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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Supplier Relationship Management | 20-25% | - Risk management in supplier relationships - Partnership and collaboration models - Supplier performance measurement (KPI, scorecards) - Supplier development and improvement - Supplier relationship types |
| Topic 2: Strategic Sourcing and Category Management | 20-25% | - Strategic sourcing process - Spend analysis techniques - Supplier segmentation and criticality analysis - Category segmentation |
| Topic 3: Ethical and Sustainable Procurement | 15-20% | - Modern slavery and fair trade - Ethical sourcing considerations - Environmental sustainability in procurement - Corporate Social Responsibility (CSR) - Supply chain transparency |
| Topic 4: Practical Application Scenarios | 15-20% | - Applying theory to real-world procurement situations - Problem-solving and decision-making - Case study analysis - Recommendation and justification skills |
| Topic 5: Procurement Process and Procedures | 25-30% | - Purchase ordering and goods receipt - Requirements gathering and specification - Procurement cycle stages - Contract award criteria - Supplier selection methods |
Which Incoterm applies here?
The supplier is responsible for delivering the goods to a carrier or to an intermediate agreed place and should ensure that the goods have at least minimal insurance cover until this point. Again, the buyer is responsible for ensuring these goods reach their named destination from here.
What are the two options for the disposal of an asset if resale is not possible?
See the answer in explanation.
Explanation:
Disposal of an asset is the final stage in the decommissioning process of a fixed asset.
When a fixed asset reaches the end of its useful or cost effective life time within an organization, the decision is made as to whether it should be removed from the premises or disposed off.
If the asset is truly at the end of its life, no longer fit for purpose, not cost effective to repair and is not able to be exchanged, then disposal is the only option; there are two options for disposal;
1) Take the asset to land fill site
2) Taking the asset to a recycling plant.
When should whole life asset management be applied?
See the answer in explanation.
Explanation:
When organization has made the decision about which option is best for sourcing the asset, it can then begin to work on the whole life asset management strategy.
Whole life asset management is the process of evaluating the total price and all associated costs of a product to make an informed decision as to which option will provide the organization with the best value for money.
This strategy is only under taken for large-value procurements because; 1) It takes considerable time (2) It involves many stakeholders and require numerous resources; If whole life asset management were conducted on every purchase it would not create value for the organization and that may tie up valuable resources.
Which sector most frequently uses invitation to tender?
See the answer in explanation.
Explanation:
The public sector uses tenders a lot more in the working environment than private sector.
Explain how procurement should decide whether to make or buy a product or service.
See the answer in explanation.
Explanation:
Make or buy decision are about whether a products or services should be made within the organization or bought-in from an external supplier.
For a procurement professional to establish which method (make or buy) offers the best value, the item in question must be thought through if it is core to the organization and which option will add more value to the organization, as regards achieving its strategic goals. If it is core the procurement professional decide to make it and if it is not core the product or services can be bought in.
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