L4M1 - CIPS: EXAM
REVIEW 100% PASS
QUESTIONS WITH
ck
DETAILED ANSWERS | A+
lo
GRADE ASSURED //
LATEST
yc
ud
st
,Stakeholders
In any activity an organization undertakes, whether strategic, operational or tactical, the activity
can only be successful with the input, commitment and support of its key stakeholders. Gaining
and maintaining the support and commitment of stakeholders requires a continuous process of
engaging the right stakeholders at the right time and understanding and managing their
expectations.
Global Supply Chains
a dynamic worldwide network when a company purchases or uses goods or services from
overseas. It involves people, information, processes and resources involved in the production,
handling and distribution of materials and finished products or providing a service to the
ck
customer.
Whole Life Costing
takes into account the total cost of a product or service over its lifetime, from concept through to
lo
disposal including purchase, hire or lease, maintenance, operation, utilities, training and
disposal. It is important for procurement to take all these elements into consideration when
making decisions and comparing the costs of buying, renting or leasing equipment particularly.
In most cases the purchase costs are only a small proportion of the cost of operating it.
yc
Stakeholder mapping
A systematic way to identify the expectations, needs, importance, and relative power of various
stakeholders.
ud
Value Generation
Creating value from the supply base can be achieved by not only focusing on price but also
increasing operational performance, driving efficiencies, working collaboratively or developing
continuous improvement activities.
st
Procurement Cycle
the cyclical process of key steps when procuring goods or services.
Steps of the Procurement Cycle
1. Understand Need and develop High level Spec.
2. Market/Commodity and options (inc make or buy assessment).
3. Develop Strategy/plan
4. Pre-procurement market test and market engagement.
5. Develop documentation, PPQ/detailed spec/combine with 1.
, 6. Supplier selection to participate in ITT/RFQ/negotiation.
7. Issue ITT/RFQ.
8. Bid/Tender Evaluation and validation.
9. Contract award and implementation.
10. Warehouse logistics and receipt.
11. Contract performance review and continuous improvement.
12. SRM and SC management and development.
13. Asset management/end of life and lessons learnt.
Contract Management
delivers a great amount of data and intelligence that support the smooth running of a business.
ck
Historically, the purpose of a contract as a legal document was to protect the parties from
negative consequences of its breaches. Today, when companies are facing increasing
pressures to reduce costs and improve financial and operational performance, forming and
managing new trading relationships is critical for success. How well an organisation manages its
relationships with partners defines the two core elements of bottom line performance: increasing
lo
revenues and decreasing costs. ... plays an important role by ensuring the smooth running of
operations, protecting the organisation from risks and shaping the buyer-supplier relationships
(Aberdeen Group, 2007; Saxena, 2008).
yc
Application of Technology
E-Procurement systems can be utilised in the Request for Information (RFI), Request for
Proposal (RFP) and Request for Quotation (RFQ) process as well as for e-Tendering,
e-Auctioning, vendor management, catalogue management, purchase ordering, order status,
shipment status, e-invoicing, e-payment and contract management.
ud
eSourcing / eProcurement systems P2P
relates to the electronic procurement of products or services via the internet. Other systems
such as electronic data interchange (EDI) and enterprise resource planning (ERP) are also
forms of...
st
International Labour Organisation
The only tripartite U.N. agency, since 1919 it brings together governments, employers and
workers of 187 member States , to set labour standards, develop policies and devise
programmes promoting decent work for all women and men.
Supplier evaluation & appraisal
is conducted at the tender stage and can be in the form of either a questionnaire, interview or
site visit to assess the supplier's capability in terms of capacity, financial stability, quality
