12. Procurement

Question 1

List 4 key areas of procurement

Answer 1

1. Develop procurement strategy
2. Preparation of contracts
3. Selection of acquisition of suppliers
4. Management of the contract

Question 2

List 2 stages of procurement strategy

Answer 2

1. The make or buy decision
2. Choice of contractual relationship

Question 3

List 4 types of contractual relationship

Answer 3

1. Single
2. Prime
3. Sequential
4. Parallel

Question 4

List 8 stages of tender process

Answer 4

1. Research the market
2. Pre-qualification
3. Tender
4. Respond to queries
5. Receive and evaluate bids
6. Award
7. Manage
8. Close

Question 5

List 3 considerations during supplier selection process

Answer 5

1. Organisations rules and regulations
2. Achieve best value for price charged and ensure process is transparent and fair
3. Ensure qualified resources engaged

Question 6

What is ZOPA

Answer 6

Zone of possible agreement

ZOPA = Maximum buyer - Minimum seller

Question 7

What is BATNA

Answer 7

Best alternative to a negotiated agreement

Question 8

List 5 steps of negotiation

Answer 8

1. Understand need for negotiation
2. Prepare
3. Discussion and debate
4. Confirm each others views
5. Check actions against agreement

Question 9

List 4 reimbursement methods

Answer 9

1. Fixed
2. Target Cost
3. Cost plus fee
4. Per unit quantity