CIPS L4M2 Defining Business Need Questions and Answers

CIPS L4M2 Defining Business Need Questions and Answers Types of Purchases new buy, straight rebuy, modified rebuy Straight rebuy purchase Routine purchases of the same products under approximately the same terms of sale Modified rebuy purchase When new-task purchases are changed on repeat orders or straight rebuy purchases are modified New purchase A purchase of an item for the first time Examples of straight rebuy purchases Utilities (gas, water, electricity) MRO ( Maintenance, repair and operating items) Raw materials (steel, chemicals) Examples of modified rebuy purchases Services (Consulting) Components or semifinished products ICT Examples of New purchases Capital Items Finished products Products from resales Task in a new purchasing Understand the business requirement Writing and effective communication Researching the supply market Researching key suppliers in that market Deciding on the key capabilities that suppliers must have Writing invitation to tender documentation Managing the tender process Negotiating Selecting the supplier. straight re-buy decision A purchase decision resulting from an ongoing purchasing relationship with a supplier modified rebuy decision a purchase decision that occurs when a buyer has experience in purchasing a product in the past but is interested in acquiring additional information regarding alternative products and/or suppliers new purchase decision A purchase decision that made when the buyer identifies a new requirement. (New Product, technology change, changes in the legislation to offer a new service) Private sector Mission and Purpose Supply the needs and improve the enduser lives maximizing the profits and provide a financial return to its share holders. Public sector Mission and Purpose Provide services not available by non profit organization. Terms of RAQSCI Model Regulatory Availability Quality Service requirement Cost Innovation RAQSCI Regulatory Covers any legal requirements or requirements of regulatory bodies RAQSCI Abailability Covers the continuing supply of goods and services when required and is based on factors , such as capacity , financial stability and risk. RAQSCI Quality this is the consistency, repeatability and how fit for propose the procured goods and services are RAQSCI Service requirements are factors associated with the way services are supplied for example flexibility, support and help desk. RAQSCI Cost Cost and price: target cost, total cost of ownership, benchmarked prices, continues improvements. RAQSCI Innovation improvement customer experience Use of RAQSCI Model