Version 2.

0 – Published 2015

Global
Standard for
Procurement
and Supply
Welcome What’s in this guide?

Introduction
04 The Global Standard for
Procurement and Supply

to the CIPS 06 The benefits of working

with the Standard
07 Putting the Standard into
Global Standard for practice

Procurement and Supply

Using the Global Standard
08 How the Global Standard for
Procurement and Supply is
structured
Examples and case studies
10 Enhancing organisational
The Global Standard for Procurement and Supply is a Performance
comprehensive competency framework that can help 12 Enhancing personal
individuals and teams within organisations to understand performance and career
the intrinsic value that good practice will bring to their progression prospects
14 Enhancing procurement
strategic goals. By updating the Standard annually it
knowledge and capabilities
remains relevant, up-to-date and reflects the for non-procurement
competencies required for the profession in the ever professionals in SMEs
changing business environment.
Job designs
Building on the original work of the first Standard, the 2015 annual review 16 Procurement administrator
has led to introducing new content as well as updating current content. The 18 Senior buyer
review panel consisted of practitioners and academics representing the
21 Group procurement director
diverse sectors from across the world so that it remains relevant to the
global procurement community. INFRASTRUCTURE
*Examples of some of the content that has been introduced or updated 24 1. Position and Influence
include: Big data analytics for predicting the future, Counterfeit goods, Cross 32 2. External Environment
border risk, Cyber security, Emotional intelligence, Origination and 40 3. Technology
certification of products, Applying market shaping principles, Using social
media in sourcing and Sourcing criteria that ensure the inclusion of
PROCESS
sustainability/ethical procurement. 46 4. Spend Management
55 5. Contracting
This Standard offers consistency in behaviours and improves the knowledge 59 6. Sourcing
of what excellence should look like in supply chain practice. These are the
building blocks on which business can stand and succeed, and I urge boards, PERFORMANCE
CEOs and stakeholders to keep this free resource to hand to understand the 67 7. Delivering Outcomes
value of the profession and its importance and sphere of influence. 74 8. Metrics and Measurement
This is a much-needed resource if we are to approach the new age of PEOPLE DEVELOPMENT
procurement and supply management with confidence and rigour. 79 9. Developing Teams and
10. Individuals
87 10. Developing Self and
10. Personal Skills
92 11. Ethics
David Noble, Group CEO, CIPS
[Link] *A full list of changes is available at: [Link]/global-standard
Online tool...
Global Standard for Procurement and Supply

Step1: Choose a Level

Choose a Level

Tactical

...giving you the Operational

Managerial

Standard at your
Professional

Advanced professional

finger tips.

Developing and planning your professional development journey couldn’t be easier

go to [Link]/careers and follow the simple steps as illustrated below.

Step 1 Step 2
Choose your level Choose a theme
of competency

Step 3 Step 4
Choose a Review your
segment from chosen segment
the theme and follow the
related links to CIPS
Knowledge, tools
and resources to
help fill your
knowledge and
skills gap.

TIP: You can navigate BACK to each step at any time

by using the step menu at the top of the page.
03
 The Global
Standard for
Procurement
and Supply
A comprehensive competency framework
to enhance individuals’ procurement performance
leading to excellent organisational performance.

CIPS is the worldwide centre of excellence for procurement and supply

management, acting as the voice of the profession and driving the
development of ever-improving standards.

As part of this, we have established the Global • strategic responsibility for ensuring the
Standard for Procurement and Supply, which procurement function complements and
sets out the skills and abilities required for enhances the overall goals of the organisation
each of the five levels of procurement • no full-time responsibility for procurement,
competency we have identified, from Tactical either because they work in an enterprise
through to Advanced Professional. It can be with no dedicated procurement function or
used to identify the performance level of any because their job role encompasses other
individual, anywhere in the world, who has a responsibilities, such as administration,
responsibility for procurement full time or as project support or finance assistance.
part of their job role, including those with:
By identifying individual competency levels, the
• day-to-day responsibility for managing the Standard enables you to assess how efficiently,
procurement function within an effectively and ethically you or your organisation
organisation are carrying out procurement.

[Link]
For private sector organisations
...measuring your procurement teams against the Standard can
help you to improve organisational performance, in terms of
cost-effectiveness, compliance with ethical best practice and
legislation, and the reputation of procurement in itself with
internal senior managers, board members, suppliers, customers
and competitors.

For public sector organisations

...the Standard supports the cost-effective and efficient use of
funds that is so important for public servants, government
ministers and members of the general public, who are anxious
to see ethical and good use of public money.

For individuals
...measuring your own skills and abilities against the
competency levels in the Standard helps you to identify
development needs, build specialist skills levels, prepare for
performance management or appraisal interviews and plan
your own career development programme.

Go online [Link]/careers

05
 The
benefits
of working with the
Global Standard for
Procurement and Supply
The Global Standard for Procurement and Supply is a point of reference for
organisations and individuals to measure their own performance levels in
the field of procurement and supply. It is an objective framework that can
offer a wealth of benefits, including those highlighted briefly here.

ENHANCE YOUR ORGANISATIONAL ENHANCE PERSONAL PERFORMANCE

PERFORMANCE

The Standard can be used to help you The Standard can help you to identify the competency level
produce a detailed analysis by benchmarking you are currently operating at, and the skills and abilities
your procurement professionals against the you need to move onto the next stage of your career;
knowledge and competencies. It identifies particularly useful during appraisals. It enables you to:
gaps in team capability and corresponding • Develop and agree a personal development plan to
development needs. It therefore enables address the gaps identified in your knowledge and
you to: capabilities
• Deliver your procurement team • Implement the plan, including training, job shadowing
development plan cost effectively, making and mentoring opportunities
significant savings • Continue to monitor your progress against the plan, by
• Put in place cost-effective, targeted referring back to the Standard to assess improvement.
training and development to plug gaps
and meet organisational needs
• Build a cadre of well-trained and INFORM YOUR PROCUREMENT JOB
motivated staff, reducing turnover and DESCRIPTIONS, ADVERTISING AND APPRAISALS
making associated cost savings
• Provide objective and measurable
evidence of effective management in the Within each of the five levels of competency described in
procurement function to senior the Standard - Tactical, Operational, Managerial,
managers, the board and shareholders Professional and Advanced Professional - we have
• Influence and improve ethical practices in provided detailed sample job designs. These enable you
the supply chain through implementing to see exactly what capabilities an individual should have
ethical procurement policies and practices at each competency level, providing invaluable guidance
across your organisation. in preparing job advertisements, writing your own job
descriptions and carrying out appraisals.

Sample job designs available at [Link]/careers

[Link]
Putting the

Standard
practice
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0005 #)+5(*! 9=

The Global Standard for Procurement and Supply can play

a major part in assisting an individual to complete their
Continuing Professional Development. There are benefits not only for
individuals but also the organisation. It helps to identify the knowledge
and competencies needed to achieve procurement career goals and those
required to deliver sustained business success within an organisation
KEVIN HICKMAN
HEAD OF EDUCATION DEVELOPMENT AND STANDARDS, CIPS

Use the Standard online [Link]/careers

07
How the
Global Standard
for Procurement and
Supply is structured
The Global Standard for Procurement and Supply provides a comprehensive and objective
framework that you can refer to when assessing individual and organisational development
needs in terms of procurement. It identifies the knowledge and capabilities that individuals
carrying out procurement activities should have at each of the five levels of competency.

THE FIVE LEVELS OF COMPETENCY

These represent the core skills and tasks that individuals should be capable of within
each theme. Through each pillar there are five levels of competency.

Tactical Operational Managerial Professional Advanced

Professional
Applies key tasks Provides advice and Develops, improves Formulates direction Leads procurement
associated with the guidance to key and fulfils and advice, manages teams within an
work of procurement stakeholders on the organisational and change, and leads and organisation and
and supply. performance of functional objectives influences both influences the board
organisational in procurement internal and external to adopt leading-edge
Typical job roles
procedures and and supply. stakeholders in procurement
Administrative
processes connected procurement strategies and
Assistant, Purchasing Typical job roles
with procurement and supply. establish best
Assistant, Contracts Senior Buyer, Chief
and supply. practice. Influences
Administrator, Stock Buyer, Category Typical job roles
supply markets
Controller, Inventory Typical job roles Manager, Contract Strategic Procurement
with innovative
Planner, Assistant Buyer, Procurement Manager, Contract Manager, Senior
sourcing solutions.
Buyer and Assistant Executive, Officer, Logistics Category Manager,
Contracts Officer. Procurement Manager and Supply Supply Chain Typical job roles
Specialist, Contracting Chain Executive. Manager, Head of Procurement Director,
Officer, Supply Chain Logistics and Supply Chain Director,
Analyst, Logistics Operations Manager. Commercial Director,
Analyst and Supply Head of Sourcing,
Chain Planner. Chief Procurement
Officer.

[Link]
 THE FOUR PILLARS

These represent the essential areas for effective

procurement and supply. 9
DEVELOPING
INDIVIDUALS AND
TEAMS

10
DEVELOPING SELF AND
PERSONAL SKILLS
7
DELIVERING
OUTCOMES 11
ETHICS

4
SPEND
MANAGEMENT 8
METRICS AND
MEASUREMENT
5 PEOPLE DEVELOPMENT
1 CONTRACTING PILLAR
POSITION
AND INFLUENCE
6
2 SOURCING PERFORMANCE PILLAR
EXTERNAL
ENVIRONMENT
ELEVEN THEMES
3 Within each pillar there are
TECHNOLOGY PROCESS PILLAR
themes which can be further
divided into segments of
knowledge and capability.
INFRASTRUCTURE PILLAR

Creating a personal development plan couldn’t be easier: go to

[Link]/careers and follow the simple steps as illustrated below.
Step 1 Step 2
Choose your level Choose a theme
of competency

Step 3 Step 4
Choose a segment Review your chosen
from the theme segment and follow
selected the related links to
CIPS Knowledge,
tools and
resources.

Use the Standard online [Link]/careers

09
Enhancing EXAMPLE

organisational
performance
How large, multi-national
organisations can use the
Global Standard
…for Procurement and Supply to improve the cost
effectiveness and efficiency to achieve overall
organisational strategic and operational objectives.

QUESTIONS TO ACTIONS
CONSIDER

What are your... 1 Produce a detailed analysis of what needs to be included in

...organisation’s short, medium and long-term your procurement plan. Include financial constraints,
aims and objectives and how do you require the timescales, sustainability of sources, competitive tendering
procurement and supply function to help
and how that process should be managed, monitored,
achieve them?
delivered and assessed whilst minimising risks.
What are the external factors... 2 Support members of the procurement team to constructively
...that could impact on the procurement function ‘benchmark’ their knowledge and capabilities against the
that need to be considered when developing your Standard. Encourage every team member to honestly assess
procurement plan, e.g. sustainability, their capabilities.
political/cultural impacts, ethical procurement
considerations? 3 Use the Standard to develop a knowledge and capability
profile for the team and map this against the skills mix
What is the current skills... requirement to enable successful delivery of the procurement
...and capability mix within your procurement process. Identify any gaps in team capability. An example team
team? knowledge and capability profile is shown in the table opposite.
How should they develop... 4 Support the development of team members where required to
...to support the achievement of your ensure that an appropriate knowledge/capabilities mix is
procurement plan? available to deliver the desired requirements.

[Link]
 EXAMPLE TEAM KNOWLEDGE AND CAPABILITY PROFILE

THEMES TACTICAL OPERATIONAL MANAGERIAL PROFESSIONAL ADVANCED

1 Position and Level achieved Level achieved Level achieved Level achieved Level achieved
INFRASTRUCTURE PILLAR

INFRASTRUCTURE PILLAR
Influence

2 External Level achieved Level achieved Level achieved Further area of Level achieved
Environment development in 2.6

3 Technology Level achieved Level achieved Further area of Level achieved Further area of
development in 3.3 development in 3.6

4 Spend Level achieved Level achieved Level achieved Level achieved Level achieved
Management
PROCESS PILLAR

PROCESS PILLAR
5 Contracting Level achieved Level achieved Further area of Level achieved Level achieved
development in 5.5

6 Sourcing Level achieved Further area of Level achieved Level achieved

development in 6.6
PERFORMANCE PILLAR

PERFORMANCE PILLAR
7 Delivering All segments need Further Level achieved Level achieved Level achieved
Outcomes development for development in 7.6
team members at
this level

8 Metrics and Further Level achieved Further Level achieved Level achieved
Measurement understanding in development on
8.1 8.4

9 Developing Level achieved 9.3. Not fully 9.4. Level achieved Level achieved 9.9. Level achieved.
Teams and understood at this 9.10. Not fully
Individuals level understood or
PEOPLE DEVELOPMENT PILLAR

PEOPLE DEVELOPMENT PILLAR

implemented well
at this level

10 Developing Self Fully covered Fully covered Fully covered Fully covered Fully covered
and Personal capability, capability, capability, capability, capability,
Skills assessment and assessment and assessment and assessment and assessment and
benchmarking to benchmarking to benchmarking to benchmarking to benchmarking to
the Standard the Standard the Standard the Standard the Standard

11 Ethics 11.1 Not fully 11.2. Ethics level Not fully Level achieved Level achieved
understood at this achieved. 11.3. Not understood or
level fully understood or implemented at
implemented at this this level
level

THEMES TACTICAL OPERATIONAL MANAGERIAL PROFESSIONAL ADVANCED

POSITIVE OUTCOMES FOR YOUR ORGANISATION

1 Achieve savings through cost-effective delivery of your 4 Provide evidence of effective management in the procurement
procurement plan. function to senior managers, the board and stakeholders.
2 Meet organisational and individual training needs through cost- 5 Influence and improve practices in the supply chain through
effective, targeted training and development. implementing procurement policies and practices that apply
3 Increase staff retention and make associated cost savings. across the organisation.

11
 CASE
STUDY Enhancing
personal performance
andcareer progression
prospects
How the Standard
can be used...
…by individuals working in
procurement and supply to improve
their performance in the workplace
and achieve their career ambitions,
providing additional benefits
for the organisation.

SCENARIO ACTIONS

You are a member... 1 Develop and agree a personal development plan (PDP) to
...of a procurement team in a large address identified gaps in current knowledge and capabilities.
company working at managerial level with This should also include an identification of any barriers to
a focus on contract design and contract the development process and actions to mitigate their effect.
management, including risk assessment. 2 Take steps to implement the development process including,
During your performance where appropriate, registering for the appropriate CIPS
management/appraisal report, you qualification to enhance professional development and
received feedback on areas requiring potential career development prospects. This could include
improvement, as well as areas of identifying opportunities for job shadowing and/or mentoring
competence needed for the next stage of support in specific development areas as well as self-study
your career. The company has used the around the knowledge acquisition.
CIPS Global Standard for Procurement and 3 Monitor progress against the PDP, taking steps to address any
Supply as a benchmark of best practice, shortfalls in progress.
matching each team member’s job
description to the appropriate segments
from the Standard.

[Link]
 Your appraisal report identified the following areas for improvement and development:

THEMES KNOWLEDGE DEVELOPMENT REQUIRED CAPABILITY DEVELOPMENT REQUIREMENT

5. CONTRACTING Legal issues relating to the formation of Analyse and explain to colleagues and other stakeholders the
contracts or suppliers relating to offers, legal and commercial implications that relate to the formation of
5.5 Managing counter offers, acceptance and other contracts
contractual risks issues

The main methods for dispute Evaluate appropriate methods to resolve disputes and take
resolution actions to resolve disputes

6. SOURCING Negotiation in relation to the sourcing Negotiate with suppliers and other stakeholders to promote
PROCESS PILLAR

PROCESS PILLAR
process, dealing with conflict with effective procurement in the stages of a sourcing process taking
6.6 Effective suppliers and other stakeholders steps to overcome conflict and challenges with suppliers and
negotiation in other stakeholders
procurement
and supply The types of approaches that can be Evaluate the range of approaches that can be used in commercial
pursued in commercial negotiations negotiations and identify when it is appropriate to use them

Creating the right environment for a Create the right environment for a commercial negotiation
commercial negotiation

Behavioural aspects of negotiation Demonstrate effective behaviours in conducting commercial

negotiations that will help generate positive outcomes for the
organisation

8. METRICS AND The development of risk assessment Create risk assessments, risk registers or other risk evaluation
MEASUREMENT tools tools and agree actions to mitigate risks with suppliers and other
stakeholders
8.4 Managing risks
in procurement Measuring risks in procurement and Compile risk assessments, risk registers or other risk evaluation
and supply supply tools for projects and agree actions to with suppliers and other
PERFORMANCE PILLAR

PERFORMANCE PILLAR
stakeholders to allocate or share risks to avoid claims, variations
or disruptions

Collating and analysing data and Compile qualitative and quantitative data to measure risks in the
statistics in procurement and supply procurement of goods or services and take action to reduce the
and actions to mitigate their impact probability and impact of the risks

The monitoring and control of projects Use project monitoring and control processes or systems to
in procurement and supply ensure the delivery of quality, cost or timescales for projects in
procurement and supply

The monitoring and control of Devise and monitor KPIs for sustainability with suppliers and take
sustainability in procurement and supply appropriate actions to ensure delivery to agreed standards

POSITIVE OUTCOMES FOR THE INDIVIDUAL POSITIVE OUTCOMES FOR THE ORGANISATION

1 Use the Standard as an objective and constructive 1 More effective and efficient contract design and
means of measuring existing performance against risk assessment within the procurement function.
industry benchmarks, providing a supportive 2 Better-trained and motivated staff member making
framework around which to focus personal an effective contribution to the procurement team.
development activities.
2 Improve performance at work resulting in better
motivation and job satisfaction.
3 Enhance career prospects both within your current
organisation and in the wider procurement
environment.
Download a copy from [Link]/careers

13
 Enhancing CASE
STUDY

procurement knowledge
and capabilities for
non-procurement
professionals in SMEs
By their very nature,
...SMEs are unlikely to support a dedicated
procurement function, but there will be a need
within the organisation for an understanding of
best procurement practice.

SCENARIO ACTIONS

1 The company is a small production company 1 Agree who will take responsibility for the key
that needs to source product materials procurement activities within the organisation. This may
through a sustainable supply chain. be a ‘split’ responsibility with the CEO having ultimate
2 The company may wish to outsource some of responsibility for final decisions but with day-to-day
its internal services, such as payroll, and needs contract management being devolved to
to understand the cost/benefits of a potential operational/managerial level.
outsourcing process. 2 Use the Standard to identify what knowledge and
3 The company may be a supplier to another capability segment mix is required for the efficient and
organisation and needs to be able to cost-effective running of procurement activities. An
understand the tendering and contracting example is provided for a CEO and the procurement
process in order to meet the client’s needs member of staff. It is important to note that in such a
effectively while maintaining the integrity and scenario, the segments may come from different levels in
sustainability of their own company. the Standard because the SME does not have a
3 The company wishes to ensure that its structured and hierarchical procurement function.
procurement practices reflect industry best 3 Carry out a realistic needs analysis based on the
practice and ensure compliance with all legal capabilities required to fullfil the organisations objectives.
and ethical requirements.

[Link]
 Sample capability assessment for an SME acting as both a customer, i.e. needing to source supplies, and a supplier

JOB ROLE GLOBAL STANDARD SEGMENT

CEO (part-time responsibility) 1.7 Developing the strategy for procurement and supply within the organisation

1.8 Building productive relationships with stakeholders

2.8 Finance and supply chains

3.6 Data integrity in supply chains

5.4 Legal aspects of procurement and supply

5.5 Managing contractual risks

7.8 Achieving supply chain improvements

8.5 Measuring the performance of the supply chain

8.6 Developing the performance of the supply chain

10.4 Develop your capabilities to lead procurement and supply

Procurement officer (part-time responsibility) 1.2 Apply procedures that regulate procurement and supply

2.2 Recognise the importance of the external environment in procurement and supply

2.3 Market management in procurement and supply

3.3 Developing systems for procurement and supply

4.4 Controlling expenditures on goods and services

5.2 Developing contracts with suppliers

5.3 Specifying goods and services

6.5 Conducting supplier appraisal

6.6 Effective negotiation in procurement and supply

7.5 Achieving added value outcomes in procurement and supply

7.6 Effective contract management in procurement and supply

10.3 Develop your capabilities to manage procurement and supply

POSITIVE OUTCOMES

1 Gain efficient, cost-effective and ethical procurement and supply chain management for the organisation.
2 Establish cost-effective, targeted training and development to meet organisational and individual training needs.
3 Provide objective evidence to customers of competitiveness in the market to differentiate the company from
potential competitors.
4 Follow industry best practice within the constraints of operating as an SME.

Download a copy from [Link]/careers

15
 Sample job design
JOB
Tactical level Job title: DESIGN
Procurement
Administrator

JOB
ADVERTISEMENT

Our client has an immediate requirement for a Procurement Administrator. Working in a

team of three, the main purpose of this role will be to support the Head of procurement in
pro-actively seeking and implementing opportunities for added value procurement through
contracting, improved cost effective supply arrangements and negotiation.

Main duties will include:

• Identifying allocated purchasing activities to achieve best value for money
• Assisting the Head of procurement to deliver against the agreed annual savings plan by
identifying, achieving and recording cost savings
• Working with senior managers to assist with improvements and streamlining of processes
to reduce costs

Suitable candidates must have strong procurement knowledge, ideally within the public
sector. In addition, experience of preparing tenders and quotes is essential as well as strong
communication skills.

Download a copy from [Link]/careers

[Link]
Job design, based on the Standard
This section provides a detailed description of the activities (capabilities) that the job holder should be able to perform. It
can be used to identify any training and development needs based on a gap analysis and also to provide a benchmark for
future performance management/appraisal processes.

Main duties Relevant capabilities from the CIPS Global Standard Global
Standards
Reference

Identifying allocated • Applying the five rights of purchasing and value for money criteria to any purchase of goods and services Seg 4.1
purchasing activities • Evaluating the purchases of goods and services on the basis of the total costs of ownership (or whole life costs) Seg 4.1
to achieve best value • Achieving value for money outcomes when spending the organisation’s money Seg 4.1
for money • Liaising with internal stakeholders to review and clarify requirements to ensure that value for money Seg 6.1
outcomes are achieved through the sourcing of goods or services
• Negotiating with suppliers and customers to agree contract terms and relationships that will achieve the Seg 6.1
interests of the organisation
• Creating savings and improve efficiencies through negotiations with suppliers Seg 7.1
• Assisting budget holders to capture savings that contribute to reductions in budgets Seg 7.1
• Analysing targets set for value for money improvements and working towards their improvement Seg 7.1

Assisting the Head of • Comparing and evaluating quotations received from potential suppliers and dealing with any queries or Seg 6.1
Procurement to concerns about completed documentation
deliver against the • Compiling timely and accurate invitations to tender taking into account the requirements of stakeholders Seg 6.2
agreed annual • Promoting the use of competitive pricing with suppliers through monitoring prices and obtaining quotations Seg 7.3
savings plan by when appropriate
identifying, achieving • Comparing historical prices with newly quoted prices and evaluating the reasons for any significant Seg 7.3
and recording cost discrepancies and take appropriate action to secure competitive pricing
savings • Analysing available data on the costs, prices, margins and mark ups of submitted process in order to Seg 7.3
negotiate competitive prices
• Negotiating with suppliers to reduce prices whilst retaining or improving other aspects of value for money Seg 7.3
• Analysing data showing forecasts for actual expenditures and examine variances between forecasted and Seg 8.1
actual expenditures
• Analysing reports and data on the quality of goods and services supplied and taking actions with suppliers or Seg 8.1
internal stakeholders to remedy and prevent defects
• Monitoring internal and external lead times and taking actions to remedy delays and improve lead time Seg 8.1
performance
• Monitoring deliveries of goods and services and taking actions to remedy delays and improve lead time Seg 8.1
performance
• Collating data required for the fulfilment of targets for the procurement and supply function and necessary Seg 8.1
to improve performance
• Comparing service performance against planned service levels and taking actions to improve performance Seg 8.1

Working with senior • Ensuring that procedures are complied with by internal stakeholders and suppliers Seg 1.2
managers to assist • Ensuring that internal stakeholders obtain approvals for the commitments to requisitions, orders and Seg 1.2
with improvements invoices
and streamlining of • Ensuring that requisitions, orders, invoices and other documentation relating to procurement and supply are Seg 1.2
processes to reduce clear and correct
costs • Understanding the mix of direct and indirect supplies that are purchased by the organisation Seg 4.1

Interpersonal/Communication Skills Requirement

Using clear and effective communication methods, both oral and written, when dealing with suppliers and other stakeholders Seg 1.2

Encouraging the behaviour and actions of colleagues and other stakeholders to be in keeping with ethical codes for procurement and supply Seg 1.2

Creating written correspondence in the form of letters, e-mails, memoranda and reports Seg 6.3

Developing, maintaining and improving relationships with internal stakeholders to promote effective procurement and supply Seg 6.3

Available at [Link]/careers

17
Sample job design
JOB
Managerial level Job title: DESIGN
Senior
buyer
JOB
ADVERTISEMENT

Principal accountabilities • Preparation of purchase orders as per the final

(Key results areas): negotiations made with the selected vendor for further
• Understand the overall procurement strategy and editing, auditing and clearance before final release
functional requirements stated by management • Facilitate order generation in purchase system and get
objectives as explained by their team leader the order releases as per the order release authority
• Float the enquiries to all registered vendors through matrix delegated
designated materials management system • Facilitate final release and dispatch of signed purchase
• Necessary follow-ups to get techno-commercial offers order to the selected vendor
and keep exploring alternate source of supplies • Assist or help in co-ordination of all post order activities
wherever possible on need basis until the material received in safe
• Make preliminary comparisons of the techno- condition at the site and till the vendor gets paid
commercial offers received from the vendors
• Forward the technical offers to the Engineering Environmental Attributes
Team/Consultants for technical evaluation • High work pressure
• Initiate and get involved in the techno-commercial • High speed
negotiations with the vendors, supporting Senior and • Dynamic
Lead Buyers as applicable
• Total compliance to company guidelines in validating the Skills
terms and conditions of purchasing during vendor • Leadership style
negotiations to facilitate final decision making • Relationship management
• Make and present final commercial comparisons to • Developing self and others
their respective team leader for order placement • Customer orientation
decision making as per delegation of authority • Achievement orientation
• Facilitate the order finalisation through E-bidding or • Techno-commercial acumen
manual negotiation on case to case basis depending on • High standards of personal ethics and integrity
order values
Knowledge
• Seeking senior management approval for order
• Qualification: Graduate/Post Graduate in Engineering,
placement as per commercial decision finalised in line
preferably Mechanical Engineering. Must be MCIPS
with negotiations held
• Experience: Significant relevant experience in capex
buying of Iron Ore or Steel plant related.

[Link]
Job design, based on the Standard
This section provides a detailed description of the activities that the job holder should be able to perform. It can be used
to identify any training and development needs based on a gap analysis and also to provide a benchmark for future
performance management/appraisal processes.

Main duties Relevant capabilities from the Standard Standard

Reference

Understand the overall Improving the role of procurement and supply within the organisation: all knowledge Seg 1.4
procurement strategy and and capability statements
functional requirements stated by
management objectives as
explained by their team leader

Float the enquiries to all registered All knowledge and capability statements from:
vendors thru designated materials • Strategic Sourcing Seg 6.7
management system • Developing Global sourcing Seg 6.9

Necessary follow-ups to get techno- • Identifying and practising ways of delivering added value through effective supply Seg 7.7
commercial offers and keep chain management
exploring alternate source of • Working with suppliers and other stakeholders to achieve partnering and strategic
supplies wherever possible relationship management to deliver value for the organisation and its supply chain
• Evaluating circumstances for the application of competitive relationships to improve
value in the supply chain
• Demonstrating added value to the organisation through the implementation of
either insourcing or outsourcing of work or services
• Demonstrating added value to the organisation through the implementation of
global procurement, off shoring or low cost country sourcing

Make preliminary comparisons of • Evaluating submitted quotations or tenders on the basis of objective criteria using Seg 6.4
the techno-commercial offers any agreed weightings and scoring process
received from the vendors • Evaluating the financial, commercial and technical capabilities of potential suppliers Seg 6.5

Forward the technical offers to the • Following organisational procedures N/A

Engineering Team/Consultants for
technical evaluation

Initiate and get involved in the • Negotiating with stakeholders/suppliers to promote effective procurement in the Seg 6.6
techno-commercial negotiations stages of a sourcing process, taking steps to overcome conflict and challenges with
with the vendors, supporting Senior suppliers and other stakeholders
and Lead buyers as applicable • Create the right environment for a commercial negotiation
• Demonstrate effective behaviours in conducting commercial negotiations that will
help generate positive outcomes for the organisation

Total compliance to company • Analysing and explaining to colleagues and other internal stakeholders, the legal Seg 5.4
guidelines in validating the terms implications on a range of aspects covering legal relationships in supply chains
and conditions of purchasing during • Analysing and explaining to colleagues and other internal stakeholders the
vendor negotiations to facilitate implications of Intellectual Property Rights on procurement and supply
final decision making • Interpreting and providing advice to colleagues and other internal stakeholders on
the main employment regulations that impact on procurement and supply
• Analysing and explaining to colleagues and other internal stakeholders, the impact
of competition law on the organisation’s supply chains
• Setting standards for dealing with suppliers to ensure that regulations on bribery and
corruption are upheld and reporting any breaches of regulation to senior
management or responsible authorities
• Ensure compliance with organisational procedures that cover sourcing processes Seg 6.4

Plan your professional development journey at [Link]/careers

19
 Main duties Relevant capabilities from the Standard Standard
Reference

Make and present final commercial • Evaluating submitted quotations or tenders on the basis of objective criteria using Seg 6.4
comparisons to their respective any agreed weightings and scoring process
team leader for order placement • Evaluating the financial, commercial and technical capabilities of potential suppliers Seg 6.5
decision making as per delegation
of authority

Facilitate the order finalization • Negotiating with suppliers and customers to agree contract terms and relationships Seg 6.3
through E-bidding or manual that will achieve the interests of the organisation
negotiation on case to case basis
depending on order values

Seeking senior management • Ensuring compliance with the organisation’s procedures that cover the sourcing Seg 6.4
approval for order placement as per process
commercial decision finalised in line
with negotiations held

Preparation of Purchase orders as • Using the organisation’s purchase to pay (P2P) system and dealing effectively with
per the final negotiations made with any queries raised by stakeholders improving the sourcing process Seg 6.4
the selected vendor for further
editing, auditing and clearance
before final release

Facilitate order generation in • Using the organisation’s purchase to pay (P2P) system and dealing effectively with Seg 6.4
purchase system and get the order any queries raised by stakeholders improving the sourcing process
releases as per the order release • Ensuring compliance with the organisation’s procedures that cover the sourcing
authority matrix delegated process

Facilitate final release and dispatch • Using the organisation’s purchase to pay (P2P) system and dealing effectively with Seg 6.4
of signed purchase order to the any queries raised by stakeholders improving the sourcing process
selected vendor • Ensuring compliance with the organisation’s procedures that cover the sourcing
process

Assist or help in co-ordination of all • Ensuring compliance with the organisation’s procedures that cover the sourcing Seg 6.4
post order activities on need basis process
until the material received in safe
condition at the site and till the
vendor gets paid

Identifying the different behaviours adopted by individuals, groups and organisations and using appropriate approaches to Seg 1.4
enhance effectiveness

Recognising the different behavioural characteristics of individuals and how these differences should shape management Seg 1.4
styles appropriate to different situations

Motivating and supporting colleagues and other internal stakeholders to achieve their commitment to the work undertaken Seg 1.4
in procurement and supply

Download a copy from [Link]/careers

[Link]
Sample job design
JOB
Advanced professional level DESIGN
Job title:
Group
Procurement
Director
JOB
ADVERTISEMENT

Are you the inspirational leader with the gravitas and • Supplier rationalisation, contract management and
proven track record of best practice procurement to lead negotiation
the strategy and development of our client’s ‘greenfield’ • Development of supply strategies for key product
central structure and operations? This is a truly exciting categories
opportunity for an inspirational strategic procurement • Creating and implementing best practice procurement
professional with the proven track record of driving best principles and process across all global business divisions
practice procurement in a global consumer based business • Managing supplier compliance – both product quality
to develop and deliver a ‘greenfield’ global centralised and CSR
indirect procurement structure and operation for our client. • Leading, mentoring and managing a Category
Management team to deliver continuous improvement,
Reporting to the CEO, you are an integral part of the added value and cost reduction
management team and responsible for:
• Developing a procurement strategy that can be The ideal candidate will have:
implemented across our client’s key clients and all • A proven track record of executive procurement
vendors to effectively manage their POS/Promotional • Strong leadership
Products material procurement • Strong stakeholder engagement and management
• Ensuring professional supplier/vendor management is • International procurement experience
applied across the supply base • Low Cost Country Sourcing – Asia (China plus)
• A ‘can do’ attitude. Must be MCIPS.

21
Job design, based on the Standard
This section provides a detailed description of the activities that the job holder should be able to perform. It can be used
to identify any training and development needs based on a gap analysis and also to provide a benchmark for future
performance management/appraisal processes.

Main duties Relevant capabilities from the Standard Standard

Reference

Developing a procurement strategy • Contributing to the development and implementation of business and corporate Seg 2.7
that can be implemented across our strategies through added value procurement and supply chain management
client’s key clients and all vendors to
effectively manage their
POS/Promotional Products material
procurement

Ensuring professional • Evaluating the challenges faced by the organisation and its supply chains taking actions Seg 2.7
supplier/vendor management is to mitigate risks and to develop opportunities
applied across the supply base • Developing approaches to mitigate the impact of markets on supply chains and taking Seg 2.7
actions to exploit market opportunities
• Evaluating the value added activities of the organisation's supply chains and taking Seg 2.7
actions to increase value
• Critically assessing the developments in strategy adopted by suppliers and advising Seg 2.7
senior managers on the potential means of developing strategy
• Evaluating the effect of mergers and acquisitions on the organisation and its supply Seg 2.8
chains and developing plans to maximise benefits and minimise disruption

Supplier rationalisation, contract • Advising colleagues and other stakeholders on the impact of market change on the Seg 2.7
management and negotiation organisation and its supply chains

• Developing appropriate strategies and plans for the adoption of collaborative or Seg 4.7
competitive strategies and promote their use by internal and external stakeholders
• Creating plans to improve demand forecasting to achieve balanced demand with supply Seg 4.7
• Develop and maintaining the use of structured approaches to supplier relationship
management supported by colleagues and other internal stakeholders Seg 4.8

Development of supply strategies for • Critically assessing pricing and competitive behaviour undertaken by organisations in Seg 2.7
key product categories the supply chain and taking actions to improve or protect the organisation's interests
• Developing and implementing the alignment of market segmentation undertaken by Seg 2.7
the organisation with its customers and suppliers
• Critically assessing the divergence of strategies undertaken by organisations in a supply Seg 2.7
chain and advising senior managers on strategies that can be adopted by the
organisation to promote the organisation's interests
• Recommending strategic choices to improve the organisation's short and long term Seg 2.7
performance

Available at [Link]/careers

[Link]
Main duties Relevant capabilities from the Standard Standard
Reference

Creating and implementing best • Developing approaches to ensure that the procurement and supply function supports the Seg 4.7
practice procurement principles and achievement of the organisation’s sources of competitive advantage
process across all global business • Promoting the consideration of the consequences of decisions that impact on supply Seg 4.8
divisions markets and creating a culture of innovative sourcing solutions
• Encouraging approaches to measure outcomes achieved through the implementation of Seg 4.8
category plans and instilling a culture of continuous improvement
• Contributing to investment appraisal and decisions undertaken by internal stakeholders so Seg 4.7
that total costs of ownership can be minimised and the most profitable investment
decisions be made
• Evaluating and applying an appropriate methodology using contemporary techniques to Seg 4.8
achieve improved category management/ strategic sourcing
• Encouraging collaboration between procurement/ supply chain personnel with Seg 4.8
stakeholders to develop effective category plans
• Developing and implementing appropriate sourcing strategies for rare earth commodities Seg 6.10
and other bottleneck items

• Inspiring colleagues and other stakeholders to adopt the plans and strategies created to Seg 9.10
achieve effective procurement and supply chain management

Managing supplier compliance – both • Advising colleagues, suppliers other stakeholders on issues affecting the supply chain in the Seg 2.7
product quality and CSR development and retention of intellectual property rights
• Advising colleagues, suppliers and other affected stakeholders on issues relating to the Seg 3.6
confidentiality of data
• Advising colleagues, suppliers and other affected stakeholders on legal aspects relating to Seg 3.6
data protection affecting the supply chain

• Monitoring and evaluating aspects of globalisation that affect the organisation's supply Seg 6.10
chains and advising colleagues and strategic stakeholders on actions that can be taken to
mitigate risks
• Monitoring and evaluating developments in legal issues that affect sourcing decisions in Seg 6.10
supply chains and advising colleagues and strategic stakeholders on actions that can be
taken to mitigate risks

• Contributing to the development of the mapping and auditing of suppliers to gauge risks in Seg 11.6
ethical sourcing
• Contributing to the development of standards or legislation to eradicate bribery, Seg 11.6
corruption, fraud and breaches of human rights

Leading, mentoring and managing a • Creating, supporting and promoting a culture of personal accountability for decisions made Seg 10.5
Category Management team to • Supporting the personal and professional development of individuals to enhance their
deliver continuous improvement, performance
added value and cost reduction • Developing and promoting a culture of CPD monitoring the progress of colleagues

Identifying situations in interactions with stakeholders to provide consulting advice or a counselling approach Seg 1.8

Building and maintaining relationships that aim to help affected stakeholders in contracts and relationships with external suppliers

Adopting appropriate interventionist styles to achieve acceptance of plans or advice given

23
 Pillar: Infrastructure Standards
Theme 1: Position and Influence of Procurement and Supply

This theme helps individuals to recognise the contribution that effective procurement and supply
can make in organisations and in supply chains. The sphere of influence of procurement and supply
chain personnel and functions should be promoted to all stakeholders, as the theme identifies good
practices to achieve greater recognition by individuals and teams at an organisational level.

TACTICAL COMPETENCY LEVEL

Segment 1.1 • Understanding the Role of Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The different terms that relate to procurement and Explain the roles of procurement and supply, supply
supply, supply chain management and logistics chain management and logistics to colleagues and
across the organisation

The roles and benefits of procurement and supply in Explain the roles and benefits of procurement and
organisations supply in organisations to colleagues and across the
organisation

How effective procurement impacts on profitability or Demonstrate how effective procurement can contribute
creating savings and efficiencies for the organisation to improving profitability, savings and efficiencies for
the organisation

The typical proportion of costs accounted for by the Demonstrate and create the typical proportion of costs
procurement of goods and services and budgets accounted for by the procurement of
goods and services to colleagues and across the
organisation

The 5 rights that relate to procurement and supply Explain how the 5 rights apply to commercial
• Price/cost transactions or agreements
• Quality
• Time
• Quantity
• Place

Internal and external customers and their priorities for Identify the different internal and external customers
procurement and supply and recognise their different priorities for procurement
and supply

The main internal and external stakeholders in Identify the stakeholders that can influence the work of
procurement and supply and how they influence procurement and supply
procurement and supply activities

The different objectives of a procurement and supply Promote commitment amongst colleagues and
function stakeholders to achieve the objectives sought by a
procurement and supply function

The creation of centralised, devolved and lead buying Explain to colleagues and across the organisation the
structures of procurement and supply functions advantages and disadvantages that can be associated
with centralised, devolved and lead buying structures
for procurement and supply

The tiers of a supply chain Identify and assess the different organisations that are
involved in the organisation's supply chain

[Link]
TACTICAL COMPETENCY LEVEL
Segment 1.2 • Apply Procedures that Regulate Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The documentation typically used in procurement and Advise colleagues on the different documents used in
supply the procurement and supply function and to personnel
• Requisitions across the organisation
• Orders
• Delivery notes
• Invoices
• Other documents

The use of documented policies and procedures for the Ensure that procedures are complied with by internal
work of procurement and supply, including: customers and stakeholders
• The responsibilities for procurement
• Regulations relating to competition
• Levels of delegated authority
• Responsibilities for the stages of the sourcing
process
• Invoice clearance and payment

The need for approvals in the administration of Work to ensure that internal stakeholders obtain
requisitions, orders and invoices approvals for the commitments to requisitions, orders
and invoices

Effective communication with suppliers and customers, Use clear and effective communication methods, both
both verbally and in writing to clarify requirements and verbal and written, when dealing with suppliers and
to confirm understanding of requirements customers

How to ensure that requisitions, orders and invoices are Work to ensure that requisitions, orders and invoices
clear and correct and clarify requirements when and other documentation relating to procurement and
communicating with stakeholders supply are clear and correct

The use and roles of ethical codes in procurement and Encourage the behaviour and actions of colleagues and
supply other stakeholders to be in keeping with ethical codes
for procurement and supply

The principles of corporate governance that apply to Explain the main principles of corporate governance
procurement and supply that apply to the organisation's procurement and
supply function

25
 OPERATIONAL COMPETENCY LEVEL
Segment 1.3 • Advising Stakeholders on the Role of Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The inputs that internal and external stakeholders can Consult with stakeholders that input into procurement
make in procurement and supply and supply decisions to achieve the value for money
outcomes in the work of procurement and supply

The conflicts of interest that can exist in the work of Deal effectively with conflict that may arise with
procurement and supply and how to deal with them stakeholders to ensure the objectives of procurement
and supply are prioritised

The use of documented policies and procedures for the Advise stakeholders on the interpretation of procedures
work of procurement and supply, including: for procurement and supply
• The responsibilities for procurement
• Regulations relating to competition
• Levels of delegated authority
• Responsibilities for the stages of the sourcing
process
• Invoice clearance and payment

Procedures for the separation and segregation of duties Advise internal stakeholders of the procedures that
apply to the separation and segregation of duties in
performing roles in procurement to prevent fraud and
error

The use of codes of ethics in procurement and supply Monitor the work of internal stakeholders to ensure
that the codes of ethics in procurement and supply are
upheld

Comparisons of centralised, devolved and hybrid Explain to colleagues and other internal stakeholders
structures for carrying out procurement and supply the different structures that can be adopted for
activities procurement and supply activities while recognising
their strengths and weaknesses

The use and purposes of financial budgets that impact Advise internal stakeholders on procurement and
on procurement and supply supply issues that impact on the creation and
management of financial budgets

[Link]
OPERATIONAL COMPETENCY LEVEL
Segment 1.4 • Improving the Role of Procurement and Supply within the Organisation

Knowledge: Will know and understand: Capabilities: Will be able to:

The design of typical organisational structures and the Promote the position and potential influence of
position of procurement of supply in the organisational procurement and supply in the organisational structure
structure

The main influences that shape organisational Identify the different behaviours to internal
behaviour stakeholders adopted by individuals, groups and
organisations and use appropriate approaches to
enhance effectiveness

The different behavioural characteristics of individuals Recognise the different behavioural characteristics of
that can impact on their management while in the individuals and how these differences should shape
procurement and supply chain function management styles appropriate to different situations

The motivation of individuals involved in the Motivate and support colleagues and other internal
procurement and supply function stakeholders to achieve their commitment to the work
undertaken in procurement and supply

The use of documented policies and procedures for the Contribute to the development and use of documented
work of procurement and supply, including: policies and procedures for the procurement and
• the responsibilities for procurement supply function and ensure their application by
• regulations relating to competition colleagues and stakeholders
• levels of delegated authority
• responsibilities for the stages of the sourcing
process
• invoice clearance and payment

27
 MANAGERIAL COMPETENCY LEVEL
Segment 1.5 • Developing Supply Chain Management

Knowledge: Will know and understand: Capabilities: Will be able to:

Sources of competitive advantage such as low cost, Ensure that the procurement and supply function
sources of differential advantage such as innovation, supports the achievement of the organisation's source
product range, brand image and customer care of competitive advantage

The added value to organisations that can be achieved Create plans with stakeholders to improve supply chain
through effective supply chain management by: management by:
• Reducing prices and costs • Reducing prices and costs
• Improving quality • Improving quality
• Reducing time to market and achieving deliveries to • Reducing time to market and achieving deliveries to
required timescales required timescales
• Creating innovation • Creating innovation
• Reducing risk and supply chain vulnerability • Reducing risk and supply chain vulnerability
• Promoting sustainable procurement • Promoting sustainable procurement

The development of integrated supply chains, supply Liaise with stakeholders to develop supply chains,
networks and supply chain management supply networks and supply chain management

The importance of collaborative and competitive Develop appropriate strategies and plans for improving
strategies for improving supply chain management and supply chain management and promote their use by
how they differ from each other stakeholders

The main risks that can impact on supply chains and Work with stakeholders to mitigate or manage risks that
how they can be mitigated can impact on supply chains

Standards and legislation that apply to bribery, Work with stakeholders to eliminate corruption and
corruption and fraud in organisations, their application fraud in supply chains
and why this is important

[Link]
PROFESSIONAL COMPETENCY LEVEL
Segment 1.6 • Leading the Role of Procurement and Supply within the Organisation

Knowledge: Will know and understand: Capabilities: Will be able to:

The use of vision statements to improve procurement Develop and implement an appropriate vision for the
and supply chain management organisation that promotes procurement and supply
chain management both internally and with external
stakeholders

The roles of a leader and the activities of leadership in Develop, communicate and promote the purpose,
the procurement and supply function values and vision of improved procurement and supply
chain management across the organisation and with
stakeholders

Styles of leadership such as authoritarian, autocratic, Adopt preferred leadership styles to promote
democratic and laissez-faire styles procurement and supply chain management both
internally and with external stakeholders

The distinction between transformational and Steer the procurement and supply chain function by
inspirational leadership skills adopting appropriate leadership skills to promote
procurement and supply chain management both
internally and with stakeholders

How to assess the sources of power with internal and Steer the procurement and supply chain function
external stakeholders and why this is important through difficulties and challenge, recognising the
sources of power with internal and external
stakeholders and managing the impact on the
organisation and its supply chains

Techniques for stakeholder mapping including primary, Evaluate stakeholders and develop plans to achieve
secondary and key stakeholder classifications effective procurement and supply chain management
with stakeholders

The use of communication plans to enhance Create communication plans to achieve the buy in to
procurement and supply chain management the procurement plan by internal and external
stakeholders

How to develop expenditure approval levels Develop policy for procurement and supply expenditure
approval levels

29
 PROFESSIONAL COMPETENCY LEVEL
Segment 1.7 • Developing the Strategy for Procurement and Supply within the Organisation

Knowledge: Will know and understand: Capabilities: Will be able to:

The main characteristics of strategic decisions in Use the knowledge of dynamic strategic decision
organisations making to formulate a strategy for effective
procurement and supply chain management

How to distinguish between corporate, business and Contribute to the development and implementation of
functional levels of strategy in organisations business unit and corporate strategies through added
value procurement and supply chain management

Different approaches to the development of strategy in Evaluate the different approaches to strategy
organisations such as rational planning, emergent and development and ensure that relevant issues and
logical incrementalism opportunities are fed into strategy development and
implementation for the procurement and supply chain
function and are aligned with the needs of the
organisation

The contributions that the procurement and/or supply Promote the contributions that the procurement or
chain functions can make to the achievement of supply chain functions can make to achieving corporate
corporate objectives objectives across the organisation, with stakeholders
and with the supply chain

Corporate governance for Procurement and Supply Work with internal stakeholders to establish an
appropriate and effective process that supports
corporate governance

The main methods for achieving cultural acceptance of Develop and implement a plan to achieve the cultural
strategies in organisations acceptance of strategies in organisations that reflect
effective procurement and supply chain management

How change management processes can address Evaluate how change management processes can
resistance to change address resistance to change and develop a change
management strategy that deals with resistance to
change

[Link]
ADVANCED PROFESSIONAL COMPETENCY LEVEL
Segment 1.8 • Building Productive Relationships with Stakeholders

Knowledge: Will know and understand: Capabilities: Will be able to:

Consultants, clients and the consulting process Undertake an assessment of the expectations of clients
and be able to manage expectations through a
controlled process

The differences between consulting and counselling Identify situations in interactions with stakeholders to
skills and why consulting skills are critical to driving and provide consulting advice or a counselling approach
influencing organisational change

Approaches to managing relationships with external Evaluate and select the appropriate approaches that
suppliers- the gatekeeper approach or acting as a will further the acceptance of objectives and processes
facilitator for internal stakeholders developed by the procurement/supply chain function

The use of helping relationships with suppliers and Build and maintain relationships that aim to help
internal stakeholders affected stakeholders in contracts and relationships
with external suppliers

The range of interventionist and influencing styles with Adopt appropriate interventionist and influencing styles
clients including Blake and Mouton's Consult Cube to achieve acceptance of plans or advice

Approaches to consultative selling Develop and implement approaches to convince

colleagues and other stakeholders of plans or advice
and achieve early engagement in strategic issues
affecting procurement or the supply chain

Push and pull negotiation strategies Establish negotiation strategies with clear parameters
to further the aims of the procurement/supply chain
function with suppliers and other stakeholders

Building productive relationships with and advising Develop and build productive relationships and provide
strategic stakeholders advice to strategic stakeholders on issues affecting the
supply chain

Approaches to developing a competitive advantage Attract and retain word class suppliers to build a
through superior supplier relationships competitive product/supply chain advantage

31
 Pillar: Infrastructure Standards
Theme 2: External Environment in Procurement and Supply

This theme enables individuals to recognise how the external environment influences procurement
and supply. Personnel working in procurement and supply roles need to understand how markets
can be influenced by changes in the external environment to enable appropriate actions to be
taken to ensure that the organisation can develop opportunities, ensure compliance to regulatory
standards and minimise disruption with its suppliers and supply chains

TACTICAL COMPETENCY LEVEL

Segment 2.1 • Recognise the Different Sectors of Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The roles of private, public and third sector Explain the roles of private, public and third sector
organisations organisations, recognising the sector that the
organisation, its suppliers and customers operate in

The objectives of private sector organisations such as to Recognise the objectives of private sector
create profits, growth, market share, share price, other organisations, their suppliers or their customers
financial and non-financial measures

The different types of private sector organisations such Identify the types of private sector organisation that the
as sole traders, partnerships, registered companies, organisation deals with either as suppliers or
incorporated and unincorporated companies, small and customers, recognising the strengths and weaknesses
medium sized enterprises (SMEs) and multinational of each type of organisation
corporations

The objectives of public sector organisations such as Recognise the impact that the public sector may have
improving services to the public, to provide access to on their own organisation, its suppliers or its customers
services or to regulate organisations and individuals

The primary, secondary and tertiary sectors Identify the sector that the organisation, its suppliers
and customers operate in, recognising the main
characteristics of each sector

[Link]
TACTICAL COMPETENCY LEVEL
Segment 2.2 • Recognise the Importance of the External Environment on Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

How markets can be defined in terms of size, scope and Identify the types of markets served by the
stages of development organisation, its suppliers and customers

The levels of industry competition such as perfect Explain the level of competition that influences the
competition, imperfect competition, oligopoly, duopoly organisation, its suppliers and customers and how
and monopolies organisations may grow and decline

How demand and supply factors impact on Recognise how the impact of changing demand and
organisations supply factors can impact on the organisation, its
suppliers and customers

The impact of market change on organisations Identify how market change can impact on the pricing
and availability of products and services

Analytical tools to explain the impact of the external Describe how the application of STEEPLE (social,
environment on organisations’ supply chains technological, economic, environmental, political,
legislative and ethical) criteria and the 5 forces model
impacts on an organisation, its suppliers and customers

How macro-economic factors such as interest rates, Identify the impact of interest rates, inflation, exchange
inflation, exchange rates and the level of economic rates and the level of economic activity (GDP/ GNP) on
activity (GDP/ GNP) impacts on organisations pricing and availability of products and services

Legislation that impacts on organisations such as quality Explain the impact of legislation on an organisation, its
environmental standards, health and safety and suppliers and customers
employment law

The implications of corporate social responsibility on Explain the key aspects of corporate social responsibility
organisations that influences an organisation, its suppliers and
customers

33
 OPERATIONAL COMPETENCY LEVEL
Segment 2.3 • Understanding Market Management in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The different types of markets including economic and Distinguish how an organisation, its suppliers and
industrial sectors such as retail, manufacturing, customers are served by different types of markets
construction, retail, financial, agriculture and services

The competitive forces that influence markets including Analyse the competitive forces and trends that
the bargaining strength of suppliers and buyers, influence markets that the organisation, its suppliers
availability of substitutes and threat of entry and customers operate in

The breakdown between direct and indirect costs Collate sources of information to estimate the
breakdown of costs between direct and indirect costs
for purchased goods and services and use the
information to prepare budgets or to negotiate prices

Types of published data that can provide information Research market data and use to estimate and
on costs and prices negotiate current and future prices and costs for
purchased goods and services

Published reports and indices on markets Use published sources of information to agree
variations in pricing for purchased goods and services

National and international legislation that impacts on Advise internal stakeholders on the impact of legislation
organisations such as quality standards, health and when dealing with suppliers to an organisation
safety, environmental standards and employment law

The implications of corporate social responsibility on Advise stakeholders on key aspects of corporate social
organisations responsibility of the organisation when dealing with
suppliers, customers and other stakeholders

[Link]
MANAGERIAL COMPETENCY LEVEL
Segment 2.4 • The Impact of Globalisation on Supply Chains

Knowledge: Will know and understand: Capabilities: Will be able to:

The main drivers of globalisation in supply chains such Identify and explore opportunities for globalisation in
as cost reduction and flexibility of resources the purchasing of goods and services

Conflict that can arise between the needs of Contribute to the management of the procurement and
stakeholders operating with globalised supply chains supply chain function taking steps to mitigate
and how to manage it challenges and difficulties to resolve conflict within the
organisation and with its supply chains

The main implications of sustainability and responsible Advise colleagues and other stakeholders on how to
procurement in supply chains promote sustainable and responsible procurement in
the organisation and its supply chain

The main cultural and social issues in supply chains such Advise colleagues and other stakeholders on cultural
as: and social issues that can affect supply chains
• Language and cultural barriers
• Labour standards and forced working
• Inequalities of workers
• Health and safety standards

Labour codes that impact on the globalisation of supply Draw up and implement plans that address the
chains such as standards set by the United Nations (UN) implications of labour codes that impact on the
the International Labour Organisation (ILO), the Ethical globalisation of supply chains
Trading Initiative (ETI) and Social Accountability
International standard SA8000

35
 PROFESSIONAL COMPETENCY LEVEL
Segment 2.5 • Contexts of Supply Chain Management

Knowledge: Will know and understand: Capabilities: Will be able to:

The impact of STEEPLE (social, technical, economic, Identify the potential impact of STEEPLE criteria on the
environmental, political, legislative and ethical) criteria organisation and its supply chain and draw up plans to
on organisations and their supply chains maximise the benefits and mitigate difficulties

The impact of market change on supply chains Advise colleagues and other stakeholders on the impact
of market change on the supply chain

The main regulations that impact on the employment Evaluate the effect of impact of the main regulations on
of people in supply chains such as: the employment of people in supply chains and draw
• Discrimination, equality and diversity up plans to mitigate any potential difficulties caused by
• Employee redundancy and dismissal the regulations
• Working time and staff payment
• International labour codes
• Health and safety at the workplace
• Other country specific employment issues

The impact of mergers and acquisitions on supply Evaluate the potential effect of mergers and
chains acquisitions on the organisation's supply chains and
develop plans to maximise benefits and minimise
disruption

The effect of competition law on supply chains Analyse the effect of competition law on the
organisation and its supply chains to ensure compliance
with competition law

Regulatory requirements such as price and service Evaluate the implications of regulatory requirements
controls exercised by industry regulators and such as price and service controls exercised by industry
international bodies regulators and international bodies

[Link]
PROFESSIONAL COMPETENCY LEVEL
Segment 2.6 • Managing the Challenges of Global Supply Chains

Knowledge: Will know and understand: Capabilities: Will be able to:

The application of STEEPLE analysis in globalised supply Evaluate the impact of STEEPLE factors on globalised
chains supply chains and formulate recommendations to
ensure the organisation's strategy develops
opportunities that result from changes in STEEPLE
factors

Standards that apply to ethical/ responsible sourcing Monitor compliance with ethical practices and
and human rights abuse such as modern slavery standards that apply to global supply chains taking
including labour codes that impact on the globalisation appropriate actions in the event of detecting any
of supply chains such as the United Nations (UN) breaches by colleagues or other stakeholders
Trafficking Protocol, the International Labour
Organisation (ILO), the Ethical Trading Initiative (ETI)
and Social Accountability International standard SA8000

Licensing of imports and exports Monitor and ensure compliance with the licensing of
imports and exports that affect the organisation

Controls through tariffs and duties on imports and Provide advice to colleagues and other stakeholders on
exports the impact of tariffs and duties on imports and exports
arranging appropriate actions when necessary

The methods for managing the volatility of Evaluate and implement the use of appropriate
commodities and currencies in supply chains such as instruments to manage the volatility of commodities
hedging, spot, forward, derivative or other instruments and currencies in supply chains

The main regulations that impact on the employment Evaluate the impact of the main regulations that impact
of people in global supply chains such as: on the employment of people in global supply chains
• Discrimination, equality and diversity
• Employee redundancy and dismissal
• Working time and staff payment
• International labour codes
• Health and safety at the workplace

37
 ADVANCED PROFESSIONAL COMPETENCY LEVEL
Segment 2.7 • Strategy in the Organisation and its Supply Chain

Knowledge: Will know and understand: Capabilities: Will be able to:

The levels of strategy in organisations – corporate, Contribute to the development and implementation of
business unit and functional business and corporate strategies through added value
procurement and supply chain management

The layers of the business environment Advise colleagues and other stakeholders on the impact of
market change on the organisation and its supply chains

The challenges that impact on different industries and Evaluate the challenges faced by the organisation and
sectors and analysing trends in the macro-environment its supply chains taking actions to mitigate risks and to
develop opportunities

The impact of changing markets and market volatility Develop approaches to mitigate the impact of markets
on supply chains on supply chains and take actions to exploit market
opportunities

Cycles of competition and competitive strategies Critically assess pricing and competitive behaviour
undertaken by organisations in the supply chain and take
actions to improve or protect the organisation's interests

The segmentation of markets Develop and implement the alignment of market

segmentation undertaken by the organisation with its
customers and suppliers

The strategy clock and competitive strategy options Critically assess the divergence of strategies undertaken
by organisations in a supply chain and take actions to
promote the organisation's interests

Modelling for the creation of strategic directions Critically assess the divergence of strategies undertaken
by organisations in a supply chain and advise senior
managers on strategies that can be adopted by the
organisation

Approaches to strategy evaluation Recommend strategic choices to improve the

organisation's short and long term performance

Drivers of globalisation and international strategies Evaluate and take opportunities for using global strategies

The innovation- entrepreneurship framework and the Evaluate the value added activities of the organisation's
contributions of supply chain supply chains and take actions to increase value

Methods of pursuing strategies such as: Critically assess the developments in strategy adopted
• Organic development by suppliers and advise senior managers on the
• Strategic alliances potential means of developing strategy
• Mergers and acquisitions
• Offshoring/onshoring
• Outsourcing/in-sourcing
• Make vs Buy analysis

The protection of intellectual property in the supply Advise colleagues, suppliers, other stakeholders on
chain issues affecting the supply chain in the development
and retention of intellectual property rights

The impact of mergers and acquisitions on supply Evaluate the effect of mergers and acquisitions on the
chains organisation and its supply chains and develop plans to
maximise benefits and minimise disruption

[Link]
ADVANCED PROFESSIONAL COMPETENCY LEVEL
Segment 2.8 • Finance in the Organisation and its Supply Chain

Knowledge: Will know and understand: Capabilities: Will be able to:

Sources of short term and long term finance Critically assess the financing options used by the
organisation and its supply chain and suggest actions to
mitigate financial risks

The analysis and interpretation of financial statements Monitor the impact of the supply chain on the financial
stability of the organisation and mitigate financial risks

Managing working capital Critically assess the impact of the supply chain on the
organisation's working capital and liaise with senior
managers to work to ensure financial liquidity to
mitigate financial risks

The use of spot, forward and derivative instruments in Evaluate and implement the use of appropriate
foreign exchange for managing the volatility of instruments to manage the volatility of commodities
currencies and commodities in supply chains and currencies in supply chains

The sources of finance and the cost of capital and Monitor the impact of the sources of finance and cost
capital structure of an organisation of capital on the supply chain, taking decisions that will
support the organisation's cash flow aims and policy

Dividend policies and shareholder value Assess the impact of dividends and shareholder value
on the financial performance of key suppliers or
customers

Mergers, takeovers and the valuation of shares Advise senior managers on the impact of mergers or
takeovers on the supply chain and on the organisation

Company location and the implications on corporate Advise senior managers of the impact of company
taxation location and corporate taxation and how they affect the
organisation or its supply chains

Analysis of funding options such as equity, joint Develop or contribute to business cases and advise
ventures, seed funding and outright acquisition senior management on supply chain investment
decisions to secure supplier innovation/intellectual
property/delivery capacity

The use of open book costing and adjustments Create policies and processes and encourage the use of
open book costing and adjustments for relevant
categories of supply

39
 Pillar: Infrastructure Standards
Theme 3: Technology in Procurement and Supply

This theme enables personnel working in procurement and supply to develop their
capabilities in the use of systems, to identify opportunities for the development of systems
technology to improve procurement and supply chain management. The impact of internet
based technologies and the use of data base information technology systems is key to the
ability of the organisation to manage its expenditures on goods and services.

TACTICAL COMPETENCY LEVEL

Segment 3.1 • Understanding Systems for Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

How to use systems technology and databases for Input data on systems to perform key tasks for purchase
purchase ordering and how this contributes to ordering and other transactions in procurement and
procurement and supply supply

Capturing data on expenditures and updating systems Identify and input data to update systems for
controlling the procurement of goods and services and
informs colleagues or internal stakeholders when the
data is not sufficient

How to provide data to smooth demand and why Ensure systems are updated with data to help smooth
demand management is important in procurement and demand following organisational processes and
supply procedures

How to use the internet, intranets and extranets in Make use of the internet, intranet or extranet systems
procurement and supply and how this contributes to for performing tasks that relate to procurement and
effective procurement and supply supply

How to use the internet to locate details about Investigate information on suppliers or customers using
suppliers and customers and how this helps processes the internet
in procurement and supply

E-sourcing and E-tendering systems used in Use and explain to internal stakeholders E-sourcing or
procurement and supply to: E-tendering systems to perform key tasks in
• Promote contract opportunities procurement and supply
• Pre-qualify suppliers
• Receive and evaluate quotations and tenders

The use of Purchase to Pay (P2P) systems including Use and explain to internal stakeholders Purchase to
E- requisitioning, E-catalogues, E- ordering and Pay (P2P) systems to perform key processes in
E- invoicing, and their contribution to processes in procurement and supply
procurement and supply

[Link]
OPERATIONAL COMPETENCY LEVEL
Segment 3.2 • Using Systems for Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

How to use systems to enhance internal and external Work to ensure systems for internal and external
communications in procurement and supply communications in procurement and supply are used
and developed

How to use Purchase to Pay (P2P) systems used in Operate and promote the use of P2P systems for key
procurement and supply such as E- requisitioning, processes in procurement and supply such as
E- catalogues, E- ordering and E- invoicing E- requisitioning, E- catalogues, E- ordering and
E- Invoicing

The development of E- market places Make use of and promote to stakeholders the benefits
for the organisation of relevant E-market places and
Trading Exchanges

How to use E-sourcing or E- tendering software in Provide guidance to stakeholders and promote the use
procurement and supply of use of E-sourcing or E- tendering software in
procurement and supply

The use of E- auctions in sourcing processes Identify opportunities for the use of E- auctions and
organise E- auction events

The use of systems for the control of inventories Operate and promote the use of systems for inventory
control

The use of Enterprise Resource Management (ERP) Guide colleagues and other stakeholders and promote
systems for procurement and supply activities the use of ERP systems for procurement and supply
activities

41
 MANAGERIAL COMPETENCY LEVEL
Segment 3.3 • Developing Systems for Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The use of ERP systems and data bases for procurement Evaluate the capabilities of ERP systems and data bases
and supply activities for procurement and supply activities, and make
recommendations to senior managers on their
development and implementation

The development of P2P systems used in procurement Investigate the use of P2P systems used in procurement
and supply including and supply and make recommendations to senior
• E- requisitioning managers on their development and implementation
• E- ordering
• E -Invoicing

The development of E- catalogues in procurement and Investigate and make recommendations to senior
supply and how these can enhance key procurement managers on the development of E- catalogues that can
and supply processes be applied to procurement and supply

The development of E- market places in the supply Explore opportunities for the use of E-market places to
chain improve access to supplies and to improve leverage for
the organisation

The use of data analytics on the supply chain to assist Work with key stakeholders and suppliers to create
planning, forecasting, control and decision making improvements to data to enable informed decision
making and transparency of spend and resolve
problems when the data gathered is not sufficient

The application of data integrity for effective Examine the standards of, and potential improvements,
procurement and supply that can be made to data integrity in the use of
procurement and supply data base systems and make
recommendations for improvements to colleagues and
other stakeholders

The use of integration tools in systems technology in Explore improvements that can be made to integrate
procurement and supply both internal systems and systems across supply chains
through data integration technology and make
recommendations to colleagues and other stakeholders

Developments such as Assess developments in systems technology and make

• Cloud computing recommendations to colleagues and other stakeholders
• Open source software that will improve procurement and supply
• Convergence of technology platforms

The use of business continuity planning to mitigate Assess suppliers' business continuity plans to mitigate
supply chain interruption disruption to the organisation's supply chains

[Link]
PROFESSIONAL COMPETENCY LEVEL
Segment 3.4 • Develop the Use of Technology for Effective Procurement and Supply Chain Management

Knowledge: Will know and understand: Capabilities: Will be able to:

The use of systems to enable the improved control of Identify opportunities for the development of systems
expenditures on suppliers by the organisation to enable the improved control of expenditures on
suppliers by the organisation

Develop and implement projects to improve systems Create and implement projects for the improvement of
capabilities for the organisation systems to enhance capabilities in procurement and
supply

Improve data analytics and data capture to achieve Investigate opportunities to improve data analytics and
effective procurement and supply data capture to achieve effective procurement and
supply and make recommendations to senior managers
and other stakeholders

Develop improved systems integration within the Identify opportunities of systems integration within the
organisation or merged/acquired organisation organisation for improved procurement and supply and
make recommendations to senior managers and other
stakeholders

Develop improved systems integration with the Identify opportunities on systems integration with the
organisation's supply chains organisation's supply chain for improved procurement
and supply and make recommendations to senior
managers and other stakeholders

43
 ADVANCED PROFESSIONAL COMPETENCY LEVEL
Segment 3.5 • Improving Systems Capabilities for Supply Chain Management

Knowledge: Will know and understand: Capabilities: Will be able to:

The use of bespoke systems and commercial off the Critically evaluate opportunities for the development of
shelf systems (COTS) and workflows to enable improved systems or procurement of commercial off the shelf
control of expenditures on suppliers in organisations systems (COTS) to enable the improved control of
expenditures on suppliers by the organisation

The use of database systems, data centres and data Investigate opportunities for the development of
warehousing for procurement and supply chain database systems, data centres and data warehousing
management used in procurement and supply chain management
and make recommendations to colleagues and
stakeholders

The development of big data analytics to assist decision Assess opportunities to develop and make use of big
making data analytics to create improved supply chain
planning, forecasting and control

Contemporary ERP (Enterprise Resource Planning) Critically evaluate the capabilities and application of
systems and their impact on procurement and supply ERP (Enterprise Resource Planning) systems and data
chain management and the wider organisation bases for procurement and supply chain activities, and
make recommendations to senior managers on their
selection, development and implementation

The impact of P2P (Purchase to Pay) systems used in Investigate the use of P2P (Purchase to Pay) systems
procurement and supply chain management used in procurement and supply chain management
and make recommendations to senior managers on
their selection, development and implementation

Developments in systems technologies such as: Critically assess developments in systems technology
• Intranets and extranets and make recommendations to colleagues and other
• Data centre management stakeholders that will improve procurement and supply
• Cloud computing chain management
• Open source software
• Convergence of technology platforms

The use of integration tools in systems technology to Critically assess improvements that can be made to
improve supply chain management integrate both internal systems and systems across
supply chains through data integration technology and
make recommendations to colleagues and other
stakeholders

The development of business continuity plans to Work with key stakeholders to assess the business
mitigate interruptions in the supply chain continuity plans created by key suppliers and provide
advice on potential improvements that can be made

[Link]
ADVANCED PROFESSIONAL COMPETENCY LEVEL
Segment 3.6 • Data Integrity in Supply Chains

Knowledge: Will know and understand: Capabilities: Will be able to:

Data integrity in procurement and supply chain Evaluate improvements that can be made to data
management integrity for procurement and supply chain activities
and make recommendations to colleagues and other
stakeholders

The codifying and storage of data and sources of Understand developments in the coding and storage of
intellectual property data and be able to advise colleagues, suppliers and
other affected stakeholders on the implications of these
developments

The use of information assurance and information risk Advise colleagues, suppliers and other affected
management policies to protect the privacy of data for stakeholders on issues relating to the confidentiality
individuals, the organisation and the supply chain of data

Legal aspects relating to data protection Advise colleagues, suppliers and other affected
stakeholders on legal aspects relating to data protection
affecting the supply chain

Data disruption, the use of data resilience strategies Assess and evaluate implications of data disruption on
and disruption tolerant networks the organisation and the supply chain and develop
plans and processes to mitigate data disruption

The use of cyber security to protect the confidentiality, Work with key stakeholders to ensure robust cyber
integrity and availability of data with external security plans and processes are created and followed
organisations and individuals

45
 Pillar: Process Standards
Theme 4: Spend Management in Procurement and Supply

The spend management theme helps personnel with roles in procurement and supply to develop their
capabilities in achieving value for money outcomes with the supply chain. All personnel associated
with procurement and supply can make positive contributions to the success of the organisation
through effective purchasing, effective inventory control, controlling expenditure and the use of
strategic procurement and supply techniques, including category management and strategic sourcing.

TACTICAL COMPETENCY LEVEL

Segment 4.1 • Effective Purchasing

Knowledge: Will know and understand: Capabilities: Will be able to:

The typical proportions of organisational costs Explain the importance of procurements of goods and
accounted for by procurements of goods and services services to the organisation

Direct and indirect supplies and their impact on Explain the mix of direct and indirect supplies that are
procurement and supply purchased by the organisation

The five rights of purchasing and definitions of value for Apply the 5 rights of purchasing and value for money
money: criteria to any purchase of goods or services
• Price/total cost
• Quality
• Time
• Quantity
• Place

Total costs of ownership (or whole life costs) criteria Explain how the purchases of goods or services can be
such as the costs involved in purchasing, ownership, evaluated on the basis of the total costs of ownership
usage and disposal (or whole life costs)

The roles of procurement and supply professionals in Explain the importance of spending the organisation's
making expenditures with suppliers money with suppliers to achieve value for money
outcomes

The roles of staff with devolved responsibilities for the Identify staff with devolved responsibilities for the
procurement of goods and services procurement of goods and services and explain how
they can create orders and agreements with external
suppliers

The main pricing methods used for the purchasing of Explain the advantages and disadvantages of a range of
goods or services including: pricing methods and apply these in the procurement of
• Fixed pricing, lump sum pricing and schedule of goods and services
rates
• Cost reimbursable and cost plus arrangements
• Variable pricing
• Target pricing
• Risk and reward pricing

Data that relates to the pricing of goods or services Calculate basic financial analysis of costs and prices and
purchased by the organisation including: use this data to negotiate with suppliers
• Price changes compared to historic figures
• Margins and mark ups
• Total costs of ownership
• Open book costing/accounting

[Link]
TACTICAL COMPETENCY LEVEL
Segment 4.2 • Effective Inventory Control

Knowledge: Will know and understand: Capabilities: Will be able to:

The classifications of different types of inventory such Explain to colleagues and other internal stakeholders
as: the classifications of inventories that are supplied
• Opening stock, work in progress and finished goods
• Safety stocks
• ABC classifications of stock that may apply
• Dependent demand and independent demand
items of stock

The direct and indirect costs of holding inventories Explain the direct costs and the indirect costs that are
associated with holding inventories and take actions to
reduce costs whilst mitigating any negative impact on
service levels

The main techniques associated with managing Make comparisons between and use techniques for
inventories including: managing inventories
• Re-order quantities,
• Re-order levels,
• MRP and MRPII
• Just in Time

The use of bar coding in inventory operations Use bar coding to select and control the range of stock
items held by the organisation

The use of forecasting for inventories to identify and Explain the use of subjective and objective methods
resolve any problems that can affect the scheduling of that can be applied to forecast inventories and identify
supplies and resolve any problems that can affect the scheduling
of supplies

47
 TACTICAL COMPETENCY LEVEL
Segment 4.3 • Effective Logistics Control

Knowledge: Will know and understand: Capabilities: Will be able to:

The principles of stores and warehousing design Explain how stores and warehouses can be designed to
ensure the efficiency and effectiveness of the locations
of inventories, inventory flow and space utilisation

Key aspects associated with the storage of inventories Explain the use of materials handling equipment and
palletisation and unit loads, packing and packaging and
the use of automation in warehousing

The main modes of transportation in logistics Identify the strengths and weaknesses associated with
• Road the main modes of freight transportation
• Rail
• Air
• Sea

The documentation that is used in transportation of Check that documents used in the transportation of
supplies such as: supplies are completed and authorised correctly
• The single administrative document
• Packing list, waybill, consignment notes, bill of
lading
• Certificate of origin
• Letters of credit or other financial documentation

The main types of Incoterms in international logistics E, Provide advice to stakeholders on the use of the
F, C and D terms different classifications of Incoterms in international
logistics

[Link]
OPERATIONAL COMPETENCY LEVEL
Segment 4.4 • Controlling Expenditures on Goods and Services

Knowledge: Will know and understand: Capabilities: Will be able to:

The typical breakdown of organisational costs Collate data and estimate the breakdown of
represented by goods, services or constructional works organisational costs represented by goods, services or
constructional works

The sources of added value that can be achieved Advise colleagues and other internal stakeholders on
through effective procurement and supply including: the main sources of added value that can be achieved
• Competitive pricing through effective procurement and supply
• Reduced total costs of ownership
• Improved quality
• Delivery performance and time to market
• Reduced stockholding, quantities of resources
matching demand innovation
• Sustainability

The use and content of business cases to justify Develop and effectively present business cases to justify
expenditures on supplies, services or projects including: expenditures and advise colleagues or other
• Costs stakeholders of their contents
• Benefits
• Options
• Alignment with organisational needs
• Timescales

The creation of financial budgets for the control of Estimate the costs and prices of procurements that may
procurements be required to complete the financial budgets operated
by colleagues or other internal stakeholders

The operation of financial budgets for the control of Advise internal stakeholders on the operation of
procurements financial budgets and assess the causes of variances to
planned expenditures on procurements of goods or
services

The main types of pricing arrangements in commercial Monitor pricing arrangements in commercial
agreements including: agreements to ensure effective price and cost
• Pricing schedules management
• Fixed pricing arrangements
• Cost plus and cost reimbursable pricing
arrangements
• Indexation and price adjustment formulae
• Incentivised gain share pricing
• Payment terms
• The use of open book costing and adjustments

49
 MANAGERIAL COMPETENCY LEVEL
Segment 4.5 • Category Management

Knowledge: Will know and understand: Capabilities: Will be able to:

The main categories of expenditure that will be Develop hierarchies of categories for both direct and
subjected to category management indirect expenditures that can be subjected to category
management and strategic procurement

The main models for the adoption of category Evaluate and apply an appropriate methodology to
management such as the CIPS Category Management achieve improved category management
Model

Data that is typically analysed to develop a category Evaluate historical and forecasted data on categories of
plan spend to help formulate a category plan

The development of a sourcing plan for the category Create a Category Management plan that makes use of
the division into lots or range of contracts to be
awarded and mitigate any potential impact of the lack
of internal buy-in

Portfolio tools that are typically applied to map Evaluate categories of direct and indirect expenditures
categories of direct and indirect expenditures including: applying appropriate portfolio tools and provide
• Portfolio analysis insights on categories assessed
• Supply chain mapping
• The 5 forces model
• Market share/market growth
• Steeple and swot (strengths, weaknesses,
opportunities and threats)

Market factors that are typically assessed in the Develop a category management plan by analysing
development of a category management plan including: market factors using early market
• Industry dynamics engagement/dialogue when appropriate and making
• Competitiveness use of market data to inform decision making
• Pricing behaviour
• Technology drivers

The behavioural and technical skills required for the Demonstrate effective behavioural and technical skills
implementation of a category management across the organisation, with suppliers and other
methodology stakeholders for effective category management
Behavioural
• Communication with stakeholders and suppliers
• Influencing skills
• Working with teams and cross functional working
• Acting as a change agent

Technical
• Financial management and cost analysis
• Supply chain analysis
• Supply base research
• Sourcing processes
• Risk management
• Negotiation

[Link]
PROFESSIONAL COMPETENCY LEVEL
Segment 4.6 • Improving the Role of Procurement and Supply within the Organisation

Knowledge: Will know and understand: Capabilities: Will be able to:

The contribution of strategic supply chain management Engage with colleagues and other internal stakeholders
to corporate and business strategy such as: to promote the organisation's commitment to achieving
• Cost competitiveness effective supply chain management, emphasising the
• Improved quality and reliability contributions of strategic supply chain management to
• Product and service differentiation corporate and business strategy
• Time to market

The use of cost modelling Create dynamic cost models that can be used to assess
costs and margins as well as competitive behaviour in
the supply chain to protect the organisation's position

The use of techniques to create networked supply Lead the analysis and implementation of techniques to
chains to improve supply chain management such as: create networked supply chains
• Value stream mapping
• Network sourcing
• Network optimisation modelling

The role of distribution systems in supply chain Improve the effectiveness and efficiency of the
management organisation's distribution systems

The creation of lean and agile supply chains Lead the implementation of methodologies to achieve
lean and agile supply chains

Approaches to develop and implement industry level Identify opportunities to develop collaborative
collaboration to achieve strategic supply chain relationships with the organisation's supply chain and
management lead stakeholders in their implementation

51
 ADVANCED PROFESSIONAL COMPETENCY LEVEL
Segment 4.7 • Developing Operational Expertise in Procurement

Knowledge: Will know and understand: Capabilities: Will be able to:

The sources of organisational competitive advantage Develop approaches to ensure that the procurement
such as: and supply function supports the achievement of the
• low cost organisation's sources of competitive advantage
• sources of differential advantage
• product range, brand image, customer care

The use of collaborative and competitive strategies for Develop appropriate strategies and plans for the
improving supply chains and how they differ from each adoption of collaborative or competitive strategies and
other promote their use by internal and external stakeholders

The implications of BS11000 (to become ISO11000) and Develop and instigate approaches with stakeholders to
other frameworks and standards that create partnering support collaborative business relationships using
and collaborative approaches to supplier relationship appropriate standards and frameworks
management

Approaches to demand forecasting and balancing Create plans to improve demand forecasting to achieve
demand with supply balanced demand with supply

The use of technology transfer Take actions to develop and implement technology
transfer with suppliers

Making decisions on capital investment Contribute to investment appraisal and decisions

undertaken by internal stakeholders so that total costs
of ownership can be minimised and the most profitable
investment decisions can be made

[Link]
ADVANCED PROFESSIONAL COMPETENCY LEVEL
Segment 4.8 • Developing Organisational Expertise in Category Management

Knowledge: Will know and understand: Capabilities: Will be able to:

The main models for the adoption of category Evaluate and apply an appropriate methodology using
management/strategic procurement contemporary techniques to achieve improved category
management/ strategic sourcing

Segmentation of purchases and the use of techniques Lead colleagues and other internal stakeholders to
to profile expenditures understand the dynamics of the supply chain and to
recommend appropriate category strategies

Category team selection and stakeholder engagement Encourage collaboration between procurement/supply
chain personnel with stakeholders to develop effective
category plans

Business case development for the production of Create templates for business cases to further category
category plans management and lead colleagues to justify decisions

Approaches to supply market research/early supplier Promote the consideration of the consequences of
engagement/pre-contract dialogue decisions that impact on suppliers and supply markets
to create a culture of innovative sourcing solutions

The implementation of category plans Encourage approaches to measure outcomes achieved

through the implementation of category plans and to
instil a culture of continuous improvement

Strategic supplier relationship management Develop and maintain the use of structured approaches
to supplier relationship management supported by
colleagues and other internal stakeholders

Approaches to category cost driver analysis Apply cost driver analysis across key categories of spend
to support assessment of cost and value

53
 Pillar: Process Standards
Theme 5: Contracting in Procurement and Supply

The contracting theme enables personnel involved in procurement and supply to create robust
contractual arrangements with the organisation's supply chain to ensure positive outcomes in cost,
time and quality. The theme includes specifying goods and services, developing contracts,
understanding the legal aspects for contracting goods and services, managing contractual risks and
contracting for major programs and projects.

TACTICAL COMPETENCY LEVEL

Segment 5.1 • Contract Administration

Knowledge: Will know and understand: Capabilities: Will be able to:

The main types of contracts and agreements including: Contribute to the preparation of the main types of
• The use of spot purchases contracts and agreements
• Term contracts
• Framework agreements (or blanket orders/panel
agreements)
• Call offs

The different documents that compose a contract for Identify and explain to stakeholders the documentation
the purchase or supply of goods or services including: that comprises a typical contract
• The specification
• The key performance indicators (KPIs)
• The contract terms
• The pricing schedule
• Other schedules (for health and safety, use of sub-
contractors, non disclosure/confidentiality
agreements)

The stages involved in forming contracts for purchased Identify and explain to colleagues and other internal
goods or services stakeholders the key stages involved in forming
• Requests for quotations/information/ tender contracts for goods and services
enquiries
• Quotations/tenders received
• Orders/acceptance of tenders
• Delivery notes/acknowledgements
• Invoicing and payment

The details that should be included in contractual Review draft contracts to ensure that contractual
documents documents are fully detailed

Key tasks associated with contract administration to Deal effectively with any queries raised by internal staff
ensure the completion of contractual documentation or from suppliers on the completion of contractual
documentation

The impact of stage payments and cash flows in the Recognise the importance of cash flows and stage
performance of contracts payments made in contracts with suppliers

[Link]
OPERATIONAL COMPETENCY LEVEL
Segment 5.2 • Developing Contracts with Suppliers

Knowledge: Will know and understand: Capabilities: Will be able to:

The main types of contracts and agreements including: Develop appropriate agreements with internal
• The use of spot purchases stakeholders
• Term contracts
• Framework agreements (or blanket orders/panel
agreements)
• Call offs

The documentation that is used to create commercial Contribute to the completion of documentation used to
agreements for the supply of goods or services and how form commercial agreements
to complete these including:
• The specification
• Key performance indicators (KPIs)
• Contract terms
• Pricing schedule
• Other schedules (such as for health and safety, use
of sub-contractors, non disclosure/ confidentiality
agreements)

The sources of express terms that can be used to Select and provide advice to colleagues and other
regulate contracts made for the supply of goods or internal stakeholders on appropriate contract terms for
services including: the supply of goods or services
• The use of standard or specialised terms of
purchase
• Model form contracts
• Bespoke contracts

The legal issues that relate to the creation of commercial Review processes and procedures for creating contracts
agreements with customers or suppliers relating to to ensure that all legal requirements are complied with
offers, counter offers, acceptance, and other issues and recommend any changes required

Core clauses that comprise commercial agreements Interpret and provide advice to colleagues and other
with customers or suppliers including: internal stakeholders on the core clauses of commercial
• Indemnities and liabilities agreements with customers or suppliers
• Sub-contracting and assignment
• Insurances
• Guarantees
• Liquidated damages
• Payment
• Delivery and completion

Key provisions of legislation that relate to contracts for Check that contracts for the supply of goods and
the supply of goods and services including: services comply with relevant legislation
• Quality
• Delivery
• Payment
• Passing of property
• Compensation

55
 OPERATIONAL COMPETENCY LEVEL
Segment 5.3 • Specifying Goods and Services

Knowledge: Will know and understand: Capabilities: Will be able to:

Different types of specifications used in the Develop appropriate specifications for the procurement
procurement of goods or services such as drawings, of goods or services
samples, branded, technical, conformance, output or
outcome based specifications

Sources of information that can be used to create Research appropriate sources of information for the
specifications such as standards, the internet, suppliers development of specifications
and directories

The typical sections of a specification such as scope, Develop and complete all required documentation for
definitions, descriptions of requirements, testing and the specification of a contract
acceptance, change control mechanisms and remedies

The impact of specifications on the organisations' cash Ensure that the design and performance of
input costs specifications will avoid unnecessary costs for both the
organisation and its supplier

The risks that can result from inadequate specifications Monitor the creation of specifications by colleagues and
particularly under or over specifying needs other internal stakeholders and work to ensure that
risks are mitigated

The use of standardisation, value analysis and value Identify opportunities to regulate specifications through
engineering programmes to regulate specifications the implementation of standardisation, value analysis
or value engineering programmes and provide guidance
to internal stakeholders on their implementation
Research appropriate sources of information for the

The use of social and environmental criteria in development of specifications that incorporate social
specifications and environmental criteria

[Link]
MANAGERIAL COMPETENCY LEVEL
Segment 5.4 • Legal Aspects of Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The impact of legal agreements on the relationships Monitor and evaluate developments in legal aspects
between different parties in a supply chain including: that affect sourcing decisions explaining to colleagues
• Principals and agency and other internal stakeholders their implications
• Assignment and sub-contracting
• Novation
• Confidentiality and non-disclosure agreements
• Duress and undue influence
• Negligence

The use of express contract terms Provide advice on the interpretation of contract terms
to colleagues, suppliers and other stakeholders and
draft bespoke terms to apply outside of established
frameworks and contract forms

Legislation and case law that regulate contracts Provide advice on the interpretation of legislation (such
as the Uniform Commercial Code) and case law to
colleagues, suppliers and other stakeholders
recognising when to involve other professionals for
guidance

The implications of Intellectual Property Rights (IPR) on Analyse and explain to colleagues and other internal
procurement and supply stakeholders the implications of Intellectual Property
Rights including licensing, royalties and non-disclosure
agreements with the supply chain

The main employment regulations that impact on Interpret and provide advice to colleagues and other
procurement and supply such as: internal stakeholders on the main employment
• Transfer of Undertakings and Protection of regulations that impact on procurement and supply
Employment regulations
• Redundancy and dismissal
• Discrimination in the workplace
• Restraint on trade
• International labour organisation and UN standards
on business and human rights

Competition law that impacts on procurement and Analyse and explain to colleagues and other internal
supply stakeholders the impact of competition law on the
organisation's supply chains

Regulations that cover bribery and corruption Set standards for dealings with suppliers to ensure that
regulations on bribery and corruption are upheld and
report any breaches of regulations to senior
management or responsible authorities

57
 MANAGERIAL COMPETENCY LEVEL
Segment 5.5 • Managing Contractual Risks

Knowledge: Will know and understand: Capabilities: Will be able to:

Legal issues relating to the formation of contracts with Analyse and explain to colleagues and other internal
customers or suppliers relating to offers, counter offers, stakeholders the legal and commercial implications that
acceptance, and other issues relate to the formation of contracts

The main express terms that are commonly applied in Interpret and revise key terms that are included in
contracts for the supply of goods or service contracts in procurement and supply

The main remedies for the default or breach of contract Review contracts and recommend appropriate actions to
be taken in the event of any default or breach of contract
including subcontracting work without agreement

The main provisions that cover variations, claims or Evaluate and recommend appropriate actions to be taken
compensation events to resolve variations, claims or compensation events

The main methods for dispute resolution including Evaluate and recommend appropriate methods to
negotiation, alternative dispute resolution through resolve disputes and take actions to resolve disputes
mediation, conciliation and expert determination,
adjudication, arbitration and litigation

[Link]
PROFESSIONAL COMPETENCY LEVEL
Segment 5.6 • Contracting for Major Programs and Projects

Knowledge: Will know and understand: Capabilities: Will be able to:

The impact on supply chain relationships of undertaking Evaluate the impact of undertaking major programmes
major programmes and projects and projects on the organisation's supply chain and
enable the formation of appropriate contractual
relationships

The use of contracting options for major programmes, Evaluate the range of contracting options for major
projects and complex procurements, such as client co- programmes, projects or complex procurements and
ordinated approaches, engineering procurement and the situations when each should be used taking account
construction (EPC), design and build, management of the implications from inception to obsolescence
contracting and construction management,
design/build/finance/operate and ownership forms of
contract

The use of contract forms for major programmes, Evaluate the range of contract forms that are available
projects and complex procurements such as: for major programmes and projects and select the most
• The New Engineering Contract (NEC) core and appropriate for the programme or project that is to be
optional clauses undertaken
• Institution of Mechanical Engineers (IMechE)
contract forms
• Joint Contracts Tribunal (JCT) contract forms
• International Federation of Consulting Engineers
(FIDIC) contract forms
• CIPS model forms of contract

The development of business cases, specifications, Create contracting plans with stakeholders that develop
contract terms and lotting strategies effective business cases, specifications, contract terms
and lotting strategies

Core clauses included in contract forms for major Interpret the core clauses included in contract forms for
programmes and projects major programmes and projects to provide advice to
colleagues and other stakeholders

The use of optional clauses and schedules included in Evaluate and make any necessary revisions to optional
contract forms for major programmes and projects clauses and schedules included in contract forms for
major programmes and projects

The use of pricing mechanisms for major programmes Evaluate the range of pricing arrangements available for
and projects such as fixed lump sum, activity schedule, major programmes or projects and recommend the
bills of quantity, target costing methods and risk and most appropriate mechanism for the specified project
reward pricing mechanisms and cost reimbursable ensuring that the flows of money in the performance of
contracts will be equitable

The use of project partnering and strategic partnering Encourage stakeholders to form effective on-going
relationships in projects and programme management relationships with their supply chains

The use of early warning notices and risk reduction Work to ensure that the supply chain performs their
meetings in projects and programme management contractual duties and encourage good practice in the
management of projects and programmes to avoid
escalating costs and delays

Mechanisms for managing risks with suppliers in Create risk registers and other mechanisms for
programmes and projects managing risks in programmes and projects and
recommend arrangements for the sharing of risk with
the organisations supply chain to minimise disruption
and costs

59
 ADVANCED PROFESSIONAL COMPETENCY LEVEL
Segment 5.7 • Leading Improvements in Contracting Practice

Knowledge: Will know and understand: Capabilities: Will be able to:

The impact on supply chain relationships of undertaking Engage in forums, seminars and other events to
major programmes and projects promote best practices in programme and project
management across supply chains

The use of project partnering and strategic partnering Encourage the use of project partnering and strategic
relationships in projects and programme management partnering throughout the sector through
demonstrating effective leadership skills

The development of Model Form contracts in the Participate in consultations and other events to guide
contracting environment such as NEC, FIDIC, JCT, the development of Model Form contracts and industry
IMechE, IChemE, Logic practice

Benchmarking of programmes and projects Liaise with organisations that have led innovative
programmes and projects and disseminate best
practices to the organisation’s stakeholders

The risk appetite of the organisation, risk analysis and Encourage the adoption and use of standards that
impact of risks on the reputation and performance of identify, manage and mitigate risks in the supply chain
organisations

The use of financial levers such as payment scheduling, Make effective use of payment and risk/reward sharing
gain share/risk and reward contracting contracting approaches to minimise risk, motivate
performance, drive innovation and maximising cash
flow

Regulations that can impact on sectors and Provide expert advice to colleagues and stakeholders on
organisations relevant regulations and compliance issues

The principals, tools, processes and best practices in Make effective use of robust contract management
management of contracts and supplier performance disciplines, key performance indicators and service level
agreements to mitigate risk and ensure high quality
contract outcomes

The forms of dispute resolution such as litigation, Leads dispute resolution, transition arrangements and
arbitration, alternative dispute resolution including exit strategies with appointed contractors and suppliers
adjudication, mediation, conciliation and expert
determination and negotiation

[Link]
Pillar: Process Standards
Theme 6: Sourcing in Procurement and Supply

The sourcing theme focuses on fundamental aspects of procurement and supply. The theme
enables personnel with roles in procurement and supply to formulate selection criteria and
sourcing strategies so that the organisation will achieve the appropriate choice of supplier for
bought out goods, services or works.

TACTICAL COMPETENCY LEVEL

Segment 6.1 • The Stages of a Sourcing Process

Knowledge: Will know and understand: Capabilities: Will be able to:

Reviewing and clarifying requirements from internal Liaise with internal stakeholders to review and clarify
stakeholders requirements to ensure that value for money outcomes
are achieved through the sourcing of goods or services

The generation of requests for information or requests Ensure that all required details are entered onto
for quotations including: requests for information or requests for quotations or
• Pricing other documents used in the sourcing process
• Delivery timescales
• Required quality
• Required quantities
• Other site information

The analysis and comparison of quotations to achieve Compare and evaluate quotations received from
value for money outcomes when creating purchase potential suppliers and deal with any queries or
orders concerns about completed documentation

Order placement and contract award Make recommendations and obtain approvals within
delegated levels of authority for the placement or
award of contracts

Performance and delivery aspects of the sourcing Ensure that deliveries and commencement of work are
process in line with stated requirements

61
 TACTICAL COMPETENCY LEVEL
Segment 6.2 • Effective Tendering

Knowledge: Will know and understand: Capabilities: Will be able to:

The development of invitations to tender comprising of Compile timely and accurate invitations to tender
specifications, applicable key performance indicators, taking into account the requirements of stakeholders
contract terms, pricing schedule and other schedules

Approaches to supply market research/early supplier Carry out and record discussions with suppliers and
engagement/pre-contract dialogue markets in appropriate circumstances to develop
improved commercial and technical solutions

The use of prequalification questionnaires Develop and transmit prequalification questionnaires to

potential suppliers and check the details included in
completed returns

Prequalification of suppliers in E-registration or Review potential suppliers that that have completed
E-tendering systems prequalification making recommendations for their
participation

The submission of tenders Check the details that have been included in tenders
completed by potential suppliers and refer any
discrepancies to colleagues or suppliers

Evaluation of tenders on the basis of set evaluation or Assess tender proposals in line with set evaluation
award criteria criteria and make recommendations for tender award

Creation of acceptances of submitted tenders Complete tender award documentation notifying

unsuccessful and successful suppliers

TACTICAL COMPETENCY LEVEL

Segment 6.3 • Effective Communication in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

Effective writing of letters, e-mails, memoranda and Create written correspondence in the form of letters,
reports to colleagues, suppliers and other stakeholders e-mails, memoranda and reports

Preparing documentation for the sourcing process such Complete electronic files and documents used in the
as: sourcing process
• Requests for information or quotations or
invitations to tender
• Lotting of requirements
• Evaluations of quotations or tenders
• Award of acceptances of quotations or tenders

Building rapport with internal Develop, maintain and improve relationships with
stakeholders internal stakeholders to promote effective procurement
and supply

Building relationships with suppliers and customers Develop, maintain and improve relationships with
suppliers or customers to promote effective
procurement and supply

Negotiating with suppliers and customers Negotiate with suppliers and customers to agree
contract terms and relationships that will achieve the
interests of the organisation

[Link]
OPERATIONAL COMPETENCY LEVEL
Segment 6.4 • Sourcing Processes and Systems in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The impact of organisational procedures on the Ensure compliance with organisational procedures that
sourcing process including: cover sourcing processes
• The responsibilities for procurement
• Regulations relating to competition
• Levels of delegated authority
• Responsibilities for the stages of the sourcing
process
• Invoice clearance and payment

Developing sourcing options such as single, dual and Create recommendations for the adoption of single,
multiple sourcing arrangements dual and multiple sourcing arrangements with suppliers

The main types of contractual agreements made Analyse the main types of contractual agreements that
between customers and suppliers including: can be made between customers and suppliers and
• One off purchases identify the circumstances for each to be used
• Framework arrangements and agreements
• Mini competitions
• Call offs
• Services contracts
• Contracts for the hire and leasing of assets
• Outsourcing of work or services

Approaches to supply market research/early supplier Develop the content for the pre-engagement of
engagement/pre-contract dialogue as part of the suppliers that can involve publicising contract
overall sourcing process opportunities and provide feedback to stakeholders to
capture supplier innovation and build relevant
innovations into the requirements

Analysis and planning involved in a sourcing process Create plans for sourcing processes identifying the steps
to be taken and the involvement of internal or external
stakeholders

The distinction between the selection in the pre- Create selection and award criteria appropriate to the
contract stage and award used in the post-contract procurement proposing any necessary weightings for
stages of a sourcing process the criteria

The evaluation of suppliers quotations or tenders to Evaluate submitted quotations or tenders on the basis
make use of criteria such as: of objective criteria using any agreed weightings and
• total costs scoring process
• added value
• technical merit
• quality
• innovation
• sustainability
• ethical sourcing

The impact of Purchase to Pay (P2P) systems on the Use the organisation's Purchase to Pay (P2P) system
sourcing process and deal effectively with any queries raised by
stakeholders to improve the sourcing process

The impact of reverse auctions on the sourcing process Analyse the use of reverse auctions in the sourcing
process and advise suppliers and other stakeholders on
their use

The use of E- market places in sourcing products and Make use of E- market places and promote their use to
services stakeholders to improve leverage for the organisation

63
 OPERATIONAL COMPETENCY LEVEL
Segment 6.5 • Conducting Supplier Appraisal

Knowledge: Will know and understand: Capabilities: Will be able to:

The use of pre-qualification criteria or processes for Evaluate the use and choice of pre-qualified suppliers,
supplier appraisal in the sourcing process pre-qualification criteria or processes for supplier
appraisal in the sourcing process taking into account
stakeholder requirements

Sources of information on suppliers such as: Research information on suppliers using appropriate
• Financial reports sources of information to select appropriate suppliers
• Credit rating agencies
• Social media
• Supplier websites
• Other appropriate publications and sources

The assessment of financial statements to evaluate the Evaluate the financial, commercial and technical
financial, commercial and technical capabilities of capabilities of potential suppliers
potential suppliers in the sourcing process

The use of ratio analysis to evaluate potential suppliers Analyse key ratios that indicate profitability, liquidity,
gearing and investment in order to evaluate the
suitability of potential suppliers

The use of scoring in the supplier appraisal process Evaluate potential suppliers’ prequalification or pre
contract assessments using any scoring and make
recommendations based on the assessments

[Link]
OPERATIONAL COMPETENCY LEVEL
Segment 6.6 • Effective Negotiation in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

Negotiation in relation to the sourcing process handling Negotiate with stakeholders/ suppliers to promote
conflict with suppliers and other stakeholders effective procurement in the stages of a sourcing
process taking steps to overcome conflict and
challenges with suppliers and other stakeholders

The types of approaches that can be pursued in Evaluate the range of approaches that can be used in
commercial negotiations such as: commercial negotiations and use them when
• Collaborative (win/win) appropriate
• Distributive (win/lose)
• Pragmatic
• Principled styles of negotiation

The stages of a commercial negotiation including the Create plans and conduct clearly defined stages for
planning and preparation, opening, testing, proposing, commercial negotiations taking account of the need to
bargaining and agreeing be flexible in practice

Creating objectives, strategies and goals for a Work with stakeholders to develop clear objectives,
commercial negotiation strategies and goals for a commercial negotiation

The sources of power in commercial negotiations Analyse the sources of power in commercial
negotiations and promote the organisation's objectives
to achieve effective procurement and supply

Creating the right environment for a commercial Create the right environment for a commercial
negotiation including the choice of location, its negotiation
surroundings and timings

Behavioural aspects of negotiation including effective Demonstrate effective behaviours in conducting

listening, the use of persuasion methods, the use of commercial negotiations that will help generate
tactics and influence positive outcomes for the organisation

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 MANAGERIAL COMPETENCY LEVEL
Segment 6.7 • Strategic Sourcing

Knowledge: Will know and understand: Capabilities: Will be able to:

The assessment of market factors in the development Evaluate market factors that influence the supply
of a strategic sourcing or category management process market to assist the development of appropriate
such as: sourcing plans that shape markets and improves
• Industry dynamics and pricing behaviour commercial leverage
• Financial data on suppliers
• Market demand and supply factors

Understand the business motivations, cost/margins and Advise colleagues and internal stakeholders on the
working practices of key suppliers implications of the business motivations, cost/margins
and working practices of key suppliers

Techniques for assessing suppliers performance and Undertake a strategic assessment of key suppliers using
capabilities modelling and techniques of analysis

The assessment of sourcing options for strategic Assess the sourcing options for supplies of
supplies of products or services including: products or services establishing the capability of
• The type of contract suppliers and the supply chain prior to commitment
• The duration of contract
• Number of suppliers and lotting strategies
• The use of e-sourcing
• Global sourcing/off shoring/low cost country
sourcing or onshoring

Internal stakeholder’s involvement in strategic Assemble cross functional teams and consult with
sourcing/ category management internal stakeholders to agree sourcing
options for any specific category of purchase

The use of competition, direct negotiation or joint Analyse the use of competition, direct negotiation or
proposition improvement in strategic sourcing/ joint proposition improvement for the sourcing of
category management categories and use as appropriate

The use of selection and award criteria relevant to the Develop and apply appropriate selection and award
category of purchase criteria and use to evaluate supplier proposals

Creating presentations on category plans Develop category plans to define the approaches to be
taken to sourcing categories and communicate to
stakeholders

[Link]
MANAGERIAL COMPETENCY LEVEL
Segment 6.8 • Developing Outsourcing

Knowledge: Will know and understand: Capabilities: Will be able to:

The use of outsourcing of work or services Evaluate the use of make or buy sourcing strategies and
identify the critical success factors for the outsourcing
or insourcing of work or services

The use of outsourced procurement services and Generate opportunities for other organisations to make
consortium based services use of outsourced procurement services, or to
contribute resources for consortiums, or to buy in
services from other procurement organisations

The development of offshoring and low cost country Evaluate the development of offshoring and low cost
sourcing country sourcing applicable to the outsourcing of work
or services

Risks in outsourcing work or services such as the loss of Develop a risk assessment and risk mitigation plan for
control, increased costs, service performance and the outsourcing of work or services taking into account
delays feedback from stakeholders

Developing the process to secure the outsourcing of Create an appropriate sourcing plan for the outsourcing
work or services of work or services and communicate with stakeholders

Taking account of sustainability in outsourcing Create plans for the use of responsible procurement
with fair pricing and payment terms upholding relevant
labour standards for the outsourced work or services

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 PROFESSIONAL COMPETENCY LEVEL
Segment 6.9 • Developing Global Sourcing

Knowledge: Will know and understand: Capabilities: Will be able to:

Creating competitive advantage such as reduced costs, Evaluate opportunities for global and low cost country
improved quality, time to market and product and sourcing to contribute to the creation of competitive
service differentiation through global sourcing and low advantage for the organisation
cost country sourcing

Identifying value added activities and the value chain in Analyse potential global supply chains to ensure that
global sourcing through: external organisations contribute added value
• Reducing costs
• Improved quality
• Delivery reliability
• Innovation
• Sustainability

Assessing supply chain risks in global sourcing such as: Monitor potential risks across global sources to develop
• country risk and implement risk assessment and risk mitigation
• STEEPLE factors strategies for global sourcing taking actions to exploit
• export and import controls and sanctions market opportunities
• bribery and corruption
• fraud
• counterfeiting
• disruptive technologies
• cyber attack

Positioning in local, regional and global supply chains Create and implement plans to achieve any applicable
requirements between local, regional and global
sourcing taking into account stakeholder feedback

Sourcing decisions in supply chains and the sourcing of Develop appropriate sourcing strategies for categories
rare earth commodities and other bottleneck items of procurements including the mitigation of potential
supply chain risks

The co-ordination of commitments with different Establish plans that co-ordinate and share allocations of
suppliers to balance supply chain risks across the global expenditures across different suppliers when relevant
supply chain

Sustainability in global sourcing including fair pricing Create and implement plans for the use of responsible
and payment terms and recognising relevant labour procurement
standards in global sourcing

Legal and regulatory requirements for successful Advise colleagues and internal stakeholders of changes
International trading relationships in international trading, legal issues and regulations

[Link]
ADVANCED PROFESSIONAL COMPETENCY LEVEL
Segment 6.10 • Evaluating and Advising on Risks in Strategic Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The impacts of risks on the reputation of organisations Develop approaches to mitigate the impact of the
supply chain that could adversely affect the reputation
of the organisation and contribute to the use of risk
pathways by the organisation

Sourcing decisions in supply chains and the sourcing of Develop and implement appropriate sourcing strategies
rare earth commodities and other bottleneck items for rare earth commodities and other bottleneck items

The use of risk assessments and approaches to manage Takes calculated risks in the development and
risks in sourcing plans implementation of sourcing plans to deliver innovative
solutions for the organisation and assigns risks to the
party best placed to manage them

The main implications of globalisation on supply chain Monitor and evaluate aspects of globalisation that
management and their bearing on risk such as: affect the organisation's supply chains and advise
• Global logistics colleagues and strategic stakeholders on actions that
• Supply chain vulnerability can be taken to mitigate risks
• Ethical sourcing
• The local versus global dilemma

Emerging risks such as cyber security, disruptive Develop and communicate an assessment of risks using
technologies, counterfeiting and fraud intelligence and alerts to manage emerging risks from
external influences such as cyber security, disruptive
technologies, counterfeiting and fraud

The impact of key legislation and regulations on Monitor and evaluate developments in legal issues that
competition law, licensing, tariffs and duties on imports affect sourcing decisions in supply chains and advise
and applicable law for international contracts colleagues and strategic stakeholders on actions that
can be taken to mitigate risks

The use of insurances for protection against risks in Develop and implement approaches to mitigate
supply chains including: business interruption, credit financial risks that impact on supply chains through the
protection, import/export, public and employers use of insurances
liability and professional indemnity

The development of risk management frameworks such Support the adoption and use of frameworks such as
as Enterprise Risk Management (ERM) ERM to mitigate risks in the supply chain

The use of standards for risk management such as ISO Support the adoption and use of standards that
22301, ISO 27001, BS 31000, mitigate risks in the supply chain

Understanding the risk appetite of the organisation Research market, and own organisations position on
risk and quantify risks providing recommendations to
internal stakeholders

69
 Pillar: Performance Standards
Theme 7: Delivering Outcomes in Procurement and Supply

The delivering outcomes theme focuses on the improvements to business performance that
personnel with roles in procurement and supply can generate for the organisation. These outcomes
will be aligned to the achievement of added value solutions and can include reduced prices and
costs, improved quality, achievement of timescales, required quantities, innovation and sustainable
supplies of goods and services provided by external suppliers.

TACTICAL COMPETENCY LEVEL

Segment 7.1 • Delivering Value for Money in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The 5 rights of procurement and supply: Apply the 5 rights of procurement and supply to any
• Price/ cost required goods or services
• Quality
• Time
• Quantity
• Place

Creating value for money in procurement and supply Identify opportunities to create value for money
outcomes for procuring goods and services

Creating savings and improving efficiency in Create savings and improve efficiencies through
procurement and supply negotiations with suppliers

The use of budgets and budget monitoring in Assist budget holders to capture savings that contribute
procurement and supply to reductions in budgets

The use of targets in procurement and supply Analyse and work towards targets set for value for
money improvements

[Link]
TACTICAL COMPETENCY LEVEL
Segment 7.2 • Effective Expediting in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

Assessing the costs of inventories and the costs of stock Monitor levels of inventories and take actions to
outs mitigate over supply and minimise the risk of stock outs

Undertaking expediting of deliveries of goods or Undertake expediting as a planned process to ensure

services the timely deliveries of goods or services purchased
from suppliers

The use of problem solving techniques in expediting Diagnose the causes of scheduling difficulties and take
deliveries of products or services preventative actions to avoid their re-occurrence

Planning milestones and activities Identify targets for the scheduling of deliveries of goods
or services taking into account feedback from suppliers
and other stakeholders

Tracking deliveries and documentation Take actions to track deliveries and check relevant data
and documentation

The use of forecasting to achieve timely deliveries of Extrapolate data on historic demand to calculate
supplies forecasts of demand that can be communicated to
suppliers and other stakeholders

TACTICAL COMPETENCY LEVEL

Segment 7.3 • Achieving Competitive Pricing in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The use of competition to obtain quotations on prices Promote the use of competitive pricing with suppliers
through monitoring prices and obtaining quotations
when appropriate

The comparison of quoted prices to historical data Compare historical prices with newly quoted prices and
evaluate the reasons for any significant discrepancies
and take appropriate actions to secure competitive
pricing

The link between costs, prices, margins and mark ups Analyse available data on the costs, prices, margins and
mark ups of submitted prices in order to negotiate
competitive prices

The use of open book costing and adjustments Evaluate data supplied in open book arrangements and
take actions to remedy any queries

Negotiating improved prices Negotiate with suppliers to reduce prices whilst

retaining or improving other aspects of value for money
such as quality, availability and sustainability

Estimating whole life costs Analyse the whole life costs of purchased goods or
services and take actions to reduce or avoid on- going
costs

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 TACTICAL COMPETENCY LEVEL
Segment 7.4 • Achieving Quality Requirements in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

Defining quality and the costs of non-conformance Identify problems relating to defective quality and non-
conformance issues and take actions with suppliers and
other stakeholders to prevent any re-occurrence

Assessing the quality of delivered products or services Assess the quality delivered by suppliers and take
actions with suppliers and other stakeholders to
prevent any re-occurrence of defective quality

The use of quality standards in promoting quality Research relevant quality standards and inform internal
stakeholders of their application to the purchase of
goods or services

Processes and procedures for managing quality, and the Evaluate the procurement of goods or services against
use of quality assurance organisational processes and procedures for managing
quality and take actions to mitigate any deviations from
standards

Customer service and its relationship with procurement Promote and practice required standards of customer
and supply service with internal customers and other stakeholders

[Link]
OPERATIONAL COMPETENCY LEVEL
Segment 7.5 • Achieving Added Value Outcomes in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

Defining added value in procurement and supply Work with suppliers, internal customers or other
including value by improving: stakeholders to achieve added value outcomes in
• Prices or total costs procurement and supply
• Timescales
• Quality
• Innovation
• Sustainability or other source of added value

The relationship between achieving compliance with Recognise the importance of compliance with
processes and the achievement of outcomes that bring organisational processes and simultaneously take
added value actions to achieve added value solutions with suppliers
or internal stakeholders

Achieving competitive prices for purchased goods and Follow good practice in sourcing activities and negotiate
services to achieve competitive prices for purchased goods and
services including the use of open book costing and
adjustments

Achieving quality requirements of purchased goods and Work with suppliers and internal stakeholders to
services by the implementation of processes, achieve quality requirements for purchased goods and
procedures, standards or methodologies to improve services
quality

Achieving required timescales for purchased goods and Liaise with suppliers and other stakeholders and
services undertake proactive actions to ensure successful and
timely delivery of purchased goods and services

Achieving required quantities of purchased goods and Ensure that quantities of purchased goods and services
services are delivered to contractual agreements and take
appropriate actions to address any shortfall or excess

Achieving sustainability of purchased goods and Monitor that purchased goods and services comply
services and promoting sustainability through effective with the standards set for achieving sustainable
procurement and supply outcomes and take appropriate actions to address any
issues

73
 OPERATIONAL COMPETENCY LEVEL
Segment 7.6 • Effective Contract Management in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The main types of risks in the performance of contracts Evaluate the potential risks that purchased goods and
such as internal, market, economic, legal, ethical services may be subjected to and liaise with suppliers
sourcing and performance based risks and stakeholders to create and implement plans to
mitigate the adverse effects of these risks

Responsibilities for contract management Clearly allocate responsibilities with stakeholders for
the effective management of contracts for purchased
goods and services

Demand management for contracts Forecast and plan requirements with internal
stakeholders and suppliers to ensure the supply of
goods and services matches demand taking into
account actual demand

Performance management and ensuring compliance to Monitor the supply of goods and services to ensure
agreed standards required performance standards and KPIs are achieved
and identifies where changes in the contract are
required taking actions to implement these

Payment responsibilities in contract management Certify costs and monitor compliance to, and take
remedial actions, for any deviations from contracted
payment terms for purchased goods and services,
managing any contracted risk and reward mechanisms

Creating targets for assessing the performance of Formulate SMART targets for supplier performance and
suppliers based on the SMART (specific, measurable, agree their application with suppliers and other
achievable, relevant and timely) targets for stakeholders
performance

Supplier relationship management and the use of Ensure supplier relationship management processes
improvement plans and improvement plans are proactively executed to
correct defective performance for the delivery of
purchased goods or services

Transition and exit arrangements for contracts Ensure security of supply in any transition period or exit
of contracts with suppliers

[Link]
MANAGERIAL COMPETENCY LEVEL
Segment 7.7 • Achieving Effective Supply Chain Management

Knowledge: Will know and understand: Capabilities: Will be able to:

The sources of added value to organisations that can be Identify and practice ways of delivering added value
achieved through effective supply chain management through effective supply chain management
by improving:
• Prices or total costs
• Timescales
• Quality
• Innovation
• Sustainability or other source of added value

The collaborative model of supply chain management Work with suppliers and other stakeholders to achieve
through partnering and strategic relationship partnering and strategic relationship management to
management deliver value for the organisation and its supply chain

The competitive model of supply chain management Evaluate circumstances for the application of
competitive relationships to improve value in the
supply chain

The creation of insourcing and outsourcing Demonstrate added value to the organisation through
arrangements for work or services the implementation of either insourcing or outsourcing
of work or services

The development of global procurement, off shoring, Demonstrate the added value to the organisation
low cost country sourcing or onshoring and how these through the implementation of global procurement, off
can bring added value to the organisation and its supply shoring, low cost country sourcing or onshoring, and
chain identify and mitigate any potential supply chain risks

Supplier relationship management and the use of Ensure supplier relationship management processes are
improvement plans proactively executed and create and implement
improvement plans to correct defective performance to
improve performance and service levels of suppliers

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 PROFESSIONAL COMPETENCY LEVEL
Segment 7.8 • Achieving Supply Chain Improvements

Knowledge: Will know and understand: Capabilities: Will be able to:

Achieving total quality approaches with the supply Implement total quality approaches with suppliers to
chain improve the cost, quality or delivery of purchased
goods or services

The use of statistical analysis in developing quality of Improve the cost, quality or delivery of purchased
supplies goods and services through the implementation of
statistical methods of analysis

Achieving Just in Time approaches to inventory Reduce inventories or work in progress through the
management implementation of Just in Time methods with the
organisations supply chain

Achieving lean thinking and lean supply with the supply Reduce cost, time to market, inventories or work in
chain progress through the implementation of lean thinking
and lean supply with the supply chain

The use of benchmarking in supply chains Research and create benchmarks of processes or
performance of the organisation’s supply chain

The use of business process re-engineering in supply Demonstrate added value solutions through the
chains implementation of methods of business process re-
engineering

Achieving sustainability in procurement and supply Demonstrate improved aspects of sustainability

through the implementation of standards, processes or
other actions with suppliers

Supplier relationship management and the use of Develop supplier relationship management processes
improvement plans with colleagues and key stakeholders and ensure
improvement plans are initiated and investigated for
the effective delivery of purchased goods or services

[Link]
ADVANCED PROFESSIONAL COMPETENCY LEVEL
Segment 7.9 • Applying Improvement Methodologies for the Supply Chain

Knowledge: Will know and understand: Capabilities: Will be able to:

Specifying data to support, problem diagnosis and Investigate procurement and supply chain issues
decision making through application and analysis of data to create
appropriate recommendations

Deming's plan, do, check, action (PDCA) cycle and Apply systematic approaches to develop improvements
approaches to quality management in procurement and supply chain management

The use of statistical analysis to developing supplies to Lead programmes to collate and analyse data to
examine issues affecting the performance of the supply formulate strategies and plans for improving
chain procurement and supply chain issues

Developing metrics to measure the performance of the Evaluate metrics that can be applied to measure
supply chain performance and develop improvement plans with
suppliers and stakeholders

Project identification and improvement strategies Evaluate development projects and create appropriate
strategies for their implementation

Business case development and cost/ benefit analysis Create sound business cases for the purchase of goods
or services built on statistical evidence

Root cause analysis and the use of six sigma tools Apply root cause analysis to problems experienced in
procurement and supply chain management and apply
statistical methods for the development and
implementation of improvement plans

Methodologies for the development of supply chains Select and instigate supply chain improvement
such as: methodologies
• SC21
• EFQM
• SCRIA
• Balanced scorecard methodologies
• Supplier relationship management

77
 Pillar: Performance Standards
Theme 8: Metrics and Measurement in Procurement and Supply

The metrics and measurement theme supports personnel with roles in procurement and supply to
collate information and data to communicate performance to suppliers and stakeholders. To
improve the organisations performance, critical aspects of procurement and supply such as prices
and costs, quality, timescales and other value added activities should be continuously improved.

TACTICAL COMPETENCY LEVEL

Segment 8.1 • Delivering Value for Money

Knowledge: Will know and understand: Capabilities: Will be able to:

Value for money criteria such as pricing/ costs, Apply the balance of value for money criteria
delivered quality, timescales, quantities and location appropriate to the procurement of goods or services in
requirements your area of responsibility

Measuring achieved savings of goods and services to Analyse data to report savings achieved for purchased
recognise efficiencies goods or services

Comparing forecasts with actual expenditures to Analyse data showing forecasts for actual expenditures
control expenditures and examine variances between forecasted and actual
expenditures

Assessing the quality of supplies of goods and services Analyse reports and data on the quality of goods and
to ensure that quality standards are achieved services supplied and take actions with suppliers or
internal stakeholders to remedy and prevent defects

Measuring internal and external lead times of supplies Monitor internal and external lead times and take
actions to remedy delays and improve lead time
performance

Measuring the performance of supplies of Anticipate and identify contractual delays or variations
goods and services and take actions to remedy performance issues and
improve lead time performance, escalating when
necessary to the contract manager

Achieving functional targets in procurement and supply Collate data required for the fulfilment of targets for the
procurement and supply function as necessary to
improve performance

Measuring service levels for supplies of goods and Compare service performance against planned service
services levels and take actions to improve performance

[Link]
OPERATIONAL COMPETENCY LEVEL
Segment 8.2 • Measuring Operational Performance of the Procurement and Supply Function

Knowledge: Will know and understand: Capabilities: Will be able to:

Value for money criteria such as pricing/ costs, Apply value for money criteria to the procurement of
delivered quality, timescales, quantities and location goods and services in sourcing processes and
requirements performance measurement

Measuring the achievement of quality, timescales, Evaluate data on the achievement of quality,
quantities and place considerations for procurement timescales, quantities and place considerations for
from external suppliers procurements from external suppliers and take actions
to improve performance

Delivering customer service and stakeholder Evaluate customer service and stakeholder satisfaction
satisfaction for procurement and supply and ways of for procurement and supply and take actions to
improving it improve performance

Measuring cycle times for the sourcing process Evaluate the timescales for sourcing processes
analysing the causes of any delays and take actions to
reduce timescales when appropriate

Assessing the performance and control of budgets Analyse departmental budgets and evaluate the
reasons for variances between forecasted and actual
expenditures and take actions to mitigate future
variances

The use of social media in obtaining feedback on Monitor relevant social media to gauge feedback from
performance customers and suppliers and take actions to deal with
feedback

OPERATIONAL COMPETENCY LEVEL

Segment 8.3 • Measuring the Performance of Contracts

Knowledge: Will know and understand: Capabilities: Will be able to:

The main types of risks in the performance of contracts Formulate SMART targets for supplier performance
such as internal, market economic, legal and ethical and agree their application with suppliers and other
sourcing and performance based risks stakeholders

Defining contractual performance measures of key Define and agree processes to monitor contractual KPIs
performance indicators (KPIs) to assess quality to assess quality performance, cost management,
performance, cost management, resources and delivery resources and delivery with suppliers and stakeholders

Analysing outcomes from a negotiation process with Compare planned outcomes for negotiations with
suppliers of goods and services suppliers with actual outcomes and evaluate the
reasons for any differences

Assessing contractual risks Liaise with suppliers and other stakeholders to

complete risk registers and agree actions to mitigate
risks

The use of data that relate to the performance and Collate and evaluate data on the performance of
under performance of contracts contracts and take actions to remedy or prevent under
performance

The use of audits to verify performance and costs Conduct audits with suppliers to verify performance
and costs and take actions to remedy any queries on
information and data gained

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 MANAGERIAL COMPETENCY LEVEL
Segment 8.4 • Managing Risks in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The development of risk evaluation tools including risk Create risk assessments, registers or other risk
assessments, registers and other tools and assessing evaluation tools and agree actions to mitigate risks with
contractual risks for procurements of goods or services suppliers and other stakeholders

Measuring risks in projects for procurement and supply Compile risk assessments, registers or other risk
such as quality, cost and the achievement of timescales evaluation tools for projects and agree actions with
suppliers and other stakeholders to allocate or share
risks to avoid claims, variations or disruption

Collating and analysing data and statistics on risks in Compile qualitative and quantitative data to measure
procurement and supply and actions to mitigate their risks in the procurement of goods or services and take
impact actions to reduce the probability and impact of the risks

The monitoring and control of projects in procurement Use project monitoring and control processes or
and supply systems to ensure the delivery of quality, cost or
timescales for projects in procurement and supply

The monitoring and control of sustainability in Devise and monitor Key Performance Indicators (KPIs)
procurement and supply for sustainability with suppliers and take appropriate
actions to ensure delivery to agreed standards

MANAGERIAL COMPETENCY LEVEL

Segment 8.5 • Measuring the Performance of the Supply Chain

Knowledge: Will know and understand: Capabilities: Will be able to:

The use of Key Performance Indicators (KPIs) on supply Develop and agree with suppliers and other
performance including: stakeholders appropriate KPIs for the supply chain
• Cost
• Quality
• Delivery
• Safety

Devising measures for improving quality and actions to Devise and monitor measures of quality for contracts or
improve performance the function and take appropriate actions to improve
performance

Measures for the control of prices and costs Collate and analyse data that measure the control of
prices and costs and take actions to improve
performance

Measures for achieving time to market and achieving Collate and analyse data that measure deliveries of
deliveries to required timescales goods and services and take actions to improve
performance

Measures of innovation in procurement and supply Collate and analyse data that measure innovations from
suppliers and take actions to improve performance

[Link]
MANAGERIAL COMPETENCY LEVEL
Segment 8.6 • Developing the Performance of the Supply Chain

Knowledge: Will know and understand: Capabilities: Will be able to:

Applying value chain analysis to the supply chain to Evaluate the value added activities of the organisation’s
improve price and cost management, quality supply chains and take actions to increase value
improvement, time to market, sustainability, innovation
or other activities

Reducing risk and supply chain vulnerability Compile qualitative and quantitative data to measure
risks in the procurement of goods or services and take
actions to reduce the probability and impact of the risks

The use of improvement methods to improve quality Create metrics for the measurement of quality inputs
such as statistical process control, continuous and outputs and develop improvement plans with
improvement (kaizen) programmes and six sigma suppliers and other stakeholders

The use of cross functional working, simultaneous Encourage innovation in the supply chain and report on
engineering, early supplier involvement, supplier the development of innovation in supply chains
forums and associations to promote the development
of innovation in supply chains

The application of E-Procurement technologies in Create systems integration across the organisation and
supply chains with the organisation’s supply chain

The use of approaches for supplier development such as: Identify opportunities to make use of methodologies
• knowledge and technology transfer for supplier development
• collaborative product/service development
• continuous improvement reviews
• supplier capability assessments

81
 PROFESSIONAL COMPETENCY LEVEL
Segment 8.7 • Developing the Capabilities of the Supply Chain

Knowledge: Will know and understand: Capabilities: Will be able to:

The impact of supply chain management on corporate Encourage added value outcomes achieved by the
performance organisation’s supply chain and report data to senior
management and other stakeholders

Matching supply with demand in supply chains Compile data that assess the achievement of customer
service levels and report data to senior management
and other stakeholders

The use of technology to communicate data in supply Develop strategies for systems integration across the
chains organisation and with the organisation’s supply chain
and collate data to report to stakeholders

The application of balanced scorecards in supply chains Evaluate data recorded on balanced scorecards for
supply chain performance and develop improvements
with suppliers and other stakeholders

The measurement of safety, quality, costs and deliveries Create and monitor measures on safety, quality, costs
in supply chains and deliveries achieved by the organisation’s supply
chain and report data to senior management and other
stakeholders

The use of approaches for supplier development such as: Initiate the use of supplier development programmes
• knowledge and technology transfer with relevant suppliers, providing coaching for
• collaborative product/service development improved performance to achieve added value
• continuous improvement reviews outcomes
• supplier capability assessments

The use of benchmarking in supply chains Evaluate benchmarks of processes or performance to

develop gap analysis for performance improvement

[Link]
ADVANCED PROFESSIONAL COMPETENCY LEVEL
Segment 8.8 • Developing Metrics for the Supply Chain

Knowledge: Will know and understand: Capabilities: Will be able to:

Collecting data, problem diagnosis and decision making Identify opportunities to collate and analyse data to
develop appropriate recommendations

Deming's plan, do, check, action (PDCA) cycle and other Apply improvements in procurement and supply chain
approaches to quality management management

The use of statistical analysis to develop supplies to Lead programmes to collate and analyse data to
examine issues affecting the performance of the supply formulate strategies and plans for improving
chain procurement and supply chain issues

Developing metrics to measure the performance of the Create metrics for the measurement of performance
supply chain and develop improvement plans with suppliers and
other stakeholders

Project identification and improvement strategies for Implement projects and strategies for improvement of
the supply chain the supply chain

Business case development and cost/ benefit analysis Contribute to the development of a template for
business cases that can incorporate cost/benefit
analysis and other relevant data

Root cause analysis and the use of six sigma tools Devise root cause analysis to evaluate problems
experienced in procurement and supply chain
management and apply statistical methods for the
development and implementation of improvement
plans

Methodologies for the development of supply chains Keep up to date with development in supply chain
such as: improvement methodologies and be capable of
• SC21 applying their criteria
• EFQM
• SCRIA
• Balanced scorecard methodologies

83
 Pillar: People Development Standards
Theme 9: Developing Individuals and Teams in Procurement and Supply

The developing individuals and teams theme emphasises the knowledge, understanding and
capabilities required for coaching or leading people in the organisation, suppliers and other
stakeholders to further the objectives of improved procurement and supply. The theme focuses on
how staff support improved procurement and supply both internally and externally to the
organisation.

TACTICAL COMPETENCY LEVEL

Segment 9.1 • People in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The personal knowledge, understanding and Demonstrate personal knowledge, understanding and
capabilities required to support the achievement of the capabilities to further the aims of procurement and
aims of procurement and supply supply

The roles of staff with devolved responsibilities for Advise other members of staff that have responsibilities
procurement and supply for procurement and supply activities to comply with
organisational procedures and processes and to work
towards achieving value for money outcomes in
procuring goods and services

People, objectives and the structure of procurement Explain the roles of personnel involved in procurement
and supply in organisations and supply activities, the structure of the procurement
and supply function and its objectives

Procurement and supply as a service function Serve internal stakeholders efficiently and effectively to
promote customer support and service

Liaison with internal customers and other stakeholders Establish the commercial needs of internal customers
and understanding their commercial needs for the and other stakeholders for the procurement of goods
procurement of goods and services including: and services
• Pricing
• Quality
• Delivery
• Quantities
• Place aspects

Resolving conflict with internal stakeholders in Take appropriate actions with internal stakeholders to
procurement and supply resolve any conflicts that occur on differing priorities of
requirements

[Link]
TACTICAL COMPETENCY LEVEL
Segment 9.2 • Teams in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

Classifying internal and external stakeholders and the Recognise the inputs that both internal and external
roles they can have in procurement and supply stakeholders make to decision making in procurement
and supply

The use of the RACI (responsible, accountable, Use the RACI model to classify stakeholders
consulted, informed) model as a classification tool of
stakeholders

The use of cross functional teams in procurement and Develop positive relationships with team members and
supply other stakeholders, demonstrating behaviours to
further the aims of procurement and supply

Barriers to team working Recognise the existence of barriers to team working

and take actions to overcome resistance and conflict
from other team members

Team working in procurement and supply Contribute to the achievement of team activities for
procurement and supply

Characteristics of successful teams Work to achieve positive relationships with other team
members

85
 OPERATIONAL COMPETENCY LEVEL
Segment 9.3 • Working with Stakeholders in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The use of organisational procedures and processes in Advise other members of staff to comply with
sourcing goods and services required by the organisational procedures and processes for sourcing
organisation whilst working towards achieving value for money
outcomes in procuring goods and services

Selection and award criteria commonly applied to the Recommend the application of appropriate selection
sourcing of goods and services from suppliers and award criteria with stakeholders

Communication skills for negotiations to help achieve Demonstrate effective negotiation skills with suppliers
desired outcomes and other stakeholders to help achieve desired
outcomes

Team management and the influence of internal Develop positive relationships with team members and
customers and other stakeholders in negotiations demonstrate behaviours to overcome resistance and
conflict from team members or other stakeholders

The responsibilities for contract management Decide on responsibilities for contract management
and provide guidance to those personnel involved in
the performance of contracts on actions to help achieve
value for money outcomes

The stages of team development through forming, Develop effective relationships with other team
storming, norming and performing members

Forming teams with stakeholders for the sourcing Create positive relationships in teams emphasising the
process positive contributions to the organisation of effective
procurement and supply

[Link]
MANAGERIAL COMPETENCY LEVEL
Segment 9.4 • Developing the Capabilities of Individuals in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

Theories that explain the behaviour of people and Promote positive working relationships by building on
understanding the differences between people the different strengths of people in the team

Approaches to the development and measurement of Support the development of individuals' knowledge,
individuals capabilities and skills to further the aims of
procurement and supply

Diversity in organisations Promote diversity in the procurement and supply

function and with the organisation’s supply chain

Different learning styles of individuals including: Support the personal and professional development of
• Explicit and tacit knowledge individuals to enhance their performance
• Cognitive theories
• Knowledge management and how they can affect
individual development and performance

The dimensions of job satisfaction, alienation at work, Allocate the roles and responsibilities of personnel with
and approaches to job design, enlargement and responsibilities in procurement and supply to promote
enrichment positive attitudes and outcomes

The use of job analysis and job skills to identify and Establish the knowledge and skill requirements for
agree personal development plans personnel working in procurement and supply and
agree plans for their development

The use of recruitment and selection plans to meet the Create plans for the recruitment and selection of staff
skills and knowledge needs of the procurement and to fulfil requirements of the procurement and supply
supply function function

The use of training needs analysis and the creation of Develop and implement plans for the training and
personal development plans development of staff and other stakeholders to further
the organisation’s capabilities in procurement and
supply

87
 MANAGERIAL COMPETENCY LEVEL
Segment 9.5 • Motivating Individuals in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The meaning of motivation Understand the motivations and behaviours of

stakeholders, suppliers and individuals, and use this
knowledge to fulfil the roles required for effective
procurement and supply

Sources of extrinsic (financial rewards, security, Display effective motivational capabilities applying
promotion, the work environment and work conditions) these within the function, with stakeholders and
and intrinsic (psychological rewards, challenge and suppliers
achievement, receiving appreciation and recognition)
motivational approaches for working with staff

Frustration induced and constructive behaviours and Encourage constructive behaviours amongst staff in the
how they can affect performance procurement and supply function and take appropriate
actions to mitigate frustration related behaviours

Content (Maslow's hierarchy of needs, Herzberg's dual Apply relevant content and process theories with staff
factor theory, McClelland's achievement motivation) in the procurement and supply function to enhance
and process (Vroom's expectancy, Adams' equity, performance
Locke's goal) theories of motivation

Approaches for performance review and appraisal Conduct effective performance reviews and appraisals
with members of staff from procurement and supply

MANAGERIAL COMPETENCY LEVEL

Segment 9.6 • Developing the Capabilities of Teams in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The importance of work groups or teams for effective Build confidence in work groups or teams for effective
performance in procurement and supply performance in procurement and supply encouraging
their development and improvement

Factors that shape the behaviour of groups or teams Use an understanding of the factors that shape the
including: behaviour of teams to help create positive conditions
• Its size for teams in the workplace
• The capabilities of the members
• The nature of the task
• Physical environment
• Communications
• The use of technology

Stages of group dynamics and development Support the development of effective teams by
promoting positive group dynamics dealing effectively
with any team conflict that may arise

Alternative models for team working including: Support the development of effective teams in the
• Self-managed teams workplace through using an appropriate model for
• Remote working team working
• Virtual teams

The sources of role conflict including: Minimise conflict in the team by defining clear roles
• Role incompatibility and agreeing levels of authority and responsibility for
• Ambiguity staff with roles in procurement and supply
• Over or under-load

[Link]
PROFESSIONAL COMPETENCY LEVEL
Segment 9.7 • Effective Leaders for Procurement and Supply Chain Management

Knowledge: Will know and understand: Capabilities: Will be able to:

The role of a leader, the activity and importance of Evaluate the importance of leadership in achieving
leadership effective procurement and supply chain management

Approaches to change management Identify changes that can help transform flexibility,
responsiveness and quality of service provided by the
function and the organisation

The planning of resources to develop procurement and Develop and implement plans for the effective
supply chain management resourcing of staff and systems and infrastructure to
achieve effective procurement and supply chain
management

The main approaches to leadership such as: Demonstrate appropriate methods of leadership to
• The qualities or traits approach guide individuals, teams and the organisation and
• Functional or group approaches such as action supply chains to help achieve effective procurement
centred learning and supply chain management
• Styles of leadership such as autocratic, democratic
and laissez-faire
• Contingency theories such as path-goal theory

Behaviours for effective leadership such as situational Demonstrate effective behaviours to win the support of
leadership, transformational and inspirational colleagues and other stakeholders to achieve effective
leadership, solo versus team leadership procurement and supply chain management

Approaches for the effective delegation of Plan work commitments and delegate effectively to
responsibilities to staff to improve individuals' staff and promote understanding of strategies, plans
capabilities in understanding strategies, plans and and processes, taking accountability for outcomes
processes achieved

The development of knowledge and skills to achieve Develop the knowledge and skills of self colleagues and
effective procurement and supply chain management other stakeholders in procurement and supply chain
management

89
 PROFESSIONAL COMPETENCY LEVEL
Segment 9.8 • Leading and Influencing Stakeholders in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

Developing and implementing a vision for improved Articulate a clear, achievable and compelling vision
procurement and supply chain management which sets out the direction and plans of procurement
and supply chain management

Stakeholder analysis and mapping including primary, Use appropriate stakeholder analysis and mapping
secondary and key stakeholders techniques to evaluate stakeholder needs, interests and
influence and use the analysis to provide an efficient
and effective service

The impact and consequences of contradictory Manage the trade offs and conflicts between
requirements from stakeholders stakeholders in sourcing activities and complex
contracts and advise on commercial priorities

Obtaining buy in to procurement and supply chain Develop and plan a strategy to achieve the 'buy in' to
strategies from stakeholders objectives and plans for procurement and supply chain
management taking into account stakeholder feedback

Procurement expenditure approval levels and Develop and implement policy for procurement
corporate governance expenditure approval levels and aspects of corporate
governance for procurement and supply

Perspectives on influencing behaviours, and sources of Guide colleagues successfully through difficulties and
both individual and organisational power challenges from key personnel

Approaches to change management including Inspire colleagues and other stakeholders to adopt the
transformational and transactional change, the change/ plans and strategies created to achieve effective
performance curve, techniques for problem solving and procurement and supply chain management
overcoming resistance to change

[Link]
ADVANCED PROFESSIONAL COMPETENCY LEVEL
Segment 9.9 • Championing Culture Change

Knowledge: Will know and understand: Capabilities: Will be able to:

The dynamics of organisational culture, formation, Evaluate the support for improved procurement and
evolution and change supply chain management within the organisation and
its supply chains

Defining organisational culture and types of Classify the type of organisational culture and formulate
organisational culture plans for the supply chain that can fulfil the
expectations of stakeholders

The levels and dimensions of culture Critically assess the dimensions of culture in the supply
chain and create appropriate communications to
convince stakeholders of planned changes

Models for the assessment of culture including: Develop approaches to adapt behaviours and
• Quinn and Cameron's matrix communication to accommodate for differences in
• Johnson's cultural web culture in the organisation's supply chain
• Hofstede's dimensions of culture
• Trompenaars' dimensions of culture

The bases of differentiation in culture such as: Develop approaches to adapt behaviours and
• Functional communication that allow differences in culture
• Geographical internally and in the organisation's supply chain
• Divisionalisation
• Mergers, acquisitions and joint ventures

Managing the internal integration of culture Develop strategies and engagement plans that convince
stakeholders of plans for improved procurement and
supply chain management

How the impacts of mergers, acquisitions and Develop strategies and engagement plans that
divestitures can impact on organisational culture, anticipate and mitigate the risk of negative impact on
formation, evolution and change culture change following significant organisational
change

91
 ADVANCED PROFESSIONAL COMPETENCY LEVEL
Segment 9.10 • Managing Ambiguity in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The influences on the behaviour of individuals, groups, Critically evaluate the different behaviours adopted by
organisations and societies individuals, groups organisations and societies and use
appropriate approaches to enhance the organisation's
effectiveness

Causal models of organisational performance and Evaluate the internal and external factors that impact
change on organisational performance assessing the impact of
the supply chain on these factors

Complex decision making and making trade-offs Assesses evidence and data for complex situations
and presents recommendations and conclusions

Coaching skills for managing teams Provide guidance and support to colleagues and other
key stakeholders and monitor actions taken to achieve
effective procurement and supply chain management

Managing conflict and difficult situations Contribute to the leadership of the procurement and
supply chain function taking steps to mitigate
challenges and difficulties using conflict resolution
within the organisation and with its supply chains

Contemporary developments in human resources Provide guidance and create policies to improve the
policies that can be adopted to encourage productive motivation of colleagues and enhance performance
working such as:
• Flexible working
• Workplace design
• Work life balance
• Talent management
• Metrics to measure workplace standards

The planning of resources to develop procurement and Develop plans for the effective resourcing of staff,
supply chain management systems and infrastructure to achieve effective
procurement and supply chain management

The design of the supply chain function to encourage Create and implement plans to enable the supply chain
productive working function to improve its environment and to encourage
productive working

Chorn's PADI (pragmatism, administration, divergence Critically assess the divergence of organisational
and integration) model for organisational behaviour behaviour and align the requirements of the
organisation with its supply chain

Behaviour modification and change management Adopt and promote behaviours to support the
successful implementation of change

Approaches to change management including Inspire colleagues and other stakeholders to adopt the
transformational and transactional change, the change/ plans and strategies created to achieve effective
performance curve, techniques for problem solving and procurement and supply chain management
overcoming resistance to change

The use of emotional intelligence Demonstrate resilience and emotional maturity to deal
with ambiguity in complex decision making

[Link]
Pillar: People Development Standards
Theme 10: Developing Self and Personal Skills in Procurement and Supply

The developing self and personal skills theme helps individuals with procurement and supply roles
to advance their own knowledge, capabilities and skills. Gaps with current levels of knowledge,
capabilities and skills can be identified and development plans created to fulfil the needs of the
individual to help achieve organisational objectives.

TACTICAL COMPETENCY LEVEL

Segment 10.1 • Develop Your Capabilities for Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

Self-awareness Seek and respect the comments of others to improve

efficiency and effectiveness at work

Problem solving Work with others in the team to solve problems that
may arise in your area of responsibility reporting any
difficulties to your supervisor or line manager

Honesty and integrity Maintain personal and professional honesty and

integrity

Coping with change Be open and flexible to change seeing it as an

opportunity not a threat

Dealing with conflict Recognise that conflict can occur with colleagues and
work to minimise conflict situations that could affect
the team

Equality and diversity Promote best practice in valuing and respecting

people's diversity

Negotiating requirements Contribute to the effective negotiation of requirements

with internal stakeholders and create best value for
money outcomes achieved with suppliers

93
 OPERATIONAL COMPETENCY LEVEL
Segment 10.2 • Develop Your Capabilities for Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

Self-awareness Learn from mistakes, seeking and accepting feedback

from others in the team and from senior staff to
improve own performance and the performance of the
team

Problem solving Identify problems and work to develop solutions to

improve the effectiveness of the team

Honesty and integrity Maintain and promote to others personal and

professional standards of honesty and integrity

Coping with change Be open and flexible to change adapting approaches to

meet requirements

Dealing with conflict Recognise that conflict can occur with colleagues and
work to establish the causes of conflict and to minimise
conflict to improve team performance

Equality and diversity Promote best practice in valuing and respecting

people's diversity

Negotiation techniques Contribute to the effective negotiation of requirements

with internal stakeholders and create best value for
money outcomes achieved with suppliers

[Link]
MANAGERIAL COMPETENCY LEVEL
Segment 10.3 • Develop Your Capabilities to Manage Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

Self-awareness Learning from mistakes, seeking and accepting

feedback from others in the organisation and provide
constructive comments to others to improve own
performance and the performance of the team

Problem solving Assess situations and identify the causes of problems

proposing appropriate solutions

Honesty and integrity Maintain, promote and monitor personal and

professional honesty and integrity

Coping with change Recognise the need for change and promote change in
a positive manner to the team, encouraging their
comment and contribution to the process

Dealing with conflict Identify and minimise areas of potential conflict

between colleagues and team members whilst
recognising the positive contribution that managed
conflict can make to reaching shared solutions

Equality and diversity Maintain and promote best practice in valuing and
respecting diversity recognising the positive
contributions that such differences can bring to
effective work practices

Negotiation in procurement and supply Actively help internal stakeholders to achieve desired
outcomes in commercial dealings with third parties
through practicing effective negotiation

95
 PROFESSIONAL COMPETENCY LEVEL
Segment 10.4 • Develop Your Capabilities to Lead Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

Self-awareness Be open in recognising and learning from own mistakes

and the mistakes of others. Seek, accept and provide
feedback in a positive and constructive way to improve
outcomes

Problem solving Assess situations that may be unfamiliar and/or

unpredictable to identify potential problems and
propose effective and innovative solutions
demonstrating resilience in resolving issues

Honesty and integrity Maintain, promote and evaluate personal and

professional integrity that furthers the aims and well
being of the organisation

Coping with change Respond constructively to change coping with

uncertainty and manage the expectations of others in
relation to change

Dealing with conflict Manage conflict between stakeholders both internal

and external to the organisation recognising the
positive contribution that managed conflict can make to
reaching shared solutions

Equality and diversity Maintain and promote best practice in valuing and
respecting diversity and cultural differences within the
organisation, across teams and functions, recognising
the positive contributions that such differences can
make to work practices

Negotiation in procurement and supply Create advice and guidance for colleagues and other
internal stakeholders and act as a role model, using
advanced negotiation techniques and tactics, for
achieving negotiated outcomes that achieve positive
outcomes for the organisation

The use of emotional intelligence in commercial Appreciate the different aspects of emotional
negotiations intelligence that can be applied to improve
performance and outcomes sought in commercial
negotiations and create development plans to improve
key skills

[Link]
ADVANCED PROFESSIONAL COMPETENCY LEVEL
Segment 10.5 • Strategic Leadership in Procurement

Knowledge: Will know and understand: Capabilities: Will be able to:

The use of vision statements Create an appropriate shared vision in the organisation
and recognise the potential impact of developments in
the wider profession

The management of resources Manage resources to ensure effective and efficient

service to customers and key stakeholders

The creation of networking opportunities to help Develop best practice by evaluating and adopting new
establish benchmarks of organisational and individual ideas from inside and outside of the organisation
performance

Best practices for improved procurement and supply Proactively seek out new opportunities to take on new
chain management responsibilities and to share expertise across the
organisation and its supply chains

Effective communications in the organisation and its Develop and implement communication strategies and
supply chain plans using appropriate techniques at an appropriate
level for the target audience

Personal accountability in decision making Create, support and promote a culture of personal
accountability decisions made

Developing knowledge management Support the personal and professional development of

individuals to enhance their performance

The use of Continuing Professional Development (CPD) Develop and promote a culture of CPD monitoring the
programmes in procurement and supply progress of colleagues

The value of external engagement/representation to Proactively seek out opportunities to represent

raising the profile of the procurement and supply organisation/market/sector in externally facing
profession activities that positively support the profession and the
market/sector as a whole

97
 Pillar: People Development Standards
Theme 11: Ethics in Procurement and Supply

This theme helps individuals to recognise and evaluate the importance of ethics and responsible
procurement in organisations and in supply chains. Procurement and supply personnel should
promote ethical practices and behaviours with all stakeholders. The theme identifies good practices
to achieve commitment by individuals and at an organisational level.

TACTICAL COMPETENCY LEVEL

Segment 11.1 • Ethics in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The application of the CIPS Code of Conduct in Explain the key aspects of the CIPS Code of Conduct
procurement and supply that apply to your job role

The details included in ethical codes affecting Explain the key features of ethical codes that affect
procurement and supply procurement and supply and how you should identify
and address any breaches in ethical business practice

The use and roles of ethical codes in procurement and Ensure that you comply with ethical practices when
supply sourcing goods or services for your organisation

The use of documented policies and procedures for the Explain the kinds of documented policies and
work of procurement and supply, including: procedures used in procurement and supply and how
• The responsibilities for procurement they should be used
• Regulations relating to competition
• Levels of delegated authority
• Responsibilities for the stages of the sourcing
process
• Invoice clearance and payment

The principles of corporate governance that applies to Explain the main principles of corporate governance
procurement and supply that applies to the organisation's procurement and
supply function

Forms of bonded and exploitative labour that can exist Be aware of the reputational damage that can be
in supply chains experienced by the organisation in the event of a
breach of standards for ethical sourcing and the
organisational procedures for reporting to senior
management any identified breach

[Link]
OPERATIONAL COMPETENCY LEVEL
Segment 11.2 • Ethics for Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The application of the CIPS Code of Conduct in Comply with the CIPS Code of Conduct by:
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

The use of codes of ethics in procurement and supply Monitor the work of stakeholders to ensure that the
codes of ethics in procurement and supply are upheld
and to escalate to senior management any suspected
breach

The use of documented policies and procedures for the Explain how documented policies and procedures for
work of procurement and supply, including: procurement and supply should be interpreted and
• The responsibilities for procurement applied to promote ethical practice
• Regulations relating to competition
• Levels of delegated authority
• Responsibilities for the stages of the sourcing
process
• Invoice clearance and payment

The conflicts of interest that can exist in the work of Explain how to identify potential conflicts of interest
procurement and supply and how to deal with them that can occur in the work of procurement and supply
and how they should be addressed to ensure that
ethical practices are prioritised

99
 OPERATIONAL COMPETENCY LEVEL
Segment 11.3 • Ethical/Responsible Sourcing

Knowledge: Will know and understand: Capabilities: Will be able to:

International standards that apply against criminal Inform colleagues and stakeholders of international
conduct including bribery, corruption, fraud and human standards that apply against criminal conduct including
rights abuse such as modern slavery bribery, corruption, fraud and human rights abuse such
as modern slavery and investigate and escalate any
suspected breach

The incorporation of practices to support the Engage with stakeholders to devise specifications,
implementation of ethical/ responsible sourcing in contract terms, KPIs and other instruments to
procurement processes encourage suppliers to prevent, detect and eradicate
breaches of ethical standards

The use of prequalification and assessment criteria that Engage with stakeholders to agree prequalification and
can be applied to encourage ethical/ responsible assessment criteria that can be applied to encourage
sourcing in the procurement process ethical/ responsible sourcing

Sources of information and databases that examine Carry out research and map supply chains to assess
ethical practices vulnerabilities and risks in supply that may result in
breaches of ethical standards

The importance of obtaining supporting information on Undertake due diligence on suppliers to evaluate the
ethical practices in supplier quotations and tenders risks of forced labour and other human rights abuses,
fraud and corruption

The use of audits and other feedback mechanisms to Monitor performance and encourage dialogue with
evaluate workplace standards suppliers on how improvements to workplace
standards can be made and recommend to senior
management appropriate remedies that can be taken
with suppliers that may have committed breaches of
ethical policies

[Link]
MANAGERIAL COMPETENCY LEVEL
Segment 11.4 • Promoting Ethical Practices in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The use of ethical codes in procurement and supply Work with stakeholders to develop the application of
appropriate ethical codes for procurement and supply
making reference to the CIPS Code of Conduct

Standards that apply to ethical/responsible sourcing Monitor compliance with ethical practices and
and human rights abuse such as modern slavery standards that apply to global supply chains taking
including labour codes that impact on the globalisation appropriate actions in the event of detecting any
of supply chains such as breaches by colleagues or other stakeholders
• the United Nations (UN) Trafficking Protocol
• the International Labour Organisation (ILO)
• the Ethical Trading Initiative (ETI)
• Social Accountability International standard SA8000

Forms of bribery, corruption and fraud in supply chains Work with stakeholders and communicate standards to
eliminate bribery, corruption and fraud in supply chains
and take appropriate actions in the event of any alleged
breach of standards

Equality of opportunity affecting underrepresented Investigate, encourage and promote equality and
groups diversity opportunity for underrepresented groups in
the supply chain

Health and safety standards that apply to suppliers' Mandate, when possible, for suppliers to have effective
workplaces health and safety policies and a committee, have
independent checks and systems for whistleblowers,
and become knowledgeable on health and safety
hazards affecting the organisation's sector

101
 PROFESSIONAL COMPETENCY LEVEL
Segment 11.5 • Developing Commitment to Ethical Practices in Supply Chains

Knowledge: Will know and understand: Capabilities: Will be able to:

The use and roles of ethical codes in procurement and Develop a culture of commitment to achieve ethical
supply codes and practices in the organisations' supply chains
and require buyers and suppliers to uphold standards

Techniques for stakeholder mapping including primary, Analyse stakeholders and develop plans to establish
secondary and key stakeholder classifications ethical priorities and behaviours in the organisation’s
supply chains

Techniques for mapping suppliers to gauge risks in Devise matrices to assess the likelihood of risks of non-
ethical sourcing compliance in ethical sourcing and the importance to
the organisation of other relevant commercial and
technical criteria, and encourage their application by
colleagues and stakeholders

The use of communication plans to eradicate bribery, Influence stakeholders to take actions to eradicate
corruption, fraud and breaches of human rights bribery, corruption, fraud and human rights abuse, such
as modern slavery

The main regulations that impact on the employment Evaluate the effect of the main regulations that impact
of people in supply chains such as: on the employment of people in supply chains and
• Discrimination, equality and diversity draw up plans to mitigate any potential conflict caused
• Employee redundancy and dismissal by the regulations
• Working time and staff payment
• International labour codes
• Health and safety at the workplace
• Other country specific employment issues

Ethical practices and standards that apply to global Encourage commitment to achieve ethical practices and
supply chains standards that apply to global supply chains taking
appropriate actions in the event of detecting any
breaches by colleagues or other stakeholders

The use of audits and other systems for performance Collaborate with other purchasers to drive out
measurement applied by purchasers duplication of effort and to focus on streamlining audit
processes, the collation and analysis of data and any
remedial actions to be taken

The sources of conflict that can impact on ethical Steer the procurement and supply chain function
practices between stakeholders and suppliers through difficulties and challenges including conflict
within the organisation and with its supply chains that
can affect ethical practices

Initiatives and policies created by leading bodies such Act as a champion of change to promote the highest
as CIPS, Traidcraft, the Walk Free Foundation, the UN, standards of ethical practice
ILO and others

[Link]
ADVANCED PROFESSIONAL COMPETENCY LEVEL
Segment 11.6 • Establishing Ethical Standards in Procurement and Supply

Knowledge: Will know and understand: Capabilities: Will be able to:

The use and roles of ethical codes in procurement and Help develop ethical codes or standards that can be
supply applied across the organisation and its stakeholders or
industry sectors

Techniques for mapping and the auditing of suppliers to Contribute to the development of the mapping and
gauge risks in ethical sourcing auditing of suppliers to gauge risks in ethical sourcing

The use of standards or legislation to eradicate bribery, Contribute to the development of standards or
corruption, fraud and breaches of human rights legislation to eradicate bribery, corruption, fraud and
breaches of human rights

The main regulations that impact on the employment Lobby for improved regulations that impact on the
of people in supply chains such as: employment of people in supply chains
• Discrimination, equality and diversity
• Employee redundancy and dismissal
• Working time and staff payment
• International labour codes
• Health and safety at the workplace
• Other country specific employment issues

Ethical practices and standards that apply to global Act as role model in the application of ethical practices
supply chains and standards that impact on global supply chains

103
 9 781861 242723

CIPS Group Easton House, Easton on the Hill, Stamford, Lincolnshire, PE9 3NZ, United Kingdom
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CIPS Africa Ground Floor, Building B, 48 Sovereign Drive, Route 21 Corporate Park, Irene X30, Centurion, Pretoria, South Africa
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CIPS Australasia Level 2, 520 Collins Street, Melbourne, Victoria 3000, Australia CIPS™ is a registered trademark of the
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CIPS MENA Office 1703, The Fairmont Hotel, Sheikh Zayed Road, PO Box 119774, Dubai, United Arab Emirates
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