Diploma In Procurement And Supply
Diploma in procurementand supplyUnit content guideCIPS Group Easton House, Easton on the Hill, Stamford, Lincolnshire, PE9 3NZ, UKT 44 (0)1780 756777 F 44 (0)1780 751610 E info@cips.orgCIPS Australasia Level 8, 520 Collins Street, Melbourne, Victoria 3000, AustraliaT 1300 765 142/ 61 3 9629 6000 F 1300 765 143/ 61 3 9620 5488 E info@cipsa.com.auCIPS Middle East & North Africa Office 1703, The Fairmont Hotel, Sheikh Zayed Road, PO Box 49042, Dubai, United Arab EmiratesT 971 (0)4 327 7348 F 971 (0)4 332 5541 E 2CIPS Africa Ground Floor, Building B, 48 Sovereign Drive, Route 21 Corporate Park, Irene X30, Centurion, Pretoria, South AfricaT 27 12 345 6177 F 27 12 345 3309 E infosa@cips.org.zaLeading global excellence in procurement and supply
Diploma in procurement and supplyDiploma in procurement and supplyIntroductionThe Chartered Ins!tute of Purchasing & Supply qualifica!ons ladder has five levels of awards. Fordetails of the entry requirements for each level, please refer to www.cips.orgThe CIPS Diploma in procurement and supply is a higher level qualifica!on. It has been accreditedby the Office of Qualifica!ons and Examina!ons Regulator (Ofqual) in the UK and appears on theRegister of Regulated Qualifica!ons. Please refer to h#p://register.ofqual.gov.ukThe Diploma in procurement and supply consists of five compulsory units. All units are assessedindividually using a range of assessment methods.If you wish to study for the Diploma it is expected that you will undertake 50 guided learning hoursper unit, ie a total of 250 guided hours. The defini!on of guided learning hours is:“A measure of the amount of input !me required to achieve the qualifica!on. This includeslectures, tutorials and prac!cals, as well as supervised study in, for example, learning centres andworkshops.”If you study at a CIPS study centre, you will find that they may vary on the exact format for deliveryof the study programme. Addi!onally we would recommend that you also commit 70 hours perunit of self-study, including wider reading of the subject areas and revision to give yourself the bestprepara!on for successfully achieving the Diploma.Below is a list of the units, their qualifica!on framework reference numbers and CIPS referencecode which is used to iden!fy the unit for assessment purposes.Diploma in procurement and supplyQualifica!on number:Unit Title:Qualifica!on NumberContexts of procurement and supplyBusiness needs in procurement and supplySourcing in procurement and supplyNego!a!ng and contrac!ng in procurement and supplyManaging contracts and rela!onships in procurement and supply02CIPS ReferenceD01D02D03D04D05Glossary ofqualification termsAssessmentAssessment is the way in which CIPS willmeasure whether or not a learner is able todemonstrate their knowledge, understandingand be able to apply their learning in a givensitua!on.Assessment criteriaAssessment criteria specifies the standard that alearner is expected to meet to demonstrate thatthe learning outcomes of a unit have beenachieved.Business essen!alsThese are commonly occurring themes throughthe qualifica!ons, that do not warrant a unit intheir own right, but that are importantholis!cally to the learning undertaken withinthe qualifica!ons: leadership business finance informa!on technology management strategy legisla!onCommand wordsCommand words are generally verbs that areused to indicate the level of learningundertaken. They tend to be hierarchical innature. For example, when studying towardsthe diploma a command word could be ‘explain’or ‘assess’, whereas a command word for theprofessional diploma might be ‘cri!cally assess’,or ‘cri!cally evaluate’. These words reflect thelevel of complexity of your learning andul!mately your assessment at that level.Compulsory unitsThese are units that cons!tute necessaryknowledge and understanding to fulfil learningrequirements for CIPS qualifica!ons.Entry levelThis is the point at which you will enter the CIPSqualifica!ons ladder. This entry will be based onpre-requisite knowledge, understanding andexperience.Exemp!onsLearners who have successfully completedother relevant qualifica!ons may apply forexemp!ons from equivalent CIPS units in theirprogramme of study. To earn an exemp!onfrom a qualifica!on or specific units within CIPSqualifica!ons you should contact CIPS or seewww.cips.orgPlease note that gaining an exemp!on, does notmean that you gain an exit award at that level,rather that you bypass that level of learningbecause of equivalent learning andachievement gained elsewhere.03
Diploma in procurement and supplyExit awardAn exit award is in essence a qualifica!on. CIPShas five exit awards in total Cer!ficate in procurement and supplyopera!ons Advanced cer!ficate in procurement andsupply opera!ons Diploma in procurement and supply Advanced diploma in procurement and supply Professional diploma in procurement andsupplyFor each qualifica!on you successfully complete,you will receive a cer!ficate of achievementconfirming your exit award.Indica!ve contentThe indica!ve content is an indica!on of theknowledge required in order to fulfil theassessment criteria to achieve the learningoutcome.Learning outcomeThe learning outcome within a unit sets out whata learner is expected to know, understand, or beable to do as a result of a process of learning.OfqualCIPS is an Awarding Body recognised by Ofqual.Ofqual regulate qualifica!ons, examina!ons andassessments in England and voca!onalqualifica!ons in Northern Ireland. It is their dutyto ensure all learners get the results theydeserve and that their qualifica!ons arecorrectly valued and understood, now and in thefuture.Op!onal unitsThese are units where you have choices tospecialise in an area of interest. There is an04Diploma in procurement and supplyopportunity to select two op!onal units atadvanced diploma and two op!onal units atprofessional diploma.Qualifica!ons ladderThis ladder represents the hierarchical natureof CIPS qualifica!ons. The ladder has five stepswithin it. It starts with a Cer!ficate through tothe Professional Diploma.Each step of the ladder is represented by aqualifica!on with an ‘exit award’.UnitA segment of learning within the CIPSqualifica!ons. Each unit is individual, has itsown !tle, ra!onale and content. A unit will alsohave an assessment a#ached to it in order todemonstrate achievement and conclusion ofthe learning.Unit purpose and aimsUnit aims provide addi!onal informa!on aboutthe unit; a succinct statement summarises thelearning outcomes of the unit.Each unit has four to five learning outcomeswhich outline what will be achieved as a resultof learning in that par!cular unit.Weigh!ngsEach unit has a number of learning outcomesthat are equally weighted for example:If a unit that has four learning outcomestotalling 100%, each learning outcome will beequally weighted ie 25%(100% divided by 4 25%).This weigh!ng indicates the level of input andlearning required by the study centre and thelearner in order to complete the subject area.Definition of additionalterms used in this guideERP Enterprise Resource PlanningEnterprise Resource Planning (ERP) System: Aclass of so ware for planning and managing"enterprise-wide" the resources needed to takecustomer orders, ship them, account for themand replenish all needed goods according tocustomer orders and forecasts. O en includeselectronic commerce with suppliers. Examplesof ERP systems are the applica!on suites fromSAP, Oracle, PeopleSo and others.FIDIC Fédéra!on Interna!onale DesIngénieurs-Conseils (French for) Interna!onalFedera!on of Consul!ng EngineersFIDIC is the Interna!onal Federa!on ofConsul!ng Engineers known for its range ofstandard condi!ons of contract for theconstruc!on, plant and design industries. TheFIDIC forms are the most widely used forms ofcontract interna!onally, including by the WorldBank for its projects.IMechIE Ins!tu!on of MechanicalIncorporated EngineersThe Ins!tu!on of Mechanical IncorporatedEngineers and the Ins!tu!on of Engineeringand Technology issue model forms and guidesfor the industry. These include forms of tender,agreement and performance bonds.IncotermsInterna!onal commercial terms of saledeveloped by the Interna!onal Chamber ofCommerce to define sellers’ and buyers’responsibili!es.KPIs Key performance IndicatorsAlso known as key success indicators. They arefinancial and non-financial metrics used toreflect the cri!cal success factors of anorganisa!on or contract. They are used inbusiness intelligence to assess the present stateof business or a contract and to prescribe thenext course of ac!on.Macro economicsMajor external and uncontrollable factors thatinfluence an organisa!on's decision making,and affect its performance and strategies. Thesefactors include the economic, demographics,legal, poli!cal, and social condi!ons,technological changes, and natural forces.Factors that influence a company's or product'sdevelopment but that are outside of thecompany's control. For example, the macroenvironment could include compe!tors,changes in interest rates, changes in culturaltastes, or government regula!ons.05
Diploma in procurement and supplyMicro economicsFactors or elements in an organisa!on'simmediate area of opera!ons that affect itsperformance and decision-making freedom.These factors include compe!tors, customers,distribu!on channels, suppliers, and the generalpublic.NEC The new engineering contractThe New Engineering Contract of which theEngineering and Construc!on Contract (ECC)forms a part, is a suite of standard formconstruc!on contracts created by theIns!tu!on of Civil Engineers.Not for profit or third sectorThese are voluntary and communityorganisa!ons such as chari!es and also socialenterprises (social enterprises have social orenvironmental purposes as central to what theydo). They are profit making but rather thanmaximising shareholder value their main aim isto generate profit to further their social andenvironmental goals.06Diploma in procurement and supplyP2P Purchase to payRefers to the business process that coverac!vi!es of reques!ng, purchasing, receiving,paying for and accoun!ng for goods andservices.SMEs Small and medium sized enterprisesA small firm is an independent business,managed by its owner or part-owners and withless than 50 employees. A medium sizedcompany must meet thresholds for annualturnover and have fewer than 250 employees.STEEPLE Social, Technological, Economic,Environmental, Poli!cal, Legal, European (orInterna!onal)An analy!cal tool extending PEST to alsoinclude, Environmental, Legal and European (orInterna!onal) factors that can impact onprocurement and supply.The Vienna Conven!onThe United Na!ons Conven!on on Contractsfor the Interna!onal Sale of Goods provides auniform text of law for interna!onal sales ofgoods.On comple!on of thisunit, candidates will beable to:A) Offer advice andguidance to mainstakeholders on theapplica!on of thesourcing processB) Understand supplychains whichorganisa!onsoperate in.Contexts ofprocurement and supplyLEARNING OUTCOMES1.0Understand the added value that can be achieved through procurement and supply chainmanagement1.1Explain the categories of spend that an organisa!on may purchase Defini!ons of procurement and purchasing and supply Typical breakdown of organisa!onal costs represented by procurements of goods, servicesor construc!onal works Stock and non-stock procurements Direct and indirect procurements Capital purchases and opera!onal expenditures Services procurements1.2Analyse the different sources of added value in procurement and supply The five rights of procurement Achieving the right price for procurements from external suppliers Defining total life cycle costs or the total costs of ownership Achieving quality, !mescales, quan!!es and place considera!ons in procurements fromexternal suppliers Other sources of added value such as innova!on, sustainability and market development Defining value for money1.3Compare the concepts of procurement and supply chain management Defini!ons of procurement, supply chains, supply chain management and supply chainnetworks The length of a supply chain Defini!ons of logis!cs and materials management Comparisons of supply chain management with procurement07
Diploma in procurement and supply1.4Differen!ate the stakeholders that a procurement or supply chain func!on may have Defining stakeholders Examples of stakeholders for a procurement or supply chain func!on Mapping stakeholders for a procurement or supply chain func!on2.0Understand the stages of sourcing processes in crea!ng added value outcomes that can beachieved with suppliers2.1Explain the main aspects of sourcing processes Defining the stages of a generic sourcing process from iden!fica!on of needs to contractand supplier management Analysis and planning, tender management and contract management Differen!a!ng between pre contract award and post contract award stages2.2Analyse the main stages of a sourcing process Stages of the sourcing process that relate to defining needs, crea!on of contract terms,supplier selec!on, contract award and contract or supplier management The purpose and added value that is created by each of the stages of the sourcing process2.3Explain how electronic systems can be used at different stages of the sourcing process Erequisi!oning, ecatalogues, eordering, esourcing and epayment technologies The impact of electronic purchase to pay (P2P) systems on the sourcing process2.4Analyse the rela!onship between achieving compliance with processes and theachievement of outcomes Organisa!onal needs for structured sourcing processes The rela!onship between process compliance and the achievement of added valueoutcomes3.0Understand the main aspects of organisa!onal infrastructure that shape the scope of aprocurement or supply chain func!on3.1Explain the main aspects of corporate governance of a procurement or supply chainfunc!on Conflicts of interest The need for documented policies and procedures for procurement Organisa!onal accountability and repor!ng for procurement roles and func!ons The status of procurement and supply chain management within organisa!ons Codes of ethics in procurement The CIPS code of ethics08Diploma in procurement and supply3.2Analyse the impact of organisa!onal policies and procedures on procurement Aspects that can be included in procedures for procurement and supply such asresponsibili!es for procurement, regula!ons rela!ng to compe!!on, levels of delegatedauthority, responsibili!es for the stages of the sourcing process, invoice clearance andpayment The use of procurement policies, procurement strategies and procurement manuals The involvement of internal func!ons and personnel in the sourcing process Responsible purchasing and the Interna!onal Labour Organisa!on core conven!ons3.3Compare the different structures of a procurement or supply chain func!on The use of centralised and devolved structures Hybrid structures of a procurement or supply chain func!on (such as consor!umstructures, shared services, lead buyer structures, and outsourced) Interac!ng with otherpeople and building rapport The need for customer service and value for money outcomes3.4Explain the common IT systems that can be used by a procurement or supply chain func!on P2P systems Systems for inventory management Enterprise Resource Planning (ERP) technologies Communica!ons systems for internal and external use4.0Understand the need for compliance with requirements when undertaking procurementac!vi!es in different sectors4.1Iden!fy different economic and industrial sectors Economic classifica!ons including public and private sectors, chari!es, not for profit andthird sector Industrial classifica!ons and sectors such as manufacturing, retail, construc!on, financial,agriculture and service Codes of ethics in procurement including the CIPS Code of Ethics4.2Analyse the impact of the public sector on procurement or supply chain roles Objec!ves of public sector organisa!ons such as improving services, communi!es andcorporate social responsibility Regula!ons that impact on procurement and supply chain opera!ons Need for compe!!on, public accountability and value for money09
Diploma in procurement and supply4.34.4Analyse the impact of the private sector on procurement or supply chain roles Objec!ves of private sector organisa!ons such as profitability, market share, shareholdervalue and corporate social responsibility Regula!ons that impact on procurement and supply chain opera!ons The importance and role of brandingAnalyse the impact of the not for profit or third sector on procurement or supply chain roles Objec!ves of the not for profit or third sector Regula!ons impac!ng on chari!es Need for regulated procurement exercisesDiploma in procurement and supplyOn comple!on of thisunit, candidates willunderstand prac!ces thathelp achieve value formoney solu!ons inprocurement.This unit explores avariety of elements thatunderpin thedevelopment of criteria. Italso considers the op!onsthat should be exploredwhen procurement andsupply personnel areinvolved in definingrequirements.10Business needs inprocurement and supplyLEARNING OUTCOMES1.0Understand how to devise a business case for requirements to be sourced from externalsuppliers1.1Analyse how business needs influence procurement decisions Type of purchase such as new purchase, modified re-buy, straight re-buy Implica!ons of the business needs on the types of procurement Procurement’s role in developing a business case1.2Explain how costs and prices can be es!mated for procurement ac!vi!es Types of market data that can provide informa!on on costs and prices Direct and indirect costs Producing es!mated costs and budgets Approaches to total costs of ownership/ total life cycle cos!ng1.3Explain the criteria that can be applied in the crea!on of a business case Examples of criteria typically applied in the produc!on of a business case: costs, benefits,op!ons, alignment with organisa!onal needs and !mescales Benchmarking requirements1.4Explain the opera!on of financial budgets for the control of procurements The purpose of financial budgets Cost entries and !mings of cash flows Performance and control of budgets Dealing with variances to budget11
Diploma in procurement and supply2.0Understand the fundamentals of specifica!ons and key performance indicators that areincluded in contractual arrangements made with suppliers2.1Assess different types of specifica!ons used in procurements of products or services Defini!ons of specifica!ons Examples of specifica!ons such as drawings, samples, branded and technical Conformance based specifica!ons Output or outcome based specifica!ons2.22.3Explain the content of specifica!ons for procurements Dra ing specifica!ons and developing market dialogue with suppliers The use of standards in specifica!ons Typical sec!ons of a specifica!on Standardisa!on of requirements versus increasing the range of products Including social and environmental criteria in specifica!ons The role of Informa!on Assurance in developing specifica!onsDevelop examples of key performance indicators (KPIs) in contractual agreements Defining contractual performance measures or KPIs The use of service level agreements Typical KPI measures to assess quality performance, !meliness, cost management,resources and delivery3.0Understand the main clauses that are included in formal contracts3.1Explain sources of contractual terms for contracts that are created with externalorganisa!ons The use of express terms The use of standard terms of business by both purchasers and suppliers The use of model form contracts such as NEC, FIDIC, IMechIEE3.2Interpret examples of contractual terms typically incorporated into contracts that arecreated with external organisa!ons Main terms in contracts for indemni!
Diploma in procurement and supply 03 Introduction The Chartered Ins!tute of Purchasing & Supply qualifica !ons ladder has five levels of awards. For details of the entry requirements for each level, please refer to www.cips.org The CIPS Diploma in procurement and supply is a higher level qualifica !on. It has been accredited
CIPS Level 4 Diploma in Procurement and Supply . Level 8, 3 Spring St, Sydney NSW 2000 Ph: 1300 950 251 E: info@academyglobal.com www.academyglobal.com Level 4 Diploma in Procurement and Supply The Level 4 Diploma in Procurement and Supply now consists of eight core modules of 6 or 12 units. This is the highest entry point to our diploma level qualifications. Developed using the Procurement .
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Procurement Procedures Procurement 2.4 Procurement authority 38 2.5 Modification of individual procurement authority 38 2.5.1 Delegation of procurement authority 38 2.5.2 Delegation of procurement authority to UNFPA officers at headquarters 38 2.5.3 Delegation of procurement authority to field office managers 41
Strategic Procurement for Innovation Vassilis Tsanidis Dr.Jur f. National Expert on Innovation Procurement in the EU A. STRATEGIC PROCUREMENT –2 Innovation Procurement Green/Circular Procurement Social Procurement . 10-11-2020 2 EU Public Procurement Directives (2014/24 , 2014/25)
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