L4M1試験無料問題集「CIPS Scope and Influence of Procurement and Supply 認定」
What is meant by a structured procurement process? (10 marks) Why is this important? (15 marks).
正解：
See the solution in Explanation part below.
Explanation:
- Definition of 'structured procurement process' - when an organisation provides a sequence of actions / steps to take to get the outcome (the procurement of an item). This involves an organisation providing guidelines and instructions of how things should be done. Basically following a step-by-step process.
- Why this is important - Ensures all tasks that need to be done are done, maintains consistency, prevents conflict and suboptimal behaviour, improves efficiency, better managerial control, compliance (with laws and standards), assists with continuous improvement, may result in time/ cost savings, reduces risks such as fraudulent spending.
Example essay:
The first part of the question is worth 10 points, so you could include a few of the following points. It would also be good to include examples:
- Structured procurement involves creating rules on how procurement should be done
- This is in contrast to reactive / maverick spending
- May come about due to company policy, external regulations or through trying to achieve Competitive Advantage
- Examples include an organisation having set procedures for ordering items of different spend- e.g.
Procurement Assistants can purchase items up to £500. Items between £500-£1000 require a manager's approval and anything over £1000 requires a written Business Case in order to procure
- Structures Procurement Processes will usually also include the use of a designated e-procurement tool. E.g.
an organisation may insist that all tenders use a certain online system and that invoices are sent via X system within 30 days.
The second part of the question is worth slightly more points, so spend more time on this. You could put each of the reasons why it is important in a separate paragraph. Also use examples where you can;
- Ensures all tasks that need to be done are done- having structured processes means having a step-by-step guide to how to procure. This means activities are well co-ordinated and there are no gaps, no duplications of effort and no conflicting efforts. It may involve assigning different people in the team different roles e.g.
someone makes the requisition and someone else approves it. It also means that nothing is forgotten.
- Maintains consistency- having standardised processes means each procurement exercise follows the same process. This may include using a standard template for a requisition or ITT. Where there is consistency, this results in time being saved and less mistakes being made as everyone (including supply partners) is familiar with the processes.
- Prevents conflict and suboptimal behaviour- in organisations that use structured procurement processes everyone does the same. This means there is no conflict (e.g. one person doing things one way and another person does it differently and arguing which way is best). It also means no one can do procurement 'wrong' - there are written guides and procedures to follow. This is particularly helpful for new starters.
- Efficiency - time and money can be saved where there are standard procedures as people don't have to plan each procurement activity individually. Structured Procurement Processes may also involve completing bulk orders and co-ordinating activity within the organisation which means less orders are placed over the year and efficiency savings can be made. For example, a factory may create an order of cleaning products once a quarter, compared to ordering products just as and when they are required. This will save time of the procurement department overall throughout the year and allows them to focus on other more value-adding tasks.
- Better managerial control - Managers have more oversight when using structured procurement. There are clear rules as to when managers need to be involved and provide sign-off. This visibility makes it easier for managers to make decisions and allows for early intervention where someone needs assistance. It will reduce maverick spending and fraudulent spending. For example, it is much harder to provide kick-backs to suppliers when there are clear processes and audit trails and managers have visibility over all processes.
- Compliance (with laws and standards) - particularly in the Public Sector there are rules and regulations regarding procurement practices. Using standardised processes allows organisations to demonstrate compliance with appropriate legislation. It also protects them from 'challenge'. This is when a bidder who is unsuccessful challenges the decision to award a contract to someone else. Using a structured procurement process allows the organisation to demonstrate that they procured the item correctly and the challenge is unfounded.
Tutor Notes
- This topic isn't as well explained in the new study guide as it used to be. It's all pretty obvious stuff but the language is slightly different. The guide now talks about 'compliance with processes' and the benefits this brings. Which is exactly the same as why do you follow a structured process. This is on p. 114.
- If you're feeling clever, you could mention the difference between Public and Private Sector- e.g. a private organisation may use standardised processes for efficiency and cost savings, whereas a public sector organisation may use it more for compliance purposes.
Explanation:
- Definition of 'structured procurement process' - when an organisation provides a sequence of actions / steps to take to get the outcome (the procurement of an item). This involves an organisation providing guidelines and instructions of how things should be done. Basically following a step-by-step process.
- Why this is important - Ensures all tasks that need to be done are done, maintains consistency, prevents conflict and suboptimal behaviour, improves efficiency, better managerial control, compliance (with laws and standards), assists with continuous improvement, may result in time/ cost savings, reduces risks such as fraudulent spending.
Example essay:
The first part of the question is worth 10 points, so you could include a few of the following points. It would also be good to include examples:
- Structured procurement involves creating rules on how procurement should be done
- This is in contrast to reactive / maverick spending
- May come about due to company policy, external regulations or through trying to achieve Competitive Advantage
- Examples include an organisation having set procedures for ordering items of different spend- e.g.
Procurement Assistants can purchase items up to £500. Items between £500-£1000 require a manager's approval and anything over £1000 requires a written Business Case in order to procure
- Structures Procurement Processes will usually also include the use of a designated e-procurement tool. E.g.
an organisation may insist that all tenders use a certain online system and that invoices are sent via X system within 30 days.
The second part of the question is worth slightly more points, so spend more time on this. You could put each of the reasons why it is important in a separate paragraph. Also use examples where you can;
- Ensures all tasks that need to be done are done- having structured processes means having a step-by-step guide to how to procure. This means activities are well co-ordinated and there are no gaps, no duplications of effort and no conflicting efforts. It may involve assigning different people in the team different roles e.g.
someone makes the requisition and someone else approves it. It also means that nothing is forgotten.
- Maintains consistency- having standardised processes means each procurement exercise follows the same process. This may include using a standard template for a requisition or ITT. Where there is consistency, this results in time being saved and less mistakes being made as everyone (including supply partners) is familiar with the processes.
- Prevents conflict and suboptimal behaviour- in organisations that use structured procurement processes everyone does the same. This means there is no conflict (e.g. one person doing things one way and another person does it differently and arguing which way is best). It also means no one can do procurement 'wrong' - there are written guides and procedures to follow. This is particularly helpful for new starters.
- Efficiency - time and money can be saved where there are standard procedures as people don't have to plan each procurement activity individually. Structured Procurement Processes may also involve completing bulk orders and co-ordinating activity within the organisation which means less orders are placed over the year and efficiency savings can be made. For example, a factory may create an order of cleaning products once a quarter, compared to ordering products just as and when they are required. This will save time of the procurement department overall throughout the year and allows them to focus on other more value-adding tasks.
- Better managerial control - Managers have more oversight when using structured procurement. There are clear rules as to when managers need to be involved and provide sign-off. This visibility makes it easier for managers to make decisions and allows for early intervention where someone needs assistance. It will reduce maverick spending and fraudulent spending. For example, it is much harder to provide kick-backs to suppliers when there are clear processes and audit trails and managers have visibility over all processes.
- Compliance (with laws and standards) - particularly in the Public Sector there are rules and regulations regarding procurement practices. Using standardised processes allows organisations to demonstrate compliance with appropriate legislation. It also protects them from 'challenge'. This is when a bidder who is unsuccessful challenges the decision to award a contract to someone else. Using a structured procurement process allows the organisation to demonstrate that they procured the item correctly and the challenge is unfounded.
Tutor Notes
- This topic isn't as well explained in the new study guide as it used to be. It's all pretty obvious stuff but the language is slightly different. The guide now talks about 'compliance with processes' and the benefits this brings. Which is exactly the same as why do you follow a structured process. This is on p. 114.
- If you're feeling clever, you could mention the difference between Public and Private Sector- e.g. a private organisation may use standardised processes for efficiency and cost savings, whereas a public sector organisation may use it more for compliance purposes.
Describe the main stages of the CIPS Procurement and Supply Cycle (25 points)
正解：
See the solution in Explanation part below.
Explanation:
How to respond to this question:
- Include as many of the stages as you can, but it's not vital to remember them all. You should aim to remember at least 8 of the 13 steps.
- The steps are; Define Business Need, Market Analysis + Make vs Buy, Develop Strategy and Plan, Pre- Procurement Market Testing, Develop Documents and Specification, Supplier Selection, Issue Tender, Bid Evaluation, Contract Award and Implementation, Warehouse Logistics, Contract performance and Improvement, Supplier Relationship Management and Asset Management Essay Plan:
Introduction - Explain what the CIPS Procurement and Supply Cycle is- a tool to be used by procurement professionals which tracks a procurement exercise from inception to close. It's helpful as it ensures procurement exercises are done correctly and steps are completed in the right order.
- Describe (briefly) what happens at each stage of the cycle, giving examples. You should put each stage into a separate paragraph. It's also a good idea to name the stages in chronological order. Some ideas of things you could mention include:
1) Define Business Need and Develop Specification - Identify what the need is, what type of purchase, put together a business case and outline the requirements
2) Market Analysis and Make vs Buy Decision - analyse the market using market segmentation (e.g. by buyer, product, geography etc) or use Porter's 5 Forces (buyer and supplier power, threat of new entrants, threat of substitutions, supplier rivalry). Looks at if what you want to procure is actually available.
3) Develop Strategy / Plan - you could use a STEEPLE and SWOT analysis. Consider if this is the right time to procure. Create timelines and budgets.
4) Pre-Procurement Market Testing - consider stakeholder engagement, supplier engagement, new / upcoming legislation, currency fluctuations, market, competitor actions. Is this the best time to procure? Will it be successful?
5) Develop Documentation / Creation of Contract terms- firm up the requirements and create the formal documents for the tender exercise. This may be a RFQ or ITT. Define the offer. Include KPIs.
6) Supplier Selection - May not be required for rebuys but an important step for new buys. May use a list of pre-approved suppliers or this may be going out to the open market. You can shortlist suppliers by sending out a pre-qualification questionnaire.
7) Issue Tender - Electronically, consider whether to use an open vs closed procurement exercise
8) Bid / Tender Evaluation - Very flexible for companies in the private sector but there are guiding principles for doing this for public procurement; transparency, equal treatment, proportionality. Often considers both price and quality.
9) Contract Award and Implementation- Organisations may have different processes for different values (e.g.
large purchases may need senior management approval, but under £500 just needs a manager's signature).
May require post-award negotiation. Contract is drafted and signed.
10) Warehouse Logistics and receipt - includes POs and Invoices. Battle of the Forms. Goods Inwards = receiving and inspecting goods- may use quality control.
11) Contract performance review - ensuring contract obligations are fulfilled includes P2P procedures, database management, budgeting / costs monitoring, reporting and dispute resolution.
12) Supplier Management - will depend on the relationship but includes; contact / meetings with the supplier, motivating / incentivising the supplier, working with them on performance issues, ensuring KPIs are met.
13) Asset Management / End of Life- considers TCO, ongoing maintenance and costs, insurance and warrantees and disposal of the item once it has reached the end of its life.
Conclusion - The CIPS Procurement Cycle is cycle rather than process as it is a continuous loop and needs constantly emerge. It never ends. New buys are more likely to follow all the stages of the cycle, rebuys may skip steps Tutor Notes:
- Often steps 11 and 12 are confused or merged together but they are different. It's possible to have great contract management and a poor supplier relationship i.e. the contract is working effectively and the supplier is delivering in line with the contract BUT the relationship may be fraught with tension and the buyer and supplier don't like each other.
- To get a high score I would include examples of all of the stages, but remember you only have 45 minutes to answer the question, so balance detail with timing so you don't overwrite
- The procurement cycle is on p. 70 or you can download it here: Procurement Supply Cycle | CIPS
Explanation:
How to respond to this question:
- Include as many of the stages as you can, but it's not vital to remember them all. You should aim to remember at least 8 of the 13 steps.
- The steps are; Define Business Need, Market Analysis + Make vs Buy, Develop Strategy and Plan, Pre- Procurement Market Testing, Develop Documents and Specification, Supplier Selection, Issue Tender, Bid Evaluation, Contract Award and Implementation, Warehouse Logistics, Contract performance and Improvement, Supplier Relationship Management and Asset Management Essay Plan:
Introduction - Explain what the CIPS Procurement and Supply Cycle is- a tool to be used by procurement professionals which tracks a procurement exercise from inception to close. It's helpful as it ensures procurement exercises are done correctly and steps are completed in the right order.
- Describe (briefly) what happens at each stage of the cycle, giving examples. You should put each stage into a separate paragraph. It's also a good idea to name the stages in chronological order. Some ideas of things you could mention include:
1) Define Business Need and Develop Specification - Identify what the need is, what type of purchase, put together a business case and outline the requirements
2) Market Analysis and Make vs Buy Decision - analyse the market using market segmentation (e.g. by buyer, product, geography etc) or use Porter's 5 Forces (buyer and supplier power, threat of new entrants, threat of substitutions, supplier rivalry). Looks at if what you want to procure is actually available.
3) Develop Strategy / Plan - you could use a STEEPLE and SWOT analysis. Consider if this is the right time to procure. Create timelines and budgets.
4) Pre-Procurement Market Testing - consider stakeholder engagement, supplier engagement, new / upcoming legislation, currency fluctuations, market, competitor actions. Is this the best time to procure? Will it be successful?
5) Develop Documentation / Creation of Contract terms- firm up the requirements and create the formal documents for the tender exercise. This may be a RFQ or ITT. Define the offer. Include KPIs.
6) Supplier Selection - May not be required for rebuys but an important step for new buys. May use a list of pre-approved suppliers or this may be going out to the open market. You can shortlist suppliers by sending out a pre-qualification questionnaire.
7) Issue Tender - Electronically, consider whether to use an open vs closed procurement exercise
8) Bid / Tender Evaluation - Very flexible for companies in the private sector but there are guiding principles for doing this for public procurement; transparency, equal treatment, proportionality. Often considers both price and quality.
9) Contract Award and Implementation- Organisations may have different processes for different values (e.g.
large purchases may need senior management approval, but under £500 just needs a manager's signature).
May require post-award negotiation. Contract is drafted and signed.
10) Warehouse Logistics and receipt - includes POs and Invoices. Battle of the Forms. Goods Inwards = receiving and inspecting goods- may use quality control.
11) Contract performance review - ensuring contract obligations are fulfilled includes P2P procedures, database management, budgeting / costs monitoring, reporting and dispute resolution.
12) Supplier Management - will depend on the relationship but includes; contact / meetings with the supplier, motivating / incentivising the supplier, working with them on performance issues, ensuring KPIs are met.
13) Asset Management / End of Life- considers TCO, ongoing maintenance and costs, insurance and warrantees and disposal of the item once it has reached the end of its life.
Conclusion - The CIPS Procurement Cycle is cycle rather than process as it is a continuous loop and needs constantly emerge. It never ends. New buys are more likely to follow all the stages of the cycle, rebuys may skip steps Tutor Notes:
- Often steps 11 and 12 are confused or merged together but they are different. It's possible to have great contract management and a poor supplier relationship i.e. the contract is working effectively and the supplier is delivering in line with the contract BUT the relationship may be fraught with tension and the buyer and supplier don't like each other.
- To get a high score I would include examples of all of the stages, but remember you only have 45 minutes to answer the question, so balance detail with timing so you don't overwrite
- The procurement cycle is on p. 70 or you can download it here: Procurement Supply Cycle | CIPS
Describe regulation that govern the Public Sectors and explain how this may impact upon procurement activities (25 marks).
正解：
See the solution in Explanation part below.
Explanation:
How to approach this question
- You do need to know some legislation for public sector here. This may be difficult if you don't work in the Public Sector. If you're struggling with this, you could also talk about general legislation that governs all types of organisations such as the Equalities Act and Modern Slavery Act.
- This is also a tough question if you're not British. CIPS is a UK based organisation and the syllabus therefore only talks about British legislation. If you're in a different country you could talk about the legislation in your own country, providing the question doesn't specifically mention UK Law.
- Either way I would recommend knowing a couple of pieces of British Legislation. You don't need to be an expert but just state what they are and what the purpose is should be enough to get you a pass.
Example essay
The public sector, which encompasses various governmental and state-owned enterprises, plays a pivotal role in the governance and provision of essential services. This sector operates under a strict framework of regulations and policies, ensuring that its operations are fair, transparent, and accountable. Among the most critical aspects of these operations is procurement, the process through which the public sector acquires goods, services, and works. This essay will explain key regulations governing the public sector, focusing on the Public Contracts Regulations (PCR) 2015, Late Payment Regulations 2016, Equalities Act2010, and Public Services (Social Value) Act 2012, and explores how these regulations impact procurement activities.
The Public Contracts Regulations (PCR) 2015
The PCR 2015 plays a foundational role in public sector procurement in the UK. It sets out the procedures for procuring contracts, aiming to ensure fairness and transparency in the process. The regulations mandate that all procurement processes must be conducted in a manner that prevents discrimination and allows equal access to potential contractors, regardless of their size or location. For example, the open tendering process under PCR 2015 has enabled a more diverse range of companies, including small and medium-sized enterprises, to participate in government contracts, enhancing competition and innovation. The four 'pillars' of the PCR are derived from EU Procurement Directives and are: non-discrimination, free movement of goods, equality of treatment and transparency.
Late Payment Regulations 2013
The Late Payment Regulations 2013 address a critical aspect of procurement: the timely payment for goods and services. This regulation ensures that public sector organizations pay their suppliers within a stipulated time frame, significantly impacting the financial stability of these suppliers. For instance, the regulation has been particularly beneficial for small businesses that rely on prompt payments to maintain cash flow. The introduction of these regulations has improved the trust between public sector entities and their suppliers, leading to more efficient procurement processes.
Equalities Act 2010
The Equalities Act 2010 is another crucial piece of legislation impacting public sector procurement. This Act prohibits discrimination in the workplace and in the provision of services, extending its influence to the procurement process. Public sector entities must ensure that their procurement decisions do not discriminate against any group and that they promote equality. For instance, when a public sector organization issues a tender, it must ensure that the selection criteria do not unfairly disadvantage any potential supplier based on irrelevant characteristics. This approach not only fosters a more inclusive procurement environment but also helps to tap into a wider talent and supplier pool, enhancing the quality and effectiveness of public services.
Public Services (Social Value) Act 2012
The Public Services (Social Value) Act 2012 marks a significant shift in how procurement is approached in the public sector. This Act requires public sector organizations to consider how the services they procure can improve the economic, social, and environmental well-being of their area. This means that when a public sector entity procures goods or services, it must consider factors beyond just the price and quality. For example, a local government might prioritize suppliers who can demonstrate a commitment to environmental sustainability or who offer employment opportunities to local residents. This approach to procurement encourages a more holistic view of value for money, factoring in the wider impact of procurement decisions on society.
Public Accountability and Freedom of Information Requests
In addition to these specific regulations, the concept of public accountability and the mechanism of Freedom of Information requests play a crucial role in the public sector, especially in procurement activities. Public accountability ensures that entities are answerable to the public and their actions are transparent. Freedom of Information requests enable individuals and organizations to access information held by public authorities, which includes details of procurement decisions and contracts. This transparency is critical in ensuring that procurement activities are conducted ethically and responsibly, deterring corruption and mismanagement.
In conclusion, the regulation of the public sector, particularly in the realm of procurement, are complex.
Regulations such as the PCR 2015, Late Payment Regulations 2016, Equalities Act 2010, and the Public Services (Social Value) Act 2012, along with the principles of public accountability and transparency, ensure that procurement activities are conducted in a fair, transparent, and socially responsible manner. These regulations not only safeguard the interests of suppliers, especially smaller businesses, but also ensure that the public sector remains a model of integrity and efficiency and that taxpayers' money is well spent.
Tutor Notes
- Okay this is important: The PCR 2015 regulations are being rescinded in 2024. They're based on EU Law and the UK has left the EU. I know we left a while ago now but it's taken us a long time to address the issue and figure out what we want to do about it. There was also a pandemic that got in the way of people making any decisions in parliament that weren't to do with Covid. The PCR 2015 will be replaced in late 2024 with new 'British' rather than European rules.
- At the time of writing this (December 2023) we don't 100% know what the new rules are going to look like and if you're taking this exam from November 2024 onwards, I recommend doing a bit of research into the new regulations.
- Now the complicated bit- the CIPS syllabus is valid from 2024-2028 and doesn't address that legislation is changing. I therefore don't really know what they're going to expect when students are taking this exam and the study guide information is out of date. If you're not working in the Public Sector, how are you to know the legislation has changed?
- My advice is this- briefly learn PCR 2015- the four pillars in particular, and when the new legislation comes out, have a quick google and see if these pillars are still the same. The regs aren't going to change THAT much - things like transparency and equal treatment are still going to be really important, but there may be some slight language changes. Plus, if you're able to mention in an essay that there's new legislation, it's going to make you sound super clever.
- LO 4.2 p.211
Explanation:
How to approach this question
- You do need to know some legislation for public sector here. This may be difficult if you don't work in the Public Sector. If you're struggling with this, you could also talk about general legislation that governs all types of organisations such as the Equalities Act and Modern Slavery Act.
- This is also a tough question if you're not British. CIPS is a UK based organisation and the syllabus therefore only talks about British legislation. If you're in a different country you could talk about the legislation in your own country, providing the question doesn't specifically mention UK Law.
- Either way I would recommend knowing a couple of pieces of British Legislation. You don't need to be an expert but just state what they are and what the purpose is should be enough to get you a pass.
Example essay
The public sector, which encompasses various governmental and state-owned enterprises, plays a pivotal role in the governance and provision of essential services. This sector operates under a strict framework of regulations and policies, ensuring that its operations are fair, transparent, and accountable. Among the most critical aspects of these operations is procurement, the process through which the public sector acquires goods, services, and works. This essay will explain key regulations governing the public sector, focusing on the Public Contracts Regulations (PCR) 2015, Late Payment Regulations 2016, Equalities Act2010, and Public Services (Social Value) Act 2012, and explores how these regulations impact procurement activities.
The Public Contracts Regulations (PCR) 2015
The PCR 2015 plays a foundational role in public sector procurement in the UK. It sets out the procedures for procuring contracts, aiming to ensure fairness and transparency in the process. The regulations mandate that all procurement processes must be conducted in a manner that prevents discrimination and allows equal access to potential contractors, regardless of their size or location. For example, the open tendering process under PCR 2015 has enabled a more diverse range of companies, including small and medium-sized enterprises, to participate in government contracts, enhancing competition and innovation. The four 'pillars' of the PCR are derived from EU Procurement Directives and are: non-discrimination, free movement of goods, equality of treatment and transparency.
Late Payment Regulations 2013
The Late Payment Regulations 2013 address a critical aspect of procurement: the timely payment for goods and services. This regulation ensures that public sector organizations pay their suppliers within a stipulated time frame, significantly impacting the financial stability of these suppliers. For instance, the regulation has been particularly beneficial for small businesses that rely on prompt payments to maintain cash flow. The introduction of these regulations has improved the trust between public sector entities and their suppliers, leading to more efficient procurement processes.
Equalities Act 2010
The Equalities Act 2010 is another crucial piece of legislation impacting public sector procurement. This Act prohibits discrimination in the workplace and in the provision of services, extending its influence to the procurement process. Public sector entities must ensure that their procurement decisions do not discriminate against any group and that they promote equality. For instance, when a public sector organization issues a tender, it must ensure that the selection criteria do not unfairly disadvantage any potential supplier based on irrelevant characteristics. This approach not only fosters a more inclusive procurement environment but also helps to tap into a wider talent and supplier pool, enhancing the quality and effectiveness of public services.
Public Services (Social Value) Act 2012
The Public Services (Social Value) Act 2012 marks a significant shift in how procurement is approached in the public sector. This Act requires public sector organizations to consider how the services they procure can improve the economic, social, and environmental well-being of their area. This means that when a public sector entity procures goods or services, it must consider factors beyond just the price and quality. For example, a local government might prioritize suppliers who can demonstrate a commitment to environmental sustainability or who offer employment opportunities to local residents. This approach to procurement encourages a more holistic view of value for money, factoring in the wider impact of procurement decisions on society.
Public Accountability and Freedom of Information Requests
In addition to these specific regulations, the concept of public accountability and the mechanism of Freedom of Information requests play a crucial role in the public sector, especially in procurement activities. Public accountability ensures that entities are answerable to the public and their actions are transparent. Freedom of Information requests enable individuals and organizations to access information held by public authorities, which includes details of procurement decisions and contracts. This transparency is critical in ensuring that procurement activities are conducted ethically and responsibly, deterring corruption and mismanagement.
In conclusion, the regulation of the public sector, particularly in the realm of procurement, are complex.
Regulations such as the PCR 2015, Late Payment Regulations 2016, Equalities Act 2010, and the Public Services (Social Value) Act 2012, along with the principles of public accountability and transparency, ensure that procurement activities are conducted in a fair, transparent, and socially responsible manner. These regulations not only safeguard the interests of suppliers, especially smaller businesses, but also ensure that the public sector remains a model of integrity and efficiency and that taxpayers' money is well spent.
Tutor Notes
- Okay this is important: The PCR 2015 regulations are being rescinded in 2024. They're based on EU Law and the UK has left the EU. I know we left a while ago now but it's taken us a long time to address the issue and figure out what we want to do about it. There was also a pandemic that got in the way of people making any decisions in parliament that weren't to do with Covid. The PCR 2015 will be replaced in late 2024 with new 'British' rather than European rules.
- At the time of writing this (December 2023) we don't 100% know what the new rules are going to look like and if you're taking this exam from November 2024 onwards, I recommend doing a bit of research into the new regulations.
- Now the complicated bit- the CIPS syllabus is valid from 2024-2028 and doesn't address that legislation is changing. I therefore don't really know what they're going to expect when students are taking this exam and the study guide information is out of date. If you're not working in the Public Sector, how are you to know the legislation has changed?
- My advice is this- briefly learn PCR 2015- the four pillars in particular, and when the new legislation comes out, have a quick google and see if these pillars are still the same. The regs aren't going to change THAT much - things like transparency and equal treatment are still going to be really important, but there may be some slight language changes. Plus, if you're able to mention in an essay that there's new legislation, it's going to make you sound super clever.
- LO 4.2 p.211
Examine FIVE ways in which procurement activities can contribute to achieving BrightAid's organisational objectives. (25 marks) BrightAid BrightAid is a medium-sized charity (not-for-profit) with 20 permanent employees and it uses 400 volunteers to deliver aid and services to the individuals and groups it serves. Its main aims are to raise awareness of its cause and bring issues to people's minds to prompt them to donate and/or join campaign activities. The charity depends on these voluntary donations, as without them, it would not be able to function. It also aims for this support to be continued on a regular basis and must engage with a wide range of stakeholders (both internal and external). BrightAid is also considering joining a buying group with several other charities and aims to extend the member's purchasing power and obtain competitive prices for the group members. Recognising that there is increasing competition in the amount and frequency of donations, the charity is now looking at several ways to increase the amount or frequency of donations and make its internal processes more efficient and effective. Up to this point, any procurement activities have been undertaken ad-hoc with no formalised processes.
正解：
See the solution in Explanation part below.
Explanation:
Five Ways Procurement Activities Can Contribute to BrightAid's Organisational Objectives Procurement plays a critical role insupporting the operational efficiency and sustainabilityof a not-for- profit organization likeBrightAid. Given its reliance on donations and volunteers, a structured and strategic procurement approach can help maximize resources, reduce costs, and enhance the charity's impact. Below are five key ways in which procurement can contribute toBrightAid's organisational objectives.
1. Cost Reduction and Financial Efficiency
* How Procurement Helps:
* Implementing aformal procurement strategyensures that goods and services are sourced at the most cost-effective prices.
* Joining abuying groupwith other charities can enhance BrightAid'spurchasing power, securing bulk discounts and reducing overhead costs.
* Supplier negotiations and competitive tendering can helpmaximize value for moneyon every purchase.
* Impact on BrightAid:
* More funds can be allocated to coreaid and campaign activities.
* Lower operational costs meangreater financial sustainabilityand improved service delivery.
2. Enhancing Transparency and Accountability
* How Procurement Helps:
* Implementingclear procurement policiesand procedures ensuresfair supplier selection, minimizing risks of fraud or inefficiencies.
* Establishing aprocurement audit processensures compliance with ethical and legal standards.
* Open and fair supplier engagement strengthensstakeholder trust(donors, volunteers, and partners).
* Impact on BrightAid:
* Increases donor confidence, encouragingrepeat and larger donations.
* Ensures resources are used efficiently and ethically,enhancing the charity's reputation.
3. Improving Supply Chain Reliability and Efficiency
* How Procurement Helps:
* Strategic supplier selection ensuresconsistent deliveryof essential goods and services.
* Developinglong-term supplier relationshipscan reduce risks of supply disruptions.
* Procurement can introducesupplier performance reviewsto ensure that services meet BrightAid' s needs effectively.
* Impact on BrightAid:
* Moreefficient aid distribution, ensuring beneficiaries receive timely support.
* Reducedoperational disruptions, allowing volunteers and staff to focus on charitable work instead of supply issues.
4. Supporting Ethical and Sustainable Procurement
* How Procurement Helps:
* Ethical sourcing policies ensure that supplies (e.g., food, clothing, medical aid) come from responsible andsustainable sources.
* Procurement can help BrightAid select suppliers that align withits mission and values(e.g., fair trade suppliers, environmentally friendly packaging).
* Working with ethical suppliers enhancesCSR (Corporate Social Responsibility) partnerships, attracting more donors.
* Impact on BrightAid:
* Increasespublic trustand donor support, strengthening brand reputation.
* Aligns procurement decisions with the charity's coremission and sustainability goals.
5. Enhancing Operational Effectiveness and Stakeholder Engagement
* How Procurement Helps:
* A structured procurement process ensurestimely and cost-effectivedelivery of goods and services, reducing inefficiencies.
* Procurement professionals canengage stakeholders(staff, volunteers, donors) to understand their needs and improve sourcing decisions.
* Implementing procurementtechnology or e-procurement systemscan streamline purchasing and reduce administrative burdens.
* Impact on BrightAid:
* Staff and volunteers can focus more oncore charitable activitiesrather than administrative tasks.
* Better stakeholder engagement ensures that procurementaligns with donor expectations, strengthening long-term relationships.
Conclusion
By implementing astructured and strategic procurement function, BrightAid can significantlyimprove its financial efficiency, supply chain reliability, and ethical standards, ultimately enhancing its ability to deliver aid effectivelyand attract continued donor support. With growing competition for donations, a well- managed procurement process ensurescost savings, improved transparency, and stakeholder trust, directly contributing to the charity'slong-term sustainability and success.
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Explanation:
Five Ways Procurement Activities Can Contribute to BrightAid's Organisational Objectives Procurement plays a critical role insupporting the operational efficiency and sustainabilityof a not-for- profit organization likeBrightAid. Given its reliance on donations and volunteers, a structured and strategic procurement approach can help maximize resources, reduce costs, and enhance the charity's impact. Below are five key ways in which procurement can contribute toBrightAid's organisational objectives.
1. Cost Reduction and Financial Efficiency
* How Procurement Helps:
* Implementing aformal procurement strategyensures that goods and services are sourced at the most cost-effective prices.
* Joining abuying groupwith other charities can enhance BrightAid'spurchasing power, securing bulk discounts and reducing overhead costs.
* Supplier negotiations and competitive tendering can helpmaximize value for moneyon every purchase.
* Impact on BrightAid:
* More funds can be allocated to coreaid and campaign activities.
* Lower operational costs meangreater financial sustainabilityand improved service delivery.
2. Enhancing Transparency and Accountability
* How Procurement Helps:
* Implementingclear procurement policiesand procedures ensuresfair supplier selection, minimizing risks of fraud or inefficiencies.
* Establishing aprocurement audit processensures compliance with ethical and legal standards.
* Open and fair supplier engagement strengthensstakeholder trust(donors, volunteers, and partners).
* Impact on BrightAid:
* Increases donor confidence, encouragingrepeat and larger donations.
* Ensures resources are used efficiently and ethically,enhancing the charity's reputation.
3. Improving Supply Chain Reliability and Efficiency
* How Procurement Helps:
* Strategic supplier selection ensuresconsistent deliveryof essential goods and services.
* Developinglong-term supplier relationshipscan reduce risks of supply disruptions.
* Procurement can introducesupplier performance reviewsto ensure that services meet BrightAid' s needs effectively.
* Impact on BrightAid:
* Moreefficient aid distribution, ensuring beneficiaries receive timely support.
* Reducedoperational disruptions, allowing volunteers and staff to focus on charitable work instead of supply issues.
4. Supporting Ethical and Sustainable Procurement
* How Procurement Helps:
* Ethical sourcing policies ensure that supplies (e.g., food, clothing, medical aid) come from responsible andsustainable sources.
* Procurement can help BrightAid select suppliers that align withits mission and values(e.g., fair trade suppliers, environmentally friendly packaging).
* Working with ethical suppliers enhancesCSR (Corporate Social Responsibility) partnerships, attracting more donors.
* Impact on BrightAid:
* Increasespublic trustand donor support, strengthening brand reputation.
* Aligns procurement decisions with the charity's coremission and sustainability goals.
5. Enhancing Operational Effectiveness and Stakeholder Engagement
* How Procurement Helps:
* A structured procurement process ensurestimely and cost-effectivedelivery of goods and services, reducing inefficiencies.
* Procurement professionals canengage stakeholders(staff, volunteers, donors) to understand their needs and improve sourcing decisions.
* Implementing procurementtechnology or e-procurement systemscan streamline purchasing and reduce administrative burdens.
* Impact on BrightAid:
* Staff and volunteers can focus more oncore charitable activitiesrather than administrative tasks.
* Better stakeholder engagement ensures that procurementaligns with donor expectations, strengthening long-term relationships.
Conclusion
By implementing astructured and strategic procurement function, BrightAid can significantlyimprove its financial efficiency, supply chain reliability, and ethical standards, ultimately enhancing its ability to deliver aid effectivelyand attract continued donor support. With growing competition for donations, a well- managed procurement process ensurescost savings, improved transparency, and stakeholder trust, directly contributing to the charity'slong-term sustainability and success.
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