QUESTIONS AND ANSWERS ACCURATE
AND VERIFIED
What is 'retain in house'?
✔✔These are highly strategic items and should NOT be outsourced
What is 'Eliminate function or task'?
✔✔These contribute very little to the organizations strategy do their
value should be questioned. They may be eliminated.
What areas/items are normally frequently outsourced?
✔✔IT SUPPORT
CATERING
CLEANING
SOCIAL MEDIA
MARKETING
HUMAN RESOURCES
ACCOUNTANCY OR PAY ROLL
When can INSOURCING occur?
✔✔Only when something has previously been outsourced.
What does a supplier need before being considered for contract?
✔✔A supplier pre-qualification or supplier appraisal
,What is Pre-Qualification?
✔✔This is where the buyer finds out whether the supplier meets the
buyers criteria on capability, capacity and financial ability.
What is Supplier Appraisal?
✔✔This is where the buyer evaluates a suppliers ability to carry out a
contract in terms of quality, delivery, price and other contributing factors.
What techniques can you use to compile a list of suppliers?
✔✔PREVIOUS KNOWLEDGE
RECOMMENDATIONS
INTERNET RESEARCH
MARKET PUBLICATIONS
TRADE SHOWS
NETWORKING
What can a pre qualification questionnaire also be known as?
✔✔A PQQ
What questions does a PQQ normally seek to answer?
✔✔1- is the supplier financially stable?
2- does the supplier have the relevant and required experience and
accreditation to carry out the contract?
3- does the supplier have the capacity, control and commitment to
manage the contract.
4- does the supplier follow ethical and sustainable practices?
, What do Carter's 10 C's do?
✔✔Evaluate suppliers/contracts
What are Carter's 10 C's ?
✔✔COMPETENCY
CAPACITY
COMMITMENT
CONTROL
CASH
COST
CONSISTENCY
CULTURE
CLEAN
COMMUNICATION
What happens during the appraisal of the suppliers?
✔✔The buyers will remove any suppliers from the list that would not add
value - this helps to reduce risk.
What are some risks that could affect organisations?
✔✔POOR QUALITY
BREACH OF CONTRACT
FAILED DELIVERY
ETHICAL CONCERNS
ENVIRONMENTAL DAMAGE
STAKEHOLDER DISSATISFACTION