D1 - LEARNING OUTCOMES WITH PAST PAPER QUESTIONS
LEARNING OUTCOMES
1.0 Understand the
added value that can be achieved through procurement and supply chain management
1.1 Explain
the categories of spend that an organisation may purchase
• Definitions of procurement and purchasing and supply
• Typical breakdown of organisational costs represented by
procurements of goods, service or constructional works
• Stock and non-stock procurements
• Direct and indirect procurements
• Capital purchases and operational expenditures
• Services procurements
1.2 Analyse
the different sources of added value in procurement and supply
• The five rights of procurement
• Achieving the right price for procurements from external
suppliers
• Defining total life cycle costs or the total costs of
ownership
• Achieving quality, timescales, quantities and place
considerations in procurements from external suppliers
• Other sources of added value such as innovation,
sustainability and market development
• Defining value for money
• Definitions of procurement, supply chains, supply chain
management and supply chain networks
• The length of a supply chain
• Definitions of logistics and materials management
• Comparisons of supply chain management with procurement
• Defining stakeholders
• Examples of stakeholders for a procurement or supply chain
function
• Mapping stakeholders for a procurement or supply chain
function
2.0 Understand the
stages of sourcing processes in creating added value outcomes that can be achieved
with suppliers
2.1 Explain
the main aspects of sourcing processes
• Defining the stages of a generic sourcing process from
identification of needs to contract and supplier management
• Analysis and planning, tender management and contract
management
• Differentiating between pre contract award and post
contract award stages
2.2 Analyse
the main stages of a sourcing process
• Stages of the sourcing process that relate to defining
needs, creation of contract terms, supplier selection, contract award and
contract or supplier management
• The purpose and added value that is created by each of the
stages of the sourcing process
2.3 Explain
how electronic systems can be used at different stages of the sourcing process
• Erequisitioning, ecatalogues, eordering, esourcing and
epayment technologies
• The impact of electronic purchase to pay (P2P) systems on
the sourcing process
2.4 Analyse
the relationship between achieving compliance with processes and the achievement
of outcomes
• Organisational needs for structured sourcing processes
• The relationship between process compliance and the
achievement of added value outcomes
3.0 Understand the
main aspects of organisational infrastructure that shape the scope of a procurement
or supply chain function
3.1 Explain
the main aspects of corporate governance of a procurement or supply chain function
• Conflicts of interest
• The need for documented policies and procedures for
procurement
• Organisational accountability and reporting for procurement
roles and functions
• The status of procurement and supply chain management
within organisations
• Codes of ethics in procurement
• The CIPS code of ethics
• Aspects that can be included in procedures for procurement
and supply such as responsibilities for procurement, regulations relating to
competition, levels of delegated authority, responsibilities for the stages of
the sourcing process, invoice clearance and payment
• The use of procurement policies, procurement strategies and
procurement manuals
• The involvement of internal functions and personnel in the
sourcing process
• Responsible purchasing and the International Labour
Organisation core conventions
• The use of centralised and devolved structures
• Hybrid structures of a procurement or supply chain function
(such as consortium structures, shared services, lead buyer structures, and
outsourced) Interacting with other people and building rapport
• The need for customer service and value for money outcomes
3.4 Explain
the common IT systems that can be used by a procurement or supply chain
function
• P2P systems
• Systems for inventory management
• Enterprise Resource Planning (ERP) technologies
• Communications systems for internal and external use
4.0 Understand the
need for compliance with requirements when undertaking procurement activities
in different sectors
4.1 Identify
different economic and industrial sectors
• Economic classifications including public and private
sectors, charities, not for profit and third sector
• Industrial classifications and sectors such as
manufacturing, retail, construction, financial, agriculture and service
• Codes of ethics in procurement including the CIPS Code of
Ethics
4.2 Analyse
the impact of the public sector on procurement or supply chain roles
• Objectives of public sector organisations such as improving
services, communities and corporate social responsibility
• Regulations that impact on procurement and supply chain
operations
• Need for competition, public accountability and value for
money
4.3 Analyse
the impact of the private sector on procurement or supply chain roles
• Objectives of private sector organisations such as
profitability, market share, shareholder value and corporate social
responsibility
• Regulations that impact on procurement and supply chain
operations
• The importance and role of branding
4.4 Analyse
the impact of the not for profit or third sector on procurement or supply chain
roles
• Objectives of the not for profit or third sector
• Regulations impacting on charities
• Need for regulated procurement exercises
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