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CIPS overall notes Key words

Cips key words
Academic year: 2023/2024
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Newcastle University

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CIPS LEVEL 4

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  1. Tender Process Determine style of tender Prepare invitation -include info so all bidders understand the need and send a suitable bid Send ITT using suitable platform Receive bids - any bids after deadline date should be disregarded. Evaluate the bids. Check they meet the required expec- tations, disregard bids that are incomplete or bids that are not the correct standard. Evaluate the bids against the criteria and score. Use a cross functional team so the process is fair Award contract and give feedback Contract management - reduces risk by identifying defects or performance issues at an early stage
  2. Restricted tender A PQQ is sent out to them shortlist qualifying suppliers, once shortlisted they receive an ITT. This is used for large/specialised project usually with a conformance spec.
  3. Open tenders An invitation to bid that is open to all potential suppliers. This means that any potential suppliers who can meet the requirements of the invitation to bid is invited to submit a bid.
  4. competitive dia- logue Least common, similar to negotiated, the need is adver- tised and suppliers are PQQ. Successful suppliers meet to discuss and agree a solution to the need. Once agreed, the procurement team creates a tender and give to sup- pliers and receive their bids.
  5. negotiated ten- der Very high value project, this is used without any spec, only the end goal is advertised. The suppliers show interest and then they are sent a PQQ. The selected suppliers discuss with the buyer how they would complete the task. This is the dialogue phase. This must include a minimum of 3 suppliers. They are then invited to submit their bids.
  6. Internal Stake- holders Directors, technical, staff, production, sales & marketing, finance, HR, storage and distribution

Study online at quizlet/_6vdyp 7. Connected stakeholders Shareholders, end customers, intermediary customers, suppliers, financial institutions/lenders 8. External Stake- holders Government, pressure groups, interest groups, communi- ty and society, customers 9. Mendelows ma- trix High/low power high/low interest 10. 7 effective stake- holder manage- ment Communication - keep them up to date Consultation - ask for feedback and opinions Empathy - understand how the stakeholder is feeling Planning - prepare and plan before engaging stakeholders Relationships - be open and honest fair and reasonable Risk - understand the risk that stakeholders could present and have a strategy Compromise - if the stakeholder has a valid concern then be prepared to Change strategy and accommodate their feedback 11. ROI return on investment - profit = sales - cost of goods sold 12. Porter's 5 Forces 1 - degree of competition - a high degree can create more options for buyers and suppliers, with factors like speed of industry growth, capacity utilisation, exit barriers, switching costs and diversity of low competitors 2 - threat of new entrants - low cost manufacturers such as China are eroding the competitiveness of traditional industries 3 - threat of substitutes - new sets of growing composites, thermosets and carbon fibre are replacing elements such as steel 4 - power of buyers - increasing power is leveraged over suppliers in the market when buyers consolidate specs 5 - the power of suppliers - fewer suppliers in a market increases the power levels among individual suppliers 13. Acid Test Ratio Quick assets (assets - inventory)/ Current Liabilities 14. Current Ratio current assets divided by current liabilities

Study online at quizlet/_6vdyp training and support internal costs associated with changing supplier 22. Operating costs labour materials consumables energy supply and consumption contract and supplier management transaction costs environmental costs cost of change, use of alt. materials 23. maintenance costs specialist labour specialist tooling spare and replacement parts reduced out put with age frequency of maintenance and recommended downtime servicing/inspections 24. downtime costs lost profits extra costs of overtime/sub-contracting costs associated with breakdown of equipment claims resulting from non-performance 25. end of life costs safe disposal re-sale ongoing liabilities decommissioning removal for sale or scrap re-instatement of land or buildings for alternative use 26. Product life cycle Design - involves development and test marketing of new product/service introduction - characterised by full-scale marketing, low levels of sales/profits, vulnerability to competing compa- rable products already on market Growth - difficulties of stage 2 by now largely eliminat- ed, increasing number of distributorz, product now estab- lished. Maturity - Sales volumes continuing to grow but at a

Study online at quizlet/_6vdyp decreasing rate eventually levelling off. Profits plateau or decline slightly, production beginning to need refurb/repair. Discounts become available to customers Decline - sales reducing at 1% or more monthly, declining profits, product substitution by distributors, manufacturing equipment sold 27. benefits of WLC evaluation of competing options - WLC is relevant to most purchasing decisions, the technique is also applicable to leasing decisions improved awareness of total costs - WLC has been shown to provide buyers and decision makers with a better grasp of the factors governing cost and resources required Better forecasting - WLC allows the full cost of a purchase over a period of time to be calculated with reasonable accuracy. This is obviously of importance when major in- vestment decisions need to be made Performance trade-offs against cost - using WLC it is straightforward to assess the reliability of a piece of equip- ment in relation to its cost profile 28. Market Research costs Catalogues Buyers guide Commercial Databases Trade exhibitions Tech Journals Independent advice - peer groups Info from sales reps 29. Equipment evalu- ation costs Demonstration on site Loans of sample equip. Analysis of end user preferences Durability Ergonomics Quietness/Smoothness of operation 30. Supplier ap- praisal costs Site Visits References Examination of accounts

Study online at quizlet/_6vdyp hance the pro- ficiency and stature of the profession by fostering the highest standards of professional compe- tence amongst those for whom i am responsible Optimising the responsible use of resources which i have influence over for the benefit of my organisation 36. CIPS Code of conduct - En- sure full compli- ance with laws and regulations Adhering to the laws of the countries in which i practise and in countries where there is no relevant law in place i will apply the standards inherent in this code Fulfilling agreed contractual obligations Following CIPS guidance on professional practice 37. TBL (triple bot- tom line) a technique used in CSR to rate an organisations per- formance on measures of environmental, social and eco- nomic performance and determines that businesses have positives impacts of the three P's 38. The three P's profit, people, planet 39. TBL advantages application of TBL concept is important as it helps to increase global supply chain visibility Firms with CSR's may have greater access to capital because their distinctive ethical values appeal to particular types of investors Environmentally friendly and sustainable business prac- tice can help reduce costs. Turningoff lights and equipment when necessary will reduce energy consumption 40. Advantages of ethical procure- ment promotes positive corporate image in society and builds/maintains reputation Consumers are willing to pay more for ethically produced goods, so a financial reward is available for socially re- sponsible behaviour Trade and professional organisations can ensure greater compliance with legal and other obligations 41. Ethics in pro- curement Fair trade, ethical trading, ethical sourcing, social account- ability, social auditing, CSR, corporate citizenship, codes of conduct and reputation assurance 42. Ethics

Study online at quizlet/_6vdyp moral principles that govern a person's behaviour or the conducting of an activity. 43. What should an ITT include? Spec, conformance or performance? Contract terms, payment terms, liability, exclusions, in- demnity. Date for the bid to be received by, Quantity, Quality standards, such as ISO Delivery Schedule, Delivery address, KPI's, objectives on which the supplier will be monitored. Service level agreements. 44. due diligence Necessary level of care and attention that is taken to investigate an action before it is taken. 45. Modern Slavery human trafficking, bonded labour, forced labour =, child labour and domestic slavery 46. Ethical codes of practice values principles personal responsibility compliance reporting contribution to organisations success reputation focus involvement diversity 47. breach of code of ethics not disclosing conflict of interest breaking confidentiality not paying a fair salary not offering acceptable working conditions accepting bribes committing fraud or theft creating pollution 48. 4 Ds of COI

Study online at quizlet/_6vdyp 53. ETI Ethical Trading Initiative 54. what is TUPE designed to protect employees from losing their job if a contract is moved from one supplier to another. 55. TUPE new em- ployer position Control - takes over control of all the employee's contracts of employment Obligations - takes over all obligations set out in the em- ployees' contracts Agreements = Takes over any collective agreement made on behalf of the employees while in their previous employ- ment Communication - must communicate with employee reps to keep them informed of the situation 56. contract imple- mentation Stage 1 - Transition from current supplier to new supplier Stage 2 - Start-up clear guidance and support at the start-up stage Stage 3 - Operational compliance and guidamce Stage 4 - Contract and supplier management 57. Difference be- tween contract management and supplier manage- ment Managing contracts is about making sure that goods and services are delivered at the correct time, place and meet the spec required Supplier management is about forming and developing relationships with suppliers 58. Competitive Re- lationship getting the best cost from suppliers and gaining required quality and delivery standards. The long term relationship isn't a concern and it is called a 'win-lose' relationship as the buyer gains at the expense of the supplier 59. collabrative rela- tionships based on sharing info, trust, respect and both parties achieving a positive outcome. These relationships are fo- cused on being 'win-win' as they promote innovation 60. joint venture an agreement between two or more companies to share a business project, sharing ownership, profit, control, loss, risk.

Study online at quizlet/_6vdyp 61. Methods of managing con- tracts/suppliers SLA service level agreements KPIs Management by objectives MBO Reviews Continuous improvement Training Amendments Back-up plans 62. SLA (Service Level Agree- ment) clauses in a contract that ensure the supplier meets the expected and agreed level of service. SLA's should be reasonable, as high levels of service can result in higher costs for the business They should be important to the buyer They should be simple and easy to monitor They should be understood by all parties 63. advantages of using KPIs Supplier Motivation Improved communication Improved quality Early identification of risk

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CIPS overall notes Key words

Module: Legal Framework and Building Procurement (ARC7069)

University: Newcastle University

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CIPS
Study online at https://quizlet.com/_6vdyp5
1. Tender Process Determine style of tender
Prepare invitation -include info so all bidders understand
the need and send a suitable bid
Send ITT using suitable platform
Receive bids - any bids after deadline date should be
disregarded.
Evaluate the bids. Check they meet the required expec-
tations, disregard bids that are incomplete or bids that
are not the correct standard. Evaluate the bids against
the criteria and score. Use a cross functional team so the
process is fair
Award contract and give feedback
Contract management - reduces risk by identifying defects
or performance issues at an early stage
2. Restricted tender A PQQ is sent out to them shortlist qualifying suppliers,
once shortlisted they receive an ITT. This is used for
large/specialised project usually with a conformance spec.
3. Open tenders An invitation to bid that is open to all potential suppliers.
This means that any potential suppliers who can meet the
requirements of the invitation to bid is invited to submit a
bid.
4. competitive dia-
logue
Least common, similar to negotiated, the need is adver-
tised and suppliers are PQQ. Successful suppliers meet
to discuss and agree a solution to the need. Once agreed,
the procurement team creates a tender and give to sup-
pliers and receive their bids.
5. negotiated ten-
der
Very high value project, this is used without any spec, only
the end goal is advertised. The suppliers show interest and
then they are sent a PQQ. The selected suppliers discuss
with the buyer how they would complete the task. This
is the dialogue phase. This must include a minimum of 3
suppliers. They are then invited to submit their bids.
6. Internal Stake-
holders
Directors, technical, staff, production, sales & marketing,
finance, HR, storage and distribution
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