CIPS Supplier Relationships L4M6 Study Set with Questions and Answers

What is a connected stakeholder? A stakeholder that has a strong interest in a company's activities. This is due to its contractual or commercial relationship with the company. What do internal stakeholders include? Internal end users, contract managers, legal team, employees. What do connected stakeholders include? Suppliers, Customers and clients What do external stakeholders include? Competitors, communities, government and other public agencies What is the definition of value for money? The most advantageous combination of price and quality that makes a product or service fit for purpose and will achieve the buyer's required outcomes. This needs to be reviewed in terms of whole life costs. Value for money is often described as the three E's, what are the three E's? Economy, Efficiency, Effectiveness What are typical factors taken into account in defining value for money? Fitness for purpose, quality, total lifetime costs, risk, environmental and sustainability issues. Creating value for money with competition. In the public sector there are legal rules to support the creation of value for money, transparency and fairness. What can happen when there is a lack of compliance with procurement processes and procedures? Lack of contract coverage, Maverick buying activity, May end up with a product or service that is unfit for purpose, procurement activity is not assessed and managed in a consistent way. How can procurement add value when understanding the need? Make or buy decision, support the formation of a cross-departmental team to develop the specification, review where branded products could be replaced by substitute non-branded products or materials to reduce costs, encourage standardisation What is value mapping? A process in which value is created by reducing or eliminating waste and operational inefficiencies. What are the seven wastes? (TIMWOOD) Transportation, Inventory, motion, Waiting, Over production, over processing, defects.