CIPS Level 3


CIPS L3M1 Procurement and Supply Environments Assignment

CIPS L3M1 Procurement and Supply Environments Assignment Sample UAE

Procurement and supply is a crucial function of any organisation. The procurement professionals must be aware that they have many different types of stakeholders to contend with–both public sector as well private organizations in not-for-profit sectors, which can all bring unique demands on an organization’s resources at different times. This module was created for those who work within this area, giving them insight into how their decisions affect others throughout the business while making sure they still meet overall needs successfully through careful consideration before taking action.

The module begins with a look at the typical role of a procurement and supply professional as well as an overview of the different functions that they may be required to undertake such as vetting, tendering, supplier diversity and evaluation. It then goes on to describe how those in this position can go about meeting their own personal development needs or those of others within the procurement and supply function.


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Later sections detail the business development tools and techniques required for effective supplier management, while also demonstrating how training needs analysis can be used to support these efforts, making sure that both you and your organization get maximum benefit.

Get Assignment Solution Of L3M1 Procurement and Supply Environments CIPS Module

Get Assignment Solution Of L3M1 Procurement and Supply Environments CIPS Module. Procurement and supply environments can be a challenge for any company. This module provides you with the tools that will help, including an overview of what they are all about!

Assignment Task 1: Define the different types and functions of the private sector

There are a few different types of private sector businesses, the most common of which are sole traders, partnerships, registered companies, SMEs, MNC,  incorporated and unincorporated companies.

  • Sole traders are individuals who run a business by themselves. There is no legal distinction between the business and the individual owner, and so both are responsible for all the debts and liabilities of the business. This type of business is quite common in countries like India and Argentina.
  • Partnerships are businesses owned by two or more people. Like sole traders, there is no legal distinction between the partnership and its owners, and all partners are jointly responsible for the debts and liabilities of the partnership. This type of business is quite common in countries like Australia and Canada.
  • Registered companies are businesses owned by one or more people but with a legal distinction between the business and its owners. The company itself is responsible for all debts and liabilities, while the company’s owners (the shareholders) are not liable for the company’s debts unless they were incurred due to illegal activity on their part. This type of business is quite common in countries like Luxembourg, UK and the US.
  • SMEs are small businesses that have between 10-250 employees. SME owners are personally responsible for all debts of the business unless they were incurred due to illegal activity on their part. This type of business is quite common in countries like Brazil and Japan.
  • Multinational corporations (MNCs), are businesses that have employees in multiple countries. MNC owners may be personally liable for the debts of their business if they were incurred due to illegal activity on their part, but usually the business itself is a separate legal entity from its owners. This type of business is quite common in countries like China, Germany and France.
  • Incorporated company is a legal distinction that can be made between the company and its owners, depending on which country you are in. This type of business is quite common in countries like Mauritius.
  • Unincorporated companies are businesses whose owners have no legal distinction from their business. This type of business is quite common in developing countries like Zimbabwe.

The private sector is a sector of the economy that is run by profit-seeking businesses and organizations. These businesses and organizations are typically called “private companies”. The main aim of a private company is to grow, increase market share, and make profits. They also try to increase their share price (the value of their stock). To achieve all these things, they usually focus on financial measures such as revenue, earnings per share, and free cash flow.

Assignment Task 2: Describe the role and scope of procurement and supply in the private sector

Procurement and supply is responsible for acquiring goods and services required by a company in an efficient and cost-effective manner. It encompasses activities such as supplier management, contract negotiations, purchasing, and inventory control.

The goal of procurement and supply is to ensure that the company has the necessary resources to conduct its business while minimizing costs. This can be a challenge, as suppliers are often not willing to sell at the lowest possible price. Procurement and supply must therefore be skilled at negotiations and managing supplier relationships in order to get the best deals possible.

In addition, procurement and supply must also be prepared for unexpected events such as shortages or price spikes. This requires careful planning and coordination so that the company can continue to operate effectively if a delivery does not arrive on schedule.

Assignment Task 3: Describe the role and scope of procurement and supply in the public sector

Public sector procurement usually starts with a need or requirement for goods, services, construction, technology or Commonwealth property. Needs are determined during the program’s developmental life cycle by the government agency that anticipates using the product or service. To help establish what requirements are needed to fulfill that need, there is often consultation with suppliers through one of these avenues:

The Federal Government of Canada has established some general guidelines in terms of how they prefer to deal with suppliers on their behalf. The major thing to note is they want vendors who have more experience providing products and services “that will be used in large volumes.” 


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This means they want their vendors to have “a long history delivering high-performance products and services even when encountering operational challenges, and be able to bring competitive prices.

Assignment Task 4: Describe the role and scope of procurement and supply in the not-for-profit and third sector

The role of procurement and supply in not-for-profit and third sectors is to streamline the buying process, often through improved efficiencies such as bulk purchasing or improved product quality.

  • Reduce exceptions: Procurement and sourcing can help reduce allocative inefficiencies associated with implementing the planned purchases. A tendency for some nonprofit organizations goes towards an overly permissive culture where they find it difficult to say “no” (to a purchase that may lead them over budget). 
  • Sourcing other services: Outsourced materials management, outsourced logistics firms can provide significant savings over time by identifying other providers for labor involved. Services should be matched up against other materials that are routinely procured, then transferred across to other units within the organization.
  • Utilize established relationships: The ability to negotiate on the part of the purchasing department is an essential skill when it comes to getting a good deal for your organization’s money. It goes without saying that larger contracts often have greater economies of scale which in turn can benefit the non-profit. 
  • Concentrate on your core competency: As an organization you should be able to do the best job in the areas that you are directly accountable for. This means cutting out any unnecessary costs or processes, particularly if it is only creating extra work for others. 
  • Reviewing budgets: A healthy financial environment for an organization is one that has a clear understanding of all costs associated with each unit within the non-profit. This can be achieved by tracking expenses more closely, identifying wasteful spending and controlling it to meet the organization’s budget.
  • Collecting debts: With any organization there will be constant changes in its running costs, but this should never compromise its ability to collect on overdue invoices. A non-profit may need to make sure that appropriate procedures are put into place for chasing up overdue fees, while at the same time ensuring that it is using all options to reduce its exposure to risk.
  • Forecasting income: By working out expected income, organizations can better manage cash flow and take advantage of opportunities as they arise. This should mean that the organization is constantly looking ahead. Working with forecasts allows an organization to plan their cash flow more effectively– setting money aside when cash flow is strong and preparing for potential future expenditure.
  • Cashflow: The ever changing financial environment means that an organization needs to be able to adapt in response, having a clear understanding of their net position can offer insights into whether or not they are prepared for the business ahead.
  • Monitoring stock levels: It is essential for an organization to have ready access to all of the items that they are purchasing, particularly where there are high value goods involved. The procurement process should allow them to determine their inventory levels by product, thereby allowing an accurate assessment of what is available and what might be required in the future.

Assignment Task 5: Explain how pricing arrangements are used in commercial agreements to ensure effective price and cost management

Commercial agreements are an intrinsic aspect of the business process, and the need to maximize gains while minimizing losses is more of a given than elaborated on. A discount agreement, for example, is more of a matter-of-fact detail rather than an elaborate strategy – it’s inherent in buying at wholesale prices or bidding for projects that involve undercutting competitors by offering discounts over what they charge.

Effective pricing management involves cost management through maintaining lean production facilities with efficient machinery and improving product quality through intensive research efforts worldwide. All these activities require consideration when establishing commercial price points in order to maximize revenue margins and minimize losses due to unsold inventory, wasted manpower and operational expenditure during marketing campaigns.

Assignment Task 6: Identify the impact of the external environment on procurement and supply 

The external environment can have a significant impact on procurement and supply. For example, natural disasters can disrupt the supply of goods and services, while political instability can lead to higher prices or create problems with transport and distribution.

In addition, changes in consumer demand can have a major effect on what gets procured and how much stock is kept on hand. For example, if there is a sudden increase in demand for a particular product, suppliers will be more likely to increase their production levels to meet the increased demand. On the other hand, if there is a sudden decrease in demand for a product, suppliers will be more likely to reduce their production levels or even stop producing the product altogether.


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Assignment Task 7: Describe how the implications of economic criteria impact on procurement and supply

One of the most important factors that affects procurement and supply is the availability of financial resources. When a company has limited funds, it must carefully consider how to allocate them in order to get the most value for its money. This may mean limiting purchases to essential items or procuring goods and services from less expensive suppliers.

In addition, economic conditions can affect demand for a company’s products or services. For example, when the economy is weak, people may be less likely to spend money on luxury items. As a result, a company may have to reduce its prices or offer discounts in order to sell its products. Conversely, when the economy is strong, people may be more likely to spend money on luxury items, which could lead to increased sales prices.

Assignment Task 8: Describe how the implications of political and legislative criteria that impact on procurement and supply

The implications of political and legislative criteria that impact procurement and supply can be detrimental to an organization because these politically charged decisions, often made at the leadership level, many not make good resource management decisions. These strategies are often contingent on political motives or strategic initiatives outside of the organization, making them volatile to change. Driving motivation during market development is necessary; however, this means different things for different organizations based on their organizational goals. 

To conclude, it should be said that political mandates like legislation restrictions do not necessarily reflect the best practices in procurement strategy for any business. The negative impacts can include increased costs due to higher bidding prices for lower quality inputs; increased lead time; offsetting opportunities through other suppliers who may provide better value; and increased risk of operations failure.

Assignment Task 9: Describe how the implications of environmental and ethical criteria impact on procurement and supply

One of the most important ways businesses can reduce their environmental impact is by making procurement and supply decisions that take ethical and environmental criteria into account. For example, a business might decide to source paper from a supplier that practices sustainable forestry, or to buy energy from a supplier that produces renewable energy.

There are a number of environmental and ethical assessment frameworks available to help businesses make these types of decisions. The most well-known of these is the Environmental Protection Agency’s (EPA) Green Power Partnership, which helps businesses identify and procure renewable energy. Other frameworks include the Forest Stewardship Council’s (FSC) Chain-of-Custody standard for forest products, and the Marine Stewardship Council’s (MSC) certification standard for sustainable fisheries. As regards to ethical factors, the Global Reporting Initiative (GRI) supplies an internationally accepted G4 Social and Governance reporting framework, which is used by businesses that wish to disclose information about their social and environmental performance.

Assignment Task 10: Describe how the implications of social criteria impact on procurement and supply 

The implication of social criteria can dramatically impact supply and procurement. This is because depending on the social criterion, the company may avoid countries which contain a lot of children who might not be able to work in factories overnight. Sometimes orphanages will offer these children food and shelter in exchange for staying in the orphanage and working in a factory all night if they’re old enough to work legally


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The company may also avoid countries where they believe that the people living there do not have adequate access to water or food if their labor involvement impacts how much food they need or when they need it (labor influences when and how often sufficient drinking water is consumed). They may also reject possible suppliers if their labor force does something illegal like participate in human trafficking.

Assignment Task 11: Describe the types of documentation used in procurement and supply

There are many types of documentation used in procurement and supply. The most common are requisitions, orders, delivery notes, and invoices.

  • Requisitions are requests for goods or services. They may be issued by an individual or a department and must include the following information: nature of the request, quantity, description of the items requested, unit price, shipping date, and terms of payment.
  • Orders are documents that authorize the purchase of goods or services. They must include the following information: the name and address of the supplier, description of items ordered, quantities, unit prices, shipping date and terms of payment.
  • Delivery notes document receipt of goods at destination. They must include the following information: supplier information, purchaser information, date of shipment, waybill number, carrier name, shipping marks and numbers, dimensions of goods received and signature of receiving personnel.
  • Invoices are documents submitted by the supplier to request payment for goods supplied. They must include the following information: names and addresses of vendor and buyer, items purchased including quantities and unit prices, extended price, freight charges and taxes.

Assignment Task 12: Explain how documented policies and procedures are used within procurement and supply

In order to ensure that the procurement and supply of goods and services is conducted in an efficient, effective, and equitable manner, many organizations have documented policies and procedures.

Policies are general rules that indicate the organization’s stance on certain matters and provide guidance on how specific situations should be handled. Procedures are step-by-step instructions that detail how a particular task or process should be carried out. They typically include information on who should carry out the task or process, what resources are needed, and any associated timelines.

Both policies and procedures can be helpful in ensuring that decisions are made consistently and in a timely manner. They can also help to protect the organization from potential legal issues by specifying exactly what is expected of employees.


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