L4M1 Deck 4 Flashcards Preview

L4M1 - Scope of Influence of Procurement & Supply > L4M1 Deck 4 > Flashcards

Flashcards in L4M1 Deck 4 Deck (10)
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1

QUICK PROCESS
TRACEABLE
LOW RISK OF MONEY GOING MISSING
HIGH LEVEL OF CONTROL

What are the advantages of E-PAYMENT

2

What are the disadvantages of E-PAYMENT

Risk of hackers
Reliant on technology
No personal relationships

3

Explain 2 ways in which procurement differs from purchasing

PROCUREMENT: a WIDER term, a BROADER process which is more STRATEGIC
PURCHASING: more REACTIVE and TRANSACTIONAL, more OPERATIONAL

4

Name 5 STOCK procurements and 5 NON-STOCK procurements

STOCK: COAL, COTTON, OIL, RUBBER, WHEAT
NON-STOCK: CLEANING SERVICE, PHONE SYSTEM, BROADBAND, INSURANCE, MARKETING CAMPAIGNS

5

Name 4 innovative strategies to achieve cost reduction and added value through the supply chain

JUST IN TIME
OUTSOURCING
SUPPLY CHAIN MANAGEMENT APPROACHES
TAICHI OHNO'S 7 WASTES (TIMWOOD)

6

How can contract management add value after the contract award stage of the sourcing process

STRONGER COLLABORATION
BUYER CAN MEASURE USING KPIs or SLAs
DECISIONS USUALLY MADE AT THE RIGHT TIME, NOT TOO EARLY OR LATE

7

Name 3 activities that take place post-contract award

EXPEDITING
PAYMENT
CONTRACT OR SUPPLIER MANAGEMENT
POST-CONTRACT 'LESSON LEARNING'

8

Describe FIVE sequential stages of a typical tendering process

EVALUATION OF THE SUITABILITY OF TENDERING
IDENTIFICATION OF THE NEED
PREPARATION OF DETAILED SPECIFICATIONS
DETERMINING A REALISTIC TIMETABLE
ISSUING OF AN ITT

9

FIVE reasons why it is important to maintain effective governance standards within the procurement function

Large sums of money being managed = high risk
Duty of care
Anti-fraud/system misuse for personal gain
Encourages a fair system
Reputation of the profession and/or organisation

10

What are the 4 grades of benchmarking

INTERNAL BENCHMARKING "Better than we have before"
WORLD CLASS BENCHMARKING "Better than anyone"
COMPETITIVE BENCHMARKING "Better than competitors"
CUSTOMER BENCHMARKING "Better than customers' expectations"