Procurement
National Occupational Standards
September 2014
Skills CFA
110 Linton House, 164 - 180 Union Street
London SE1 0LH
T: 0207 091 9620 E: info@skillscfa.org
www.skillscfa.org
No.
NOS Title
Page
CFAPSU001
Communicate and liaise effectively with suppliers and other stakeholders
1
CFAPSU002
Promote and implement effective negotiation processes with suppliers
and other stakeholders
Contribute to the preparation of a specification for the procurement of
goods, services or works
Contribute to the preparation of a contract for the procurement of
goods, services or works
Develop and award the contract/agreement for goods, services or works
6
CFAPSU003
CFAPSU004
CFAPSU005
CFAPSU006
11
17
22
28
CFAPSU007
Develop and disseminate the specification for the procurement of goods,
services or works
Evaluate potential suppliers
CFAPSU008
Identify and mitigate risks in the contracting process
38
CFAPSU009
Improve the effectiveness of the tendering and contracting process
43
CFAPSU010
48
CFAPSU011
Monitor and review the effectiveness of the tendering and contracting
process
Monitor contract delivery
53
CFAPSU012
Select supplier to deliver goods, services or works
58
CFAPSU013
Contract for major programmes and projects in procurement and supply
63
CFAPSU014
Develop and deliver an ethical strategy and plan for procurement and
supply to internal stakeholders
Develop and establish standards of ethical practice for procurement and
supply
Develop, implement and monitor plans for ethical employment and
working practices with suppliers
Develop, implement and monitor plans for the ethical sourcing of goods,
services or works by suppliers
Monitor, evaluate and review the implementation of the ethical
procurement strategy and plan by internal stakeholders
Capture and analyse data for expenditure and financial control in
procurement and supply
Develop and implement a plan for cost effective category management
expenditure
Monitor and administer organisational inventories for procurement and
supply
69
CFAPSU015
CFAPSU016
CFAPSU017
CFAPSU018
CFAPSU019
CFAPSU020
CFAPSU021
33
74
79
84
89
95
100
106
CFAPSU022
Plan and implement competitive pricing in procurement and supply
111
CFAPSU023
Apply required regulations and reporting protocols to the procurement
and contracting process
Identify, promote and monitor supplier compliance with relevant
legislation
Champion and promote the role of procurement and supply to
stakeholders
Apply quality standards to support relationship management in
procurement and supply
Conduct a supplier appraisal for the sustainable procurement of goods,
services or works
Develop and implement an organisational strategy and plan for the
sustainable sourcing of goods, services or works
Develop and implement a plan for the global sourcing of goods, services
or works
Develop and implement a plan for the outsourcing of work or services
116
CFAPSU024
CFAPSU025
CFAPSU026
CFAPSU027
CFAPSU028
CFAPSU029
CFAPSU030
CFAPSU031
CFAPSU032
CFAPSU033
CFAPSU034
Promote and deliver the organisational strategy and plan for the
sustainable sourcing of goods, services or works
Commission and implement projects to develop systems technology to
improve the efficiency of procurement and supply
Develop and promote the use of systems technology to improve the
efficiency of procurement and supply
Use technology systems for procurement and supply
121
126
131
136
141
146
151
156
161
166
171
CFAPSU001
Communicate and liaise effectively with suppliers and
other stakeholders
Overview
This standard is about the skills of communication involved with external and
internal stakeholders and why they are important to effective procurement and
supply.
CFAPSU001 Communicate and liaise effectively with suppliers and other stakeholders
1
CFAPSU001
Communicate and liaise effectively with suppliers and other stakeholders
Performance
criteria
You must be able to:
P1
identify the range of external stakeholders that can impact on the
procurement and supply process
P2
assess the expectations of different stakeholders
P3
identify the different approaches that may be used in interactions with
stakeholders including:
P4
P4.1
oral communication, face to face and telephone
P4.1
written communication including electronic communication
select and use appropriate communication approaches to build and
maintain effective relationships with stakeholders
P5
develop and maintain and improve effective relationships with internal
and external stakeholders to promote effective procurement and supply
P6
advise senior management on issues arising from external
communications that could affect the supply chain
P7
use appropriate communication techniques to attract and retain world
class suppliers
CFAPSU001 Communicate and liaise effectively with suppliers and other stakeholders
2
CFAPSU001
Communicate and liaise effectively with suppliers and other stakeholders
Knowledge and
understanding
You need to know and
understand:
K1
the range of external stakeholders that can impact on the procurement
and supply process including:
K2
K1.1
clients/customers
K1.2
suppliers
K1.3
consultants
the kinds of expectations that the various stakeholders can have of
procurement and supply
K3
the kinds of approaches that may be used in interactions with
stakeholders including:
K4
K3.1
counselling
K3.2
consulting
the forms of communication that are needed for interaction with
stakeholders including:
K4.1
oral, face to face
K4.2
telephone
K4.3
presentations
K4.4
electronic, such as e mail
K4.5
written such as letters, memoranda, reports, invitations to
tender
K5
the kinds of communication approaches that can be used in interactions
with stakeholders including:
K6
K4.1
influencing
K4.2
interventionist
why it is important to develop, maintain and improve effective
relationships with internal and external stakeholders to promote effective
procurement and supply
K7
the kinds of issues that can arise from external communications and why
it is important to advise senior management about them
K8
the importance of attracting and retaining world class suppliers to
develop a competitive advantage through superior supplier relationships
CFAPSU001 Communicate and liaise effectively with suppliers and other stakeholders
3
CFAPSU001
Communicate and liaise effectively with suppliers and other stakeholders
External Links
CIPS Global Standard:
• Segment 1.8: Building productive relationships for effective
procurement and supply
• Segment 6.3: Effective communication in procurement and supply
CFAPSU001 Communicate and liaise effectively with suppliers and other stakeholders
4
CFAPSU001
Communicate and liaise effectively with suppliers and other stakeholders
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU001
Relevant
occupations
Procurement officers; buyers; managers; senior officials; contract manager
Suite
Procurement and supply
Key words
Suppliers; stakeholders; liaise; communicate; clients; customers
CFAPSU001 Communicate and liaise effectively with suppliers and other stakeholders
5
CFAPSU002
Promote and implement effective negotiation processes
with suppliers and other stakeholders
Overview
This standard is about planning and conducting negotiations with suppliers and
other stakeholders to achieve effective procurement and supply. It includes the
different stages of the negotiation process, the approaches and behaviours that
can be used to promote effective negotiations and the importance of
recognising and mitigating any conflict or challenges that can arise during the
negotiation.
CFAPSU009 Promote and implement effective negotiation processes with suppliers and other stakeholders
6
CFAPSU002
Promote and implement effective negotiation processes with suppliers and
other stakeholders
Performance
criteria
You must be able to:
P1
develop a staged plan for the procurement negotiation process
P2
establish the appropriate environment for the negotiation process
P3
select and use appropriate negotiation approach(es) and behaviours in
commercial negotiations
P4
conduct the negotiation, promoting the organisation’s objectives to
achieve effective procurement and supply
P5
take steps to mitigate any conflict or challenges with suppliers and other
stakeholders during the negotiation process
CFAPSU002 promote and implement effective negotiation processes with suppliers and other stakeholders
7
CFAPSU002
Promote and implement effective negotiation processes with suppliers and
other stakeholders
Knowledge and
understanding
You need to know and
understand:
K1
the stages of a commercial communication plan including:
K1.1
planning and preparation
K1.2
opening
K1.3
testing
K1.4
proposing
K1.5
bargaining
K1.6
agreeing
K2
the kind of environment that will promote effective negotiations
K3
the kinds of approaches that can be used in commercial negotiations
including:
K4
K5
K3.1
collaborative (win/win)
K3.2
distributive (win/lose)
K3.3
pragmatic
K3.4
principled styles of negotiation
behavioural aspects of negotiations including:
K4.1
push/pull
K4.2
effective listening
K4.3
persuading
K4.4
influencing
why it is important to promote the organisation’s objectives during
negotiation to achieve effective procurement and supply
K6
the kinds of conflicts and challenges that can arise during negotiations
and how to mitigate them
CFAPSU002 promote and implement effective negotiation processes with suppliers and other stakeholders
8
CFAPSU002
Promote and implement effective negotiation processes with suppliers and
other stakeholders
Additional Information
External Links
CIPS Global Standard:
• Segment 1.8: Building productive relationships for effective
procurement and supply
• Segment 6.6: Effective negotiation in procurement and supply
CFAPSU002 promote and implement effective negotiation processes with suppliers and other stakeholders
9
CFAPSU002
Promote and implement effective negotiation processes with suppliers and
other stakeholders
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU002
Relevant
occupations
Procurement officer; buyer; contract manager; manager; senior official
Suite
Procurement and supply
Key words
Negotiation; communication plan; collaborative; distributive; pragmatic;
principled
CFAPSU002 promote and implement effective negotiation processes with suppliers and other stakeholders
10
CFAPSU003
Contribute to the preparation of a specification for the
procurement of goods, services or works
Overview
This standard is about contributing to the development of a specification for the
procurement of goods, services or works. It covers an understanding of the
documentation that should be used in the procurement process and the kinds
of risks that can arise including those resulting from inadequate specifications.
The standard also includes ways of regulating specifications for the
procurement of goods, services or works.
CFAPSU003 Contribute to the development of a specification for the procurement of goods services or works
11
CFAPSU003
Contribute to the preparation of a specification for the procurement of goods,
services or works
Performance
criteria
You must be able to:
P1
identify the types of specifications that can be used in the procurement of
goods, services or works
P2
research appropriate information to inform the development of the
specification
P3
identify or develop appropriate documentation for the specification
P4
complete all relevant sections of the documentation for the specification
P5
identify any risks that may arise from inadequate specifications for
goods, services or works and take steps to mitigate them
P6
use appropriate techniques to regulate specifications for goods, services
or works
P7
ensure the appropriate inclusion of social and environmental criteria in
the specification of goods, services or works
P8
monitor the specifications for goods, services or works developed by
colleagues and other internal stakeholders to ensure they comply with
good practice and organisational quality criteria
CFAPSU003 Contribute to the development of a specification for the procurement of goods services or works
12
CFAPSU003
Contribute to the preparation of a specification for the procurement of goods,
services or works
Knowledge and
understanding
You need to know and
understand:
K1
the types of specification that can be used in the procurement of goods,
services or works including:
K2
K1.1
drawings
K1.2
samples
K1.3
branded
K1.4
technical
K1.5
conformance
K1.6
output or outcome based
information that should be used to inform the specification including:
K2.1
organisational requirements
K2.2
industry standards and/or codes of practice
K2.3
relevant supply market information including approved
qualifications and/or licences
K2.4
K3
benchmark information from comparable organisations
what should be included in the specification documentation including:
K3.1
scope
K3.2
definitions
K3.3
descriptions of requirements
K3.4
testing and acceptance
K3.5
change control mechanisms
K4
organisational procedures for completing specification documentation
K5
the kind of risks that can result from inadequate specifications including
those arising from under or over specifying requirements
K6
K7
techniques for regulating specifications including:
K6.1
standardisation
K6.2
value analysis
K6.3
value engineering
why it is important to include social and environmental criteria in the
specification
K8
why it is important to monitor specifications developed by colleagues and
CFAPSU003 Contribute to the development of a specification for the procurement of goods services or works
13
CFAPSU003
Contribute to the preparation of a specification for the procurement of goods,
services or works
other internal stakeholders and how to do this
CFAPSU003 Contribute to the development of a specification for the procurement of goods services or works
14
CFAPSU003
Contribute to the preparation of a specification for the procurement of goods,
services or works
Additional Information
External Links
CIPS Global Standard:
• Segment 5.3: Specifying goods and services
CFAPSU003 Contribute to the development of a specification for the procurement of goods services or works
15
CFAPSU003
Contribute to the preparation of a specification for the procurement of goods,
services or works
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU003
Relevant
occupations
Contract manager; administration and secretarial occupations
Suite
Procurement and supply
Key words
Procurement; specification; benchmark; market information
CFAPSU003 Contribute to the development of a specification for the procurement of goods services or works
16
CFAPSU004
Contribute to the preparation of a contract for the
procurement of goods, services or works
Overview
This standard is about understanding the different types of contracts,
frameworks, agreements and documentation that should be used in the
purchase of goods, services or works and the different stages in procurement.
It also covers contributing to the development of contracts, frameworks and
agreements, reviewing draft contracts, frameworks and agreements for
completeness and accuracy and responding to queries about the contracts,
frameworks and agreements from colleagues and/or suppliers.
CFAPSU004 Contribute to the preparation of a contract for the procurement of goods, services or works
17
CFAPSU004
Contribute to the preparation of a contract for the procurement of goods,
services or works
Performance
criteria
You must be able to:
P1
research the main types of contract, frameworks and agreements used in
the procurement of goods, services or works
P2
recommend the appropriate contract, framework or agreement for the
required goods, services or works
P3
identify the different documentation that comprises a contract for the
procurement of goods, services or works
P4
identify the different stages involved in setting up a contract, framework
or agreement for the procurement of goods, services or works
P5
contribute to the preparation of the main types of contract, framework
and agreement used by the organisation
P6
review draft contracts, frameworks and agreements to ensure that all
required details are complete and accurate
P7
provide answers to colleagues on any queries regarding the contract,
framework or agreement and its documentation
P8
follow organisational procedures for responding to queries from suppliers
on the contract, framework or agreement and its documentation
CFAPSU004 Contribute to the preparation of a contract for the procurement of goods, services or works
18
CFAPSU004
Contribute to the preparation of a contract for the procurement of goods,
services or works
Knowledge and
understanding
You need to know and
understand:
K1
K2
the main types of contract, framework and agreement including:
K1.1
the use of spot purchases
K1.2
term contracts
K1.3
framework agreements
K1.4
blanket orders/panel agreements
K1.5
call offs
the different types of document that comprise a contract for the
procurement of goods, services or works including:
K2.1
the specification
K2.2
key performance indicators (KPIs)
K2.3
contract terms
K2.4
the pricing schedule
K2.5
other schedules including health and safety specifications, use
of sub-contractors, non-disclosure/confidentiality agreements
K3
the different stages involved in forming a contract, framework or
agreement including:
K3.1
requests for quotations/information/tender
enquiries/expressions of interest
K3.2
evaluation of pre-qualified questionnaires
K3.3
evaluation of quotations/expressions of interest/tenders
received
K4
organisational procedures for preparing
contracts/frameworks/agreements for goods, services or works and how
to contribute to the preparation process
K5
why it is important to review draft contracts/frameworks/agreements to
ensure accuracy and that all details are complete
K6
what kind of queries about the contract/framework/agreement and its
documentation may be raised by colleagues and how to respond
K7
organisational procedures for responding to queries from suppliers and
why it is important to follow them
CFAPSU004 Contribute to the preparation of a contract for the procurement of goods, services or works
19
CFAPSU004
Contribute to the preparation of a contract for the procurement of goods,
services or works
Additional Information
External Links
CIPS Global Standard:
• Segment 5.1: Contract administration
CFAPSU004 Contribute to the preparation of a contract for the procurement of goods, services or works
20
CFAPSU004
Contribute to the preparation of a contract for the procurement of goods,
services or works
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU004
Relevant
occupations
Contract manager; administration and secretarial occupations
Suite
Procurement and supply
Key words
Contract; framework; agreement; procurement; supplier
CFAPSU004 Contribute to the preparation of a contract for the procurement of goods, services or works
21
CFAPSU005
Develop and award the contract/agreement for goods,
services or works
Overview
This standard is about the development of the contract or agreement for goods,
services or works. This includes agreeing the contract details with internal
stakeholders and agreeing the finalised contract/agreement with the selected
supplier.
CFAPSU005 Develop and award the contract/agreement for goods, services or works
22
CFAPSU005
Develop and award the contract/agreement for goods, services or works
Performance
criteria
You must be able to:
P1
identify and select the appropriate contract or agreement for the
procurement of goods, services or works
P2
agree the contract/agreement specification with internal stakeholders
P3
identify and select appropriate terms and conditions including
commercial clauses, for the supply of goods, services or works
P4
ensure the correct completion of documentation used in commercial
agreements
P5
review the draft contract/agreement to ensure that it articulates the
requirement for required quality and value for money
P6
check the draft contract to ensure that all legal and ethical requirements
are complied with and recommend amendments as required
P7
agree the draft contract with internal stakeholders, following
organisational procedures
P8
negotiate and agree with the chosen supplier(s), the final terms and
conditions of the contract
P9
award the contract to the approved supplier
CFAPSU005 Develop and award the contract/agreement for goods, services or works
23
CFAPSU005
Develop and award the contract/agreement for goods, services or works
Knowledge and
understanding
You need to know and
understand:
K1
K2
the main types of contracts and agreements including:
K1.1
the use of spot purchase
K1.2
term contracts
K1.3
framework agreements/blanket orders/panel agreements
K1.4
call offs
how to select the appropriate contract or agreement for the procurement
of goods, services or works
K3
terms and conditions for commercial agreements including:
K3.1
indemnities and liabilities
K3.2
insurances
K3.3
guarantees
K3.4
liquidated damages
K3.5
payment
K3.6
delivery and completion
K3.7
the specification
K3.8
Key Performance Indicators (KPIs)
K3.9
contract terms
K3.10
pricing schedule
K3.11
other schedules e.g. health and safety, use of sub-contractors
K3.12
non-disclosure/confidentiality agreements
K4
why it is important to complete the relevant documentation accurately
K5
why it is important to ensure that the contract/agreement articulates the
requirement for quality and value for money
K6
why it is important to comply with legal and ethical requirements for
contracts/agreements
K7
legal issues and legislation relating to the creation of commercial
agreements including:
K8
K7.1
offers, counter offers, acceptance
K7.2
legislation relating to quality, delivery and payment
K7.3
passing of property
K7.4
compensation
why it is important to agree the draft contract/agreement with internal
CFAPSU005 Develop and award the contract/agreement for goods, services or works
24
CFAPSU005
Develop and award the contract/agreement for goods, services or works
stakeholders and organisational procedures for doing this
K9
why and how to agree the contract/agreement terms with the approved
supplier
K10 organisational procedures for awarding contracts/ agreements
CFAPSU005 Develop and award the contract/agreement for goods, services or works
25
CFAPSU005
Develop and award the contract/agreement for goods, services or works
External Links
CIPS Global Standard:
• Segment 5.2: Developing contracts with suppliers
CFAPSU005 Develop and award the contract/agreement for goods, services or works
26
CFAPSU005
Develop and award the contract/agreement for goods, services or works
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU005
Relevant
occupations
Contract manager; manager; buyer; procurement officer
Suite
Procurement and supply
Key words
Contract; agreement; approved supplier
CFAPSU005 Develop and award the contract/agreement for goods, services or works
27
CFAPSU006
Develop and disseminate the specification for the
procurement of goods, services or works
Overview
This standard is about developing and agreeing the specification for the
procurement of goods, services or works. It covers the sections of a
specification document and what needs to be included in the specification. It
also includes an assessment of risks that can arise from an inadequate
specification, how to mitigate risks and the dissemination of the specification to
potential suppliers.
CFAPSU006 Develop and disseminate the specification for the procurement of goods, services or works
28
CFAPSU006
Develop and disseminate the specification for the procurement of goods,
services or works
Performance
criteria
You must be able to:
P1
consult and agree with colleagues and relevant decision makers the
requirement to procure goods, services or works
P2
research information to inform the development of the specification
P3
develop and/or complete all required documentation for the specification
P4
identify any risks that could result from inadequate specifications and
take steps to mitigate them
P5
monitor specifications developed by colleagues to ensure they comply
with organisational procedures and effective practice in terms of
specifications for the procurement of goods, services or works
P6
identify opportunities to regulate the specifications and provide guidance
on the regulation process to colleagues
P7
agree the final specification with colleagues and decision makers if
appropriate
P8
disseminate the agreed specification for the procurement of goods,
services or works to potential suppliers
CFAPSU006 Develop and disseminate the specification for the procurement of goods, services or works
29
CFAPSU006
Develop and disseminate the specification for the procurement of goods,
services or works
Knowledge and
understanding
You need to know and
understand:
K1
why it is important to consult and agree with colleagues and relevant
decision makers the requirement to procure goods, services or works
K2
information that can be used to inform the development of the
specification including ethical, social and sustainability criteria
K3
K4
ways of researching information to inform the specification including
K3.1
the internet
K3.2
lists and directories of suppliers
K3.3
appropriate quality standards
the sections and documents that should be included in the specification
for the procurement of goods, services or works including:
K5
K4.1
scope
K4.2
definitions
K4.3
descriptions of requirements
K4.4
testing and acceptance
K4.5
change control mechanisms
K4.6
remedies
the kind of risks that can occur from inadequate specifications for the
procurement of goods, services or works and how to mitigate them
K6
why it is important to monitor specifications developed by colleagues
K7
ways to regulate tender specifications including:
K8
K7.1
standardisation
K7.2
value analysis
K7.3
value engineering
why it is important to agree the final specification with colleagues and
appropriate decision makers
K9
organisational procedures for disseminating specifications to suppliers
and why it is important to follow them
CFAPSU006 Develop and disseminate the specification for the procurement of goods, services or works
30
CFAPSU006
Develop and disseminate the specification for the procurement of goods,
services or works
Additional Information
External Links
CIPS Global Standard:
• Segment 5.3: Specifying goods and services
CFAPSU006 Develop and disseminate the specification for the procurement of goods, services or works
31
CFAPSU006
Develop and disseminate the specification for the procurement of goods,
services or works
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU006
Relevant
occupations
Procurement officer; buyer; manager
Suite
Procurement and supply
Key words
Specification; supplier; risks; procurement
CFAPSU006 Develop and disseminate the specification for the procurement of goods, services or works
32
CFAPSU007
Evaluate potential suppliers
Overview
This standard is about researching information on potential suppliers and the
market in which they operate, to inform the supplier appraisal process. It
includes carrying out:
• a product and delivery assessment
• an information assessment
• a capacity assessment
It also covers making recommendations to senior management on the most
appropriate supplier to deliver the required goods or services.
CFAPSU007 Evaluate potential suppliers
33
CFAPSU007
Evaluate potential suppliers
Performance
criteria
You must be able to:
P1
research information on potential suppliers and the market in which they
operate, to inform the supplier appraisal process
P2
assess the use of agreed pre-qualification criteria or processes for
suppliers’ appraisal
P3
review the capability and capacity of pre-qualified suppliers to deliver
required goods or services
P4
identify any risks in the supply chain that could affect the delivery of
goods, services or works
P5
follow organisational procedures for recommending appropriate
supplier(s) to decision makers
CFAPSU007 Evaluate potential suppliers
34
CFAPSU007
Evaluate potential suppliers
Knowledge and
understanding
You need to know and
understand:
K1
sources of information on suppliers and why it is important to research
this including:
K2
K1.1
financial reports
K1.2
credit ratings
K1.3
other appropriate publications and sources
why it is important to research the markets in which potential suppliers
are operating and how to do this
K3
why it is important to assess the use of any agreed pre-qualification
criteria or processes before carrying out supplier appraisal
K4
why it is important to review the capability and capacity of pre-qualified
suppliers
K5
the kind of risks that could affect the delivery of goods, services or works
and why it is important to assess them
K6
the importance of recommending to decision makers the most
appropriate supplier(s) to deliver the required goods, services or works
K7
organisational procedures for making recommendations to decision
makers
CFAPSU007 Evaluate potential suppliers
35
CFAPSU007
Evaluate potential suppliers
External Links
CIPS Global Standard:
• Segment 6.5: Conducting supplier appraisal
CFAPSU007 Evaluate potential suppliers
36
CFAPSU007
Evaluate potential suppliers
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU007
Relevant
occupations
Procurement officer; buyer; manager
Suite
Procurement and supply
Key words
Supplier; pre-qualification criteria; evaluation; risks; supplier appraisal
CFAPSU007 Evaluate potential suppliers
37
CFAPSU008
Identify and mitigate risks in the contracting process
Overview
This standard is about identifying the potential risks in developing the contract
or agreement and managing its delivery. It includes risks which may arise from
internal organisational imperatives as well as external forces that can impact on
the contract/agreement such as changing market forces and changes in
economic conditions.
It also considers steps to take where there is conflict with suppliers including
alternative dispute resolution (ADR).
CFAPSU008 Identify and mitigate risks in the contracting process
38
CFAPSU008
Identify and mitigate risks in the contracting process
Performance
criteria
You must be able to:
P1
identify and agree with internal stakeholders the legal implications that
relate to the formation of contracts or agreements
P2
identify and agree with internal stakeholders the commercial implications
that relate to the formation of contracts or agreements
P3
ensure that the express terms of the contract/agreement are clear,
precise and unambiguous
P4
review supplier contracts/agreements to identify potential risk of default
or breach of contract
P5
recommend appropriate actions to mitigate identified risks in the
contract/agreement
P6
promote positive relationships and resolve conflict with suppliers during
the contracting process
CFAPSU008 Identify and mitigate risks in the contracting process
39
CFAPSU008
Identify and mitigate risks in the contracting process
Knowledge and
understanding
You need to know and
understand:
K1
the elements of a legally binding contract:
K1.1
contract terms that regulate commercial agreements and
relationships
K1.2
oral statements and representations
K1.3
model form contracts
K1.4
the use of standard contracts versus negotiated/bespoke
contracts
K1.5
the accepted recourses for non-performance in contract
K2
the commercial implications that relate to the formation of contracts
K3
express contract terms compared with implied contract terms
K4
the main types of contractual risks:
K4.1
organisational imperatives
K4.2
external market forces
K4.3
ethical and sustainable sourcing
K4.4
economic/financial forces
K4.5
national, European and international legislation
K5
the main remedies for default or breach of contract
K6
the main approaches to conflict resolution in commercial contracts:
K6.1
negotiated settlements
K6.2
alternative dispute resolution (ADR)
K6.3
adjudication, arbitration and litigation
K6.4
contractual provision for dispute resolution
CFAPSU008 Identify and mitigate risks in the contracting process
40
CFAPSU008
Identify and mitigate risks in the contracting process
Additional Information
External Links
CIPS Global Standard:
• Segment 5.5: Managing contractual risks
CFAPSU008 Identify and mitigate risks in the contracting process
41
CFAPSU008
Identify and mitigate risks in the contracting process
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU008
Relevant
occupations
Procurement officer; buyer; contract manager; manager
Suite
Procurement and supply
Key words
Risks; contracting; conflict resolution; negotiated settlement; ethical and
sustainable sourcing
CFAPSU008 Identify and mitigate risks in the contracting process
42
CFAPSU009
Improve the effectiveness of the tendering and
contracting process
Overview
This standard is about working with internal and external stakeholders including
suppliers, to improve the tendering and contracting process. It includes
contributing to the review and development of Model Form contracts,
evaluating effective practice in other organisations and benchmarking own
organisation’s practices against others.
It also includes promoting effective practice in supplier relationship
management and supplier development.
CFAPSU009 Improve the effectiveness of the tendering and contracting process
43
CFAPSU009
Improve the effectiveness of the tendering and contracting process
Performance
criteria
You must be able to:
P1
review feedback from internal and external stakeholders on current
organisational processes for tendering and contracting
P2
gather evidence from a range of sources on effective practice in
tendering and contracting
P3
contribute to internal and external activities that guide the development
of Model Form contracts and industry practice
P4
use benchmarking techniques to review and improve organisational
practices and processes for tendering and contracting
P5
identify and mitigate risks in the tendering and contracting process
P6
promote the use of effective supplier relationships and supplier
development in contract management
P7
promote effective practice in the management of contracts and supplier
performance
P8
disseminate guidance on good practice for effective tendering and
contracting to the organisation’s stakeholders
CFAPSU009 Improve the effectiveness of the tendering and contracting process
44
CFAPSU009
Improve the effectiveness of the tendering and contracting process
Knowledge and
understanding
You need to know and
understand:
K1
how to gather feedback from internal and external stakeholders on the
tendering and contracting process and why this is important
K2
sources of effective practice including seminars and discussion forums
K3
activities that guide the development of Model Form contracts and how
to contribute to them
K4
why it is important to benchmark organisational processes and practices
against other organisations’ and why this is important to improvement
K5
what to consider in terms of risk assessment including the risk appetite of
the organisation, the impact of risk on the reputation of the organisation,
and why it is important to identify and mitigate risks in the tendering and
contracting process
K6
the main techniques in supplier relationship management including:
K6.1
supplier selection
K6.2
team selection and allocation of responsibility for supplier
improvement
K7
K6.3
supplier performance measurement
K6.4
creating targets and assessing performance
the principles, tools and processes for effective practice in the
management of contracts and supplier performance including key
performance indicators (KPIs) and service level agreements
K8
how to disseminate guidance on good practice for effective tendering
and contracting to the organisation’s stakeholders and why it is important
to do this
CFAPSU009 Improve the effectiveness of the tendering and contracting process
45
CFAPSU009
Improve the effectiveness of the tendering and contracting process
Additional Information
External Links
CIPS Global Standard:
• Segment 5.7: Leading improvements in contracting practice
CFAPSU009 Improve the effectiveness of the tendering and contracting process
46
CFAPSU009
Improve the effectiveness of the tendering and contracting process
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU009
Relevant
occupations
Procurement officer; contract manager; administration and secretarial
occupations
Suite
Procurement and supply
Key words
Contracting; tendering; benchmarking; risk assessment; relationship
management
CFAPSU009 Improve the effectiveness of the tendering and contracting process
47
CFAPSU010
Monitor and review the effectiveness of the tendering
and contracting process
Overview
This standard is about monitoring and reviewing the effectiveness of the
contracting process. It is complementary to NOS: Improve the effectiveness of
the tendering and contracting process.
It is not about monitoring the contract delivery which is covered in NOS:
Monitor the progress of the contract delivery
The standard includes consideration of feedback from colleagues within the
organisation as well as feedback from external suppliers who have been
involved in the tendering and contracting process. Outcomes of the review can
be used to inform and improve future tendering and contracting processes.
CFAPSU010 Monitor and review the effectiveness of the contracting process
48
CAFPSU010
Monitor and review the effectiveness of the tendering and contracting
process
Performance
criteria
You must be able to:
P1
identify and agree the key organisational objectives for the tendering and
contracting process including quality and value for money
P2
identify national, European and international legal requirements that may
impact on the tendering and contracting process
P3
develop and agree with colleagues and potential suppliers a plan for
reviewing the effectiveness of and ethical practice in the tendering
process
P4
develop and agree with colleagues and the contract supplier(s), a plan
for the monitoring and review of the contracting process to include:
P4.1
cost and value for money of the process
P4.2
risk assessment including meeting legal and ethical
requirements in the process
P4.3
feedback from colleagues
P4.4
feedback from the contract supplier(s)
P5
promote and manage the contracting process review
P6
provide feedback on the contracting process to senior management to
inform and improve future contracts
CFAPSU010 Monitor and review the effectiveness of the contracting process
49
CAFPSU010
Monitor and review the effectiveness of the tendering and contracting
process
Knowledge and
understanding
You need to know and
understand:
K1
the key organisational objectives for the tendering and contracting
process
K2
national, European and international legislation that may impact on the
tendering and contracting process and why it is important to comply with
these
K3
how to develop a plan for the monitoring and reviewing the effectiveness
of the tendering process to include:
K3.1
organisational requirements and expectations
K3.2
how successful the tendering process has been in delivering
required outcomes
K3.3
supplier feedback
K4
how to promote and manage the tender review process
K5
why it is important to include supplier feedback in the review process
K6
why it is important to provide feedback on the results of the review to
senior management
CFAPSU010 Monitor and review the effectiveness of the contracting process
50
CAFPSU010
Monitor and review the effectiveness of the tendering and contracting
process
Additional Information
External Links
CIPS Global Standard:
• Segment 5.7: Leading improvements in contracting practice
CFAPSU010 Monitor and review the effectiveness of the contracting process
51
CAFPSU010
Monitor and review the effectiveness of the tendering and contracting
process
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU010
Relevant
occupations
Procurement officer; contract manager; administration and secretarial
occupations
Suite
Procurement and supply
Key words
Tendering; contracting; monitor; review
CFAPSU010 Monitor and review the effectiveness of the contracting process
52
CFAPSU011
Monitor contract delivery
Overview
This standard is about monitoring the performance of suppliers in the delivery
of contracts for goods, services or works. It also includes the identification of
potential risks in contract delivery and how to mitigate them. The development
of SMART targets for suppliers, how to monitor their compliance and how to
develop an improvement plan are also included in the standard.
CFAPSU011 Monitor contract delivery
53
CFAPSU011
Monitor contract delivery
Performance
criteria
You must be able to:
P1
allocate and agree responsibilities for the effective management of
contracts with stakeholders
P2
forecast and plan requirements with internal stakeholders and suppliers
to match delivery and supply of goods, services or works with actual
demand
P3
identify potential risks in the performance of contracts that can impact on
the delivery of purchased goods, services or works
P4
liaise and agree with stakeholders and suppliers plans to mitigate
identified risks
P5
develop and agree SMART (specific, measurable, achievable, relevant
and timely) targets for assessing the performance of suppliers
P6
monitor the supply/delivery of goods, services or works to ensure that
agreed targets and Key Performance Indicators (KPIs) have been met
P7
develop and agree with suppliers an improvement plan to improve
performance where it falls below agreed standards
P8
monitor the implementation of the improvement plan by suppliers
CFAPSU011 Monitor contract delivery
54
CFAPSU011
Monitor contract delivery
Knowledge and
understanding
You need to know and
understand:
K1
who should be responsible for the effective management of contracts for
purchased goods and services
K2
the concept of demand management for contracts and how to forecast
and plan requirements with stakeholders and suppliers for the supply of
goods, services or works to match demand
K3
the main types of risks in the performance of contracts including:
K3.1
internal risks
K3.2
market risks
K3.3
economic risks
K3.4
legal risks
K3.5
ethical sourcing
K3.6
lapses in performance
K4
ways of mitigating risks in the performance of contracts
K5
how to develop SMART targets for assessing the performance of
suppliers and why it is important to develop and agree them
K6
how to monitor the supply of goods, services or works against agreed
targets
K7
how to develop an improvement plan to improve supplier performance
K8
why it is important to monitor the implementation of the improvement
plan by suppliers
CFAPSU011 Monitor contract delivery
55
CFAPSU011
Monitor contract delivery
Additional Information
External Links
CIPS Global Standard:
• Segment 7.2: Effective expediting in procurement and supply
• Segment 7.6: Effective contract management in procurement and
supply
• Segment 8.3: Measuring the performance of contracts
CFAPSU011 Monitor contract delivery
56
CFAPSU011
Monitor contract delivery
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU011
Relevant
occupations
Contract manager; administrative occupations
Suite
Procurement and supply
Key words
Contract; contract management; demand management; risks; supplier
performance
CFAPSU011 Monitor contract delivery
57
CFAPSU012
Select supplier to deliver goods, services or works
Overview
This standard is about developing and agreeing criteria for selecting an
appropriate supplier for required goods, services or works. It also covers the
supplier selection process
CFAPSU012 Select supplier to deliver goods, services or works
58
CFAPSU012
Select supplier to deliver goods, services or works
Performance
criteria
You must be able to:
P1
identify and agree with stakeholders, criteria for selecting suppliers
P2
analyse the capacity and capability of short-listed and/or pre-qualified
suppliers to deliver the required goods, services or works
P3
identify any risks in the supply chain that could affect the delivery of
goods, services or works and take steps to mitigate them
P4
select and agree with senior management and other stakeholders, an
appropriate supplier
CFAPSU012 Select supplier to deliver goods, services or works
59
CFAPSU012
Select supplier to deliver goods, services or works
Knowledge and
understanding
You need to know and
understand:
K1
how to develop and agree criteria for selecting suppliers and why this is
important
K2
why it is important to analyse the capacity and capability of short-listed
and/or pre-qualified suppliers to deliver the required goods, services or
works and how to do this
K3
the kinds of risks in the supply chain that could affect the delivery of
goods, services or works and how to mitigate them
K4
organisational procedures for agreeing the most appropriate supplier
CFAPSU012 Select supplier to deliver goods, services or works
60
CFAPSU012
Select supplier to deliver goods, services or works
External Links
CIPS Global Standard:
• Segment 6.5: Conducting a supplier appraisal
CFAPSU012 Select supplier to deliver goods, services or works
61
CFAPSU012
Select supplier to deliver goods, services or works
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU012
Relevant
occupations
Procurement officer, buyer, manager
Suite
Procurement and supply
Key words
Supplier; selection criteria, short list; supply chain
CFAPSU012 Select supplier to deliver goods, services or works
62
CFAPSU013
Contract for major programmes and projects in
procurement and supply
Overview
This standard is about contracting for major programmes and projects in
procurement and supply. It includes a consideration of how such projects can
impact on the organisation’s supply chains, the kinds of contracting options that
are available as well as the different contract forms that are available for such
contracts.
The standard also covers pricing mechanisms, the importance of effective
project management and the importance of establishing and maintaining
effective relationships with contracting partners. The identification and sharing
of risks with suppliers in major programmes and projects is also included.
CFAPSU013 Contract for major programmes and contracts in procurement and supply
63
CFAPSU013
Contract for major programmes and projects in procurement and supply
Performance
criteria
You must be able to:
P1
assess the impact of undertaking major programmes and projects on the
organisation’s supply chains
P2
identify the range of contracting options for major programmes and
projects
P3
select a contracting option appropriate for the required programme or
project
P4
select an appropriate contract form for the programme or project that is
to be undertaken
P5
advise stakeholders on the core clauses that should be included in the
contract
P6
specify optional clauses and schedules included in the contract forms as
appropriate for the programme or project to be undertaken
P7
assess and recommend the most appropriate pricing mechanism for the
programme or project to be undertaken
P8
facilitate the formation and maintenance of effective contractual
relationships with supply chains
P9
monitor contract performance to identify potential risks at an early stage
P10 support colleagues to manage programmes and projects to avoid
escalating costs and/or delays
P11 develop and implement appropriate mechanisms to manage and share
risks with suppliers to minimise disruption and costs
CFAPSU013 Contract for major programmes and contracts in procurement and supply
64
CFAPSU013
Contract for major programmes and projects in procurement and supply
Knowledge and
understanding
You need to know and
understand:
K1
the impact that undertaking major programmes and projects may have
on the supply chain
K2
the range of contracting options for major programmes and projects
including:
K3
K2.1
client co-ordinated approaches
K2.2
engineering procurement and construction (EPC)
K2.3
design and build
K2.4
management contracting and construction management
K2.5
design/build/finance/operate and ownership forms of contracting
how to evaluate the situation to inform the selection of the appropriate
contracting option
K4
the different types of contract forms available and when they should be
used including:
K4.1
the New Engineering Contract (NEC) core and optional clauses
K4.2
Institution of Mechanical Engineers (IMechE) contract forms
K4.3
Joint Contracts Tribunal (JCT) contract forms
K4.4
International Federation of Consulting Engineers (FIDIC)
contract forms
K4.5
K5
CIPS model forms of contract
the core clauses that are included in contract forms for major
programmes and contracts
K6
the use of optional clauses and schedules included in contract forms for
major programmes and projects
K7
pricing mechanisms for major programmes and projects and how to
assess them including:
K8
K7.1
fixed lump sum
K7.2
activity schedule
K7.3
bills of quantity
K7.4
target costing methods
K7.5
risk and reward pricing mechanisms
how to facilitate the formation and maintenance of effective contractual
relationships with supply chains including the use of project partnership
CFAPSU013 Contract for major programmes and contracts in procurement and supply
65
CFAPSU013
Contract for major programmes and projects in procurement and supply
and strategic partnering relationships, and why this is important in
programme and major project management
K9
the use of early warning notices and risk reduction meetings in major
programmes and project management
K10 the importance of effective project management in the avoidance of
escalating costs and delays in major programmes and projects
K11 mechanisms for managing risks with suppliers in programmes and
projects and why this is important
CFAPSU013 Contract for major programmes and contracts in procurement and supply
66
CFAPSU013
Contract for major programmes and projects in procurement and supply
Additional Information
External Links
CIPS Global Standard:
• Segment 5.6: Contracting for major programmes and projects
CFAPSU013 Contract for major programmes and contracts in procurement and supply
67
CFAPSU013
Contract for major programmes and projects in procurement and supply
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU013
Relevant
occupations
Procurement officer; contract manager; manager; senior official
Suite
Procurement and supply
Key words
Contract; programme; project; supply chain; risk management;
CFAPSU013 Contract for major programmes and contracts in procurement and supply
68
CFAPSU014
Develop and deliver an ethical strategy and plan for
procurement and supply to internal stakeholders
Overview
This standard is about developing and delivering an ethical strategy and plan,
to promote good practice in procurement and supply across the organisation
and its supply chain. It includes an assessment of the kind of risk that can arise
from non-compliance with ethical practice in procurement and supply, either by
the organisation or its supply chain. It also covers the actions that can be taken
to eliminate unethical practice by suppliers and their supply chains.
CFAPSU014 Develop and deliver an ethical strategy and plan for procurement and supply to internal stakeholders
69
CFAPSU014
Develop and deliver an ethical strategy and plan for procurement and supply
to internal stakeholders
Performance
criteria
You must be able to:
P1
develop an organisational strategy and a plan to establish ethical
priorities in procurement and supply
P2
communicate and promote the organisation’s strategy and plan for
ethical practices of procurement and supply to internal stakeholders
P3
assess the risks of not following the ethical strategy and plan for
sourcing in procurement and supply
P4
promote and encourage commitment to achieving ethical practices and
standards that apply to supply chains, including global supply chains
P5
identify and manage any challenges or conflict within the organisation
and with its supply chains that could affect ethical practices
P6
identify and promote actions that internal stakeholders can take to
eliminate unethical practice by suppliers and their supply chains
P7
promote the highest standards of ethical practice in procurement and
supply in line with national and international standards
CFAPSU014 Develop and deliver an ethical strategy and plan for procurement and supply to internal stakeholders
70
CFAPSU014
Develop and deliver an ethical strategy and plan for procurement and supply
to internal stakeholders
Knowledge and
understanding
You need to know and
understand:
K1
the ethical priorities that should be considered in an organisation’s
ethical strategy and plan including
K2
K1.1
compliance with ethical codes and standards
K1.2
eliminating criminal activities including bribery, fraud, corruption
K1.3
compliance with international standards on human rights
the importance of communicating the ethical strategy and plan across
the organisation including promoting the business benefits
K3
ways of communicating the ethical strategy and plan across the
organisation that will promote commitment and buy-in from senior
management, the procurement and supply function and other internal
stakeholders
K4
the kinds of risks that can occur in ethical sourcing and how to assess
and mitigate against them
K5
the sources of conflict that can impact on ethical procurement and supply
and how they can be managed
K6
the actions that can be taken by internal stakeholders to eliminate
bribery, corruption, fraud and human rights abuse by suppliers and their
supply chains
K7
why it is important to promote the highest standards of ethical practice
internally and to external stakeholders in the supply chain
CFAPSU014 Develop and deliver an ethical strategy and plan for procurement and supply to internal stakeholders
71
CFAPSU014
Develop and deliver an ethical strategy and plan for procurement and supply
to internal stakeholders
Additional Information
External Links
CIPS Global Standard:
• Segment 11.5: Developing commitment to ethical practices in supply
chains
CFAPSU014 Develop and deliver an ethical strategy and plan for procurement and supply to internal stakeholders
72
CFAPSU014
Develop and deliver an ethical strategy and plan for procurement and supply
to internal stakeholders
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU014
Relevant
occupations
Procurement officer; manager; senior official
Suite
Procurement and supply
Key words
Ethical strategy; human rights; bribery; fraud; corruption;
CFAPSU014 Develop and deliver an ethical strategy and plan for procurement and supply to internal stakeholders
73
CFAPSU015
Develop and establish standards of ethical practice for
procurement and supply
Overview
This standard is about the development and establishment implementation of
codes of practice, standards and legislation relating to ethical practices in
procurement and supply, including across global supply chains.
The standards should apply to internal stakeholders and external stakeholders
including customers and suppliers. The standards should include the
elimination of bribery, corruption, fraud and human rights abuse including
modern slavery. They should also apply to standards and legislation that relate
to the employment of people in supply chains.
CFAPSU015 Develop and establish standards of ethical practice for procurement and supply
74
CFAPSU015
Develop and establish standards of ethical practice for procurement and
supply
Performance
criteria
You must be able to:
P1
identify national and international standards that apply criminal conduct
in procurement and supply, including bribery, corruption, fraud and
human rights abuse, including modern slavery
P2
contribute to the development of ethical codes, standards and legislation
that can be applied across the organisation and its stakeholders
including customers and suppliers
P3
develop and promote a commitment to adopting and following ethical
codes, standards and legislation across the organisation and its
stakeholders, including customers and suppliers
P4
communicate standards to eliminate bribery, corruption, fraud and
human rights abuse including modern slavery, to internal and external
stakeholders
P5
identify and promote the main regulation and legislation that impact on
the employment of people in supply chains
P6
promote and lobby for improved regulations that impact on the
employment of people in supply chains
CFAPSU015 Develop and establish standards of ethical practice for procurement and supply
75
CFAPSU015
Develop and establish standards of ethical practice for procurement and
supply
Knowledge and
understanding
You need to know and
understand:
K1
how to identify relevant national and international standards that apply to
criminal conduct in procurement and supply including bribery, corruption,
fraud and human rights abuse, including modern slavery
K2
the use and roles of ethical codes in procurement and supply and why it
is important to contribute to their development
K3
the use of standards and legislation to eradicate bribery, corruption,
fraud and breaches of human rights to promote ethical practice in
procurement and supply
K4
how to develop ethical codes, standards and legislation that can be
applied across the organisation and its stakeholders to promote ethical
practice in procurement and supply
K5
why it is important to communicate standards and legislation to promote
ethical practice in procurement and supply management and ways of
doing this
K6
the main regulations and legislation that impact on the employment of
people in supply chains including:
K7
K6.1
human rights
K6.2
discrimination, equality and diversity
K6.3
employee redundancy and dismissal
K6.4
working time and staff payment
K6.5
international labour codes
K6.6
health and safety in the workplace
K6.7
other country specific employment issues
why it is important to lobby for improved regulations that impact on the
employment of people in supply chains including global supply chains
and ways of doing this
CFAPSU015 Develop and establish standards of ethical practice for procurement and supply
76
CFAPSU015
Develop and establish standards of ethical practice for procurement and
supply
Additional Information
External Links
CIPS Global Standard:
• Segment 11.3: Ethical/responsible sourcing
• Segment 11.5: Developing commitment to ethical practices in supply
chains
• Segment 11.6: Establishing ethical standards in procurement and
supply
CFAPSU015 Develop and establish standards of ethical practice for procurement and supply
77
CFAPSU015
Develop and establish standards of ethical practice for procurement and
supply
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU015
Relevant
occupations
Procurement officer; manager; senior official
Suite
Procurement and supply
Key words
Ethical standards; procurement; supply; bribery; corruption; human rights;
modern slavery;
CFAPSU015 Develop and establish standards of ethical practice for procurement and supply
78
CFAPSU016
Develop, implement and monitor plans for ethical
employment and working practices with suppliers
Overview
This standard is about developing and implementing plans to promote and
monitor ethical employment and working practices by suppliers, including:
• Equality and diversity in the workforce
• Health and safety in the workplace
• Working time, conditions and staff payment
• Staff employment and redundancy practices
• Modern slave labour and forced labour
CFAPSU016 Develop, implement and monitor plans for ethical employment and working practices with suppliers
79
CFAPSU016
Develop, implement and monitor plans for ethical employment and working
practices with suppliers
Performance
criteria
You must be able to:
P1
identify standards and legislation that address criminal or unethical
conduct in employment and working practices
P2
develop in consultation with colleagues, a plan for suppliers to
demonstrate ethical employment and working practices for their
workforce
P3
develop in consultation with colleagues, a plan to monitor and evaluate
employment and working practices by suppliers
P4
encourage and promote equality and diversity opportunities for underrepresented groups in the supply chain
P5
encourage suppliers to develop and implement effective health and
safety policies in the workplace
P6
communicate with suppliers to promote their understanding of the
importance of ethical employment and working practices in the delivery
of goods, services or works
P7
monitor the compliance of suppliers with agreed standards of ethical
employment and working practices
P8
work with suppliers to improve standards of ethical employment and
working practices
P9
identify and recommend appropriate remedies that can be taken with
suppliers where breaches of ethical employment and working practices
are identified
CFAPSU016 Develop, implement and monitor plans for ethical supply employment and working practices with suppliers
80
CFAPSU016
Develop, implement and monitor plans for ethical employment and working
practices with suppliers
Knowledge and
understanding
You need to know and
understand:
K1
standards and legislation that addresses criminal or unethical conduct in
employment and working practices including labour codes that impact on
the globalisation of supply chains:
K1.1
the United Nations Trafficking Protocol
K1.2
the International Labour Organisation and its Codes of Practice
K1.3
the Ethical Trading Initiative
K1.4
Social Accountability International Standard
K1.5
Equality of Opportunity legislation
K1.6
Health and Safety legislation
K1.7
working time, conditions and staff payment
K1.8
employee redundancy and dismissal
K1.9
modern slave labour and forced labour
K2
what to include in an ethical work plan for suppliers
K3
what to include in a plan to monitor and evaluate suppliers’ employment
and working practices
K4
who the under-represented groups are in each supply chain, how to
encourage and promote diversity and why this is important to the
organisation
K5
why and how to encourage suppliers to develop and implement effective
health and safety policies in the workplace
K6
why it is important to promote suppliers’ understanding of the importance
of ethical employment and working practices
K7
ways of monitoring supplier compliance including the use of audits and
other feedback mechanisms
K8
how to work with suppliers to improve standards of ethical employment
and working practices
K9
remedies that can be taken by the organisation where breaches of
ethical employment and working practices are identified
CFAPSU016 Develop, implement and monitor plans for ethical supply employment and working practices with suppliers
81
CFAPSU016
Develop, implement and monitor plans for ethical employment and working
practices with suppliers
Additional Information
External Links
CIPS Global Standard:
• Segment 11.2: Ethics for procurement and supply
• Segment 11.2: Ethical/responsible sourcing
• Segment 11.4: Promoting ethical practices in procurement and supply
• Segment 11.5: Developing commitment to ethical practices in
procurement and supply
CFAPSU016 Develop, implement and monitor plans for ethical supply employment and working practices with suppliers
82
CFAPSU016
Develop, implement and monitor plans for ethical employment and working
practices with suppliers
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU016
Relevant
occupations
Procurement officer; contract manager; manager; senior official
Suite
Procurement and supply
Key words
Ethical employment; ethical working; global supply chains; suppliers
CFAPSU016 Develop, implement and monitor plans for ethical supply employment and working practices with suppliers
83
CFAPSU017
Develop, implement and monitor plans for the ethical
sourcing of goods, services or works by suppliers
Overview
This standard is about developing and implementing plans for the ethical
sourcing of goods and services. It includes:
• Mapping supply chains to assess risks in the ethical sourcing process
• Agreeing, internally and externally, prequalification and assessment
criteria that can be applied.
Monitoring the performance of suppliers in relation to responsible sourcing of
goods, services and works is also included.
CFAPSU017 Develop, implement and monitor plans for the ethical sourcing of goods, services or works by suppliers
84
CFAPSU017
Develop, implement and monitor plans for the ethical sourcing of goods,
services or works by suppliers
Performance
criteria
You must be able to:
P1
work with colleagues to develop plans for the ethical and responsible
sourcing of goods, services or works
P2
map supply chains to assess vulnerabilities and risks that may result in
breaches of ethical standards
P3
work with colleagues to develop specifications to support the ethical and
responsible sourcing of goods, services or works
P4
engage with internal and external stakeholders to agree prequalification
and assessment criteria that can be applied to promote ethical and
responsible sourcing of goods, services or works
P5
engage with suppliers to promote and agree specifications to support the
ethical and responsible sourcing of goods, services or works
P6
monitor the performance of suppliers to identify risks and/or breaches in
the ethical and responsible sourcing of goods, services or works
P7
engage with suppliers to identify and implement remedies for poor
practice in the ethical and responsible sourcing of goods, services or
works
P8
report any risks or breaches in the ethical and responsible sourcing of
goods, services or works where identified and recommend appropriate
remedies
CFAPSU017 Develop, implement and monitor plans for the ethical sourcing of goods, services or works by suppliers
85
CFAPSU017
Develop, implement and monitor plans for the ethical sourcing of goods,
services or works by suppliers
Knowledge and
understanding
You need to know and
understand:
K1
what to include in plans for the ethical and responsible sourcing of
goods, services or works
K2
sources of information and databases that can be used to map supply
chains’ ethical practice
K3
what should be incorporated into specifications for ethical sourcing of
goods, services or works including:
K4
K1.1
contract terms
K1.2
key performance indicators (KPIs)
how to use prequalification and assessment criteria to encourage and
promote ethical and responsible sourcing of goods, services or works
K5
how to engage with suppliers to promote and agree specifications to
support the ethical and responsible sourcing of goods, services or works
K6
the use of supplier audits and other feedback mechanisms to identify
risks and/or breaches in the ethical and responsible sourcing of goods,
services or works
K7
the kinds of remedies that can be introduced to address poor practice in
the ethical and responsible sourcing of goods, services or works
K8
why it is important to keep senior management informed of and identified
risks or breaches in the ethical and responsible sourcing of goods,
services or works including:
K8.1
risks to the organisation’s reputation with customers
K8.2
breaches of national and international legislation
K8.3
breaches of relevant professional Codes of Conduct
CFAPSU017 Develop, implement and monitor plans for the ethical sourcing of goods, services or works by suppliers
86
CFAPSU017
Develop, implement and monitor plans for the ethical sourcing of goods,
services or works by suppliers
Additional Information
External Links
CIPS Global Standard:
• Segment 11.1: Ethics in procurement and supply
• Segment 11.2: Ethics for procurement and supply
• Segment 11.4: Promoting ethical practices in procurement and supply
• Segment 11.5: Developing commitment to ethical practices in supply
chains
CFAPSU017 Develop, implement and monitor plans for the ethical sourcing of goods, services or works by suppliers
87
CFAPSU017
Develop, implement and monitor plans for the ethical sourcing of goods,
services or works by suppliers
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU017
Relevant
occupations
Procurement officer; contract manager; manager; senior official
Suite
Procurement and supply
Key words
Ethical sourcing; suppliers; contract terms; supplier audit
CFAPSU017 Develop, implement and monitor plans for the ethical sourcing of goods, services or works by suppliers
88
CFAPSU018
Monitor, evaluate and review the implementation of the
ethical procurement strategy and plan by internal
stakeholders
Overview
This standard is about monitoring the implementation the organisation’s ethical
procurement strategy and plan by internal stakeholders and the steps that
should be taken if breaches are identified. It also promotes compliance with
approved Codes of Conduct for workers in the procurement and supply
profession, including the CIPS Code of Conduct.
CFAPSU018 Monitor, evaluate and review the implementation of the ethical procurement strategy and plan by internal
stakeholders
89
CFAPSU018
Monitor, evaluate and review the implementation of the ethical procurement
strategy and plan by internal stakeholders
Performance
criteria
You must be able to:
P1
influence internal stakeholders to develop and implement plans to
establish ethical priorities and behaviours in the organisation’s supply
chains
P2
monitor the work of internal stakeholders to ensure that the
organisation’s ethical procurement strategy and plan are complied with
P3
report any identified occurrence of non-compliance to senior
management
P4
monitor the use of organisational documented policies and procedures
for the work of procurement and supply to ensure they are followed
P5
work with colleagues to promote the implementation of
ethical/responsible sourcing in the procurement process
P6
identify and take steps to mitigate any conflicts of interest that can occur
in the work of procurement and supply
P7
ensure own work complies with approved Codes of Conduct for
procurement and supply
CFAPSU018 Monitor, evaluate and review the implementation of the ethical procurement strategy and plan by internal
stakeholders
90
CFAPSU018
Monitor, evaluate and review the implementation of the ethical procurement
strategy and plan by internal stakeholders
Knowledge and
understanding
You need to know and
understand:
K1
how to analyse stakeholders, including primary, secondary and key
stakeholder classifications to inform plans to establish ethical priorities
and behaviours in the organisation’s supply chains
K2
how to monitor the work of colleagues to ensure compliance with the
organisation’s ethical procurement strategy and plan and why this is
important
K3
the kinds of documented policies and procedures that are used in
procurement and supply including:
K3.1
who has responsibility within the organisation for procurement
and supply
K4
K3.2
levels of delegated authority
K3.3
regulations relating to competition
K3.4
responsibilities for the stages of the sourcing process
K3.5
invoice clearance and payment
practices to support the implementation of ethical/responsible sourcing in
the procurement process including the specification of contract terms,
Key Performance Indicators (KPIs) and other instruments to prevent,
detect and eradicate breaches of ethical standards
K5
how to identify potential conflicts of interest that can occur in the work of
procurement and supply
K6
the steps that should be taken to address potential conflicts of interest to
ensure that ethical practices are prioritised
K7
why it is important to ensure that own work complies with approved
Codes of Conduct for procurement and supply and the activities this
includes:
K7.1
enhancing and protecting the reputation of the procurement and
supply profession
K7.2
maintaining the highest standard of integrity in all business
relationships
K7.3
promoting the eradication of unethical business relationships
CFAPSU018 Monitor, evaluate and review the implementation of the ethical procurement strategy and plan by internal
stakeholders
91
CFAPSU018
Monitor, evaluate and review the implementation of the ethical procurement
strategy and plan by internal stakeholders
K7.4
enhancing the proficiency and stature of the profession
K7.5
ensuring compliance with laws and regulations
CFAPSU018 Monitor, evaluate and review the implementation of the ethical procurement strategy and plan by internal
stakeholders
92
CFAPSU018
Monitor, evaluate and review the implementation of the ethical procurement
strategy and plan by internal stakeholders
Additional Information
External Links
CIPS Global Standard:
• Segment 11.2: Ethics for procurement and supply
• Segment 11.4: Promoting ethical practices in procurement and supply
• Segment 11.5: Developing commitment to ethical practices in supply
chains
CFAPSU018 Monitor, evaluate and review the implementation of the ethical procurement strategy and plan by internal
stakeholders
93
CFAPSU018
Monitor, evaluate and review the implementation of the ethical procurement
strategy and plan by internal stakeholders
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU018
Relevant
occupations
Procurement officer; manager; senior official
Suite
Procurement and supply
Key words
Ethical procurement strategy; ethical sourcing; contract terms; codes of
conduct; breaches of ethical standards
CFAPSU018 Monitor, evaluate and review the implementation of the ethical procurement strategy and plan by internal
stakeholders
94
CFAPSU019
Capture and analyse data for expenditure and financial
control in procurement and supply
Overview
This standard is about gathering and analysing data on costs and pricing to
negotiate competitive prices for goods services or works. It also includes the
potential impact of negotiating lower process on other aspects of value for
money and how to avoid this.
CFAPSU019 Capture and analyse data for expenditure and financial control in procurement and supply
95
CFAPSU019
Capture and analyse data for expenditure and financial control in
procurement and supply
Performance
criteria
You must be able to:
P1
promote and encourage the use of competitive tendering to achieve
competitive pricing for goods, services or works
P2
compare historical prices with newly quoted prices
P3
analyse any significant discrepancies between historical and newly
quoted prices and identify the reasons
P4
analyse data on submitted prices in order to negotiate competitive pricing
P5
take appropriate actions to secure competitive pricing of goods, services
or works
P6
negotiate with suppliers to reduce prices without impacting negatively on
other aspects of ‘value for money’
P7
promote the sustainability of purchased goods, services or works through
effective procurement and supply
CFAPSU019 Capture and analyse data for expenditure and financial control in procurement and supply
96
CFAPSU019
Capture and analyse data for expenditure and financial control in
procurement and supply
Knowledge and
understanding
You need to know and
understand:
K1
how to use competitive tendering to achieve competitive pricing with
suppliers
K2
why it is important to compare newly quoted prices with historical prices
and how to do this
K3
why it is important to identify any significant discrepancies between the
two
K4
how to analyse the links between costs, prices and mark-ups of
submitted prices and why it is important to do this to negotiate
competitive pricing
K5
actions that can be taken to secure competitive pricing of goods,
services or works
K6
how to negotiate with suppliers to achieve reduced pricing without
impacting on other aspects of value for money including:
K7
K6.1
quality
K6.2
availability
K6.3
delivery times
K6.4
sustainability
how to use effective procurement and supply to achieve sustainability of
purchased goods, services or works
CFAPSU019 Capture and analyse data for expenditure and financial control in procurement and supply
97
CFAPSU019
Capture and analyse data for expenditure and financial control in
procurement and supply
Additional Information
External Links
CIPS Global Standard:
• Segment 7.3: Achieving competitive pricing in procurement and
supply
• Segment 7.5: Achieving added value outcomes in procurement and
supply
• Segment 8.7: Developing the capabilities of the supply chain
CFAPSU019 Capture and analyse data for expenditure and financial control in procurement and supply
98
CFAPSU019
Capture and analyse data for expenditure and financial control in
procurement and supply
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU019
Relevant
occupations
Procurement officer; finance manager
Suite
Procurement and supply
Key words
Procurement; supply; financial control; competitive pricing; value for money
CFAPSU019 Capture and analyse data for expenditure and financial control in procurement and supply
99
CFAPSU020
Develop and implement a plan for cost effective
category management expenditure
Overview
This standard is about comparing the costs and benefits of strategic sourcing,
category management and conventional sourcing. It also covers the
development and implementation of a category management plan, the
technical and behavioural effectiveness required to implement a category
management process and the importance of reviewing the effectiveness of the
category management process. The importance of developing exit
arrangements is also included.
CFAPSU020 Develop and implement a plan for cost effective category management expenditure
100
CFAPSU020
Develop and implement a plan for cost effective category management
expenditure
Performance
criteria
You must be able to:
P1
compare the cost effectiveness of strategic sourcing, category
management and conventional sourcing processes
P2
develop and agree a business case for the use of a category
management plan for the organisation
P3
map categories of direct and indirect expenditures using appropriate
portfolio tools
P4
support effective collaboration between procurement and supply
personnel with stakeholders to develop effective category plans
P5
develop a category management plan using appropriate data to inform
the content
P6
develop an implementation plan for the category management process
P7
use appropriate technical and behavioural skills to implement a category
management plan with stakeholders and suppliers
P8
review evaluate the effectiveness of the category management process
in terms of performance improvement
P9
develop appropriate exit arrangements that can be applied in the
execution of category management processes
CFAPSU020 Develop and implement a plan for cost effective category management expenditure
101
CFAPSU020
Develop and implement a plan for cost effective category management
expenditure
Knowledge and
understanding
You need to know and
understand:
K1
why it is important to compare the costs effectiveness of strategic
sourcing, category management and conventional sourcing and how to
do this
K2
why it is important to develop a business case for the use of a category
management plan by the organisation and what should be included
K3
portfolio tools that are typically used to map categories of direct and
indirect expenditure including:
K3.1
portfolio analysis
K3.2
supply chain mapping
K3.3
the 5 forces model
K3.4
market share/market growth
K3.5
STEEPLE (social, technological, economic, environmental,
political, legal and ethical) and SWOT (strengths, weaknesses,
opportunities and threats) analysis
K4
why it is important to support and promote effective collaboration
between procurement and supply personnel with stakeholders to develop
effective category plans
K5
data that should be considered when developing a category
management plan including:
K5.1
market factors (industry dynamics, competitiveness, pricing
behaviour)
K6
K5.2
historical and forecasted data on categories of spend
K5.3
the main models for the adoption of category management
how to develop a category management implementation plan and what
should be included
K7
behavioural skills required for the implementation of a category
management methodology including:
K7.1
effective communication with stakeholders and suppliers
K7.2
influencing skills
K7.3
team working and cross functional working
CFAPSU020 Develop and implement a plan for cost effective category management expenditure
102
CFAPSU020
Develop and implement a plan for cost effective category management
expenditure
K8
K7.4
acting as a change agent
K7.5
negotiating skills
technical skills required to implement a category management plan
including:
K9
K8.1
financial management and cost analysis
K8.2
supply chain analysis
K8.3
supply base research
K8.4
sourcing processes
K8.5
risk management
why it is important to evaluate performance improvement as a result of
the category management process
K10 why it is important to develop appropriate exit arrangements including:
K10.1
the use of disaster recovery plans
K10.2
dealing with risks and supply chain volatility
CFAPSU020 Develop and implement a plan for cost effective category management expenditure
103
CFAPSU020
Develop and implement a plan for cost effective category management
expenditure
Additional Information
External Links
CIPS Global Standards:
• Segment 4.5: Category management
• Segment 4.8: Developing expertise in category management
CFAPSU020 Develop and implement a plan for cost effective category management expenditure
104
CFAPSU020
Develop and implement a plan for cost effective category management
expenditure
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU020
Relevant
occupations
Procurement officer; finance manager
Suite
Procurement and supply
Key words
Category management; sourcing, procurement; supply; financial management;
supply chain
CFAPSU020 Develop and implement a plan for cost effective category management expenditure
105
CFAPSU021
Monitor and administer organisational inventories for
procurement and supply
Overview
This standard is about understanding and implementing effective inventory
control. It covers the main types of inventory, the main techniques associated
with managing inventories and the use of product coding in inventory
operations. It also includes the use of forecasting for inventories to identify and
resolve any problems that can affect the scheduling of supplies.
CFAPSU021 Monitor and administer organisational inventories for procurement and supply
106
CFAPSU021
Monitor and administer organisational inventories for procurement and
supply
Performance
criteria
You must be able to:
P1
identify the different types of inventory used in procurement and supply
P2
calculate the direct and indirect costs associate with holding inventories
P3
take appropriate action to reduce costs whilst mitigating any potential
impact on service levels
P4
identify the main techniques for the monitoring and control of inventories
P5
select and use appropriate techniques for managing inventories
P6
assess the use of product coding in inventory operations
P7
use forecasting for inventories to identify and resolve any problems that
can affect the scheduling of supplies
CFAPSU021 Monitor and administer organisational inventories for procurement and supply
107
CFAPSU021
Monitor and administer organisational inventories for procurement and
supply
Knowledge and
understanding
You need to know and
understand:
K1
the different types of inventory used in procurement and supply
including:
K2
K1.1
opening stock, work in progress and finished goods
K1.2
safety stocks
K1.3
ABC classification of stock that may apply
K1.4
dependent demand and independent demand items of stock
how to calculate the direct and indirect costs associate with holding
inventories
K3
actions that can reduce costs
K4
how to mitigate any potential impact of reducing costs on service levels
K5
the main techniques for the monitoring and control of inventories
including:
K6
K7
K8
K5.1
pareto analysis and ABC classifications of inventory
K5.2
dependent and independent demand
K5.3
MRP and MRPII
K5.4
just in time supply and Kanban systems
K5.5
consignment stocking and vendor managed inventory
the main techniques associated with managing inventories including:
K6.1
re-ordering quantities
K6.2
re-ordering levels
K6.3
MRP and MRPII
K6.4
just in time
the use of product coding in inventory operations including:
K7.1
systems for product coding
K7.2
bar coding
K7.3
order tracking technologies
K7.4
the use of RFID technologies
how to use forecasting for inventories to identify and resolve any
problems that can affect the scheduling of supplies
CFAPSU021 Monitor and administer organisational inventories for procurement and supply
108
CFAPSU021
Monitor and administer organisational inventories for procurement and
supply
Additional Information
External Links
CIPS Global Standard:
Segment 4.2: Effective inventory control
Segment 7.2: Effective expediting in procurement and supply
CFAPSU021 Monitor and administer organisational inventories for procurement and supply
109
CFAPSU021
Monitor and administer organisational inventories for procurement and
supply
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU021
Relevant
occupations
Administration and secretarial occupations
Suite
Procurement and supply
Key words
Procurement; supply; inventories; direct costs; indirect costs; forecasting
CFAPSU021 Monitor and administer organisational inventories for procurement and supply
110
CFAPSU022
Plan and implement competitive pricing in procurement
and supply
Overview
This standard is about how to plan and implement competitive pricing in
procurement and supply, why this is important to the organisation and the
benefits that can accrue from this.
CFAPSU022 Plan and implement competitive pricing in procurement and supply
111
CFAPSU022
Plan and implement competitive pricing in procurement and supply
Performance
criteria
You must be able to:
P1
research the organisation’s sources of competitive advantage
P2
identify the added value that can be achieved by the organisation
through effective supply chain management
P3
obtain quotations from suppliers to encourage competitive prices
P4
compare supplier quoted prices with historical prices
P5
evaluate the reasons for any significant discrepancies between current
and historical quotations
P6
analyse available data on costs, prices, margins and mark ups in order to
negotiate competitive prices
P7
negotiate the price of goods and services with suppliers whilst retaining
other aspects of value for money
P8
estimate whole life costs of goods and services
P9
take appropriate steps to reduce or avoid any on-going costs of goods,
services or works
CFAPSU022 Plan and implement competitive pricing in procurement and supply
112
CFAPSU022
Plan and implement competitive pricing in procurement and supply
Knowledge and
understanding
You need to know and
understand:
K1
K2
the organisation’s sources of competitive advantage including:
K1.1
low costs
K1.2
innovative approaches
K1.3
product range
K1.4
brand image
K1.5
customer care
the added value that can be achieved by the organisation through
effective supply chain management including:
K2.1
reduced prices and costs
K2.2
improving quality
K2.3
reducing time to market
K2.4
achieving deliveries to reduced timescales
K2.5
creating innovation
K2.6
reducing risks and supply chain vulnerabilities
K2.7
promoting sustainable procurement
K3
why it is important to promote competitive pricing with suppliers
K4
why it is important to compare quoted prices with historical prices
K5
the reasons why there may be significant discrepancies between current
and historical quotations
K6
how to analyse and use data on costs, prices, margins and mark ups to
inform negotiations on competitive pricing
K7
how to estimate whole life costs of goods and services and why this is
important
K8
the steps that can be taken to reduce on-going costs of goods and
services
CFAPSU022 Plan and implement competitive pricing in procurement and supply
113
CFAPSU022
Plan and implement competitive pricing in procurement and supply
Additional Information
External Links
CIPS Global Standard:
• Segment 1.5: Developing supply chain management
• Segment 4.1: Effective purchasing
• Segment 7.3: Achieving competitive pricing in procurement and
supply
CFAPSU022 Plan and implement competitive pricing in procurement and supply
114
CFAPSU022
Plan and implement competitive pricing in procurement and supply
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU022
Relevant
occupations
Procurement officer; finance manager
Suite
Procurement and supply
Key words
Procurement; supply; competitive pricing; whole life costs; supply chain
management
CFAPSU022 Plan and implement competitive pricing in procurement and supply
115
CFAPSU023
Apply required regulations and reporting protocols to
the procurement and contracting process
Overview
This standard is about ensuring that internal employment procedures and legal
relationships with customers and suppliers reflect good practice in these areas.
This is important in maintaining the integrity of the organisation with
stakeholders.
CFAPSU023 Apply required regulations and reporting protocols to the procurement and contracting process
116
CFAPSU023
Apply required regulations and reporting protocols to the procurement and
contracting process
Performance
criteria
You must be able to:
P1
define the main procedures that can be created by procurement and
supply
P2
review all processes and procedures for creating specifications and
contracts to ensure that all legal requirements are complied with
P3
identify the main economic sectors that impact on procurement and
supply and how they can impact on procurement and supply
P4
review internal employment procedures to ensure compliance with
employment legislation
P5
analyse organisational contracting procedures to ensure compliance with
legal requirements relating to bribery and corruption
P6
evaluate all legal and organisational reporting procedures relating to
procurement and supply to ensure that issues or breaches in regulations
are identified and steps taken to mitigate them
CFAPSU023 Apply required regulations and reporting protocols to the procurement and contracting process
117
CFAPSU023
Apply required regulations and reporting protocols to the procurement and
contracting process
Knowledge and
understanding
You need to know and
understand:
K1
the main procedures that can be created by procurement and supply
including:
K2
K1.1
delegations of authority and approvals
K1.2
procedures relating to competition between suppliers
K1.3
auditing compliance with internal procedures
the legal issues that impact on the creation of commercial agreements
with customers or suppliers relating to specifications, offers, acceptance
or other factors and why it is important to comply with them
K3
the main economic sectors that impact on procurement and supply and
how that can affect activities including:
K4
K3.1
pubic, private and not for profit sectors
K3.2
primary, secondary and tertiary sectors
employment regulations that impact on procurement and supply
including:
K4.1
Transfer of Employment and Protection of Employment
Regulations (TUPE)
K5
K4.2
redundancy and dismissal
K4.3
discrimination in the workplace
K4.4
health and safety in the workplace
organisational contracting procedures and compliance with bribery and
corruption legislation
K6
organisational reporting procedures and why it is important to follow
them
K7
reasons why the organisation must comply with legal and reporting
protocols
CFAPSU023 Apply required regulations and reporting protocols to the procurement and contracting process
118
CFAPSU023
Apply required regulations and reporting protocols to the procurement and
contracting process
External Links
CIPS Global Standard:
• Segment 5.2: Developing contracts with suppliers
• Segment 5.4: Legal aspects of procurement and supply
CFAPSU023 Apply required regulations and reporting protocols to the procurement and contracting process
119
CFAPSU023
Apply required regulations and reporting protocols to the procurement and
contracting process
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU023
Relevant
occupations
Procurement officer; contract manager; administration and secretarial
occupations
Suite
Procurement and supply
Key words
Procurement; contracting; compliance; reporting; specifications; suppliers
CFAPSU023 Apply required regulations and reporting protocols to the procurement and contracting process
120
CFAPSU024
Identify, promote and monitor supplier compliance
relevant legislation
Overview
This standard is about identifying relevant legislation, including employment
legislation that could affect suppliers and the supply chain, developing a plan to
monitor supplier compliance and taking steps to address any situations of
breach of compliance.
CFAPSU024 Identify, promote and monitor supplier compliance with relevant legislation
121
CFAPSU024
Identify, promote and monitor supplier compliance with relevant legislation
Performance
criteria
You must be able to:
P1
assess the impact of the main legislation and regulations on the
employment of people in supply chains
P2
develop plans to mitigate the potential effects of employment legislation
and regulations on ethical and sustainable procurement and supply,
including company professional membership and individual qualifications
P3
work with stakeholders and suppliers to develop plans to monitor
supplier compliance with employment legislation and regulations
P4
monitor supplier compliance with employment legislation and regulations
P5
take steps to address situations with suppliers where breaches of
employment legislation and regulations are detected
P6
work with stakeholders and suppliers to eliminate bribery, corruption and
fraud in supply chains
CFAPSU024 Identify, promote and monitor supplier compliance with relevant legislation
122
CFAPSU024
Identify, promote and monitor supplier compliance with relevant legislation
Knowledge and
understanding
You need to know and
understand:
K1
the main legislation and regulations that impact on the employment of
people in supply chains including:
K1.1
discrimination, equality and diversity
K1.2
employee redundancy and dismissal
K1.3
working time and staff pay
K1.4
international labour codes
K1.5
health and safety at work legislation
K1.6
Transfer of Undertakings and Protection of Employment
Regulations (TUPE)
K1.7
restraint on trade
K1.8
International Labour Organisation and UN standards on
business and human rights
K1.9
K2
other ‘country-specific’ legislation
how to develop plans to mitigate the potential effects of employment
legislation and regulations on ethical and sustainable procurement and
supply and what should be included in such plans, including proof of
company and individual professional memberships, and individual
professional qualifications relating to procurement and supply
K3
how to develop plans to monitor supplier compliance with employment
legislation and regulations and what should be included in such plans
K4
organisational procedures for monitoring supplier compliance
K5
steps that can be taken to address situations with suppliers where
breaches of employment legislation and regulations are detected
K6
standards and legislation that apply to bribery, corruption and fraud in
organisations
K7
how to work with suppliers and their supply chain to eliminate bribery,
corruption and fraud and why this is important
CFAPSU024 Identify, promote and monitor supplier compliance with relevant legislation
123
CFAPSU024
Identify, promote and monitor supplier compliance with relevant legislation
External Links
CIPS Global Standard:
• Segment 1.5: Developing supply chain management
• Segment 2.5: Contexts of supply chain management
• Segment 2.6: Managing the challenges of global supply chains
• Segment 5.4: Legal aspects of procurement and supply
CFAPSU024 Identify, promote and monitor supplier compliance with relevant legislation
124
CFAPSU024
Identify, promote and monitor supplier compliance with relevant legislation
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU024
Relevant
occupations
Procurement officer; contract manager; administration and secretarial
occupations
Suite
Procurement and supply
Key words
Procurement; supply; compliance; supplier; supply chain; employment
legislation; bribery; corruption; fraud
CFAPSU024 Identify, promote and monitor supplier compliance with relevant legislation
125
CFAPSU025
Champion and promote the role of procurement and
supply to stakeholders
Overview
This standard is about the importance of promoting the role and contribution
that the procurement and supply function can make to the achievement of the
organisation’s strategy and objectives. It covers the different types of structure
that the procurement and supply function may adopt and the strengths and
weaknesses of each. It also includes recognising the sorts of conflict of interest
that can occur between the procurement and supply function and other internal
stakeholders, ways to mitigate these and why this is important.
CFAPSU025 Champion and promote the role of procurement and supply to stakeholders
126
CFAPSU025
Champion and promote the role of procurement and supply to stakeholders
Performance
criteria
You must be able to:
P1
identify the contribution that the procurement function can make to
enhance and support the organisation’s strategy and objectives
P2
identify the contribution that the procurement function can make to
enhance and promote innovation in the organisation
P3
consult with and influence internal stakeholders on the input that
procurement and supply can make to the organisation’s business
objectives
P4
identify and mitigate any issues including conflicts of interest that can
occur with internal stakeholders to ensure that the role and objectives of
the procurement and supply function are recognised
P5
develop a strategy and plan that promotes the contribution of an effective
procurement and supply function to the organisation’s business
objectives
P6
advise internal stakeholders on the interpretation of procedures for
procurement and supply
P7
provide advice to internal stakeholders on the range of procurement and
supply issues that can impact on the creation and management of
financial budgets
CFAPSU025 Champion and promote the role of procurement and supply to stakeholders
127
CFAPSU025
Champion and promote the role of procurement and supply to stakeholders
Knowledge and
understanding
You need to know and
understand:
K1
the contribution that the procurement and supply function can make to
enhance and support the organisation’s strategy and objectives
K2
the contribution that the procurement function can make to enhance and
promote innovation in the organisation
K3
ways of consulting with and influence internal stakeholders and why this
is important
K4
the kinds of issues and conflicts of interest than can occur between the
procurement and supply function and internal stakeholders and why it is
important to mitigate these
K5
why it is important to develop and promote a strategy and plan for the
contribution that and effective procurement and supply function can
make to the organisation’s overall business performance
K6
the use of documented policies and procedures for the work of
procurement and supply including:
K7
K6.1
the responsibilities for procurement
K6.2
regulations relating to competition
K6.3
levels of delegated authority
K6.4
responsibilities for the stages of the sourcing process
K6.5
invoice clearance and payment
the strengths and weaknesses of the different structures that can be
adopted for procurement and supply including:
K8
K7.1
centralised
K7.2
devolved
K7.3
hybrid
the kind of issues around the creation and management of financial
budgets and how they can impact on procurement and supply
K9
why it is important to advise internal stakeholders about the range of
issues relating to the creation and management of financial budgets and
how they can impact on procurement and supply
CFAPSU025 Champion and promote the role of procurement and supply to stakeholders
128
CFAPSU025
Champion and promote the role of procurement and supply to stakeholders
Additional Information
External Links
CIPS Global Standard:
• Segment 1.3: Advising stakeholders of the role of procurement and
supply
CFAPSU025 Champion and promote the role of procurement and supply to stakeholders
129
CFAPSU025
Champion and promote the role of procurement and supply to stakeholders
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU025
Relevant
occupations
Procurement officers; managers; buyers
Suite
Procurement and supply
Key words
procurement; supply; stakeholders
CFAPSU025 Champion and promote the role of procurement and supply to stakeholders
130
CFAPSU026
Apply quality standards to support relationship
management in procurement and supply
Overview
This standard is about identifying and applying appropriate quality standards
and frameworks to support the establishment of effective relationships between
purchasers and suppliers. It considers who the stakeholders in relationship
management are and why it is important to establish partnering and
collaborative approaches to supplier relationship management. It also covers
the impact of undertaking major programmes and projects on supply chain
relationships.
CFAPSU026 Apply quality standards to support relationship management in procurement and supply
131
CFAPSU026
Apply quality standards to support relationship management in procurement
and supply
Performance
criteria
You must be able to:
P1
identify the internal and external stakeholders who may be involved in
relationships between purchasers and suppliers
P2
identify the different types of supply chain relationship
P3
research appropriate standards and frameworks that promote the
establishment of partnering and collaborative approaches to supplier
relationship management
P4
evaluate the impact of undertaking major programmes and projects on
supply chain relationships
P5
disseminate appropriate standards and frameworks to support partnering
and collaborative approaches to supplier relationship management to
colleagues and stakeholders
P6
apply appropriate standards and frameworks to support supplier
relationship management for contracts, projects and programmes
P7
support internal stakeholders and suppliers to develop and maintain
effective on-going relationships including project partnering and strategic
partnering
P8
evaluate the effectiveness of the application of standards and
frameworks to improving supply chain relationships
CFAPSU026 Apply quality standards to support relationship management in procurement and supply
132
CFAPSU026
Apply quality standards to support relationship management in procurement
and supply
Knowledge and
understanding
You need to know and
understand:
K1
who the key internal and external stakeholders involved in relationships
between purchasers and suppliers are
K2
K3
the different types of supply chain relationship including:
K2.1
supply chain networks for programmes and projects
K2.2
relationships with sub-contractors
K2.3
consortia and joint ventures for programmes and contracts
K2.4
traditional and contemporary relationships
K2.5
project partnering and strategic partnering
the implications of relevant standards including British Standards and
International Organisation for Standardisation (ISO) standards,
Professional memberships and individual professional qualification
standards to partnership and collaborative approaches to supplier
relationship management
K4
ways in which undertaking of major programmes and contracts can
impact on supply chain relationships
K5
why it is important to disseminate appropriate standards and frameworks
to support supplier relationship management to colleagues and
stakeholders
K6
how to apply appropriate standards and frameworks to support supplier
relationship management
K7
the use of project partnering and strategic partnering relationships in
project and programme management and why these are important
K8
how to evaluate the effectiveness of applying standards and frameworks
to support supplier relationships and why this is important
CFAPSU026 Apply quality standards to support relationship management in procurement and supply
133
CFAPSU026
Apply quality standards to support relationship management in procurement
and supply
External Links
CIPS Global Standard:
• Segment 4.7: Developing operational expertise in procurement
• Segment 5.6: Contracting for major programmes and projects
• Segment 5.7: Leading improvements in contracting practice
CFAPSU026 Apply quality standards to support relationship management in procurement and supply
134
CFAPSU026
Apply quality standards to support relationship management in procurement
and supply
Developed by
Skills CfA
Version number
CFAPSM026
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU026
Relevant
occupations
Procurement officer; contract manager; manager; administration and
secretarial occupations
Suite
Procurement and supply
Key words
Procurement; supply; quality standards; relationship management; supply
chain
CFAPSU026 Apply quality standards to support relationship management in procurement and supply
135
CFAPSU027
Conduct a supplier appraisal for the sustainable
procurement of goods, services or works
Overview
This standard is about the tasks involved in conducting an appraisal of potential
suppliers to evaluate their capacity and capability to deliver required goods,
services or works. It includes reviewing or developing prequalification criteria or
processes against which to carry out the supplier appraisal, researching
information about potential suppliers and using tools such as ratio analysis and
scoring. The final outcome is to make a recommendation on the most suitable
suppliers based on the appraisal process.
CFAPSU027 Conduct a supplier appraisal for the sustainable procurement of goods, services or works
136
CFAPSU027
Conduct a supplier appraisal for the sustainable procurement of goods,
services or works
Performance
criteria
You must be able to:
P1
analyse organisational lists of pre-qualified suppliers to assess their
suitability to deliver required goods, services or works
P2
review, revise or develop organisational pre-qualification criteria or
processes for informing the supplier appraisal process
P3
research information on suppliers to inform the supplier appraisal
process
P4
analyse supplier information to assess their broad suitability to deliver
required goods, services or works
P5
analyse financial statements from potential suppliers to evaluate their
capability to deliver required goods, services or works
P6
make use of ratio analysis to evaluate potential suppliers
P7
make use of appropriate scoring systems to develop a short list of
potential suppliers
P8
make recommendations for the most appropriate supplier(s) based on
the supplier appraisal process
CFAPSU027 Conduct a supplier appraisal for the sustainable procurement of goods, services or works
137
CFAPSU027
Conduct a supplier appraisal for the sustainable procurement of goods,
services or works
Knowledge and
understanding
You need to know and
understand:
K1
why it is important to analyse organisational lists of pre-qualified
suppliers and how to do this
K2
why it is important to review, revise or develop organisational prequalification criteria or process to inform the supplier appraisal process
K3
sources of information on potential suppliers
K4
why it is important to research information on potential suppliers and
ways of carrying out the research
K5
how to analyse supplier information to assess their broad suitability to
deliver required goods, services or works
K6
how to assess supplier financial statements to evaluate their financial,
commercial and technical capability to deliver the required goods,
services or works
K7
the use of key ratios that indicate profitability, liquidity, gearing and
investment of potential suppliers
K8
how to develop and use appropriate scoring systems to support and
inform the supplier appraisal process
K9
organisational procedures for recommending suppliers based on the
supplier appraisal process
CFAPSU027 Conduct a supplier appraisal for the sustainable procurement of goods, services or works
138
CFAPSU027
Conduct a supplier appraisal for the sustainable procurement of goods,
services or works
Additional Information
External Links
CIPS Global Standard:
• Segment 6.5: Conducting supplier appraisal
CFAPSU027 Conduct a supplier appraisal for the sustainable procurement of goods, services or works
139
CFAPSU027
Conduct a supplier appraisal for the sustainable procurement of goods,
services or works
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU027
Relevant
occupations
Procurement officer; managers; buyers
Suite
Procurement and supply
Key words
Supplier appraisal; pre-qualification criteria; profitability; liquidity; gearing;
investment
CFAPSU027 Conduct a supplier appraisal for the sustainable procurement of goods, services or works
140
CFAPSU028
Develop and implement an organisational strategy and
plan for the sustainable sourcing of goods, services or
works
Overview
This standard is about the key criteria to include in an organisational strategy
and plan for the sustainable sourcing of goods, services or works. It also
includes consideration of the advantages and risks of global sourcing
compared with local and regional sourcing.
CFAPSU028 Develop and implement an organisational strategy and plan for the sustainable sourcing of goods and services
141
CFAPSU028
Develop and implement an organisational strategy and plan for the
sustainable sourcing of goods, services or works
Performance
criteria
You must be able to:
P1
develop appropriate pre-qualification criteria and/or processes for
supplier appraisal in the sourcing process
P2
review and analyse potential global supply chains to promote added
value from their inclusion
P3
compare the use of local, regional and global sourcing of goods, services
or works to achieve best value in responsible and sustainable
procurement
P4
research information on possible suppliers to inform the selection
process
P5
identify the key challenges of global supply chains and the steps that can
be taken to mitigate their impact
P6
develop and agree selection and award criteria appropriate to the
procurement process
P7
identify the range of sourcing options that can be used in the sourcing
arrangement with suppliers
P8
develop and agree an organisational strategy and plan for the
sustainable sourcing of goods, services or works
P9
implement the organisational strategy and plan to deliver sustainable
sourcing of goods, services or works
CFAPSU028 Develop and implement an organisational strategy and plan for the sustainable sourcing of goods and services
142
CFAPSU028
Develop and implement an organisational strategy and plan for the
sustainable sourcing of goods, services or works
Knowledge and
understanding
You need to know and
understand:
K1
the kinds of pre-qualification criteria/process that can be used in the
selection of suppliers and why they are useful in the supplier appraisal
process
K2
K3
the ways in which using global supply chains can bring added value
K2.1
reducing costs
K2.2
improved quality
K2.3
reliability of delivery
K2.4
innovation
K2.5
sustainability
why it is important to compare the capability of local, regional and global
suppliers of goods, services or works to achieve best value and how to
do this
K4
why it is important to research information on possible suppliers and
what that should include:
K4.1
financial reports
K4.2
credit rating
K4.3
key ratios that indicate profitability, liquidity, gearing and
investment
K4.4
technical capability
K5
the key challenges of global supply chains and ways of mitigating risks
K6
how to develop selection and award criteria and how they can contribute
to an effective sourcing strategy
K7
the range of sourcing options that can be used including single, dual and
multiple sourcing arrangements
K8
organisational procedures for the development of a sourcing strategy
and plan, what the strategy and plan should contain and reasons why it
is important to develop them
K9
what needs to be done to implement the organisation’s strategy and plan
to ensure sustainable sourcing of goods, services or works
CFAPSU028 Develop and implement an organisational strategy and plan for the sustainable sourcing of goods and services
143
CFAPSU028
Develop and implement an organisational strategy and plan for the
sustainable sourcing of goods, services or works
Additional Information
External Links
CIPS Global Standard:
• Segment 6.1: The stages of a sourcing process
• Segment 6.4: Sourcing processes and systems in procurement and
supply
CFAPSU028 Develop and implement an organisational strategy and plan for the sustainable sourcing of goods and services
144
CFAPSU028
Develop and implement an organisational strategy and plan for the
sustainable sourcing of goods, services or works
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU028
Relevant
occupations
Procurement officer; buyer; manager; senior officials
Suite
Procurement and supply
Key words
Sustainable sourcing; pre-qualification criteria; global supply chains; suppliers
CFAPSU028 Develop and implement an organisational strategy and plan for the sustainable sourcing of goods and services
145
CFAPSU029
Develop and implement a plan for the global sourcing of
goods, services or works
Overview
This standard is about considering the advantages and disadvantages to the
organisation of using global and/or low cost country suppliers of goods,
services or works. It also includes developing a cost/benefit analysis for the
organisation and carrying out a comparative analysis of sourcing locally and
regionally. The sustainability of sourcing globally or from low cost country
suppliers is also considered.
CFAPSU029 Develop and implement a plan for the global sourcing of goods, services or works
146
CFAPSU029
Develop and implement a plan for the global sourcing of goods, services or
works
Performance
criteria
You must be able to:
P1
identify the organisational requirement for goods, services or works that
can be sourced from global or low cost country suppliers
P2
develop a cost/benefit analysis for the organisation of making use of
global/low cost country sourcing for goods and services
P3
research opportunities for the organisation to access global and/or low
cost country sourcing to support competitive advantage for the
organisation
P4
consult with internal and external stakeholders on the advantages and
disadvantages to the organisation of sourcing goods, services or works
using global/low cost country suppliers
P5
develop a risk assessment for the use of global and/or low cost country
suppliers, including mitigating actions
P6
develop a comparative plan for the sourcing of goods, services or works
using local, regional and global/low cost country suppliers
P7
develop a plan for the sustainable and responsible sourcing of required
goods, services or works using global/low cost country suppliers
P8
disseminate, agree and implement the sourcing plan for the use of
global/low country cost suppliers
P9
monitor the implementation of the sourcing plan to ensure sustainable
delivery of goods, services or works
CFAPSU029 Develop and implement a plan for the global sourcing of goods, services or works
147
CFAPSU029
Develop and implement a plan for the global sourcing of goods, services or
works
Knowledge and
understanding
You need to know and
understand:
K1
the kinds of goods, services or works that can be sourced using global
and/or low cost country suppliers
K2
what should be considered in a cost/benefit analysis including:
K2.1
reduced costs
K2.2
improved quality
K2.3
reliability of delivery
K2.4
innovative approaches
K2.5
sustainability
K2.6
competitive advantage
K3
how to research opportunities for using global/low country cost suppliers
K4
why it is important to consult with stakeholders on the use of global/low
country cost suppliers
K5
the kinds of risks that can occur when using global/low cost country
suppliers and how to mitigate them
K6
why it is important to consider and compare the advantages and
disadvantages of possible suppliers locally and regionally as well as
globally
K7
what should be considered in developing a plan for the sustainable and
responsible use of global/low cost country suppliers including;
K8
K7.1
fair pricing terms
K7.2
fair payment terms
K7.3
ensuring the application of appropriate employment conditions
organisational procedures for the dissemination and agreement of the
sourcing plan and why it is important to do this
K9
how to monitor the implementation of the sourcing plan and why it is
important to do this
CFAPSU029 Develop and implement a plan for the global sourcing of goods, services or works
148
CFAPSU029
Develop and implement a plan for the global sourcing of goods, services or
works
Additional Information
External Links
CIPS Global Standard:
• Segment 6.9: Developing global sourcing
CFAPSU029 Develop and implement a plan for the global sourcing of goods, services or works
149
CFAPSU029
Develop and implement a plan for the global sourcing of goods, services or
works
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU029
Relevant
occupations
Procurement officer; buyer; manager; senior official
Suite
Procurement and supply
Key words
Global sourcing; low cost country; suppliers; risks; sustainability
CFAPSU029 Develop and implement a plan for the global sourcing of goods, services or works
150
CFAPSU030
Develop and implement a plan for the outsourcing of
work or services
Overview
This standard is about considering the benefits and potential risks to an
organisation of outsourcing work or services. It covers the development of a
risk assessment plan including ways to mitigate identified risks and the
development of an outsourcing plan for work or services. Consideration is also
given to ensuring responsible and sustainable sourcing in the outsourcing
process.
CFAPSU030 Develop and implement a plan for the outsourcing of work or services
151
CFAPSU030
Develop and implement a plan for the outsourcing of work or services
Performance
criteria
You must be able to:
P1
carry out a cost/benefit analysis of outsourcing identified work or services
for the organisation
P2
identify a range of possible suppliers for the outsourced work or services
P3
analyse feedback from internal and external stakeholders on the quality
and capability of possible suppliers to deliver the required work or
services
P4
develop a risk assessment plan for the outsourcing of required work or
services
P5
identify and agree ways to mitigate risks in the outsourcing of work or
services
P6
promote and agree processes to ensure sustainable and responsible
sourcing in the outsourcing of work or services
P7
develop and agree a plan for the outsourcing of required work or
services for the organisation
P8
disseminate the outsourcing plan to internal stakeholders
P9
monitor the implementation of the outsourcing plan to ensure effective
and efficient delivery of outsourced services or works
CFAPSU030 Develop and implement a plan for the outsourcing of work or services
152
CFAPSU030
Develop and implement a plan for the outsourcing of work or services
Knowledge and
understanding
You need to know and
understand:
K1
what should be considered in developing a cost/benefit analysis of the
outsourcing of work or services
K2
how to identify a range of suppliers for the outsourcing of work or
services including off shoring and low cost country sourcing
K3
why it is important to analyse feedback from internal and external
stakeholders and how to do this
K4
why it is important to develop a risk assessment plan for the outsourcing
of work and services and the kinds of risks that should be considered
including:
K4.1
loss of control by the organisation
K4.2
possible increased costs to the organisation
K4.3
failure of the outsourced supplier to meet required quality
criteria
K4.4
failure of the outsourced supplier to meet expected timescales
K5
ways of mitigating risks in the outsourcing process
K6
why it is important to ensure sustainable and responsible sourcing of
work or services and what should be considered including:
K6.1
fair pricing for the supplier
K6.2
fair payment terms for the supplier
K6.3
promoting fair employment standards for the outsourced
labour-force
K7
organisational procedures for developing and agreeing an outsourcing
plan
K8
organisational procedures for disseminating the outsourcing plan to
internal stakeholders
K9
why it is important to monitor the implementation of the outsourcing plan
and ways of doing this
CFAPSU030 Develop and implement a plan for the outsourcing of work or services
153
CFAPSU030
Develop and implement a plan for the outsourcing of work or services
Additional Information
External Links
CIPS Global Standard:
• Segment 6.8: Developing outsourcing
CFAPSU030 Develop and implement a plan for the outsourcing of work or services
154
CFAPSU030
Develop and implement a plan for the outsourcing of work or services
Developed by
Skills CfA
Version number
1
Date approved
December 2014
Indicative review
date
December 2019
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU030
Relevant
occupations
Procurement officer, manager, senior official
Suite
Procurement and supply
Key words
Outsourcing; supplier; cost; benefit; off shoring; low cost country sourcing
CFAPSU030 Develop and implement a plan for the outsourcing of work or services
155
CFAPSU031
Promote and deliver the organisational strategy and
plan for the sustainable sourcing of goods, services or
works
Overview
This standard is about reviewing and assessing the strategy and plan for the
sustainable sourcing of goods, services or works and developing an operational
plan for its implementation.
CFAPSU031 promote and deliver the organisational strategy and plan for the sustainable sourcing of goods, services or works
156
CFAPSU031
Promote and deliver the organisational strategy and plan for the sustainable
sourcing of goods, services or works
Performance
criteria
You must be able to:
P1
review and analyse the organisational strategy and plan for the
sustainable sourcing of goods, services or works and agree an
implementation plan
P2
use appropriate pre-qualification criteria or processes to evaluate
potential suppliers
P3
review information on potential suppliers to inform the selection process
P4
create recommendations for the adoption of an appropriate sourcing
option to meet procurement requirements
P5
work with internal and external stakeholders to create plans for sourcing
processes
P6
develop an operational plan for the sustainable sourcing of goods,
services or works that complies with organisational procedures for
sourcing processes
P7
promote and disseminate the operational plan for sustainable sourcing of
goods, services and works
CFAPSU031 promote and deliver the organisational strategy and plan for the sustainable sourcing of goods, services or works
157
CFAPSU031
Promote and deliver the organisational strategy and plan for the sustainable
sourcing of goods, services or works
Knowledge and
understanding
You need to know and
understand:
K1
why it is important to review and analyse the organisational strategy and
plan for the sustainable sourcing of goods, services or works
K2
the kind of supplier prequalification criteria or processes and why it is
important to evaluate them
K3
the kind of information on potential suppliers that can inform the selection
process and why it is important to review it including:
K3.1
financial reports
K3.2
credit rating
K3.3
commercial and technical capability
K3.4
record of ethical and sustainable employment and delivery
practices
K3.5
K4
profitability, liquidity, gearing and investment
sourcing options that can be used to meet procurement requirements
and when they should be used
K5
the steps that should be included in plans for sourcing processes
K6
why it is important to comply with organisational procedures for sourcing
processes
K7
ways of promoting and disseminating the plan for the sustainable
sourcing of goods, services or works
CFAPSU031 promote and deliver the organisational strategy and plan for the sustainable sourcing of goods, services or works
158
CFAPSU031
Promote and deliver the organisational strategy and plan for the sustainable
sourcing of goods, services or works
Additional Information (Delete any sections not needed)
External Links
CIPS Global Standard:
• Segment 6.7: Strategic sourcing
CFAPSU031 promote and deliver the organisational strategy and plan for the sustainable sourcing of goods, services or works
159
CFAPSU031
Promote and deliver the organisational strategy and plan for the sustainable
sourcing of goods, services or works
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU031
Relevant
occupations
Procurement officer; buyer; contract manager
Suite
Procurement and supply
Key words
Sustainable sourcing; suppliers; pre-qualification criteria; ethical employment;
procurement
CFAPSU031 promote and deliver the organisational strategy and plan for the sustainable sourcing of goods, services or works
160
CFAPSU032
Commission and implement projects to develop systems
technology to improve the efficiency of procurement
and supply
Overview
This standard is about reviewing and evaluating technological systems
internally and across the supply chain to identify potential improvements that
will enhance the efficiency and effectiveness of procurement and supply. It
includes the commissioning of new technologies and evaluating the
effectiveness of their introduction. It also covers the need to maintain an up to
date knowledge and understanding of developments in systems technology
which can be used to improve the efficiency of procurement and supply.
CFAPSU032 Commission and implement projects to develop systems technology to improve the efficiency of procurement
and supply
161
CFAPSU032
Commission and implement projects to develop systems technology to
improve the efficiency of procurement and supply
Performance
criteria
You must be able to:
P1
analyse internal technology systems and systems across the supply
chain to identify opportunities to enhance the efficiency and effectiveness
of procurement and supply
P2
research ways of improving systems internally and across the supply
chain to enhance the efficiency and effectiveness of procurement and
supply
P3
commission projects from appropriate internal and/or external suppliers
to enhance technological systems and improve the efficiency and
effectiveness of procurement and supply
P4
evaluate the impact of the introduction of new technology on the
effectiveness and efficiency of procurement and supply
P5
maintain up to date knowledge of development in systems technology to
enable the identification of new technology that could be introduced to
improve the efficiency and effectiveness of procurement and supply
CFAPSU032 Commission and implement projects to develop systems technology to improve the efficiency of procurement
and supply
162
CFAPSU032
Commission and implement projects to develop systems technology to
improve the efficiency of procurement and supply
Knowledge and
understanding
You need to know and
understand:
K1
K2
developments in systems technology including:
K1.1
intranets and extranets
K1.2
data centre management
K1.3
cloud computing
K1.4
open source software
how to analyse internal technology systems and systems across the
supply chain and why this is important
K3
why it is important to research ways of improving internal systems and
systems across the supply chain
K4
how to commission projects from appropriate suppliers to enhance
technological systems to improve the efficiency and effectiveness of
procurement and supply
K5
the importance of considering internal and external suppliers when
commissioning new technological systems
K6
why it is important to evaluate the impact of new technological systems
and ways of doing this
K7
why it is important to maintain own knowledge of developments in
systems technology, how to do this and how new technology can be
used to improve the efficiency and effectiveness of procurement and
supply
CFAPSU032 Commission and implement projects to develop systems technology to improve the efficiency of procurement
and supply
163
CFAPSU032
Commission and implement projects to develop systems technology to
improve the efficiency of procurement and supply
Additional Information
External Links
CIPS Global Standard:
• Segment 3.3: Developing systems for procurement and supply
• Segment 3.4: Developing the use of technology for effective
procurement and supply chain management
• Segment 3.5: Improving systems capabilities for supply chain
management
CFAPSU032 Commission and implement projects to develop systems technology to improve the efficiency of procurement
and supply
164
CFAPSU032
Commission and implement projects to develop systems technology to
improve the efficiency of procurement and supply
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU032
Relevant
occupations
Procurement officer; manager; senior officials
Suite
Procurement and supply
Key words
Procurement; supply; systems technology
CFAPSU032 Commission and implement projects to develop systems technology to improve the efficiency of procurement
and supply
165
CFAPSU033
Develop and promote the use of systems technology to
improve the efficiency of procurement and supply
Overview
This standard is about reviewing existing technological systems internally and
across the supply systems to identify where they could be used to improve
efficiency and reduce internal costs. It includes working with external
stakeholders and suppliers to achieve better integration of systems to improve
the efficiency of procurement and supply.
CFAPSU033 Develop and promote the use of systems technology to improve the efficiency of procurement and supply
166
CFAPSU033
Develop and promote the use of systems technology to improve the efficiency
of procurement and supply
Performance
criteria
You must be able to:
P1
research the capabilities of internal systems and databases for
procurement and supply to identify areas for improvement
P2
analyse internal data capturing procedures to identify where they can be
improved
P3
review the quality and standard of data integrity in the organisation’s
procurement and supply database systems and identify and recommend
areas for improvement
P4
analyse internal systems and suppliers’ systems to identify and
recommend where improvements can be made through effective
integration of systems
P5
make recommendations to senior management and other stakeholders
on ways of developing and improving the organisation’s systems
technology to improve the efficiency of procurement and supply
P6
maintain up to date knowledge of development in systems technology to
enable the identification of new technology that could be introduced to
improve the efficiency and effectiveness of procurement and supply
CFAPSU033 Develop and promote the use of systems technology to improve the efficiency of procurement and supply
167
CFAPSU033
Develop and promote the use of systems technology to improve the efficiency
of procurement and supply
Knowledge and
understanding
You need to know and
understand:
K1
how to research the capabilities of internal systems and databases for
procurement and supply and why this is important
K2
how to analyse internal data capturing procedures and why this is
important
K3
why it is important to review the quality and standard of data integrity in
the procurement and supply databases and recommend areas for
improvements
K4
the importance of reviewing both internal and systems across the supply
chain to identify ways they can be improved, including through the
effective integration of systems
K5
the importance of advising senior management and other stakeholders
on ways of developing and improving the organisation’s systems
technology to improve the efficiency of procurement and supply
K6
why it is important to maintain own knowledge of developments in
systems technology, how to do this and how new technology can be
used to improve the efficiency and effectiveness of procurement and
supply
CFAPSU033 Develop and promote the use of systems technology to improve the efficiency of procurement and supply
168
CFAPSU033
Develop and promote the use of systems technology to improve the efficiency
of procurement and supply
Additional Information
External Links
CIPS Global Standard:
• Segment 3.2: Using systems for procurement and supply
• Segment 3.3: Developing systems for procurement and supply
CFAPSU033 Develop and promote the use of systems technology to improve the efficiency of procurement and supply
169
CFAPSU033
Develop and promote the use of systems technology to improve the efficiency
of procurement and supply
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01.January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU033
Relevant
occupations
Procurement officer; manager; senior official
Suite
Procurement and supply
Key words
Procurement; supply; systems technology; databases; supply chain
CFAPSU033 Develop and promote the use of systems technology to improve the efficiency of procurement and supply
170
CFAPSU034
Use technology systems for procurement and supply
Overview
This standard is about identifying where the use of technology can support
increased efficiency and effectiveness of procurement and supply. It also
covers the implementation and use of technology systems.
CFAPSU034 Use technology systems for procurement and supply
171
CFAPSU034
Use technology systems for procurement and supply
Performance
criteria
You must be able to:
P1
identify and agree the key tasks required for ordering and other
transactions in procurement and supply, including purchase orders
P2
input data on systems to deliver required key tasks
P3
identify and input data to update systems for controlling the procurement
of goods and services
P4
access and use the internet and/or intranet and extranet to support
effective procurement of goods and services
P5
research information on suppliers using the internet
P6
identify and make use of e-sourcing as required by the organisation
P7
make use of Purchase to Pay (P2P) systems as required by the
organisation
P8
operate systems for inventory control
P9
promote and use appropriate systems for procurement and supply
CFAPSU034 Use technology systems for procurement and supply
172
CFAPSU034
Use technology systems for procurement and supply
Knowledge and
understanding
You need to know and
understand:
K1
the key tasks required for ordering and other transactions in procurement
and supply including purchase orders
K2
how to capture and input data to deliver the required tasks
K3
how to capture and input data to update systems for controlling the
procurement of goods and services
K4
how to access and use the internet and /or intranet and extranet in
procurement and supply and how this contributes to effective
procurement and supply
K5
how to use the internet to research information on suppliers
K6
the use of e-sourcing systems for procurement and supply including:
K7
K6.1
promoting contract opportunities
K6.2
pre-qualifying suppliers
K6.3
receiving and evaluating quotations and tenders
K6.4
e-auctions
the use of P2P systems and their contribution to processes in
procurement and supply including:
K7.1
e-requisitioning
K7.2
e-catalogues
K7.3
e-ordering
K7.4
e invoicing
K8
systems for the control of inventories and how to use them
K9
the use of appropriate systems for procurement and supply activities
CFAPSU034 Use technology systems for procurement and supply
173
CFAPSU034
Use technology systems for procurement and supply
Additional Information
External Links
CIPS Global Standard:
• Segment 3.1 Understanding systems for procurement and supply
• Segment 3.2: Using systems for procurement and supply
CFAPSU034 Use technology systems for procurement and supply
174
CFAPSU034
Use technology systems for procurement and supply
Developed by
Skills CfA
Version number
1
Date approved
01 January 2015
Indicative review
date
01 January 2020
Validity
Current
Status
Original
Originating
organisation
Skills CfA
Original URN
CFAPSU034
Relevant
occupations
Administration and secretarial occupations
Suite
Procurement and supply
Key words
Procurement; supply; technology systems; e-sourcing; P2P; inventory control
CFAPSU034 Use technology systems for procurement and supply
175