CIPS EXAM GRADED A+ LATEST UPDATE.
Tender Process ANS >>> Determine style of tender
Prepare invitation -include info so all bidders understand the need and
send a suitable bid
Send ITT using suitable platform
Receive bids - any bids after deadline date should be disregarded.
Evaluate the bids. Check they meet the required expectations, disregard
bids that are incomplete or bids that are not the correct standard.
Evaluate the bids against the criteria and score. Use a cross functional
team so the process is fair
Award contract and give feedback
Contract management - reduces risk by identifying defects or
performance issues at an early stage
Restricted tender ANS >>> A PQQ is sent out to them shortlist qualifying
suppliers, once shortlisted they receive an ITT. This is used for
large/specialised project usually with a conformance spec.
,Open tenders ANS >>> An invitation to bid that is open to all potential
suppliers. This means that any potential suppliers who can meet the
requirements of the invitation to bid is invited to submit a bid.
competitive dialogue ANS >>> Least common, similar to negotiated, the
need is advertised and suppliers are PQQ. Successful suppliers meet to
discuss and agree a solution to the need. Once agreed, the
procurement team creates a tender and give to suppliers and receive
their bids.
negotiated tender ANS >>> Very high value project, this is used without
any spec, only the end goal is advertised. The suppliers show interest
and then they are sent a PQQ. The selected suppliers discuss with the
buyer how they would complete the task. This is the dialogue phase.
This must include a minimum of 3 suppliers. They are then invited to
submit their bids.
Internal Stakeholders ANS >>> Directors, technical, staff, production, sales
& marketing, finance, HR, storage and distribution
Connected stakeholders ANS >>> Shareholders, end customers,
intermediary customers, suppliers, financial institutions/lenders
External Stakeholders ANS >>> Government, pressure groups, interest
groups, community and society, customers
, Mendelow’s matrix ANS >>> High/low power high/low interest
7 effective stakeholder management ANS >>> Communication - keep
them up to date
Consultation - ask for feedback and opinions
Empathy - understand how the stakeholder is feeling
Planning - prepare and plan before engaging stakeholders
Relationships - be open and honest fair and reasonable
Risk - understand the risk that stakeholders could present and have a
strategy
Compromise - if the stakeholder has a valid concern, then be prepared
to Change strategy and accommodate their feedback
ROI ANS >>> return on investment - profit = sales - cost of goods sold
Porter's 5 Forces ANS >>> 1 - degree of competition - a high degree can
create more options for buyers and suppliers, with factors like speed of
industry growth, capacity utilisation, exit barriers, switching costs and
diversity of low competitors
2 - threat of new entrants - low-cost manufacturers such as China are
eroding the competitiveness of traditional industries
3 - threat of substitutes - new sets of growing composites, thermosets
and carbon fibre are replacing elements such as steel
4 - power of buyers - increasing power is leveraged over suppliers in the
market when buyers consolidate specs
Tender Process ANS >>> Determine style of tender
Prepare invitation -include info so all bidders understand the need and
send a suitable bid
Send ITT using suitable platform
Receive bids - any bids after deadline date should be disregarded.
Evaluate the bids. Check they meet the required expectations, disregard
bids that are incomplete or bids that are not the correct standard.
Evaluate the bids against the criteria and score. Use a cross functional
team so the process is fair
Award contract and give feedback
Contract management - reduces risk by identifying defects or
performance issues at an early stage
Restricted tender ANS >>> A PQQ is sent out to them shortlist qualifying
suppliers, once shortlisted they receive an ITT. This is used for
large/specialised project usually with a conformance spec.
,Open tenders ANS >>> An invitation to bid that is open to all potential
suppliers. This means that any potential suppliers who can meet the
requirements of the invitation to bid is invited to submit a bid.
competitive dialogue ANS >>> Least common, similar to negotiated, the
need is advertised and suppliers are PQQ. Successful suppliers meet to
discuss and agree a solution to the need. Once agreed, the
procurement team creates a tender and give to suppliers and receive
their bids.
negotiated tender ANS >>> Very high value project, this is used without
any spec, only the end goal is advertised. The suppliers show interest
and then they are sent a PQQ. The selected suppliers discuss with the
buyer how they would complete the task. This is the dialogue phase.
This must include a minimum of 3 suppliers. They are then invited to
submit their bids.
Internal Stakeholders ANS >>> Directors, technical, staff, production, sales
& marketing, finance, HR, storage and distribution
Connected stakeholders ANS >>> Shareholders, end customers,
intermediary customers, suppliers, financial institutions/lenders
External Stakeholders ANS >>> Government, pressure groups, interest
groups, community and society, customers
, Mendelow’s matrix ANS >>> High/low power high/low interest
7 effective stakeholder management ANS >>> Communication - keep
them up to date
Consultation - ask for feedback and opinions
Empathy - understand how the stakeholder is feeling
Planning - prepare and plan before engaging stakeholders
Relationships - be open and honest fair and reasonable
Risk - understand the risk that stakeholders could present and have a
strategy
Compromise - if the stakeholder has a valid concern, then be prepared
to Change strategy and accommodate their feedback
ROI ANS >>> return on investment - profit = sales - cost of goods sold
Porter's 5 Forces ANS >>> 1 - degree of competition - a high degree can
create more options for buyers and suppliers, with factors like speed of
industry growth, capacity utilisation, exit barriers, switching costs and
diversity of low competitors
2 - threat of new entrants - low-cost manufacturers such as China are
eroding the competitiveness of traditional industries
3 - threat of substitutes - new sets of growing composites, thermosets
and carbon fibre are replacing elements such as steel
4 - power of buyers - increasing power is leveraged over suppliers in the
market when buyers consolidate specs
