Supply Chain Management

There are two Questions which are compulsory for this assessment

Question No. 1
• The opportunities for the procurement and supply function to create savings or efficiencies or other sources of added value
• How the profile of the function can be improved
• How collaboration can be created with end user & suppliers to increase early engagement in the procurement process
• The need for organizational policies and procedures to implement effective procurement and supply
Guidance:
• It should consist approximately 1500 word
• Candidate number
• Contents page
• Executive summary
• Reference and a bibliography

Syllabus Coverage:
• The different terms that relate to procurement & supply chain management and logistics
• The roles and benefits of procurement & supply in organization
• How effective procurement impacts on profitability or creating saving and efficiencies for the organization.
• The typical proportion of costs accounted for by the procurement of goods and services
• Internal and external customer and their priorities for procurement and supply
• The inputs that internal and external stakeholders can make in procurement and supply
• The conflicts of interest that can exist in the work of procurement and supply and how to deal with them.
• The different objectives of a procurement and supply function
• Achieving the triple bottom line benefits of sustainability (economy, environment, social development) through purchased goods and services and promoting responsible procurement through effective procurement and supply.
• The documentation typically used in procurement and supply
• The use of documentation policies and procedures for the work of procurement and supply
• The need for approvals in the administration of requisites, orders and invoices
• The use and roles of ethical codes in procurement and supply the principles of corporate governance that applies to procurement and supply
• The use and purposes of financial budgets that impact on procurement and supply
• The relationship between achieving compliance with processes and the achievement of outcomes that bring added value.

Question No. 2
You are required to select an example of a category of procurement of a product, service or works bought by your organization.
You are required to:
• Research the market of your chosen category and review its size, scope and extent of competition
• Summaries the demand and supply factors that impact on the chosen category of procurement
• Explain the current pricing mechanism applied to the category and assess the factors that impact on the pricing of the category
Guidance:
• It should consist approximately 1500 word
• Candidate number
• Contents page
• Executive summary
• Reference and a bibliography

Syllabus Coverage:
• How markets can be defined in terms of size, scope and stages of development
• The levels of industry competition such as perfect competition, imperfect, oligopoly, duopoly and monopolies
• How demand and supply factors impact on organizations
• Analytical tools to explain the impact of the external environment on organizations in supply chains
• How macro-economic factors such as interest rates, inflation, exchange rates and the level of economic activity (GDP/GNP) impacts on organizations
• The use of portfolio matrices to assess categories of expenditures and perceptions of the organization by suppliers
• The main types of pricing arrangements in commercial agreement
• The breakdown between direct and indirect costs
• Types of published data that can provide information on costs and prices
• Published reports and indices on markets
• The comparison of quoted prices to historical data
• The link between costs, prices, margins and mark ups
• Negotiating improved prices/estimating whole life costs.

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