We are reviewing the questions in preparation to the exam. There are just four components mentioned in the book and in the e-learning video (i.e. Make or Buy Decision, Contractual Relationship, Reimbursement Methods and Supplier Selection). What is the fifth one? Thank you.
How about Guidance on Ethics and Fairtrade?
The procurement process should be fair, and potentially you need to define whether there are any legal or moral ethics to be followed, such as the PM being a shareholder in the a suppliers company, that decisions are fair and equitable, that gifts and hospitality from suppliers are disclosed.
Hope that helps.
Good question, I am impressed with you level of prep.
A procurement strategy is a document written by the client early in the process to define the overall approach to the procurement process. I would add supplier selection criteria, i.e. the assessment criteria that will be used to evaluate tenders and the relative weighting between the different factors. Typical this can be expressed a scoring system with an defined split between quality and cost, for example 60/40 in favor of cost.
In the book they’ve also got contract admin so that would be ensuring, whoever the chosen supplier is, that both parties are compliant and discharging their responsibilities correctly and accordingly.PPR is also recommended so that lessons learned and best practice can be documented to highlight to the business, what went wrong and what was successful helping them improve and ensure they have corrective actions in place.