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| Section | Weight | Objectives |
|---|---|---|
| Ethics, Responsibility & Compliance | 25% | - Ethical and responsible sourcing application
|
| Application of Procurement Cycle | 25% | - Key stages of procurement cycle in practice
|
| Whole Life Asset & Cost Management | 25% | - Total cost of ownership concept
|
| Sourcing Process & Supplier Management | 25% | - Stages of strategic sourcing
|
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질문 # 59
Describe four factors that could damage reputation within the supply chair
정답：
설명：
See the answer in explanation.
Explanation:
The reputation of all the organizations within a supply chain is linked. A Company's reputation is an intangible asset that can contribute to the failure of an organization if damaged. Factors that could damage organizational reputation within the supply chain are;
1. Quality: if the product or service quality is poor the organization may not satisfy it customers and this can lead to a loss of reputation in the market. For example, a residential building construction company contracting a supplier that would do a bad job which in three months may require home owners to reinstall new doors.
2. Sustainability: if the organization is not replenishing that which it is extracting, it will some day run out of business or probably loss loyal customers. For example a drilling company that spills hydrocarbon as it drills.
3. Fit for purpose: if an organization produce a product or carry out services that are not fit for purpose, it may run at loss for there will be so much rejection and rework. This can lead to customers switching to another organization which product or services are fit for their purpose.
4. Contract management: an organization will have to manage its suppliers and the contracts to ensure they are delivering what they were contracted to do. A poor contract management is a waste in the process of delivery that can lead to reputational loss.
* Refer to the question column for response
질문 # 60
Explain which company you would award the contract to base on the weighted score card in table below.
정답：
설명：
A weighted score card is a tool with a systematic and a fair process for selecting supplier, based on predetermined criteria. This tool can help make the decision by presenting a fair display of how all suppliers did in the process. The values of these weights are based on their importance. The supplier with the highest score card is considered the most suitable to be awarded the contract.
In the table above, cost is considered more than all other criteria. Contract length is the lowest which is weighted 2 Base on the weighted score card as presented above, company B scored 78 while company A and company C scored 65 and 63 respectively.
Company A, having scored the highest (78) should be awarded the contract.
* Refer to the question column for response
질문 # 61
(a) Describe a supplier evaluation approach that HFS could use to select a bidder using the table provided, including a proposal for an appropriate weighting method for scoring the bidders.
(10 marks)
(b) Recommend and justify which ONE of the bidders should be awarded the contract and why each of the three other bids should be rejected.
(15 marks)
Heart Financial Services
Heart Financial Services (HFS) is a medium-sized private sector financial services company, with a iarge office headquarters m the suburbs of a major city. HFS has just received the bids shown below in response to an invitation to tender for a five-year contract to provide cleaning services for this office building.
in the past five years, HFS paid €160,000 for these cleaning services: but HFS was not satisfied with the quality of Cleaning service that was provided. The existing cleaning contractor. DuffOean. was getting to the end of the contract and had not bid this time.
Bid price (5 year contract) International Organization for Standardization: ISO 9000 certification Investors in People (IIP) certification International Labour Organization: (ILO) certification International Organization for Standardization: ISO 14000 certification Associated Cleaning (A): €120.000 No Yes NO No Brlght'N'Clean (B): €135.000 No Yes Yes No CleenKwik (C): €132.000 Yes Yes Yes Yes Doubleshine (D): €M2.000 No No No No
정답：
설명：
See the answer in explanation.below.
Explanation:
2(a) Describe a supplier evaluation approach that HFS could use to select a bidder using the table provided, including a proposal for an appropriate weighting method for scoring the bidders. (10 marks) HFS should use a weighted scoring supplier evaluation approach . This method is suitable because there are several award criteria, not just price, and HFS has already experienced poor cleaning quality under the previous contract. Therefore, HFS should assess both cost and quality-related factors before selecting the successful bidder.
A sensible approach would be:
Step 1: Set evaluation criteria
Using the tender table, HFS can evaluate bidders against:
* bid price
* ISO 9000 certification
* Investors in People (IIP) certification
* labour standards criterion linked to ILO requirements
* ISO 14000 certification.
ISO says the ISO 9000 family supports quality management and consistent delivery, while ISO 14001 is the recognised framework for environmental management. Investors in People is an externally recognised accreditation for people management.
Step 2: Apply weightings
Because HFS was not satisfied with the quality of the previous cleaning service, quality and service assurance should carry more weight than price alone. A suitable weighting could be:
* Price = 40%
* ISO 9000 = 25%
* IIP = 15%
* ILO criterion = 10%
* ISO 14000 = 10%
This totals 100%. The reason for this weighting is that price is important, but service quality should be prioritised for a five-year contract. ISO 9001 is especially relevant because it is the best-known quality management standard and is intended to support consistent products and services. ISO 14001 is also relevant because it gives assurance on environmental management.
Step 3: Score the bidders
For price , HFS could award the full 40 marks to the lowest bid and score the others proportionately using the formula:
Lowest bid ÷ bidder's price × price weighting
Using €120,000 as the lowest bid:
* A = 120,000 / 120,000 × 40 = 40.00
* B = 120,000 / 135,000 × 40 = 35.56
* C = 120,000 / 132,000 × 40 = 36.36
* D = 120,000 / 142,000 × 40 = 33.80
For the certification criteria, a simple method would be:
* Yes = full marks
* No = zero
So the total weighted scores would be:
* A = 40 + 0 + 15 + 0 + 0 = 55.00
* B = 35.56 + 0 + 15 + 10 + 0 = 60.56
* C = 36.36 + 25 + 15 + 10 + 10 = 96.36
* D = 33.80 + 0 + 0 + 0 + 0 = 33.80
Overall, this weighted evaluation method is appropriate because it gives HFS a transparent and objective way to compare bids while reflecting the importance of service quality, people management and environmental standards, not just lowest price.
2(b) Recommend and justify which ONE of the bidders should be awarded the contract and why each of the three other bids should be rejected. (15 marks) Based on the weighted scoring analysis, CleenKwik (C) should be awarded the contract.
Recommended bidder: CleenKwik (C)
CleenKwik should be selected because it offers the best overall value rather than just the lowest price. Its bid of €132,000 is only slightly above the lowest bid, but it is the only bidder with all four listed accreditations or compliance indicators in the table: ISO 9000, IIP, ILO criterion and ISO 14000 . This is important because HFS has already had poor service quality from the previous contractor, so quality assurance should be a major factor in the decision. ISO 9001 is specifically designed to support consistent service quality, while ISO
14001 supports structured environmental management. Investors in People also gives assurance on workforce management, which is relevant in a labour-intensive cleaning contract.
CleenKwik therefore represents the strongest balance between price, quality, staff management and environmental responsibility . For a five-year service contract, that makes it the most suitable choice.
Why Associated Cleaning (A) should be rejected
Associated Cleaning has the lowest price at €120,000 , but it only has IIP certification and lacks the other three criteria. This means it gives weaker assurance on quality systems, labour standards and environmental management. Since HFS's main problem in the last contract was poor cleaning quality, selecting the cheapest bidder without strong quality evidence would be risky. Therefore, A should be rejected because the low price does not compensate for the lack of broader service assurance.
Why Bright'N'Clean (B) should be rejected
Bright'N'Clean is a stronger bid than A because it has IIP and the ILO-related criterion , but it still lacks ISO 9000 and ISO 14000 . This is significant because ISO 9001 is the strongest direct indicator in the table for quality management, and HFS is specifically trying to avoid another poor-quality contract. B is also more expensive than both A and C. Therefore, B should be rejected because it offers less assurance than C while not being the cheapest option.
Why Doubleshine (D) should be rejected
Doubleshine should be rejected because it is the highest-priced bid at €142,000 and has none of the listed certifications or indicators. This means HFS would be paying the highest price for the weakest quality and compliance evidence. There is no justification for awarding the contract to D when it scores lowest on overall value.
Conclusion
In conclusion, CleenKwik (C) should be awarded the contract because it achieves the highest weighted score and provides the strongest evidence of quality, people management, labour-related assurance and environmental management. The other three bids should be rejected because they either provide insufficient quality assurance, poorer overall value, or both. This recommendation is justified because HFS needs to improve service quality, not simply reduce cost.
질문 # 62
How can procurement professionals select suppliers?
정답：
설명：
During the sourcing stage of the procurement cycle, the procurement professional needs to identify and select suppliers to fulfill the business needs. Supplier selection involves evaluating suppliers against predetermine criteria to assess their suitability in working with the buying organization. Suppliers can be evaluated according to Carter's 10Cs which are as follows: (1) Competency (2) capacity (3) consistency (4) control (5) cost (6) commitment (7) cash (8) Clean (9) culture (10) communication.
Procurement professionals can decide to evaluate and select suppliers based on the overall strategy and the business objectives. After that, it most suitable suppliers receive the documentation (Invitation to tender/ request for quotation).
* Refer to the question column for response
질문 # 63
What are five recognized types of modern slavery?
정답：
설명：
Modern slavery is against ethical and responsible sourcing. Modern slavery is one of the areas to understudy for procurement professionals to carry out ethical and responsible sourcing and this is recognized in five ways.
1. Human trafficking: The process of seeking, recruiting, transporting and exploiting individuals to work against their will. Often human trafficking includes violence, deception, and coercion.
2. Bonded labour (debt bondage): This is an individual's promise to provide service through ex-ploitation as repayment, or part thereof, of a dept or other obligation.
3. Forced labour: Work that people are forced to do with the treat of punishment if it is not carried out.
4. Children labour: The exploitative and illegal employment of children.
5. Domestic slavery: Individuals exploited through working in private households for little or no money in return for living accommodation.
* Refer to the question column for response
질문 # 64
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