What is contract performance review and continuous improvement?
Correct Answer:
See the answer in explanation. Explanation: Contract performance review and continuous improvement is the stage 11 of the CIPS procurement and supply cycle. In order to effectively manage supplier performance and contractual obligations, the suppliers per-formance against key performance indicators (KPI) should be reviewed regularly. This KPI should have been agreed doing the post contract award negotiation. In addition to review KPIs suppliers and the procurement team should work towards continuous improvement. This is a continuous ef-fort to improve product or services within an organization. This may involve improving quality, reducing waste in the supply chain and focusing on innovation. It is an ongoing process that works toward perfection. * Refer to the question column for response
Question 32
What is business case?
Correct Answer:
A business case is a document containing the justification and the commercial benefits achievable for a potential project or an identified need, for example, the purchase of a capital equipment, con-struction of an additional warehouse or procuring more innovative software to replace the current on in use. The essence of the business case is to obtain support and get buy-in from senior management. In order to gain authority to apply whole life asset management a business case will need to be created and presented. A developed business case will cover the following element. 1) Introduction: Outline of what the business case is all about 2) Objective: Explanation of what the business case desired outcome is. 3) Approach that will be undertaken 4) List of resources required 5) Benefits of achieving the objective
Question 33
What are the four methods that can be used to try to resolve dispute?
Correct Answer:
Conflict or dispute is the final area a procurement professional considers when creating terms for a contract with a supplier. If conflict or dispute arises, there must be a process put in place in the contract to try to resolve it and these includes; a) Negotiation, b) mediation, c) arbitration and d) litigation. Negotiation is usually carried out between senior people within organization that are in conflict, if they cannot reach an agreement through negotiation, mediation is the next stage, mediation is when a third party tries to help find a resolution among the parties in dispute. If mediation fails arbitration can start, arbitration involve independent professionals (arbitrators) working with all the party to try to reach an agreement. Parties do not have a formal or legal obligation to follow the arbitrator's recommendation. Arbitration is expensive. If arbitration fails to resolve the conflict, the final stage is litigation, litigation takes time and money, and most people avoid it. It is a legal process where a court decides on the outcome of the dispute. The judge's ruling is final.
Question 34
Describe three benefits of working cross-functionally
Correct Answer:
See the answer in explanation. Explanation: Working cross-functionally is the involvement of all departments involved in an organization to contribute knowledge, skills and innovation towards adding value of achieving the organization's strategic goal. All functions may include; procurement, maintenance, marketing, finance, human resources working together in procurement activity to come up with the best strategy or selecting the supplier that best suit the organization. When working cross functionally, members of the organization gives support by believing in the end goal, assist during difficult time, help troubleshoot any issue, providing the required resources and sharing information.
Question 35
How does positive social impact present itself?
Correct Answer:
Organizations which display good behavior create a positive social impact. The community in which they are based and to which they supply will benefit from the following. 1. High employment 2. Fair wages 3. low pollution 4. sustainable resources 5. Engagement and movement with local organization