Scope and Influence of Procurement and Supply 2.2 March 21

Scope and Influence of
Procurement and Supply

2.2 Analyse the key stages of a sourcing process
2.2 Analyse the key stages of a sourcing
process
• What is sourcing?
– Sourcing is an element in the procurement cycle that relates to the stages of the
procurement cycle that deals with the need and supplier selection stage.
• How is the need defined?
All rights reserved. These slides are provided exclusively to CIPS Approved Study Centres for the sole purpose of teaching CIPS Professional Qualifications, they are not to be used for any other purpose and may not be altered, copied,
All or
sold rights
lentreserved. These slides
to other parties. are provided
Copyright ©2018 exclusively
CIPS to CIPS Approved Study Centres for the sole purpose of teaching CIPS Professional Qualifications, they are not to be used for any other purpose and may not be altered, copied,
sold or lent to other parties. Copyright ©2018 CIPS
Leading global excellence in procurement and supply

(2.2) Key stages of the sourcing process
Stage Added value
Ensures quality standards are met and reduces need for
Defining needs / developing
requotes due to lack of information or misinterpretation.
specification
Saves time
Ensures potential suppliers are fully briefed on the terms and
Developing contract /
conditions which eliminates at an early stage suppliers that
documentation
cannot conform.
Evaluation of suppliers removes unethical, unsuitable suppliers
Supplier selection
and those in financial difficulties
Saves time compared with spot buying. Ensures goods are
Contract award
sourced against ongoing needs.
Develops relationships which increase the chances of
Contract / supplier
innovation, change management and trust between
management
organisations.
Slide 16
9
Creation of contract terms
Creation of contract
terms includes
developing the terms
and conditions and other
legal requirements
The terms outline what has
been agreed between the
supplier and the purchaser
All or
sold rights

A Contract
• A legally binding agreement
• Two main components of an agreement
– Offer
– Acceptance
Make notes on the following:

1. What is an offer
2. Is an RFP or an ITT an offer?
3. What is an incitation to treat
All or
sold rights

Acceptance of an offer
• Explain what is meant by unconditional acceptance.

• What is the consequence of an unconditional
acceptance?
All or
sold rights

The Supplier’s Offer
• List eight factors that should be in a supplier’s offer
• For each factor state why it is important to include it in the offer.
All or
sold rights

Express and implied terms
• Express terms
– Terms stated in the contract
• Give examples of expressed terms in a contract
• Implied terms
– Terms not written into the contract but are understood to be included in the
contract because off
• Legislation
• Regulations
• Public interest
• Business efficacy
All or
sold rights

Importance of the legal framework
• Research the difference between Civil Law and Common Law systems
• Under which system does Trinidad and Tobago fall?
• Give an example of a country with a Civil Law system
All or
sold rights

Service Level Agreements (SLA)
• Service level agreements form part of the
contract documentation
A service level agreement outlines the service
that a buying organisation expects from a
supplier. It defines how the service delivered
will be measured and how any conflicts will be
dealt with should the service level not be
acceptable.
Review the SLA Checklist and sample SLA in study
guide
All or
sold rights

Supplier selection and contract award
• Supplier selection
• Contract award
All or
sold rights

Key Performance Indicators (KPIs)
• Name four areas of a supplier’s performance that

are monitored by KPIs.
• What are the elements of a smart KPI
All or
sold rights

Supplier selection
• What is the objective of supplier selection?
• What are likely differences between public sector and private sector
approach to supplier evaluation?
• Why must suppliers be properly evaluated before selection?
All or
sold rights

Contract award and supplier management
• Contract is awarded to the chosen supplier
• Type of contract depends on the type of business and the risks to be
managed
• Type of relationship or supplier relationship management (SRM) depends
on the type of strategy – this can be determined by use of the Kraljic
Matrix
• Two main types of relationships
– Collaborative
– Distributive
All or
sold rights

End of lesson
All or
sold rights

Scope and Influence of Procurement and Supply 2.2 March 21

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Scope and Influence of Procurement and Supply 2.2 March 21

Uploaded by

Copyright:

Available Formats

Scope and Influence of

Procurement and Supply

Leading global excellence in procurement and supply

Leading global excellence in procurement and supply

Make notes on the following:

Leading global excellence in procurement and supply

• Explain what is meant by unconditional acceptance.

Leading global excellence in procurement and supply

Leading global excellence in procurement and supply

Leading global excellence in procurement and supply

Leading global excellence in procurement and supply

Leading global excellence in procurement and supply

Leading global excellence in procurement and supply

• Name four areas of a supplier’s performance that

Leading global excellence in procurement and supply

Leading global excellence in procurement and supply

Leading global excellence in procurement and supply

Leading global excellence in procurement and supply

You might also like