L3M2

CIPS CIPS Level 3 Advanced Certificate in Procurement and Supply Operations L3M2

Product Description

Exam Code:L3M2

Exam Name:Ethical Procurement and Supply

Q&A:90 Q&As

Updated: 04-26-2024

Number:        

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Ethical Procurement and Supply (L3M2)

Module purpose

On completion of this module, learners will be able to identify the significance of ethics for procurement and supply and define each stage of the sourcing process, explaining how operational performance can be measured and improved in support of added value operations.

Module aim(s)

The significant impact on reputation and customer perception mean that ethics and responsible procurement should be at the heart of all organisational procurement and supply activity. A successful organisation will strive to add value at every stage of its operations and will seek ways to measure and improve performance. This module is designed for those responsible for the application of ethical codes of conduct on the procurement and supply operation and who are expected to know how to address potential conflicts of interest. They must also define tasks associated with each stage of the sourcing process and identify the techniques available to achieve added value, recognising how operational performance can be measured and improved.

Learning outcomes

1.0 Know techniques that can achieve added value and its contribution to organisational success
1.1 Explain how to use techniques to obtain supplies to the purchaser’s requirements
Defining sources of added value
Defining value for money
Applying the five rights to procurements of both products and services
Discuss the concept of life time costs
1.2  Identify the contribution that value for money has to make to organisational success 
Efficiency
Effectiveness
Economies of scale vs. quality of product/service
Value engineering
Value analysis
1.3  Explain how to use techniques that are available to achieve quality supplies 
Defining quality
Quality standards, processes and procedures
The use of quality assurance
The concept of zero defects
Assessing quality of supplies of products and services
1.4  Identify techniques to secure required quantities within required timescales 
Internal, external and total lead time
Expediting and measuring delivery performance
Planning milestones and activities
The use of scheduling
Inventories and their costs
1.5  Identify value for money criteria 
Pricing/costs
Delivered quality
Timescales, quantities and location requirements
Measuring the achievement of quality and timescales
Evaluate data to measure and improve the performance of external suppliers
2.0  Know tasks associated with each stage of the sourcing process
2.1  Describe how procurement needs are established
Liaison with users and customers and understanding their commercial needs
Reviewing needs from customers
The make or buy decision
Definitions of specifications
2.2  Identify criteria that should be applied in creating specifications
The importance of specifications in contracts with external customers and suppliers
Creating specifications for products and services
Conformance and output or outcome based approaches to developing specifications
The role of Key Performance Indicators (KPIs)
2.3  Describe approaches to the sourcing of supplies
Surveying the market
Supplier appraisal
Inviting quotations and tenders
Assessing quotations and tenders
The use of e-sourcing technologies
Measuring supplier performance
2.4  Describe approaches to the formation of agreements with external organisations
Dealing with queries and clarifications
Ensuring transparency and fairness with suppliers
Mistakes and second bids in tenders
The use of reverse auctions/e-auctions
Forming agreements with customers and suppliers
Transition and mobilisation arrangements
3.0  Understand the significance of ethics for procurement and supply
3.1  Explain the importance of the CIPS Code of Conduct in procurement and supply
Enhancing and protecting the standing of the profession
Maintaining the highest standard of integrity in all business relationships
Promoting the eradication of unethical business relationships
Enhancing the proficiency and stature of the profession
Ensuring compliance with laws and regulations
3.2  Describe the use of codes of ethics in procurement and supply
The importance and role of codes of ethics
Monitor the work of stakeholders to ensure that codes of ethics are upheld
How to deal with and escalate to senior management any suspected breaches of codes of ethics
3.3  Explain the conflicts of interest that can exist in the work of procurement and supply and how to deal with them
Identifying potential conflicts of interest
How to address potential conflicts of interest
How to ensure that ethical practices are maintained and prioritised
4.0  Understand how operational performance of the procurement and supply function can be measured and improved
4.1  Recognise the importance of delivering customer service and how to improve
Methods to evaluate customer service and stakeholder satisfaction
How to develop action plans to improve performance
4.2  Explain ways to measure cycle times for the sourcing process
Methods to evaluate the timescales for sourcing processes
How to identify the causes of delays and take appropriate actions to reduce timescales when required
4.3  Explain methods to assess the performance of and control budgets
Methods to analyse departmental budgets and evaluate the reasons for variances between forecasted and actual expenditures
Define methods and actions to mitigate future variances

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