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| Section | Weight | Objectives |
|---|---|---|
| Stakeholder management in defining needs | 15-20% | - Communicate and consult with stakeholders
|
| Use specifications in procurement and supply | 20-25% | - Types of specifications
|
| Market management in procurement and supply | 20-25% | - Evaluate market information sources
|
| Devise a business case for requirements sourced externally | 20-25% | - Estimate costs and prices for procurement activities
|
| Legal and regulatory considerations | 10-15% | - Legislation affecting requirements definition
|
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209. Frage
A hospital extensively spends on medical and implantable devices, medical, surgical and pharma-ceutical supplies, costs of supplies related to buildings and maintenance operations. Hospital's procurement manager suggests that the hospital has an opportunity to reduce operational costs by reducing variation of medical devices and pharmaceutical supplies. Which of the following best describe the procurement manager's suggestion?
Antwort: D
Begründung:
The hospital is buying too many product variants. This may cause bottleneck in its operation and increase operational expense. So procurement manager suggests to standardise products.
This is an example of the benefits of product standardisation:
Saint Thomas Health, a system of 5 hospitals, needed to find a way to reduce costs. They were purchasing different SKUs for products that were very similar, in this case, labels. They bought label rolls for $3 and a very similar product for $1. This oversight in product purchases impacted the overall costs of the system.
After partnering with a sole source vendor it was able to save $200,000 over a four year span. They accomplished this simply by standardizing label products. These savings, however, only account for the immediate savings from standardizing products. The saving that are not factored into that number are the savings from soft or hidden costs.
On a national scale, hospitals lose millions of dollars per year in hidden expenses due to missed opportunities for cost containment and incorporation. Some of the hidden elements that increase overall costs for a healthcare provider include the following:
- Redundant purchasing
- Freight
- Excessive purchase orders
- Multiple vendor relations
- Low efficiency
- Joint commission fines
- HAI
By implementing product standardization, hospitals and health systems reduce vendors, are able to reduce SKUs, purchase orders, inefficiency, freight costs, fines, and off-contract spending. All of this adds up to large savings for the organization as a whole.
96% of the respondents in the survey agree that consolidating suppliers and standardizing product purchases across organization would reduce hidden costs.
Reference:
- CIPS study guide page 157-159
- 3 Ways Product Standardization Can Help You Get a Bonus - ConnectID (pdchealthcare.com) LO 3, AC 3.4
210. Frage
A state school has a procurement requirement to buy new art materials for the next school semester and needs to forecast purchases against its restricted budget. What would be the key business requirement in this purchasing decision?
Antwort: D
Begründung:
Public sector organisations, such as state schools, operate under strict financial controls. When forecasting purchases against a limited budget, the primary concern is affordability and value for money.
According to the CIPS L4M2 Study Guide, Chapter 4 (Developing the business case), it states:
"A key objective of the business case is to demonstrate value for money, particularly in budget#constrained environments. This requires consideration of the total cost of goods or services, not just the initial purchase price." Evaluation of the options:
* Social impact may be relevant in wider public procurement decisions but is not the primary requirement in this scenario.
* Quality of materials is important but must be balanced within budget constraints.
* Total cost of goods is the key requirement, as the school must ensure expenditure remains within its restricted budget while meeting its needs.
* Timescales of delivery are relevant but secondary to financial planning in this context.
Therefore, the correct answer is C.
CIPS Reference:
CIPS L4M2 Defining Business Needs
Chapter 4: Business case development and value for money considerations
211. Frage
What criteria can be applied in the production of a business case?
Antwort: B
Begründung:
Detailed Explanation:A strong business case includes a clear assessment of costs, the expected benefits, and the viable options available. These criteria ensure a structured approach to decision-making and alignment with strategic goals. Reference: CIPS Level 4, Business Case Development.
212. Frage
A company has a lists of items that make up 15% of total spend. These items also do not largely impact on quality of final product. The supply continuity is secured. Which of the following will be the most appropriate managing approach to purchase these items?
Antwort: D
Begründung:
Those items make up small portion of spend and the supply risk is low. So it is tactical item according to Kraljic portfolio matrix. Procurement should bundle these items into larger contracts, simplify procurement process.
LO 2, AC 2.1
213. Frage
A company is analysing its existing product's components and aims at reducing costs without damaging customer value proposition. They want to check which components are critical and which are unnecessary. Which of the following should be adopted by the company?
Antwort: D
Begründung:
In marketing, a customer value proposition (CVP) consists of the sum total of benefits which a vendor promises a customer will receive in return for the customer's associated payment (or other value-transfer).
Value analysis is concerned with existing products. It involves a current product being analysed and evaluated by a team, to reduce costs, improve product function or both. Value Analysis exercises use a plan which step-by-step, methodically evaluates the product in a range of areas. These include costs, function, alternative components and design aspects such as ease of manufacture and assembly.
Value engineering is concerned with new products. It is applied during product development. The focus is on reducing costs, improving function or both, by way of teamwork-based product evalua-tion and analysis. This takes place before any capital is invested in tooling, plant or equipment.
In this scenario, the company's objective is cost reduction, then value analysis or value engineering is more likely to be applied. The products are existing, so value analysis is the best option.
LO 3, AC 3.4
214. Frage
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