Scope and Influence of Procurement and Supply (L4M1)

• Understand and analyse the added value achieved through procurement and supply chain management.
• Understand and analyse the key steps involved in procuring goods and services.
• Understand organisational infrastructure that shapes procurement and supply chain functions.
• Understand and analyse compliance requirements when undertaking procurement activities across different sectors.
• Identify key stakeholders involved in procurement and supply.
• Understand the role of the CIPS Procurement Cycle in sourcing activities.
• Understand how procurement and supply can contribute to organisational value.

1. Added value through procurement and supply chain management

• Definitions of procurement, purchasing and supply.
• Categories of organisational spend.
• Stock and non-stock procurement.
• Direct and indirect procurement.
• Capital purchases and operational expenditure.
• Services procurement.
• The five rights of procurement.
• Total life-cycle cost and total cost of ownership.
• Quality, timescales, quantities and place considerations.
• Innovation, sustainability and market development.
• Value for money.
• Procurement, supply chains, supply chain management and supply chain networks.
• Logistics and materials management.
• Procurement and supply chain stakeholders and stakeholder mapping.

2. Key steps when procuring goods or services

• The CIPS Procurement Cycle.
• Identification of needs through contract award, implementation and end-of-life disposal.
• Pre-contract and post-contract activities.
• Key stages of the sourcing process.
• Defining needs and creating contract terms.
• Supplier selection and contract award.
• Contract and supplier management.
• E-requisitioning, e-catalogues, e-ordering, e-sourcing and e-payment.
• Purchase-to-pay systems.
• Process compliance and achievement of added-value outcomes.

3. Organisational infrastructure influencing procurement and supply

• Corporate governance.
• Conflicts of interest.
• Procurement policies and procedures.
• Organisational accountability and reporting.
• Codes of ethics and the CIPS Code of Conduct.
• Procurement strategies and manuals.
• Delegated authority and responsibilities.
• Centralised, devolved and hybrid procurement structures.
• Consortium, shared-service, lead-buyer and outsourced structures.
• Customer service and value-for-money outcomes.
• Purchase-to-pay and inventory management systems.
• Enterprise Resource Planning (ERP) technologies.
• Internal and external communication systems.

4. Compliance requirements across different sectors

• Public, private, charity, not-for-profit and third-sector organisations.
• Manufacturing, retail, construction, financial, agricultural and service sectors.
• Public-sector procurement objectives and regulations.
• Competition, public accountability and value for money.
• Private-sector objectives including profitability, market share and shareholder value.
• Private-sector procurement regulations and branding.
• Not-for-profit and third-sector objectives.
• Regulatory requirements affecting charities and procurement activities.

20 days

Certification: CIPS Level 4 Diploma in Procurement and Supply – Scope and Influence of Procurement and Supply (L4M1)

Duration: 3 hours

Questions: 4 questions

• Individuals planning a career in procurement and supply.
• CIPS students studying the Level 4 Diploma.
• Learners who have completed the CIPS Level 3 Advanced Certificate.
• Professionals in operational procurement and supply roles.
• Individuals managing or supervising procurement and supply functions.
• Professionals seeking progression towards MCIPS.

• A minimum of two A-levels or international equivalent, or a CIPS Level 3 Advanced Certificate qualification.
• Alternatively, a minimum of two years' relevant experience in a business environment.
• Koenig Solutions states that its L4M1 training has no formal entry requirement and recommends a basic understanding of how supply chains work.