CIPS L4M2 Defining Business Need
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
Brainpower
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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.
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
Brainpower
Read More
Previous
Play
Next
Rewind 10 seconds
Move forward 10 seconds
Unmute
0:01
/
0:15
Full screen
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.
