Aim

To provide the underpinning knowledge to enable a purchasing and supply professional to contribute to the management of people.

Rationale

Private and public sector organisations' greatest asset is the people who work for them. Managing this resource effectively is the key to sustainable competitive advantage for organisations, and thus forms an integral part of the work of the effective manager in the purchasing and supply function.

1. Recruitment and Selection

a) Describing the job

b) Specifying the skills and attributes required

c) Attracting the candidates

d) Selection methods

e) The legal and regulatory framework

Learning Outcomes

In the assessment the candidate may be required to:

1.1 Analyse and evaluate recruitment policies and procedures

1.2 Describe and discuss a job description and a person specification

1.3 Discuss job advertising methods and evaluate their effectiveness

1.4 Analyse and evaluate selection methods

1.5 Discuss individual employment law and equal opportunities legislation

(weighting 20%)

2. The Leadership and Management of Teams

a) The importance of teams in developing supply chains

b) The dynamics of team working, including Belbin's analysis

c) Building a successful team to add value in the supply chain

d) The role of leadership in effective teams

Learning Outcomes

In the assessment the candidate may be required to:

2.1 Evaluate the importance of teamwork in developing supply chains

2.2 Evaluate group dynamics in the structure and design of teams

2.3 Describe the ways effective teams are created and managed within the supply chain

2.4 Discuss current leadership theories

(weighting 20%)

3. Management Skills

a) Methods of effective communication

b) Time management

c) Conflict resolution

d) Managing change and resistance to change

Learning Outcomes

In the assessment the candidate may be required to:

3.1 Investigate the ways in which communication may be made more effective within the management of the supply chain

3.2 Evaluate time management techniques

3.3 Describe different techniques for the management of conflict

3.4 Discuss appropriate methodologies for planning and managing change and resistance to change

(weighting 20%)

4. Motivation and Job Design

a) Theories of motivation

b) Forms of job design

c) Empowerment and delegation

d) Management of stress, and health and safety

Learning Outcomes

In the assessment the candidate may be required to:

4.1 Discuss theories of motivation in the workplace

4.2 Analyse and evaluate the main methods of job design

4.3 Analyse the concept of empowerment and delegation

4.4 Describe the essential features of health and safety responsibilities in the workplace

(weighting 20%)

5. Performance Management

a) Induction

b) Appraisal techniques

c) Staff training and development

d) Performance management techniques

Learning Outcomes

In the assessment the candidate may be required to:

5.1 Discuss the process of induction

5.2 Evaluate the methods of appraisal in improving performance

5.3 Analyse the characteristics of a systematic approach to training and development

5.4 Describe the characteristics of performance management techniques, including disciplinary and grievance procedures

(weighting 20%)

Aim

To provide an introduction to financial analysis and statistical and accounting techniques for use by the purchasing professional.

Rationale

The importance of financial evaluation and statistical analysis is increasingly important in organisations, especially in the service and eCommerce environments. The purchasing professional is expected to acquire the financial expertise to evaluate the performance of the whole organisation as well as the statistical expertise to measure and evaluate the effectiveness of the purchasing function.

1. Sources of Finance

a) Private sector

b) Public sector

Learning Outcomes

In the assessment the candidate may be required to:

1.1 Compare the available sources of finance (e.g.shares, loans, factoring, private-public partnerships)

1.2 Compare the advantages and disadvantages of the different sources of finance

(weighting 10%)

2. Analysing suppliers' data as part of the pre-purchase order/contract award stage

a) Trading profit and loss account

b) Balance sheet

c) Budget and cash flows

d) Application of ratio analysis to supplier financial data

e) Auditing of supplier performance

Learning Outcomes

In the assessment the candidate may be required to:

2.1 Analyse and compare financial data for purchasing decisions (e.g. data obtained by purchasing research, supplier's published accounts, MIS, and production data)

2.2 Evaluate company accounts obtained from suppliers and/or purchase research sources

2.3 Prepare a budget/cash flow for planning use by the purchaser, from obtained supplier data, to verify that the supplier's financial credibility and proposed supply performance is viable

2.4 Describe opportunities for the role of Information Technology (IT) in financial analysis (e.g. the use of spreadsheets, financial software for data analysis and the Internet for company research and performance data).

(weighting 20%)

3. Prices and Costs - the application of internal and external costs analysis for purchasing projects and orders and contracts

a) Elements of costs

b) Fixed and variable costs

c) Direct, indirect and standard costs

d) Process costs

e) Costs and margins

f) Breakeven analysis

Learning Outcomes

In the assessment the candidate may be required to:

3.1 Differentiate between elements of prices and costs

3.2 Explain the purpose of differentiating between elements of prices and costs

3.3 Analyse the main issues in controlling process costs

3.4 Calculate and discuss the purpose and practice of breakeven analysis

3.5 Evaluate the ways in which IT can assist in financial analysis

(weighting 20%)

4. Capital Buying

a) Capital buys analysis - determination of requirements for a capital purchase, including roles of all departments/functions in the decision process, and the links to purchasing

b) Total life cycle costs analysis

c) General investment appraisal techniques

Learning Outcomes

In the assessment the candidate may be required to:

4.1 Describe the capital buying process and project appraisal

4.2 Analyse and make recommendations for a specific capital buy case

4.3 Evaluate different forms of investment appraisal

4.4 Identify the role of IT in the capital buying and investment process using modelling and simulation techniques including the use of IT packages and available software

(weighting 10%)

5. Statistical Methods for Purchasing Analysis

a) Descriptive statistics

• (i) Diagrams
• (ii) Averages
• (iii) Measures of dispersion
• (iv) Index numbers

b) Inferential statistics

• (i) Probability; conditional probability, sum rule and product rule
• (ii) Expected value
• (iii) Normal, poisson and binomial distribution

c) Forecasting methods

• (i) Time series: moving averages, trends, seasonal variation
• (ii) Introduction to regression including the learning curve and correlation

d) Statistical methods for quality control

Learning Outcomes

In the assessment the candidate may be required to:

5.1 Explain the role of statistics in the work of the purchasing professional

5.2 Interpret basic statistical data

5.3 Apply statistical analysis to purchasing and supply issues

5.4 Describe the ways in which IT can be used in statistical forecasting, and data analysis

5.5 Assess the reliability and accuracy of forecasts

5.6 Plot a quality control curve and recognise how warning limits are derived

(weighting 40%)

Aim

To provide an introduction to the provisioning and legal aspects of supply chain management.

Rationale

Organisations in the private and public sectors need to consider the interface between suppliers, themselves and customers. It is therefore important that purchasing and supply professionals have a grounding in the legal aspects of contract, and an awareness of supply chain management and good practice.

1. Legal Aspects

a) Contracts - essentials of a valid, legally binding contract

b) Dispute resolution

c) Common law and statute

d) Battle of the forms

e) Examples of model terms and conditions

f) eContracts

Learning Outcomes

In the assessment the candidate may be required to:

1.1 Describe the law of contract applicable to purchase and supply situations

1.2 Compare appropriate contract dispute resolution methods

1.3 Distinguish between common law and statute

1.4 Suggest terms and conditions of contract to suit given situations

1.5 Examine the implications of eProcurement on contracting

(weighting 30%)

2. Analysing the Need

a) Main characteristics of specifications

b) Quality control and quality assurance

c) Customer service

Learning Outcomes

In the assessment the candidate may be required to:

2.1 Describe the procedure to produce a clear and concise specification

2.2 Define the use of quality in fulfilling the business need and evaluate the differences between quality control and assurance

2.3 Describe good customer service traits

(weighting 25%)

3. Costing the Need

a) Capital and revenue purchasing techniques

b) Tendering procedures

c) EU procurement directives

d) Quotation analysis

e) eSourcing

Learning Outcomes

In the assessment the candidate may be required to:

3.1 Compare the differences in purchasing procedures for capital and revenue goods

3.2 Analyse the main legal obligations of the parties under a tendering arrangement

3.3 Consider the content and effect of the EU procurement directives

3.4 Define the components of quotation analysis to give best value to the organisation

3.5 Describe the use of eSourcing

(weighting 20%)

4. Providing the Need

a) Supplier evaluation

b) Ethical sourcing

c) Supplier relationships

d) Introduction to commercial relationships

Learning Outcomes

In the assessment the candidate may be required to:

4.1 Demonstrate appropriate means of evaluating suppliers

4.2 Evaluate the impact of ethical sourcing on purchasing and supply

4.3 Evaluate the situation businesses face in determining their relationships and trading agreements

4.4 Describe the stages of the negotiation process and the buyer’s role in this process

4.5 Compare differences in buying approaches in different sectors

(weighting 25%)

Aim

To provide an introduction to the management of supplies in the organisation.

Rationale

Organisations in the private and public sectors are increasingly turning to professional supply chain measures and procedures to reduce costs and utilise internal resources efficiently. In this environment, it is important that purchasing and supply professionals are aware of the measures designed to promote purchasing and supply as a critical function in the organisation, and to satisfy the end customer.

1. Materials Management Concepts

a) Concepts - materials management, supply chain management, logistics

b) Inventory policies and influences

c) Valuation of stock

d) Inventory and costs

e) Introduction to inventory management techniques

Learning Outcomes

In the assessment the candidate may be required to:

1.1 Explain the concepts listed

1.2 Describe the various methods of stock replenishment in different environments

1.3 Explain the purposes of stock valuation and monitoring stock

1.4 Evaluate the costs of maintaining service levels whilst avoiding stock costs

(weighting 25%)

2. Supply, and Materials Management in Different Environments

a) Supply, and materials management concepts in the primary, secondary and tertiary sectors

b) Categorisation of resource needs for: raw materials; MRO; capital goods; resale goods and services

c) Lean supply and its contribution to customer satisfaction

Learning Outcomes

In the assessment the candidate may be required to:

2.1 Discuss the application of supply, and materials management in different sectors

2.2 Compare the different approaches to the management of: raw materials; MRO; capital goods; resale goods and services

2.3 Evaluate the role of lean supply in achieving customer satisfaction

(weighting 20%)

3. Obtaining the Supply

a) Introduction to standardisation, variety reduction and value analysis

b) Analysis of total acquisition costs

c) Introduction to dependent and independent demand

d) eProcurement

e) ABC analysis

Learning Outcomes

In the assessment the candidate may be required to:

3.1 Explain the processes and purposes of standardisation, variety reduction and value analysis

3.2 Appraise methods of minimising total acquisition costs

3.3 Explain the differences between dependent and independent demand

3.4 Describe the use of eProcurement

3.5 Describe ABC analysis

(weighting 20%)

4. Organisation of Supply Chain Management

a) The need for coordinated and defined ordering procedures

b) Relationships with internal and external customers

c) Organisational and professional ethics

Learning Outcomes

In the assessment the candidate may be required to:

4.1 Recognise and explain the ordering procedures that organisations have available to them

4.2 Discuss the need to develop appropriate relationships with all parties in the supply chain

4.3 Discuss the CIPS code of ethics and the organisational need for such a code

(weighting 15%)

5. Introduction to Logistics in the Supply Chain

a) Transport systems

b) Location of stores facilities

c) Stock location, layout and internal movement of goods

d) Coding systems

Learning Outcomes

In the assessment the candidate may be required to:

5.1 Describe different transport systems and their relative costs

5.2 Contrast factors affecting stores location

5.3 Discuss appropriate stock location and layout schemes

5.4 Describe alternative methods of internal movement of goods

5.5 Describe coding systems and their benefits

(weighting 20%)