Practitioner Corporate Award

September 22nd, 2015

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Practitioner Corporate Award
Assessment One
There are two questions which are compulsory for this assessment.
Module: Driving Value through Procurement and Supply
Question 1: 50% of the total marks
Tasks
Compose a report that is to be considered by your Board of Directors, which evaluates:
(a) The opportunities for the procurement and supply function to create savings or efficiencies or other
sources of added value
(b) How the profile of the function can be improved
(c) How collaboration can be created with stakeholders to increase early engagement in the procurement
process
(d) The need for organisational policies and procedures to implement effective procurement and supply
Guidance
Your report should consist of approximately 1,500 words and should include a title, your candidate number,
contents page, executive summary, references and a bibliography. Any source materials such as web sites,
reports, articles, market data, journals or texts should be referred to in your references or bibliography.
Syllabus Coverage
The following content from the Practitioner syllabus can be used to answer this assessment (overleaf):
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The different terms that relate to procurement and supply, supply chain management and logistics
The roles and benefits of procurement and supply in organisations
How effective procurement impacts on profitability or creating savings and efficiencies for the
organisation
The typical proportion of costs accounted for by the procurements of goods and services
Internal and external customers 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

Contracting Excellence V1, March 2015

Syllabus Coverage (continued):
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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 documented policies and procedures for the work of procurement and supply
The need for approvals in the administration of requisitions, 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

This assessment helps you achieve the following capabilities:
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Advocate the roles of procurement and supply, supply chain management and logistics to colleagues
and across the organisation
Communicate the roles and benefits of effective procurement and supply to colleagues and across the
organisation
Evaluate how effective procurement can contribute to improving profitability or creating savings and
efficiencies for the organisation
Assess the typical proportion of costs and budgets accounted for by the procurements of goods and
services
Consult with stakeholders that input into procurement and supply decisions to ensure the
achievement of value for money outcomes in the work of procurement and supply
Deal effectively with conflict that may arise with stakeholders to ensure the objectives of
procurement and supply are prioritised
Promote commitment amongst colleagues and stakeholders to achieving the objectives sought by a
procurement and supply function
Monitor that purchased goods and services comply with the standards set for achieving sustainable
outcomes and take appropriate actions to address any issues
Advise colleagues and personnel across the organisation of the use of different documents used in
procurement and supply explaining their relevance, importance and benefits
Advise stakeholders and internal customers on the interpretation of procedures for procurement and
supply explaining their relevance, importance and benefits
Ensure that internal customers or stakeholders obtain approvals for the commitments to requisitions,
orders and invoices
Monitor the work of stakeholders to ensure that the codes of ethics in procurement and supply are
upheld and report deviations from agreed standards
Explain the main principles of corporate governance that applies to the organisation’s procurement
and supply function

Driving value and Managing Expenditures V2, Mar 2015

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Advise stakeholders on the impact of expenditures with suppliers on the creation and management of
financial budgets
Assess the importance of compliance with organisational processes and simultaneously identify
opportunities for achieving added value solutions with suppliers, internal customers or stakeholders

Driving value and Managing Expenditures V2, Mar 2015

Module: Managing Expenditures with Suppliers
Question 2: 50% of the total marks
You are required to select an example of a category of procurement of a product, service or works bought by
your organisation.
You are required to:
(a) Research the market of your chosen category and review its size, scope and extent of competition
(b) Summarise the demand and supply factors that impact on the chosen category of procurement
(c) Explain the current pricing mechanism applied to the category and assess the factors that impact on the
pricing of the category
Guidance
This section of your work should consist of approximately 1,500 words and should include a title, your
candidate number, contents page, executive summary, references and a bibliography. Any source materials
such as web sites, company reports, indices, market data, articles, journals or texts should be referred to in
your references or bibliography.
Syllabus Coverage
The following content from the Practitioner syllabus can be used to answer this assessment:
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How markets can be defined in terms of size, scope and stages of development
The levels of industry competition such as perfect competition, imperfect competition, oligopoly,
duopoly and monopolies
How demand and supply factors impact on organisations in the supply chain
The impact of market change can have on organisations
Analytical tools to explain the impact of the external environment on organisations in supply chains
How macro economic factors such as interest rates, inflation, exchange rates and the level of
economic activity (GDP/ GNP) impacts on organisations
The use of portfolio matrices to assess categories of expenditures and perceptions of the organisation
by suppliers
The main types of pricing arrangements in commercial agreements
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

Driving value and Managing Expenditures V2, Mar 2015

This assessment helps you achieve the following capabilities:
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Identify the types of markets served by the organisation, its suppliers and customers so that decision
making can improve the performance of the organisation
Analyse the competitive forces and trends that influence markets that the organisation, its suppliers
and customers operate in and appreciate the balance of power in commercial relationships
Assess the impact of changing demand and supply factors on the organisation, its suppliers and
customers
Evaluate the impact of market change on the pricing and availability of products and services to make
decisions to improve performance
Assess the impact of interest rates, inflation, exchange rates and the level of economic activity (GDP/
GNP) on pricing and availability of products and services
Apply portfolio analysis techniques to assess relationships in supply chains and develop plans for their
improvement
Monitor pricing arrangements in commercial agreements to ensure effective price and cost
management for the organisation with its supply chain
Use relevant sources of information to estimate the breakdown of costs between direct and indirect
costs for purchased goods and services to ensure the effective management of costs and prices
Research market data and use to estimate current and future prices and costs for purchased goods
and services
Use published sources of information to agree variations in pricing for purchased goods and services
to ensure the effective management of costs and prices
Compare historical prices with newly quoted prices and evaluate the reasons for any significant
discrepancies to negotiate competitive prices
Analyse the whole life costs of purchased goods or services and take actions to reduce or avoid ongoing costs

Driving value and Managing Expenditures V2, Mar 2015

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