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| Section | Weight | Objectives |
|---|---|---|
| Procurement Process and Procedures | 25-30% | - Requirements gathering and specification - Supplier selection methods - Contract award criteria - Procurement cycle stages - Purchase ordering and goods receipt |
| Supplier Relationship Management | 20-25% | - Risk management in supplier relationships - Supplier performance measurement (KPI, scorecards) - Supplier development and improvement - Partnership and collaboration models - Supplier relationship types |
| Strategic Sourcing and Category Management | 20-25% | - Strategic sourcing process - Category segmentation - Supplier segmentation and criticality analysis - Spend analysis techniques |
| Practical Application Scenarios | 15-20% | - Recommendation and justification skills - Case study analysis - Applying theory to real-world procurement situations - Problem-solving and decision-making |
| Ethical and Sustainable Procurement | 15-20% | - Ethical sourcing considerations - Environmental sustainability in procurement - Supply chain transparency - Corporate Social Responsibility (CSR) - Modern slavery and fair trade |
What are the ILO and ETI?
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
ILO stands for International Labour Organization- It is a United Nations agency whose mandate is to advance justice and promote decent work by setting international labor standard.
ETI is Ethical Trading Initiative: It is a leading alliance of companies, trade unions and NGOs that promote respect for workers right around the globe. Its vision is a world where all workers are free from exploitation and discrimination and enjoys condition of freedom, security and equity.
What topics are covered within ethics?
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Topics that are covered within ethics are;
1. Environmental factors
2. The triple bottom line: profit, people and planet
3. Adopting sustainable practice.
4. considering the social impact of organization's behaviors
What matrix helps to define how to manage stakeholders?
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Stakeholders are individuals or organizations who are directly affected by a decision for example, community, shareholders, employees, suppliers, distributors, customers etc. stakeholders can be internal (employers, staffs), connected (such as suppliers, shareholders, financers and customers) external (Government, pressure groups, and community).
The matrix that helps define how to manage stakeholders is mendelow's stakeholders manage-ment matrix.
This matrix is based on the theory that the level of management stakeholders require depends on the level of their power and interest within the project or organization The matrix groups stakeholders in to four quadrants according to their power and interest and ad-vice how to manage them.
1) Low power - Low interest (minimum effort)
2) Low power - High interest (keep inform)
3) High power - Low interest (keep satisfied)
4) High power - high interest (manage closely)
Explain which factors should be considered when deciding the quantity of a product to order.
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
When reviewing supplier's response the procurement professional should consider the right quantity of product or service that has to be ordered at anytime as against the price to decide how to gain the best cost.
Factors to consider include the following
(1)Cost of inventory
(2) cost of insurance
(3) cost of transportation.
These three should be considered against price.
Note: Incoterms are versatile and procurement professionals should understand how they are ap-plied and what point the risk transfers from being the supplier's responsibility to being the buyer's responsibility. It is important to consult the ICC for the most recent definitions, but in the following questions (101-111) you can understand the rules.
Note: sharpen your knowledge on INCOTERMS. Please consider the following Objective Re-sponse questions
Describe three ways that hidden cost could present themselves within the logistics operation
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Hidden costs are costs that do not always present themselves at the onset of the project.
Logistics can provide a hidden cost within global sourcing. The movement of goods can generate risk within a localized supply chain, but the risk is greater within global sourcing. Within global sourcing there are usually many more aspects to the logistics operation, hidden cost associated with the logistics process includes,;1) delays that can be experienced after placing orders, 2) unclear and poor/incorrect communication that might affect the successes of the transaction, also 3) goods could be confiscated by customs for unseen reasons.
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