuously improved.

Segment 8.1 • Delivering Value
How to balance value criteria, as appropriate to Analyse value criteria and suggest ways to achieve a
the procurement of goods or services in areas of balance, to the procurement of goods or services in own
responsibility area of responsibility
How to measure achieved savings of goods and services Analyse data to report savings achieved when procuring
to recognise efficiencies goods or services
How to compare forecasts with actual expenditure to Analyse data showing forecasts for actual expenditure
control expenditure and examine variances between forecasted and actual
expenditure, taking account of market trends
How to assess the quality of supplies of goods and Analyse reports and data related to the quality of goods
services to ensure that quality standards are achieved and services supplied, and take action with suppliers
or other stakeholders to remedy and prevent quality
variances
How to measure internal and external lead times of Monitor internal and external lead times and take action
supplies to remedy delays and improve lead time performance
How to measure the performance of supplies of goods Anticipate and identify contractual delays or variations
and services and take actions to remedy performance issues and
improve lead time performance, escalating when
necessary to the contract manager
How to achieve functional targets in procurement and Collate data required to fulfil targets for improving the
supply performance of the procurement and supply function
How to measure service levels for supplies of goods and Compare service performance against planned service
services levels and take action to improve performance
www.cips.org
Segment 8.2 • Measuring Operational Performance of the Procurement and Supply Function
Value criteria such as pricing/costs, delivered quality, Apply value criteria to the procurement of
timescales, quantities and location requirements goods and services in sourcing processes and
performance measurement taking account of market
trends
How to measure the achievement of quality, Evaluate data on the achievement of quality,
timescales, quantities and place considerations when timescales, quantities and place considerations for
procuring from external suppliers procurements from external suppliers and take
actions to improve performance
The importance of delivering customer service and Evaluate customer service and stakeholder
stakeholder satisfaction for procurement and supply, satisfaction for procurement and supply and take
and methods of improving performance actions to improve performance
The importance of measuring cycle times for the Evaluate the timescales for sourcing processes, ana-
sourcing process lysing the causes of any delays and taking action to
reduce timescales when appropriate
The importance of assessing the performance and Analyse departmental budgets and evaluate the rea-
control of budgets sons for variances between forecasted and actual ex-
penditures, taking actions to mitigate future variances
The use of social media to obtain feedback on Monitor relevant social media to gauge feedback from
performance customers and suppliers, taking actions to deal with
feedback
For more details on Delivering Value, see Theme 7 Delivering Outcomes and on Controlling Expenditures Segment 4.4 in
Theme 4 Spend Management

Segment 8.3 • Measuring the Performance of Contracts
The main types of risks in the performance of Formulate SMART targets for supplier performance
contracts, such as internal, market, economic, legal and agree their application with suppliers and other
and ethical sourcing and performance-based risks stakeholders
The importance of defining contractual performance Define and agree processes to monitor contractual
measures of key performance indicators (KPIs) to KPIs to assess quality performance, cost management,
assess quality, performance, cost management, resources and delivery with suppliers and
resources and delivery stakeholders
The importance of analysing outcomes of negotiation Compare planned outcomes for negotiations with
activities completed with the suppliers of goods and suppliers with actual outcomes and evaluate the
services reasons for any differences
How to assess contractual risks Liaise with suppliers and other stakeholders to assess
risk, complete risk registers and agree actions to
mitigate risks
The use of data that relate to the performance and Collate and evaluate data on the performance of
under performance of contracts contracts and take actions to remedy or prevent
underperformance
The use of audits to verify performance and costs Conduct audits with suppliers to verify performance
and costs, and take actions to remedy any queries
from the information and data gained
For more details on Contracts, see Theme 5 Contracting
67
Segment 8.4 • Managing Risks in Procurement and Supply
The development of risk evaluation management tools, Create risk assessments, registers or other risk evaluation
including risk assessments, risk registers and other tools, tools and agree actions to mitigate risks with suppliers
and the assessment of contractual risks for procurement and other stakeholders
of goods or services
Measuring risks in procurement and supply such as: Compile risk assessments, registers or other risk
• Quality evaluation tools for projects and agree actions with
• Cost suppliers and other stakeholders to allocate or share risks
• Resilience to avoid claims, variations or disruption
• Sustainability
• Achievement of timescales
How to collate and analyse data and statistics relating to Compile qualitative and quantitative data to measure
risks in procurement and supply, and the actions needed risks in the procurement of goods or services and take
to mitigate their impact actions to reduce the probability and impact of the risks
Monitoring and control in procurement and supply Use monitoring and control processes or
systems to manage risk in procurement and supply
The monitoring and control of sustainability in Devise and monitor key performance indicators (KPIs) for
procurement and supply sustainability with suppliers and take appropriate actions
to ensure delivery to agreed standards
Market factors that can impact on risks such as: Research and use data relating to market changes that
• Industry dynamics inform decision making and mitigate risk
• Competitiveness
• Pricing behaviour
• Technology drivers
Market and supply chain disruptors Take action with stakeholders to mitigate the impact of
market and supply chain disruption
For more details on Risk Management, see Segment 5.5 in Theme 5 Contracting and Segment 6.10 in Theme 6 Sourcing
www.cips.org
Segment 8.5 • Measuring and Developing Performance in the Supply Chain
The use of key performance indicators (KPIs) for supply Develop and agree with suppliers and other stakeholders
performance, including: appropriate KPIs for the supply chain
• Cost
• Quality
• Delivery
• Health and Safety
The development of measures for improving quality and Develop and monitor measures to improve the quality
actions to improve performance of contracts or functions, taking appropriate actions to
improve performance
Measures for the control of prices and costs Collate and analyse data that supports the control of
prices, costs and financial savings achieved, taking
appropriate actions to improve performance
Measures that assess time to market and securing Collate and analyse data that measure deliveries of goods
deliveries to meet the required timescales and services, taking appropriate actions to improve
performance
Measures of innovation in procurement and supply Collate and analyse data that measure innovations from
suppliers and take actions to improve performance
Ways of promoting innovation in the supply chain by Encourage and manage innovation in the supply chain
using tools and techniques such as: using appropriate tools and techniques
• Cross-functional working
• Simultaneous engineering
• Early supplier involvement
• Supplier forums and associations
The application of eProcurement technologies in Create systems integration across the organisation and
supply chains with the organisation’s supply chain
The use of approaches for supplier development Identify opportunities to make use of methodologies for
such as: supplier development
• Knowledge and technology transfer
• Collaborative product/service development
• Continuous improvement reviews
• Supplier capability assessments
Measures of costs and benefits that can be applied to Measure the costs and benefits of investments affecting
procurement and supply procurement and supply
Qualitative and quantitative measures of performance Ensure that a balance is achieved between qualitative and
quantitative measures of performance
Measures of return on investment in procurement and Evaluate the return on investment for changes affecting
supply procurement and supply
For more details on Achieving Supply Chain Improvements, see Segment 7.7 in Theme 7 Delivering Outcomes
69
Segment 8.6 • Developing the Performance of the Procurement and Supply Chain Function
The impact of supply chain management on corporate Encourage added value outcomes achieved by the
performance organisation’s supply chain and report data to senior
management and other stakeholders
The use of KPIs that measure the performance of the Collate, review and disseminate data on departmental
procurement and supply chain function KPIs to colleagues and senior management
The use of technology to communicate data in supply Develop strategies for systems integration across the
chains organisation and with the organisation’s supply chain that
collate data and provide reports to stakeholders
The measurement of safety, quality, costs and deliveries Create and monitor measures relating to safety, quality,
in supply chains costs and deliveries achieved by the organisation’s supply
chain and report data to senior management and other
stakeholders
The matching supply with demand in supply chains Monitor the performance of the organisation in achieving
its contractual obligations with customers and report data
on demand and supply to senior management and other
stakeholders
The use of benchmarking in supply chains Evaluate benchmarks for processes or departmental
performance to develop gap analysis that supports
performance improvement
The application of balanced scorecards in supply chains Evaluate data recorded within balanced scorecard
reports that are related to supply chain performance,
and develop improvements with suppliers and other
stakeholders
For more details on Effective Supply Chain Management, see Segment 7.6 in Theme 7 Delivering Outcomes
www.cips.org
Segment 8.7 • Developing Metrics for the Supply Chain
The importance of collecting data, problem diagnosis and Identify opportunities to collate and analyse data to
decision making develop appropriate recommendations
The use of statistical analysis to develop metrics to Lead programmes to collate and analyse data to
examine issues affecting the performance of the supply formulate strategies and plans for solving issues in
chain procurement and supply chains
The development of metrics to measure the performance Create metrics for the measurement of performance
of the supply chain of the function and the supply chain and develop
improvement plans with colleagues, suppliers and other
stakeholders
Project identification and improvement strategies for Devise and implement projects and strategies for
the supply chain improving supply chains and the procurement function
Business case development and cost/benefit analysis Contribute to the development of business cases
such as:
• Costs
• Options
• Commercial aspects
• Risk
• Alignment with organisational needs
• Timescales
Root cause analysis and the use of six sigma tools and Devise root cause analysis to evaluate problems
methodologies experienced in procurement and supply chain
management, and apply statistical methods for the
development and implementation of improvement
plans
Methodologies and standards for the development of Have an awareness of current trends related to the
supply chains, such as: development and improvement of supply chains and
• ISO 22301 Business Continuity Management apply associated methodologies
• ISO 44001 Collaborative Business Relationship
• Balanced scorecard methodologies
• Supplier relationship management
For more details on Improvement Methodologies, see Theme 7.8 in Theme 7 Delivering Outcomes
71
Pillar: People Development Standards
Theme 9: Developing Individuals and Teams in Procurement and Supply
The developing individuals and teams theme emphasises the knowledge, understanding and
capabilities required for coaching or leading people in the organisation, suppliers and other
stakeholders to further the objectives of improved procurement and supply. The theme focuses
on how staff support improved procurement and supply both internally and externally
to the organisation.

Segment 9.1 • People in Procurement and Supply
The personal knowledge, understanding and capabilities Demonstrate personal knowledge, understanding and
required to support the achievement of the aims of capabilities to further the aims of procurement and
procurement and supply supply
The roles of staff with devolved responsibilities for Advise other members of staff with responsibilities for
procurement and supply procurement and supply activities to ensure they comply
with organisational procedures and processes. To work
towards achieving value outcomes when procuring goods
and services
People, objectives and the structure of procurement and Explain the roles of people involved in procurement and
supply in organisations supply activities, and the structure and objectives of the
procurement and supply function
Procurement and supply as a service function Work with internal stakeholders efficiently and effectively
to promote customer support and service
The importance of liaising with internal customers and Establish and document the commercial needs of internal
other stakeholders to understand their commercial needs customers and other stakeholders for the procurement
for the procurement of goods and services, including: of goods and services
• Pricing
• Quality
• Delivery
• Quantities
• Place
The importance of resolving conflict with internal Take appropriate action with internal stakeholders
stakeholders in procurement and supply to resolve any conflicts about differing priorities or
requirements
www.cips.org
Segment 9.2 • Teams in Procurement and Supply
The classification of internal and external stakeholders Recognise the contribution that both internal and
and the roles they play in procurement and supply external stakeholders make to decision making in
activity procurement and supply
The use of classification tools and frameworks to assess Use tools and frameworks to classify stakeholders
stakeholders
The use of cross functional teams in procurement and Develop positive relationships with team members and
supply other stakeholders, demonstrating behaviours consistent
with a professional procurement and supply chain
function
Barriers to team working Recognise the existence of barriers to team working and
take action to address resistance and conflict between
team members
Team working in procurement and supply Contribute to the achievement of team activities for
Characteristics of successful teams Work to achieve positive relationships with other team
members
The communication cycle Ensure that all communications are appropriate

and prompt, providing accurate and timely flows of
information
The use of mobile technologies, video conferencing and Use mobile technologies, video conferencing and
collaboration tools for communication with stakeholders collaboration tools to communicate with stakeholders
For more details on Developing Relationships with Stakeholders, see Segments 1.3 and 1.8 in Theme 1 Position and
Influence
73
Segment 9.3 • Working with Stakeholders in Procurement and Supply
The use of organisational procedures and processes Advise other members of staff on how to comply with
in the sourcing goods and services required by the organisational procedures and processes for sourcing,
organisation whilst working towards achieving value outcomes in
procuring goods and services
Selection and award criteria commonly applied to the Recommend the application of appropriate selection and
sourcing of goods and services from suppliers award criteria for procurement activity to stakeholders
The importance of communication skills during Demonstrate effective negotiation skills with suppliers
negotiation activities to help achieve desired outcomes and other stakeholders to help achieve desired outcomes
Team management and the influence of internal Develop positive relationships with team members,
customers and other stakeholders in negotiations demonstrating behaviours and actions to address
resistance or conflict within the team or with stakeholders
The responsibilities for contract management Agree responsibilities for contract management and
provide guidance for staff involved in the management of
contracts to help achieve value
The stages of team development through forming, Develop effective relationships with other team members
storming, norming and performing
How to develop teams, including the use of Create positive relationships within teams,
stakeholder representatives to support the sourcing emphasising the contribution that effective
process procurement and supply offers the organisation
The use of mobile technologies, video conferencing and Use, promote and advise on the use of mobile
collaboration tools to communicate with stakeholders technologies, video conferencing and collaboration tools
to communicate with stakeholders
For more details on Tendering, see Segment 6.2 Theme 6 Sourcing and on Contract Management Segment 7.5 Theme 7
Delivering Outcomes
www.cips.org
Segment 9.4 • Developing the Capabilities of Individuals in Procurement and Supply
Theories that explain the behaviour of people and the Promote positive working relationships by building on the
differences between people different strengths of people in the team
Approaches to the development and measurement of Support the development of individuals’ knowledge,
individuals' knowledge, capabilities and skills capabilities and skills to further the aims of procurement
and supply
The role of equality, diversity and inclusion in Promote equality, diversity and inclusion in the
organisations procurement and supply function and within the
organisation’s supply chain
Different approaches individuals have to learning, Support the personal and professional development of
including: individuals to enhance their performance
• Explicit and tacit knowledge
• Cognitive theories
• Knowledge management
and how these can affect the development and
performance of individuals
The dimensions of job satisfaction, the concept of Allocate the appropriate roles and responsibilities to
alienation at work, and approaches to job design, personnel with responsibility for procurement and
enlargement and enrichment supply, to promote engagement and positive outcomes
The use of job analysis and job skills to identify and agree Establish the knowledge and skill requirements of
personal development plans personnel working in procurement and supply functions
and agree plans for the development of each member of
staff
The use of recruitment and selection plans to meet the Create plans for the recruitment and selection of staff
skills and knowledge needs of the procurement and (including contingent staff) to fulfil the requirements of
supply function the procurement and supply function
The use of training needs analysis and the creation of Develop and implement plans for the training and
personal development plans development of staff and other stakeholders to further
the organisation’s capabilities in procurement and supply
The use of mobile technologies, video conferencing and Encourage the use of mobile technologies, video
collaboration tools to communicate with stakeholders conferencing and collaboration tools, providing support
to personnel when required
75
Segment 9.5 • Motivating Individuals in Procurement and Supply
The meaning of motivation Understand the motivations and behaviours of

stakeholders, suppliers and individuals, and use this
knowledge to fulfil the roles required for effective
Sources of extrinsic (financial rewards, security, Motivate teams and individuals appropriately, including
promotion, the work environment and work conditions) procurement and supply staff, stakeholders and suppliers
and intrinsic (psychological rewards, challenge and
achievement, receiving appreciation and recognition)
motivational approaches for working with staff
The impact of different forms of behaviour and how they Encourage constructive behaviours in the procurement
can affect performance and supply function and take appropriate actions to
manage and mitigate negative behaviours
The use of motivation theories in organisations Apply relevant motivation theories with staff in
procurement and supply functions to enhance
performance
Approaches for performance review and appraisal Conduct effective performance reviews and appraisals
with members of staff from procurement and supply
www.cips.org
Segment 9.6 • Developing the Capabilities of Teams in Procurement and Supply
The importance of work groups or teams for effective Build confidence in work groups or teams for effective
performance in procurement and supply performance in procurement and supply, encouraging
development and improvement
Factors that shape the behaviour of groups or Use the understanding of the factors that influence team
teams including: behaviour to help create a positive environment in the
• Its size workplace
• The capabilities of the members
• The nature of the task
• Physical environment
• Communications
• The use of technology
Stages of group dynamics and development Support the development of effective teams by
promoting positive group dynamics dealing effectively
with any team conflict that may arise
Alternative models for team working, including: Support the development of effective teams in the work-
• Self-managed teams place by using appropriate methods for team working
• Remote working
• Virtual teams
The sources of role conflict, including: Minimise conflict in the team by clarifying each role,
• Role incompatibility including the level of authority and responsibility for staff
• Ambiguity within procurement and supply management
• Overload or underload
77
Segment 9.7 • Effective Leaders for Procurement and Supply Chain Management
The role of a leader, and the activity and importance of Promote the procurement and supply chain function at
leadership senior management level and to key stakeholders
Approaches to change management Identify change that can transform flexibility,

responsiveness and the quality of service provided by the
function and the organisation
Resources to develop effective procurement and Recruit, select and appoint personnel and other resource
supply chain management to achieve effective procurement and supply chain
management
The main approaches to leadership such as: Demonstrate appropriate methods of leadership to guide
• The qualities or traits approach individuals, teams and the organisation and supply chains
• Functional or group approaches such as action to help achieve effective procurement and supply chain
centred learning management
• Styles of leadership such as autocratic, democratic and
laissez-faire
• Contingency theories such as path-goal theory
Behaviours for effective leadership such as situational Demonstrate effective behaviours to win the support of
leadership, transformational and inspirational leadership, colleagues and other stakeholders to achieve effective
solo versus team leadership procurement and supply chain management
Approaches for the effective delegation of responsibilities Plan work commitments and delegate effectively to
to staff to improve individuals’ capabilities in staff. Promote understanding of strategies, plans and
understanding strategies, plans and processes processes, taking accountability for outcomes achieved
The importance of the development of knowledge and Develop own knowledge and skills, and those of
skills to achieve effective procurement and supply chain colleagues and other stakeholders, to deliver an effective
management procurement and supply chain function management
For more details on Leadership, see Segment 1.6 in Theme 1 Position and Influence and Segment 10.5 in Theme 10
Developing Self and Personal Skills
www.cips.org
Segment 9.8 • Leading and Influencing Stakeholders in Procurement and Supply
The importance of developing and implementing a Articulate a clear, achievable and compelling vision
vision for improved procurement and supply chain which sets out the direction and plans of procurement
management and supply chain management
Stakeholder analysis and mapping including primary, Use appropriate stakeholder analysis and mapping
secondary and key stakeholders techniques to evaluate stakeholder needs, interests
and influence and use the analysis to provide an
efficient and effective service
The impact and consequences of contradictory Manage the trade offs and conflicts between
requirements from stakeholders stakeholders in sourcing activities and complex
contracts and advise on commercial priorities
How to gain commitment to procurement and supply Develop and plan a strategy to secure commitment
chain strategies from stakeholders to objectives and plans for procurement and supply
chain management by taking into account stakeholder
feedback
Procurement expenditure approval levels and Develop and implement policy for procurement
corporate governance expenditure approval levels and aspects of corporate
governance for procurement and supply
Perspectives on influencing behaviours, and sources of Guide colleagues to consider the role of power and
both individual and organisational power influence in key stakeholder relationships in order to
manage relationships effectively
Approaches to change management including Inspire colleagues and other stakeholders to adopt
transformational and transactional change, the plans and strategies to achieve effective procurement
change/ performance curve, techniques for problem and supply chain management
solving and overcoming resistance to change
Influence
79
Segment 9.9 • Championing Culture Change
The dynamics of organisational culture, formation, Evaluate the culture and support for improved
evolution and change procurement and supply chain management within the
organisation and associated supply chains
How to define organisational culture and types of Classify the type of organisational culture and formulate
organisational culture plans for the supply chain that can fulfil the expectations
of stakeholders
The levels and dimensions of culture Critically assess the dimensions of culture in the supply
chain and create appropriate communications to help
stakeholders understand the need for planned changes
Models for the assessment of culture including: Develop approaches to adapt behaviours and
• Quinn and Cameron’s matrix communication to accommodate for differences in
• Johnson’s cultural web culture in the organisation’s supply chain
• Hofstede’s dimensions of culture
• Trompenaars’ dimensions of culture
The bases of differentiation in culture such as: Develop strategies and engagement plans that secure
• Functional stakeholder support for plans, leading to improved
• Geographical procurement and supply chain management
• Divisionalisation
• Mergers, acquisitions and joint ventures
Managing the internal integration of culture Develop strategies and engagement plans to anticipate
and mitigate the risk resulting from a culture change
following significant organisation change
How mergers, acquisitions and divestitures can impact Develop strategies and engagement plans that
on organisational culture, formation, evolution and anticipate and mitigate the risk of negative impact on
change culture change following significant organisational
change
www.cips.org
Segment 9.10 • Managing Ambiguity in Procurement and Supply
The influences on the behaviour of individuals, groups, Critically evaluate the different behaviours adopted
organisations and societies by individuals, groups organisations and societies
and use appropriate approaches to enhance the
organisation’s effectiveness
Causal models of organisational performance and Evaluate the internal and external factors that impact
change on organisation and supply chain performance
Complex decision making and making trade-offs Assess evidence and data relating to complex
situations and present recommendations and
conclusions
Coaching skills for managing teams Provide guidance and support to colleagues and other
key stakeholders, develop and monitor actions taken
to achieve effective procurement and supply chain
management
Methods of managing conflict and difficult situations Contribute to the leadership of the procurement
and supply chain function taking steps to mitigate
challenges and difficulties using conflict resolution
within the organisation and with its supply chains
Contemporary developments in human resources Provide guidance and support to colleagues and other
policies that can be adopted to encourage productive key stakeholders in the form of coaching. Monitor
working such as: actions necessary to achieve effective procurement
• Flexible working and supply chain management
• Workplace design
• Work life balance
• Talent management
• Metrics to measure workplace standards
The planning of resources to develop procurement Develop plans for the resourcing of staff, systems and
and supply chain management infrastructure to achieve effective procurement and
supply chain management
How to design the procurement and supply chain Create and implement plans to enable the
function to encourage productive working procurement and supply chain function to improve its
environment and to encourage productive working
Models for understanding organisational behaviour Critically assess the divergence of organisational
such as Chorn’s PADI (pragmatism, administration, behaviour and align the requirements of the
divergence and integration) model organisation with its supply chain
Behaviour modification and change management Adopt and promote behaviours to support the
successful implementation of change
Approaches to change management including Inspire colleagues and other stakeholders to adopt
transformational and transactional change, the the plans and strategies created to achieve effective
change/performance curve, techniques for problem procurement and supply chain management
solving and overcoming resistance to change
The use of emotional intelligence Demonstrate resilience and emotional maturity to

deal with ambiguity in complex decision making
The use of mobile technologies, video conferencing Decide on the appropriate circumstances for virtual
and collaboration tools for virtual communication with communication or for meetings to be held in person
stakeholders
Influence
81
Theme 10: Developing Self and Personal Skills in Procurement and Supply
The developing self and personal skills theme helps individuals with procurement and supply roles
to advance their own knowledge, capabilities and skills. Gaps with current levels of knowledge,
capabilities and skills can be identified and development plans created to fulfil the needs of the
individual to help achieve organisational objectives.

Segment 10.1 • Develop Your Capabilities for Procurement and Supply
The importance of self-development Seek feedback from others to support improved

efficiency and effectiveness at work
Different problem solving methods Work with others in the team to solve problems that
may arise in own area of responsibility, reporting any
difficulties to the supervisor or line manager
The need for honesty and integrity Maintain personal and professional honesty and integrity
Strategies to cope with change Be open and flexible to seeing change as an opportunity,
not a threat
The importance of conflict management Recognise that conflict can occur with colleagues and
work to minimise conflict situations that could affect the
team
The importance of equality, diversity and inclusion Promote best practice in equality, diversity and inclusion
The importance of negotiating requirements with Contribute to the effective negotiation of requirements
stakeholders with internal stakeholders and create best value
outcomes with suppliers
The importance of the use of technology Be familiar with the use of technologies used for liaising
with stakeholders and seek help and support when
appropriate
For more details on Negotiation, see Segment 6.6 in Theme 6 Sourcing
www.cips.org
Segment 10.2 • Develop Your Capabilities for Procurement and Supply
The importance of self-development and emotional Learn from mistakes, seeking and accepting feedback
intelligence from others in the team and from senior staff to improve
own performance and the performance of the team
Different problem solving methods Identify problems and work to develop solutions to
improve the effectiveness of the team
The importance of honesty and integrity Maintain and promote to others' personal and
professional standards of honesty and integrity
Strategies to cope with change Be open and flexible to change, adapting approaches to
meet requirements
The importance of conflict management Recognise that conflict can occur between colleagues, and
establish and address the causes of conflict to improve
team performance
The importance of equality, diversity and inclusion Promote best practice in valuing and respecting people's
diversity
The importance of negotiating requirements with Contribute to the effective negotiation of requirements
stakeholders with internal stakeholders and create best value
outcomes with suppliers, acting within limits of authority
The importance of the use of technology Be familiar with technologies for liaising with stakeholders
and seek help and support when appropriate
83
Segment 10.3 • Develop Your Capabilities to Manage Procurement and Supply
The importance of self-development and emotional Reflect on, seeking and using feedback from others in
intelligence the organisation to improve own performance and the
performance of the team
Different problem solving methods Assess situations and identify the causes of problems,
proposing appropriate solutions
The importance of honesty and integrity Maintain, promote and monitor personal and
professional honesty and integrity
Strategies to cope with change Recognise the need for change and promote change
in a positive manner to the team, encouraging their
comments and contribution to the process
The importance of conflict management Identify and minimise areas of potential conflict between
colleagues and team members, whilst recognising the
positive contribution that managed conflict can make to
reaching the most appropriate solution
The importance of equality, diversity and inclusion Maintain and promote best practice in valuing and re-
specting equality, diversity and inclusion, recognising the
positive contributions that such differences can bring to
effective work practices
The importance of negotiating requirements with Actively help internal stakeholders to achieve desired
stakeholders outcomes in commercial dealings with third parties by
practising effective negotiation
The importance of the use of technology Guide others on the use of technologies for liaising
with stakeholders and seek help and support when
appropriate
www.cips.org
Segment 10.4 • Develop Your Capabilities to Lead Procurement and Supply
The importance of self-development and reflection Be open, recognising and learning from own mistakes
and the mistakes of others. Seek, accept and provide
feedback in a positive and constructive way to improve
outcomes
Methods of problem solving and dealing with unfamiliar Assess situations that may be unfamiliar and/or
problems unpredictable to identify potential problems and propose
effective and innovative solutions, demonstrating
resilience in resolving issues
The importance of honesty and integrity Maintain, promote and evaluate personal and
professional integrity to enhance the aims and wellbeing
of the organisation and the profession
Strategies to lead change Respond constructively to change, cope with uncertainty

and manage the expectations of others in relation to
change
The importance of conflict management Manage conflict between both internal and external
stakeholders, recognising the positive contribution that
managed conflict can make to reaching shared solutions
The importance of equality, diversity and inclusion Maintain and promote best practice in valuing and
respecting equality, diversity and inclusion within the
organisation, and across teams and functions, recognising
the positive contributions that such differences can make
to work practices
The importance of sharing negotiation techniques with Create advice and guidance for colleagues and other
others internal stakeholders and act as a role model, using
advanced negotiation techniques and tactics for
negotiated outcomes that achieve positive outcomes for
the organisation
The use of emotional intelligence in commercial Appreciate the different aspects of emotional intelligence
negotiations that can be applied to improve performance and
outcomes sought in commercial negotiations and create
development plans to improve key skills
The use of technology Provide guidance to others on the use of technologies

used for liaising with stakeholders
85
Segment 10.5 • Strategic Leadership in Procurement
The use of vision statements Create an appropriate shared vision in the

organisation and recognise the potential impact of
developments in the wider profession
The management of resources Manage resources to ensure an effective and efficient

service to customers and key stakeholders, instigating
appropriate actions to address related issues
The creation of networking opportunities to help Develop best practice by evaluating and adopting new
establish benchmarks for organisational and ideas from inside and outside the organisation
individual performance
Best practices for improved procurement and supply Proactively seek opportunities to take on new respon-
chain management sibilities and share expertise across the organisation
and its supply chains
Effective communications in the organisation and its Develop and implement communication strategies,
supply chain technologies and plans using appropriate techniques
at an appropriate level for the target audience
Personal accountability in decision making Create, support and promote a culture of personal
accountability for decisions
Ways of developing knowledge management Support the personal and professional development
of individuals to enhance their performance
The use of continuing professional development (CPD) Develop and promote a culture of CPD
programmes in procurement and supply
The value of external engagement and representation Proactively seek out opportunities to represent the
to raise the profile of the procurement and supply organisation, market or sector in externally facing
profession activities that positively support the profession and
the market or sector as a whole
Leadership styles that gain the trust, confidence, Use and promote appropriate leadership styles and
commitment and collaboration of colleagues and behaviours
stakeholders
The importance of effective teams in procurement Create and monitor the work of teams in procurement
and supply and supply, taking action to improve their
commitment and performance when required
www.cips.org
Theme 11: Ethics in Procurement and Supply
This theme helps individuals to recognise and evaluate the importance of ethics and sustainable
procurement in organisations and supply chains. Procurement and supply personnel should
promote ethical practices and behaviours with all stakeholders. The theme identifies good practices
to achieve commitment by individuals and at an organisational level.

Segment 11.1 • Maintaining Ethical and Sustainable Procurement and Supply
The overall impact of ethics and sustainable procurement Appreciate the importance of promoting and supporting
on business success sound ethical and sustainable practices, such as:
• Business continuity impact
• Reputational impact
• Financial impact
• The extended supply chain
• Enhancing the status of the profession
• Ensuring compliance with international laws and
regulations
The application of the CIPS Corporate Code of Ethics in Explain the key aspects of the CIPS Corporate Code of
procurement and supply Ethics that apply to roles within procurement and supply
The details included in ethical codes affecting Explain the key features of ethical codes that affect pro-
procurement and supply curement and supply: how to identify and address issues,
and when and to whom to notify issues and breaches of
ethical business practice
The use and roles of ethical codes in procurement and Ensure own compliance with ethical practices when
supply sourcing goods or services for the organisation
The use of documented policies and procedures to Monitor documented policies and procedures used in
ensure ethical and sustainable practice throughout the procurement and supply and explain how these should
procurement and supply process, such as: be used
• Segregation of duties
• Whistleblowing policy and practice
• Use of sanctions
87
The monitoring of ethical and sustainable practice among Appreciate the importance of monitoring ethical and
internal and external stakeholders sustainable practice among internal and external
stakeholders and the processes required for reporting
any suspected breaches
The principles of corporate governance that apply to Explain the main principles of corporate governance
procurement and supply that apply to the organisation's procurement and supply
function
The impact of bribery, corruption and fraud on Appreciate the impact of bribery, corruption and fraud on
procurement and supply and related issues, such as: procurement and supply activity and be able to identify
• Associated legislative frameworks for bribery e.g. and escalate suspected breaches
UK Bribery Act (2010)
• Reputational impact
• Risk assessment
• Due diligence, monitoring and audits
• Paying and receiving bribes
• The importance of integrity
• Types of corruption - political, petty, grand and
systematic
The concept of corporate social responsibility (CSR) and Recognise the importance of CSR and equality, diversity
related issues and drivers, such as: and inclusion for the profession and the associated
• Minimising negative effects of a business on local challenges. Develop methods and approaches to address
communities these challenges
• Promoting good citizenship
• Social, economic and cultural diversity, including
equality, diversity and inclusion
• The triple bottom line: People/Profit/Planet
• Extending procurement and supply decisions away
from just price and quality
Sustainable procurement and supply decision making, Recognise the impact of sustainable procurement on
including considering the environmental merits and social the supply chain and the importance of meeting present
impacts of alternative solutions needs without compromising the ability of future
generations to meet their needs
Modern slavery and the associated considerations for the Identify potential impacts of modern slavery on
procurement and supply profession, such as: procurement and supply activity, recognising when
• Human trafficking breaches have occurred and escalating these when
• Forced and bonded labour appropriate
• Child slavery and marriage
• Domestic slavery
• Decent working practices
• Slavery in the supply chain
• Legislative frameworks e.g. UK Modern Slavery Act
(2015)
• United Nations Guiding Principles on Business and
• Human Rights (UNGP, 2011)
www.cips.org
Segment 11.2 • Developing Approaches for Ethical and Sustainable Procurement and Supply
The application of the CIPS Corporate Code of Ethics in Ensure and encourage full compliance with the CIPS
procurement and supply, such as: Corporate Code of Ethics across all stages of the
• Enhancing and protecting the standing of the procurement and supply cycle
profession
• Maintaining the highest standard of integrity in all
business relationships
• Promoting the eradication of unethical business
relationships
• Enhancing the proficiency and stature of the
profession
• Ensuring compliance with laws and regulations
The use of codes of ethics in procurement and supply and Monitor the work of stakeholders to ensure that ethical
the importance of reporting of ethical malpractice and sustainable procurement and supply principles are
upheld, escalating to senior management any suspected
issues or breaches
The use of documented policies and procedures to Explain how documented policies and procedures for
ensure ethical and sustainable practice throughout the procurement and supply should be implemented to
procurement and supply process, such as: ensure ethical and sustainable practice procurement and
• The responsibilities for procurement supply
• Segregation of duties
• Whistleblowing policy and practice
• Use of sanctions
The potential impact of bribery, corruption and fraud on Identify any potential bribery, corruption and fraud in
procurement and supply the supply chain and escalate any suspected cases as
appropriate
The potential impact of corporate social responsibility Advise other members of the organisation on the
(CSR) on procurement and supply requirements of CSR and ensure CSR standards such as
ISO 26000 Social Responsibility are implemented
The requirement for sustainable procurement and supply Advise other members of the organisation on sustainable
procurement, ensuring compliance with adopted
standards such as ISO 20400 Sustainable Procurement
The potential impact of modern slavery on procurement Advise other members of the organisation on the
and supply activity potential impact of modern slavery, escalating any
suspected breaches of associated legislation
89
Segment 11.3 • Achieving Ethical and Sustainable Sourcing
International and industry standards that apply against Inform colleagues and stakeholders of international
criminal conduct standards that apply against criminal conduct, such as:
• Bribery, corruption and fraud
• Human rights abuse, including modern slavery, child
labour and decent working principles
• Industry schemes, voluntary codes and legislation and
escalating any suspected breaches
• Human Rights (UNGP, 2011)
How to support the implementation of ethical and Engage with stakeholders to devise specifications,
sustainable sourcing practices contract terms, KPIs and other instruments that
encourage suppliers to prevent, detect and eradicate
breaches of ethical standards
The use of prequalification and assessment criteria Engage with stakeholders to agree prequalification and
across all tiers of the supply chain that can be applied assessment criteria that can be applied to encourage
to encourage ethical/and sustainable sourcing in the ethical and sustainable sourcing and undertake a risk-
procurement process based approach to segmenting tiers of the supply chain
to fully assess ethical and sustainability risks
Sources of information and databases that examine Carry out research and map supply chains to assess
ethical practices vulnerabilities and risks in supply that may result in
breaches of ethical standards
The importance of obtaining supporting information Undertake due diligence to evaluate the risks of suppliers
about ethical practices in supplier quotations and tenders breaching ethical standards
The use of audits and other feedback mechanisms to Monitor performance and encourage dialogue with
evaluate workplace standards suppliers about how improvements to workplace
standards can be achieved, and recommend to senior
management appropriate remedies that can be taken
with suppliers that may have committed breaches of
ethical policies
The potential impact of bribery, corruption and fraud on Undertake due diligence checks on suppliers to evaluate
sourcing activity in procurement and supply the risks of bribery, corruption and fraud, and monitor for
potential breaches in the performance of contracts
The potential impact of corporate social responsibility Undertake due diligence checks on suppliers to evaluate
(CSR) on sourcing activity in procurement and supply compliance to CSR principles and develop contracts which
ensure future CSR adherence and the ability to monitor
for potential breaches
The potential impact of sustainable procurement on Undertake due diligence checks on suppliers to evaluate
sourcing activity in procurement and supply compliance with sustainable procurement principles.
Develop contracts that ensure ongoing sustainable
procurement principles. Monitor for potential breaches
The potential impact of modern slavery on sourcing Undertake due diligence checks on suppliers to evaluate
activity in procurement and supply their position on modern slavery and develop policy and
procedures to identify and act on any suspected breaches
of associated legislation, e.g. UK Modern Slavery Act
(2015)
www.cips.org
Segment 11.4 • Managing Ethical and Sustainable Practice in Procurement and Supply
The use, application and promotion of ethical codes in Work with stakeholders to develop and implement
procurement and supply appropriate ethical codes for procurement and supply
Standards that apply to ethical and sustainable sourcing Monitor compliance with ethical and sustainable
that impact on the globalisation of supply chains, such as: practices and standards that apply to global supply chains
• United Nations (UN) Trafficking Protocol taking appropriate actions in the event of detecting any
• International Labour Organisation (ILO) breaches by colleagues or other stakeholders
• Legislation on modern slavery
Human Rights UNGP (2011)
Equality of opportunity affecting underrepresented Investigate, encourage and promote equality and
groups diversity opportunity for underrepresented groups in the
supply chain
The potential advantages of leveraging natural support Support the roles and functions of internal partners in
within the business for ethical behaviour areas such as compliance, audit, legal etc. and encourage
their support in establishing ethical behaviours and
cultures
The potential advantages of leveraging natural support Manage internal and external stakeholders and commu-
for ethical behaviour within the business nicate standards, identifying and eliminating bribery, cor-
ruption and fraud in supply chains and take appropriate
actions in the event of any alleged breach of standards
The requirement for corporate social responsibility Work with stakeholders to communicate CSR and sus-
(CSR) and sustainability in the supply chain tainability standards (ISO14000, ISO26000, ISO20400),
identifying any alleged breach of standards and taking
appropriate actions
Modern slavery and its potential impact on procurement Work with stakeholders to communicate modern
and supply slavery standards (e.g. UK Modern Slavery Act (2015)
or equivalent legislation or standards), identifying any
alleged breach of standards and taking appropriate
actions
91
Segment 11.5 • Leading Ethical and Sustainable Practice in Procurement and Supply
The use, application and leadership of ethical codes in Influence a culture of commitment to the achievement of
procurement and supply ethical codes and practices in the organisation’s supply
chains
Techniques for stakeholder mapping including primary, Analyse stakeholders and develop plans to establish
secondary and key stakeholder classifications ethical priorities and behaviours in the organisation’s
supply chains
Techniques for mapping suppliers and high risk tiers of Devise matrices to assess the likelihood of risks of non-
the supply chain to gauge associated ethical sourcing compliance in ethical and sustainable sourcing and
risks the importance to the organisation of other relevant
commercial and technical criteria, and encourage their
application by colleagues and stakeholders
The main regulations that impact on the employment of Ensure compliance with legislation and regulations
people in supply chains, such as those concerning: affecting the employment of people and offer advice
• Discrimination, equality and diversity when there are concerns about noncompliance
• Working time and staff payment
• Minimum wage
• Other country-specific employment issues
Ethical practices and standards that apply to global supply Encourage and lead commitment to achieve ethical
chains practices and standards that apply to global supply chains
taking appropriate actions in the event of identifying any
breaches by stakeholders
The use of audits and other systems for performance Collaborate with other purchasers to drive out duplication
measurement applied by purchasers of effort and to focus on streamlining audit processes, the
collation and analysis of data and any remedial actions to
be taken
The sources of conflict that can affect ethical Steer the procurement and supply chain function through
practices between stakeholders and suppliers ethical and sustainable procurement difficulties and
challenges, including conflict within the organisation and
with its supply chains that can affect ethical practices
Initiatives and policies created by leading bodies, such as: Act as a champion of change to promote the highest
• CIPS standards of ethical practice
• Tradecraft
• Walk Free Foundation
• United Nations
• International Labour Organisation
• Unseen
• Anti-Slavery International
The use of communication plans to identify and eradicate Influence internal and external stakeholders and develop
bribery, corruption and fraud in all procurement and a culture to take actions to eradicate bribery, corruption
supply activity and fraud
www.cips.org
Standards to support corporate social responsibility (CSR) Lead and influence internal and external stakeholders
and sustainable procurement in the supply chain to apply standards that support CSR and sustainable
procurement (ISO 14000, ISO 26000, ISO 20400) and
identify and report any alleged breach of standards,
taking appropriate actions
The concept and impact of Modern Slavery on Lead and influence internal and external stakeholders on
procurement and supply activity knowledge and adoption of modern slavery standards
(e.g UK Modern Slavery Act (2015) or equivalent
international legislation or standards), identifying any
alleged breach of standards and taking appropriate
actions

Segment 11.6 • Establishing Strategic, Ethical and Sustainable Procurement and Supply
The strategic use of ethical codes in procurement and Influence the strategic application of ethical codes or
supply in support of business success standards across the organisation, its internal and
external stakeholders and associated industry sectors
Techniques for mapping and auditing suppliers to gauge Contribute to the strategic direction of the mapping
risks in ethical and sustainable sourcing and auditing of suppliers to gauge risks in ethical and
sustainable sourcing
The use of standards or legislation to eradicate bribery, Contribute to the development of standards or legislation
corruption, fraud and breaches of human rights to eradicate bribery, corruption, fraud and breaches of
human rights
The main regulations that impact on the employment of Work with others for improved regulations that impact on
people in supply chains, such as those concerning: the employment of people in supply chains
• Discrimination, equality and diversity
• Working time, staff payment and minimum wage
• Other country-specific employment issues
Ethical and sustainable practices and standards that apply Act as a role model in the application of ethical and
to global supply chains sustainable practices and standards that impact on global
supply chains
The sources of expert knowledge and resources that can Support industry, government and/or non-government
be leveraged to continually improve the development organisations (NGOs) with the development of ethical and
and adoption of ethical and sustainable standards in sustainable codes of practice and share learning to help
procurement and supply drive improved national and global standards
The strategic benefits of identifying and eradicating Strategically influence and drive all stakeholders to
bribery, corruption and fraud in all procurement and support and develop a culture aiming to eradicate
supply activity bribery, corruption and fraud in all procurement and
supply activity
The strategic importance of adopting corporate social Act as a professional role model for all stakeholders
responsibility (CSR) and sustainable procurement policies to develop cultures that support CSR and sustainable
and procedures in the supply chain procurement standards (ISO 14000, ISO 26000, ISO
20400) in all procurement and supply activity
The strategic impact of Modern Slavery on procurement Lead the profession in meeting modern slavery standards
and supply (e.g. UK Modern Slavery Act (2015) or equivalent
international legislation or standards; United Nations
Guiding Principles on Business and Human Rights (UNGP,
2011)) and set strategic goals to eradicate such practices
in the future
93
Contributors
CIPS is proud of the Global Standard and of the obvious relevance that the
contents has to the procurement and supply profession and to those colleagues
working within other associated professions.
We are also conscious that a document of this kind cannot be developed and its currency maintained
without the willing and dedicated set of suitably experienced reviewers. Whilst acknowledging the key role
that all of the panel of 3000+ practitioners and academics who were consulted in the development of this
Standard have played, we are particularly grateful to the following list of individuals for their significant and
continuing contribution to the annual review and developmental process.
Name Country Company
Amanda Boustred FCMI FIoD UK CIPS
Andrew Coulcher UK
Andrew Quincey FCIPS UK Transport for London
Antoinette Brandi, FCIPS Australia OZ Minerals
Claire G Younghusband FCIPS MBA UK CYTY Limited
David L Loseby FCMI, FCIPS, FRSA UK Inchcape Plc
Demet Gülerman Turkey Standard Profil Group
Dipl. Ing. Hagen Helm FCIPS, FRAeS, Czech Republic AERO Vodochody AEROSPACE
MBA as
Dr Alan Carroll FCIPS UK
Dr Beverley Lee FCIPS UK
Dr Gary Ramsden MCIPS FCMI CMgr UK

FCILLT SFHEA
Duncan Brock FCIPS UK CIPS
Edet Richard Nigerian Army Headquarters
Enoch Dugbatey MCIPS Ghana Graphic Communications

Group Limited
Fiona Nissen FCIPS Australia
Fiona Revell FCIPS USA Solar Turbines Inc.
Fiona Wood FCIPS UK CIPS
Gordon Donovan MSc FCIPS Australia Metro Trains Melbourne
Hans Lindblom Sweden Hiab (part of Cargotec Corp)
Helen Alder FCIPS UK CIPS
Ian Schollar FCIPS UK CIPS
www.cips.org
Advocates
Knowledge
Employers
Research Academics
Senior Leaders
Experience
ExperiencePractitioners
Name Country Company
Jane Wagner Australia ACT Regional Chair (Canberra,

Australia)
Kevin Hickman FCIPS UK
Larry Beard FCIPS UK EIPSC
Leonard K Torsu MBA, FCIPS UK Healthcare4Africa
Lisa Campbell FCIPS Chartered Status Saudi Arabia King Abdullah University of
Science & Technology
Lucas D’Souza FCIPS India Qatar Foundation
Mark Chamberlain FCIPS UK BAE Systems Plc
Mark Moore FCIPS UK
Mattia Zerbinati Hungary MOL Group
Mr Mark Kuipers South Africa National Treasury
Newton Matope UAE Sevenseas Group
Professor Danny Samson Australia University of Melbourne
Professor Douglas Boateng MSC, South Africa IPP Resources

ENGD, FCILT, FSOE, FIPLANTE, FCMI,
FIC, FINST.D FIOM FCIPS, FIOD, CDIR
Ronald Mlalazi FCIPS South Africa Commerce Edge Academy
Salisu Alhaji Uba MCIPS Nigeria Ministry of Defence
Sam Achampong FCIPS UAE CIPS, MENA
Stephen Rowe FCIPS Australia Spotless Group
Tett Walters FCIPS South Africa
Wael Safwat FCIPS Chartered Status Canada
95
About CIPS, the
Chartered Institute
of Procurement
& Supply
The professional body
CIPS, a not-for-profit organisation that exists for the public good, is the voice of the
profession, promoting and developing high standards of skill, ability and integrity among
procurement and supply chain professionals.
Quality guaranteed
Our qualifications are recognised by OFQUAL in England and regulators in various countries,
demonstrating that they meet specific quality standards.
The Global Standard
CIPS Global Standard in Procurement and Supply, which is freely available, sets the
benchmark for what good looks like in the profession.
A commercial organisation
CIPS helps governments, development agencies, and businesses around the world to excel
in procurement and supply, supporting them to improve and deliver results and raise
standards.
cips.org
CIPS™ is a registered trademark of the Chartered Institute of Procurement & Supply
Copyright ©2019 CIPS. Content may not be copied, reproduced, published, altered or transmitted in any form or by any means, in whole or in part, without the prior written permission of CIPS.

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The Global Standard

The benefits of working with the 04

practitioners and academics drawn from across the

individuals and teams within organisations to understand the 5. Contracting 42

We are dedicated to leading the profession and to helping

Ultimately the content in the Global Standard supports our

Amanda Boustred FCMI, FIoD

­Enhance organisational performance

• Contribute to significant savings by putting in place a procurement team

Enhancing personal performance

• Develop and agree a personal development plan to address the gaps

This guide will help organisations and

How an individual can use How to write job descriptions and

1. The five levels of competence

Use the Standard online globalstandard.cips.org

This granularity of information

Use the Standard online www.cips.org/careers

For private sector organisations

For public sector organisations

Global Standard for Procurement and Supply

Step1: Choose a Level

Step1: Choose a Level Choose a Level

Managerial Advanced professional

Go to globalstandard.cips.org and follow the simple steps as illustrated below.

Step 1 Step 2 Step 3 Step 4

TACTICAL COMPETENCY LEVEL

Knowledge: Will know and understand: Capabilities: Will be able to:

Knowledge: Will know and understand: Capabilities: Will be able to:

Knowledge: Will know and understand: Capabilities: Will be able to:

Knowledge: Will know and understand: Capabilities: Will be able to:

For more details on Improving Performance, see Theme 7 Delivering Outcomes

Knowledge: Will know and understand: Capabilities: Will be able to:

For more details on Systems and Technology, see Theme 3 Technology

Knowledge: Will know and understand: Capabilities: Will be able to:

Leadership behaviours and styles Demonstrate leadership behaviours and styles to

The impact of policy, legislative and regulatory Communicate to stakeholders an understanding of

Knowledge: Will know and understand: Capabilities: Will be able to:

Knowledge: Will know and understand: Capabilities: Will be able to:

TACTICAL COMPETENCY LEVEL

Knowledge: Will know and understand: Capabilities: Will be able to:

Knowledge: Will know and understand: Capabilities: Will be able to:

Knowledge: Will know and understand: Capabilities: Will be able to:

For more details on Corporate Social Responsibility, see Theme 11 Ethics

Knowledge: Will know and understand: Capabilities: Will be able to:

Knowledge: Will know and understand: Capabilities: Will be able to:

Knowledge: Will know and understand: Capabilities: Will be able to:

Knowledge: Will know and understand: Capabilities: Will be able to:

The segmentation of markets Develop and implement the alignment of market

Approaches to strategy evaluation Recommend strategic choices to improve the

Knowledge: Will know and understand: Capabilities: Will be able to:

TACTICAL COMPETENCY LEVEL

Knowledge: Will know and understand: Capabilities: Will be able to:

Knowledge: Will know and understand: Capabilities: Will be able to:

Knowledge: Will know and understand: Capabilities: Will be able to:

Developments such as: Assess developments in technology and make recom-

Knowledge: Will know and understand: Capabilities: Will be able to:

Knowledge: Will know and understand: Capabilities: Will be able to:

Knowledge: Will know and understand: Capabilities: Will be able to:

TACTICAL COMPETENCY LEVEL

Knowledge: Will know and understand: Capabilities: Will be able to:

Knowledge: Will know and understand: Capabilities: Will be able to:

Knowledge: Will know and understand: Capabilities: Will be able to:

Knowledge: Will know and understand: Capabilities: Will be able to:

For more details on Contracts, see Theme 5, Contracting

Enhance organisational performance