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CIPS L4M1 - Scope & Influence of Procurement & Supply > 1.1 - Compare the concepts of procurement & supply chain management > Flashcards

1.1 - Compare the concepts of procurement & supply chain management Flashcards

(61 cards)

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1
Q

Strategic

A

High level planning, including setting direction and long term goals

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2
Q

Name 8 elements included in procurement

A
  1. Added value
  2. Cost
  3. Inventory
  4. Logistics
  5. Purchasing
  6. Quality
  7. Supply
  8. Waste Management
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3
Q

What is purchasing

A

The act of physically ordering and buying something

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4
Q

What 2 things link to purchasing

A
  1. Ordering
  2. Expediting
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5
Q

What links to supply

A

Delivery

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6
Q

Expediting

A

The process involved in the progress of an order to ensure stock is received as quickly as possible

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7
Q

Primary sector

A

Industry sector that extracts raw materials

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8
Q

Secondary sector

A

Industry sector that manufactures things

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9
Q

What does a supply chain involve

A

A network of individuals, organisations, technology, activities and resources to make sure goods or services flow along the chain

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10
Q

Tertiary sector

A

Industry sector that provides services

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11
Q

Give an example of the primary sector

A

Raw materials

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12
Q

Give an example of the secondary sector

A

Manufacturing

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13
Q

Give an example of the tertiary sector

A

Services

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14
Q

Supply chain

A

A channel of goods distribution, which starts with the supplier of raw materials or components, moves through an operational process to the distributor and retailer, and finally to the consumer

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15
Q

Upstream

A

The supply flow of raw materials, components, parts etc, needed for production

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16
Q

Downstream

A

The supply chain that the organisation feeds into, from product to end user

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17
Q

Give 2 examples of upstream

A
  1. Suppliers obtain raw materials from producers
  2. Producers extract natural resources
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18
Q

Give 2 examples of downstream

A
  1. Distributor collects materials from the manufacturer and delivers them to the customer
  2. Customer
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19
Q

Who is the only one consumer in a supply chain

A

The end user

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20
Q

Ethics

A

Principles that govern a persons or an organisations behaviour

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21
Q

Name 8 things you have to manage effectively to get value in the supply chain

A
  1. Price
  2. Delivery
  3. Storage
  4. Ethics
  5. Environment
  6. Sustainability
  7. Communication
  8. Quality
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22
Q

Supply chain network (SCN)

A

An evolution of the basic supply chain, which defines the more complex structure, involving a higher level of interdependence and connectivity allowing a two-way exchange of information and materials to successfully meet customer demands between more organisation both upstream and downstream

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23
Q

Which 5 areas are supply chain networks usually designed around

A
  1. External suppliers
  2. Manufacturers
  3. Distribution/wholesale centres
  4. Logistics
  5. Consumer demand
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24
Q

Name 2 types of flows managed in supply chain networks

A
  1. Physical flows
  2. Information flows
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25
Physical flows
Include the movement and storage of materials and end products. These are the tangible parts of the supply chain network. Goods flow one way only
26
Information flows
Include organisatonal strategies and the way they are communicated, the control processes within the network and the standards to which the chain should work. Information flows two ways
27
What is the difference between procurement and supply chain
Procurement is about obtaining products and services in response to a need. Supply chain refers to infrastructure involved in physically getting the products and services delivered
28
Name 6 things included in procurement
1. Preparing specifications 2. Monitoring quality 3. Sourcing 4. Buying 5. Stock control 6. Disposal of waste
29
How does procurement fit into supply chain management
Procurement - supplier and input (raw materials) Manufacturing - input (raw materials), process and output (end product) Sales - Output (end product) and consumers
30
Tiering
The structured ordering and organisation of suppliers so that organisations downstream work with fewer suppliers upstream
31
Name a benefit of tiering
It allows for the concentrated development of a smaller number of suppliers
32
Name a disadvantage of tiering
Buyers are more susceptible to risk factors including compliance, ethics and sustainability, from suppliers outside of tier one as they have less visibility and control over the supply chain
33
Original equipment manufacturer (OEM)
Generally perceived as the producer of own-branded parts or equipment which are sold to other manufacturers for retail and production
34
Audit
An official inspection conducted, either by the procurement organisation itself or by an independent third party, to ensure compliance with requirements and standards
35
Give an example of a complex supply chain network (5)
1. Supplier 2. Manufacturer 3. Distribution site 4. Retailer 5. Customer/consumer
36
Logistics
The control of the flow of goods or services between two points. It is about making sure that people or things are where they need to be at the correct time
37
Name 5 things logistics includes
1. Handling 2. Packaging 3. Inventory 4. Warehousing 5. Transportation
38
Name 5 steps of the inbound supply chain that logistics is involved in
1. Producers 2. Suppliers 3. Manufacturers 4. Products 5. Inventory
39
Name 5 steps of the outbound supply chain that logistics is involved in
1. Inventory 2. Distribution 3. Transport 4. Retail 5. Consumer
40
Internal logistics
Includes the processes that are related to turning the raw material into the desired end product
41
Name 3 examples of internal logistics
1. Extraction/production 2. Warehousing/storage 3. Manufacturing
42
Name 3 examples of external logistics
1. Distribution 2. Transport 3. Retail
43
Name 5 areas that need to be managed for logistics to run effectively
1. Demand planning 2. Fleet management 3. Inventory management 4. Warehousing and storage 5. Order fulfilment
44
Demand Planning
Knowing what is required and when
45
Fleet management
Covers the solutions an organisation uses to physically transport goods from one place to another
46
Inventory management
Involves knowing how much inventory (stock) is available
47
Materials management
1. Procurement (delivery) 2. Goods in (quality) 3. Inspection 4. Booking in 5. Storage (handling) 6. Issuing 7. Distribution (transport) 8. Customer / consumer (re-ordering)
48
Waste management
Encompasses the strategies organisations use not only to dispose of waste but also to reduce, recycle and prevent it from occurring in the first place
49
Name 2 things that are protected by laws around waste management
1. Human health & wellbeing 2. The environment; rivers and streams, air, land, trees and plants
50
Name 4 examples of EU waste management regs
1. Battery directive 2. Landfill Directive 3. Hazardous Waste Regulations 4. WEEE Directive
51
Battery directive
Regulation of the manufacturing, accumulation and disposal of batteries
52
Landfill directive
Regulation to reduce negative effects on the environment caused by waste put into landfill
53
Hazardous Waste Regulations
Regulation to restrict the movement and storage of hazardous waste
54
WEEE Directive
Regulation which sets targets for the recovery and recycling of electrical goods
55
WEEE
The Waste Electrical and Electronic Equipment Directive
56
Name the 10 steps of effective waste management
1. Understand the legal implications of the waste produced in your organisation by identifying the specific legislation that affects you 2. Look at your general environment issues - what role does waste play in these? 3. Quantify and identify your waste 4. Identify a waste management champion or team to drive things forward 5. Produce an action plan for reducing your wastes 6. Get commitment from senior management for the action plan 7. Identify the possible disposal options where you cannot reduce or recycle 8. Select your waste carriers carefully and make sure your Duty of Care responsibilities are met 9. Monitor and review your achievements 10. Communicate your successes to your staff, senior managers and outside your organisation to interested stakeholders
57
Name the 4 steps of the waste hierarchy
1. Reduce amount produced 2. Reuse waste 3. Recover waste (recycling, composting and waste to energy) 4. Send to landfill
58
Name 4 benefits of effective waste management
1. Compliance with regulations, meaning less risk if fines, penalties or reputational damage 2. Positive impact on people, the planet and its resources 3. Enhanced brand reputation, meaning organisations, stakeholders and suppliers will want to work with you and customers will want to buy from your 4. Cost savings associated with the elimination if unnecessary waste from the supply chain
59
Closed loop recycling
Where recycled waste can be reprocessed or repurposed indefinitely to make either new products or returned to the environment as biodegradable waste
60
Name 3 examples of closed loop recycling
1. Aluminium 2. Glass 3. Some types of plastic
61
Name 4 benefits of closed loop recycling
1. Preserves natural resources, as less resources are depleted each time a new product is made 2. Frees up space in landfill for items that absolutely cannot be recycled 3. Minimises the effect on the environment and wildlife 4. Contributes towards supply chain sustainability

CIPS L4M1 - Scope & Influence of Procurement & Supply (16 decks)

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