Advanced certificate in procurement

and supply operations

Unit content guide

Leading global excellence in procurement and supply

Advanced certificate in procurement and supply operations

Introduction
The Chartered Institute of Procurement & Supply in, for example, learning centres and workshops.
qualifications ladder has five levels of awards. For
details of the entry requirements for each level,
If you study at a CIPS study centre, you will find
that they may vary on the exact format for delivery Student
please refer to www.cips.org. of the study programme. Additionally, we would
recommend that you also commit to at least 20
Zone
The CIPS Advanced certificate in procurement and hours of self-study, per unit, including wider
supply operations is a vocationally related Make the most of your
reading of the subject areas and revision to give
qualification. It has been accredited by the Office yourself the best preparation for successfully
valuable study time by
of Qualifications and Examinations Regulator achieving the certificate, the 2 hour assessment accessing this dedicated
(Ofqual) in the UK and appears on the Register of time, per unit, will be included within this. resource to help you on
Regulated Qualifications. Please refer to your learning journey
http://register.ofqual.gov.uk. All the units in CIPS qualifications are assessed www.cips.org/student-zone
by an examination.
The Advanced certificate in procurement and
supply operations consists of five compulsory We hold three examination series each year
units. Assessment for each unit is by examination. around the world, with an additional two series
If you wish to study for the Advanced certificate, currently available in some countries. You can
the Total Qualification Time (TQT) will be 250 find more information on assessment, exam
hours. The TQT indicates the overall number of timetables, a list of exam centres and fees, exam
guided learning hours, additional self-study and resources and exemplar exam paper
assessment time that is required. It is expected requirements at cips.org/qualifications
that you will undertake 30 guided learning hours
per unit, i.e. a total of 150 guided learning hours. Below is a list of the units, their qualification
The definition of guided learning hours is: ‘A framework reference numbers and CIPS reference
measure of the amount of input time required to code which is used to identify the unit for
achieve the qualification. This includes lectures, examination purposes.
tutorials and practicals, as well as supervised study

Advanced certificate in procurement and supply operations

Qualification number: 600/7281/7
Unit Title: CIPS Reference
Procurement and supply environments AC1
Procurement and supply operations AC2
Procurement and supply workflow AC3
Inventory and logistics operations AC4
Procurement and supply relationships AC5

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 Advanced certificate in procurement and supply operations

Glossary of
qualification terms
Assessment for the professional diploma might be ‘critically
Assessment is the way in which CIPS will assess’, or ‘critically evaluate’. These words
measure whether a learner is able to reflect the level of complexity of your learning
demonstrate their knowledge, understanding and ultimately your assessment at that level.
and be able to apply their learning in a given
situation. Compulsory units
These are units that constitute necessary
Assessment criteria knowledge and understanding to fulfil learning
Assessment criteria specifies the standard that requirements for CIPS qualifications.
a learner is expected to meet to demonstrate
that the learning outcomes of a unit have been Entry level
achieved. This is the point at which you will enter the CIPS
qualifications ladder. This entry will be based on
Business essentials pre-requisite knowledge, understanding and
These are commonly occurring themes through experience.
the qualifications, that do not warrant a unit in
their own right, but that are important Exemptions
holistically to the learning undertaken within Learners who have successfully completed
the qualifications: other relevant qualifications may apply for
• business finance • leadership exemptions from equivalent CIPS units in their
• information technology • management programme of study. To earn an exemption
• legislation • strategy from a qualification or specific units within CIPS
qualifications you should contact CIPS or see
Command words www.cips.org
Command words are generally verbs that are
used to indicate the level of learning Please note that gaining an exemption, does not
undertaken. They tend to be hierarchical in mean that you gain an exit award at that level,
nature. For example, when studying towards the rather that you bypass that level of learning
advanced certificate a command word could be because of equivalent learning and
‘classify’ or ‘assess’, whereas a command word achievement gained elsewhere.

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Advanced certificate in procurement and supply operations

Exit award Regulators

An exit award is in essence a qualification. CIPS has CIPS is recognised as an awarding body by
five exit awards in total Ofqual in England, Ofqual regulates
• Certificate in procurement and supply qualifications, examinations and assessments.
operations CIPS is also recognised by Qualifications Wales
• Advanced certificate in procurement and supply in Wales and CCEA in Northern Ireland. It is their
operations duty to ensure all learners get the results they
• Diploma in procurement and supply deserve and that their qualifications are
• Advanced diploma in procurement and supply correctly valued and understood, now and in
• Professional diploma in procurement and supply the future.

For each qualification you successfully complete, Unit

you will receive a certificate of achievement A segment of learning within the CIPS
confirming your exit award. qualifications. Each unit is individual, has its
own title, rationale and content. A unit will also
Indicative content have an assessment attached to it in order to
The indicative content is an indication of the demonstrate achievement and conclusion of
knowledge required in order to fulfil the the learning.
assessment criteria to achieve the learning
outcome. Unit purpose and aims
Unit aims provide additional information about
Learning outcome the unit; a succinct statement summarises the
The learning outcome within a unit sets out what a learning outcomes of the unit.
learner is expected to know, understand, or be able
to do as a result of a process of learning. Each unit has four to five learning outcomes
which outline what will be achieved as a result
Optional units of learning in that particular unit.
These are units where you have choices to
specialise in an area of interest. There is an Weightings
opportunity to select two optional units at Each unit has a number of learning outcomes
advanced diploma and two optional units at that are equally weighted for example:
professional diploma. If a unit that has four learning outcomes
totalling 100%, each learning outcome will be
Qualifications ladder equally weighted ie 25%
This ladder represents the hierarchical nature of (100% divided by 4 = 25%).
CIPS qualifications. The ladder has five steps This weighting indicates the level of input and
within it. It starts with a Certificate through to the learning required by the study centre and the
Professional Diploma. Each step of the ladder is learner in order to complete the subject area.
represented by a qualification with an ‘exit
award’.

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 Advanced certificate in procurement and supply operations

Definition of additional
terms used in this guide
4ps approach to marketing Duopolistic market
Marketing Model Mix – can be used by a A situation in which two companies own all or
marketer, as a tool to assist in implementing a nearly all of the market for a given product or
marketing strategy, the four ps consist of service.
product, price, place and promotion.
FIFO • First in, first out
7ps approach to marketing Warehouse term meaning first items stored are
Extended Marketing Mix – expands the number the first used. In accounting, this term is
of controlled variables, from the four in the associated with the valuing of inventory such
main marketing model mix, these being that the latest purchases are reflected in book
product, price, place, promotion, people, inventory. While generally considered an
process and physical evidence. accounting notion, FIFO usage is common
where products may have a shelf life.
Bullwhip Effect
Also known as “Whiplash Effect” it is an observed GDP • Gross domestic product
phenomenon in forecast-driven distribution A measure of the market value of all recognised
channels. The oscillating demand magnification final goods and services produced within a
upstream in a supply chain is reminiscent of a country in a given period.
cracking whip. The concept has its roots in J
Forrester's Industrial Dynamics (1961) and thus it GNP • Gross national product
is also known as the Forrester Effect. A measure of a nation's output; the total value
of all final goods and services produced during a
CSR • Corporate social responsibility period of time.
CSR means the commitment to a systematic
consideration of the environmental, social and JIT • Just in time
cultural aspects of an organisation’s operations. Originally a concept imported from Japan,
This includes the key issues of sustainability, based on the idea that only sufficient quantities
human rights, labour and community relations, should be manufactured or be made available
as well as supplier and customer relations to satisfy customers’ immediate needs. Relies
beyond legal obligations; the objective being to on an efficient supply chain for its success.
create long-term business value and contribute
to improving the social conditions of people
affected by an organisation’s operations.

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Advanced certificate in procurement and supply operations

Kanban Micro economics

A Japanese term, which translates literally as Factors or elements in an organisation's
“card.” It is the system of record cards that immediate area of operations that affect its
accompany components through the performance and decision-making freedom.
production process. In other words, a signal These factors include competitors, customers,
that triggers deliveries of specific quantities of distribution channels, suppliers, and the general
supplies in a just-in time system. public.

KPIs • Key performance indicators Monopolistic market

Also known as key success indicators. They are A situation in which a single company or group
financial and non-financial metrics used to owns all or nearly all of the market for a given
reflect the critical success factors of an type of product or service.
organisation or contract. They are used in
business intelligence to assess the present state MRP • Material requirement planning
of business or a contract and to prescribe the A product orientated computerised technique
next course of action. aimed at minimising inventory and maintaining
delivery schedules
LIFO • Last in, first out
Warehouse term meaning last items stored are MRPII • Manufacturing resource planning II
the first used, also an accounting method of MRPII is concerned with almost any resource
valuing inventory that assumes that the latest entering into production, including manpower,
goods purchased during a given accounting machines and money in addition to materials.
period are also the first goods used. This is why the word ‘resource’ is usually
substituted for ‘requirement’ when referring to
Macro-economics MRPII.
Major external and uncontrollable factors that
influence an organisation's decision making, Not for profit or third sector
and affect its performance and strategies. These These are voluntary and community
factors include the economic, demographics, organisations such as charities and also social
legal, political, and social conditions, enterprises (social enterprises have social or
technological changes, and natural forces. environmental purposes as central to what they
do). They are profit making but rather than
Factors that influence a company's or product's maximising shareholder value their main aim is
development but that are outside the to generate profit to further their social and
company's control. For example, the macro environmental goals.
environment could include competitors,
changes in interest rates, changes in cultural
tastes, or government regulations.

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 Advanced certificate in procurement and supply operations

Oligopolistic market RFID technologies • Radio frequency

A situation in which a particular market is identification
controlled by a small group of firms. A generic term that is used to describe a system
that transmits the identity (in the form of a
P2P • Purchase to pay unique serial number) of an object or person
Refers to the business process that cover wirelessly, using radio waves.
activities of requesting, purchasing, receiving,
paying for and accounting for goods and SMEs • Small and medium sized enterprises
services. A small firm is an independent business,
managed by its owner or part-owners and with
Pareto analysis less than 50 employees. A medium sized
An analysis that compares cumulative company must meet thresholds for annual
percentages of the rank ordering of costs, cost turnover and have fewer than 250 employees.
drivers, profits or other attributes to determine
whether a minority of elements have a STEEPLE • Social, Technological, Economic,
disproportionate impact. Another example, Environmental, Political, Legal, Ethical (or
identifying that 20 percent of a set of International)
independent variables is responsible for 80 An analytical tool extending PEST to also
percent of the effect. include, Environmental, Legal and Ethical
(or International) factors that can impact on
PEST • Political, economic, social Procurement and Supply.
and technological
An analytical tool that aids organisations TIR Carnet • Transports
developing strategies by helping them Internationaux Routiers
understand the external environment in which TIR is an international system allowing goods to
they operate now and in the future. travel across one or more international border
with minimal customs involvement. It can be
RACI • Responsible, accountable, consulted, used to move goods to, from and between
and informed other European, North African and near Asian
The RACI matrix enables you to identify who is countries, that is, where it is not possible to use
responsible, accountable, consulted, or Community Transit.
informed, for every task which needs to be
performed.

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Advanced certificate in procurement and supply operations

Procurement and supply CREDIT vALUE 5

environments On completion of this

unit, candidates will
understand a range of
LEARNING OUTCOMES external factors that can
impact on procurement
1.0 Understand the role and scope of procurement and supply in different economic sectors and supply operations.

1.1 Summarise the functions of the private sector This unit focuses on the
• Definitions of organisations wider environment that
• The size and scope of the private sector in different economies impacts on procurement
• Functions of private sector organisations such as profit, growth, market share, share price, and supply in a range of
other financial measures, corporate and social responsibility different types of
organisations, the public,
1.2 Analyse the role and scope of procurement and supply in the private sector private and not for profit
• Sole trade, partnerships, registered companies, incorporated and unincorporated or third sector can all be
companies involved in fulfilling
• Small and medium sized organisations (SMEs) organisational needs.
• Multinational organisations
• The roles of procurement and supply in the private sector

1.3 Analyse the role and scope of procurement and supply in the public sector
• Defining the public sector
• Central and local government
• The functions of public sector organisations
• The roles of procurement and supply in the public sector
• Commissioning and procurement
• Achieving budget savings and other sources of added value

1.4 Explain the roles of the not for profit or third sector
• Defining the not for profit and third sector
• Public accountability for the not for profit and third sector
• The role of procurement and supply in the not for profit and third sector

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 Advanced certificate in procurement and supply operations

2.0 Understand market forces that impact on procurement and supply

2.1 Explain the implications of different types of competitive markets on procurement and
supply
• Defining markets
• Perfect competition, imperfect, oligopolistic, duopolistic and monopolistic markets
• The impact of market competition on the procurement of supplies and services

2.2 Analyse the principles of market demand and supply and how these impact on
procurement and supply
• Defining micro economics
• Demand and supply curves
• Shifts in demand and supply
• Elasticity of demand and supply

2.3 Explain the impact that market factors can have on organisations
• Market change
• The impact of demand and supply on pricing and availability
• The impact of product life cycles on demand

3.0 Understand the external environment and its impact on procurement and supply

3.1 Use analytical tools to explain the impact of the external environment on procurement
and supply
• The use of environmental scanning
• The use of PEST (political, economic, social and technological) criteria or STEEPLE (social,
technological, economic, environmental, political, legislation and ethical) criteria that
impacts on organisations’ external environment
• The five forces model

3.2 Explain the implications of economic criteria that impact on procurement and supply
• Macro economic criteria such as interest rates, inflation, exchange rates, level of economic
activity (GDP/ GNP) that impacts on organisations
• Micro economic criteria such as demand and supply that impacts on organisations

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Advanced certificate in procurement and supply operations

3.3 Explain the implications of political and legislative criteria that impact on procurement
and supply
• Political criteria such as stability and instability that impacts on organisations, different
economic sectors and on countries
• Legislation that impacts on organisations such as on standards, health and safety,
environmental standards and employment law

3.4 Explain the implications of environmental and ethical criteria that impact on procurement
and supply
• Environmental criteria such as natural risks, waste emissions, pollution and energy
efficiency that impact on organisations
• Ethical and social criteria such as employment rights, community benefits, working
conditions and standards that impact on organisations

3.5 Explain the implications of social criteria that impact on procurement and supply
• Changing societal preferences, tastes and fashions, demographics, labour and fair-trade
standards and how these can impact on organisations

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 Advanced certificate in procurement and supply operations

CREDIT vALUE 5
Procurement and supply
On completion of this
operations
unit, candidates will be
able to identify a range of LEARNING OUTCOMES
considerations in
formulating agreements 1.0 Understand the main techniques that can achieve added value through
with external procurement operations
organisations.
1.1 Explain techniques to obtain supplies to the purchaser’s requirements
This unit assesses • The five rights of procurement
procurement and supply • Defining sources of added value
operations and is • Defining value for money
structured around the • Applying the five rights to procurement of both products and services
achievement of the five
rights namely price, 1.2 Analyse techniques to secure competitive pricing
quality, time, quantity and • Using competition to obtain quotations on prices
place. • Comparing prices quoted to historical data
• Suppliers' approaches to pricing
• The link between costs and prices
• Negotiating improved prices
• Securing competitive pricing through competition or collaboration with suppliers
• Measuring achieved savings

1.3 Explain techniques to achieve quality supplies

• Defining quality
• Quality standards, processes and procedures
• The use of quality assurance
• The concept of zero defects
• Assessing quality of supplies of products and services

1.4 Assess techniques to secure required quantities at required timescales

• Internal, external and total lead time
• Expediting and measuring delivery performance
• Planning milestones and activities
• The use of scheduling
• Inventories and their costs

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Advanced certificate in procurement and supply operations

2.0 Understand the main tasks associated with each stage of the sourcing process

2.1 Explain how procurement needs are identified

• Liaison with users and customers and understanding their commercial needs
• Reviewing needs from customers
• The make or buy decision
• Definitions of specifications

2.2 Explain criteria that should be applied in creating specifications

• The importance of specifications in contracts with external customers and suppliers
• Creating specifications for products and services
• Conformance and output or outcome based approaches to developing specifications
• The role of key performance indicators (KPIs)

2.3 Assess approaches to the sourcing of supplies

• Surveying the market
• Supplier appraisal
• Inviting quotations and tenders
• Assessing quotations and tenders
• The use of esourcing technologies
• Measuring supplier performance

2.4 Explain approaches to the formation of agreements with external organisations

• Dealing with queries and clarifications
• Ensuring transparency and fairness with suppliers
• Mistakes and second bids in tenders
• The use of reverse auctions/ eauctions
• Forming agreements with customers and suppliers
• Transition and mobilisation arrangements

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 Advanced certificate in procurement and supply operations

3.0 Understand the impact of technology on procurement operations

3.1 Explain the impact of electronic procure to pay (P2P) systems on procurement operations
• The stages of the sourcing process from identification of needs to the award of agreements
• Creating approvals and their timescales
• Defining procure to pay (P2P) systems
• Automating requisitions, purchase orders and invoices
• Integration of systems between organisations

3.2 Explain how the use of internet technologies can support procurement operations
• Providing data to smooth demand and supply
• Communicating via the internet
• Web based solutions such as erequisitioning, esourcing, eordering, einvoicing

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Advanced certificate in procurement and supply operations

Procurement and supply CREDIT vALUE 5

workflow On completion of this

unit, candidates will be
able to interpret a range
LEARNING OUTCOMES of data to help develop
effective administration
1.0 Understand the workflow involved when making agreements with suppliers processes required when
dealing with external
1.1 Explain the details that should typically be created in a purchase requisition organisations.
• Documentation that enables procurements of supplies and services
• The use of requisitions This unit identifies the
• Interpreting the details that should be included in requisitions typical work flows that
procurement and supply
1.2 Explain the process for receiving quotations for the supply of goods or services personnel can be involved
• Creating requests for information, quotations and proposals in working on.
• Dealing with queries and ensuring equality and fairness
• Receiving quotations

1.3 Assess the implications of contractual provisions that may be included in quotations for the
supply of goods or services
• Analysing and comparing quotations
• Terms relating to prices, payment, delivery, quantities, conformance to order and liabilities
• Interpreting terms used by purchasers and suppliers
• Dealing with variations to terms

2.0 Be able to develop a standard purchase order for goods or services

2.1 Analyse the details that should typically be created in a purchase order
• Formats of purchase order documentation
• The fields and contents of standard purchase orders
• The use of cost centres and budgets

2.2 Complete a purchase order for goods or services

• Completing the details that should be included in purchase orders

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 Advanced certificate in procurement and supply operations

3.0 Be able to interpret data relating to the workflow involved in procurement and supply

3.1 Calculate future demand from relevant data used within procurement and supply
• Sources of data on historic demand
• Qualitative and quantitative forecasts
• Performing calculations from equations
• Extrapolating historic data to form forecasts of demand
• Revising forecasts and establishing reasons for variances

3.2 Use data that relates to the pricing of goods or services for procurement and supply
• Direct and indirect costs
• Break even analysis (cost and volume profit formula)
• Analysing margins and mark ups
• Estimating whole life costs

3.3 Use financial data supplied in sets of accounts to gauge the financial standing of
organisations in procurement and supply
• Sources of information on organisations
• Annual accounts
• Financial statements such as: balance sheet, profit and loss and cash flow

3.4 Draw conclusions from the operation of financial budgets for procurement and supply
• Comparing forecasts with actual expenditures
• The use of budgets
• Variance analysis

4.0 Understand how to deliver effective customer service to improve workflow in procurement
and supply

4.1 Review how customer service improves workflow in procurement and supply
• Definitions of customer service
• The role of procurement and supply in customer service
• Managing expectations
• Achieving excellence in customer service

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Advanced certificate in procurement and supply operations

4.2 Explain how to clarify requirements when communicating with stakeholders

• The communications process with stakeholders
• Verbal and non-verbal communication, person to person and group communication
• Communicating by telephone
• Effective writing of letters, emails, memoranda and reports
• Preparing documentation
• Building rapport

4.3 Explain how technology impacts on communications in procurement and supply

• Supplier and customer networks
• Producing plans and information on intranets and web-pages
• Electronic newsletters and catalogues
• Messaging technology
• Sending data to external suppliers or customers

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Advanced certificate in procurement and supply operations

Inventory and logistics CREDIT vALUE 5

operations On completion of this

unit, candidates will be
able to select appropriate
LEARNING OUTCOMES techniques to ensure the
right inventory can be
1.0 Understand the main implications of purchasing and supplying inventory purchased or supplied.

1.1 Classify the main types of inventory This unit focuses on the
• Definitions of inventory and inventory stock management techniques that can be
• Opening stock, work in progress and finished goods applied to achieve the
• Safety stocks availability of inventories
through the flow of
1.2 Assess the costs involved in holding inventory materials and
• Acquisition and holding costs information.
• Methods for the valuation of inventory such as LIFO, FIFO, average cost and standard cost
• The profit and loss entry of cost of sales and goods sold
• The balance sheet entry for inventory

1.3 Explain the main techniques for the monitoring and control of inventory
• Pareto analysis and ABC classifications of inventory
• Dependent and independent demand
• MRP and MRPII
• Just in time supply and kanban systems
• Consignment stocking and vendor managed inventory

1.4 Analyse the main techniques for calculating the future demand of inventory
• Economic order quantity
• Reorder point and periodic review systems
• MRP and MRPII
• The bullwhip effect
• Service levels for inventory and working with sales and marketing
• Qualitative and quantitative approaches to forecasting

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 Advanced certificate in procurement and supply operations

2.0 Know the main methods for the storage and movement of inventory

2.1 Describe the principles of stores and warehouse design

• Location of stores and warehouses
• Stores and warehouse design
• Factors that influence stores and warehouse layout
• Flow, space utilisation and flexibility

2.2 Describe the use of product coding in inventory operations

• Systems for product coding
• Bar coding
• Order tracking technologies
• The use of RFID technologies

2.3 Describe the use of warehousing equipment

• Materials handling equipment
• Palletisation and unit loads
• Packing and packaging
• Environmental standards for packaging
• The use of automation in warehousing

3.0 Understand the principles of transportation in logistics

3.1 Explain the main modes of transportation in logistics

• Defining logistics and transportation
• Modes of freight transportation: road, rail, air and sea
• Transport planning and modeling
• Reverse logistics

3.2 Explain documentation that relates to transport in logistics

• Common transit procedure
• TIR carnet
• Uniform customs and practice for documentary credits and letters of credit
• Packing list, waybill, consignment notes, bill of lading
• Certificate of origin
• Single administrative document
• Electronic documents

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Advanced certificate in procurement and supply operations

3.3 Assess common types of incoterms in international logistics

• The role of the International Chamber of Commerce
• The development of Incoterms
• Classification of terms – E, F, C and D terms
• Rules for sea and inland waterway transport

3.4 Develop a plan for the transport of freight

• Arranging the purchase or export of cargo
• The role of freight forwarders and customs agents

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 Advanced certificate in procurement and supply operations

CREDIT vALUE 5
Procurement and supply
On completion of this
relationships
unit, candidates will be
able to explain a range of LEARNING OUTCOMES
main principles and
techniques that help 1.0 Understand the range of both internal and external relationships in procurement
develop customer and and supply
supplier relationships. It is
essential for procurement 1.1 Assess the roles of personnel within an organisation who may be involved in a relationship
and supply personnel to in procurement and supply
form effective • Procurement and supply and its interactions with other functions
relationships with • Devolved purchasers
suppliers, internal and • The decision making unit (organisational buying behaviour)
external customers and • Account management
other stakeholders.
1.2 Classify the stakeholders in a relationship between purchasers and suppliers
This unit introduces the • Defining stakeholders
principles of marketing, • Classifying internal and external stakeholders
the importance of cross • The RACI (responsible, accountable, consulted, informed) model as a classification tool
functional working and • Communicating with stakeholders
the need to communicate
effectively both within the 1.3 Explain the appropriateness of cross functional working when making relationships in
organisation and with procurement and supply
people from external • Forming cross functional teams
organisations. • The added value procurement and supply provides to cross functional working and internal
marketing
• Barriers to team working
• Stages of team formation
• Characteristics of successful teams

1.4 Assess the roles of personnel involved in a supply chain relationship

• Definitions of supply chain
• Examples of supply chains
• The concept of supply chain networks
• Stakeholder involvement in supply chains

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Advanced certificate in procurement and supply operations

2.0 Understand the contribution that marketing makes to develop customer and supplier
relationships

2.1 Review the principles and definitions of marketing

• The marketing concept
• Market driven approaches compared to product or sales led approaches

2.2 Explain techniques associated with marketing

• The 4ps and 7ps approaches to marketing
• The marketing mix
• Market segmentation
• Market targeting

2.3 Explain sources of competitive advantage sought through marketing

• Sources of competitive advantage
• Competitor profiling and analysis

2.4 Explain the relevance of marketing principles to purchasers

• Organisational buying behaviour
• Applying the 4ps or 7ps to the work of procurement and supply functions

3.0 Understand the elements of a commercial relationship between purchasers and suppliers

3.1 Explain the main techniques for the profiling of purchasers and suppliers
• The application of the portfolio analysis matrix
• The application of the supplier perceptions and other matrices to procurement and supply

3.2 Classify the types of information that can be exchanged between purchasers and suppliers
• Types of information exchange such as scheduling difficulties, demand forecasts, trends in
costs and availability, designs and innovations and new product development

3.3 Explain how technologies may impact on a commercial relationship between purchasers
and suppliers
• Explanation of supplier and customer networks
• The applications of the intranet and internet in commercial relationships
• The use of electronic catalogues
• The use of technology to exchange data

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