8600-333 Understanding Procurement and Supplier Management in the Workplace

Introduction

The unit 8600-333 Understanding Procurement and Supplier Management in the Workplace, is an integral component of the ILM Level 3 module designed to equip leaders at various organizational levels with a comprehensive understanding of purchasing and supply policies and procedures. Leaders need to grasp the elements associated with procurement and supply within the organization to effectively navigate the responsibilities assigned to them.

This unit delves into the intricacies of procurement and supply procedures, encompassing the purchasing processes employed when an organization places orders for materials, equipment, or other necessary items. Leaders are expected to comprehend these processes to efficiently initiate and oversee purchases, ensuring effective monitoring and evaluation of procurement and supply procedures. This, in turn, facilitates improvement and success within the organization.

With a focus on enhancing relevant skills and acquiring knowledge in procurement, the unit, 8600-333, aims to develop a profound understanding of procurement and supplier management. These skills are deemed critical for the success of a team or unit within the organization, where both practicing and potential first-line managers exert their influence.

The unit unfolds over 7 hours of guided learning and contributes 2 credit values towards the completion of the ILM Level 3 module. Its overarching goal is to empower leaders with the knowledge and skills necessary to navigate the complexities of procurement and supplier management, thereby contributing to the success of their teams and the broader organizational objectives.

Unit purpose and aim(s)

The objective is to cultivate a thorough comprehension and knowledge foundation concerning the proficient management of sustainability and environmental issues within an organizational context. This involves gaining insights into the fundamental principles, practices, and strategies necessary for navigating and effectively addressing the intricacies associated with sustainability and environmental considerations within the operational framework of an organization. The overarching aim is to empower individuals to make meaningful contributions to sustainable practices, promoting environmental awareness, and ensuring compliance with pertinent standards and regulations within the organizational setting.

Who is this unit suitable for?

Procurement and supply management constitute a crucial responsibility for leaders within an organization, typically overseen by the dedicated purchasing unit or department. However, it is imperative for all leaders to comprehend the principles associated with efficient supplier and organizational management. This understanding ensures their adept management of the procurement process within their respective units.

Effectively managing the purchasing process involves the ability to identify and validate procurement requirements directed at the organization. Leaders must also discern the relevant and common purchases they may encounter within their areas of responsibility. Furthermore, a comprehensive understanding of the supply process within the organization is vital. This knowledge informs the procedures for initiating purchase requests and facilitating supplies.

The unit 8600-333 Understanding Procurement and Supplier Management in the Workplace, serves as a valuable resource providing foundational information on the intricacies of procurement and supplier management. Tailored to meet the needs of first-line managers, the unit equips them to navigate and manage the purchase process effectively within the context of their responsibilities. It facilitates an understanding of organizational policies and principles relevant to making purchases, thereby enhancing performance in handling purchasing procedures.

While designed for first-line managers, the unit’s content is equally applicable to middle and executive managers responsible for establishing procurement and supplier management policies within the organization. Additionally, external consultants offering support in decision-making processes related to procurement and supplier management can benefit from the unit. Team members and general employees pursuing this unit can prepare themselves for future leadership positions they may aspire to in their careers.

Learning Outcomes

Upon successful completion of this unit, learners will acquire proficiency in the following competencies:

Procurement and Supply Chain Management:

• Explain key management processes and organizational procedures for purchasing goods and services.
• Describe the utilization of these systems in managing stock inventory, preventing losses or fraud, identifying forward requirements, controlling budgets, and ensuring legal compliance.
• Outline the responsibilities of a facilities manager in capital and revenue procurement, identifying typical work activities associated with managing expenditure.
• Provide examples from your organization to describe the main characteristics of the supply chain, considering contractual relationships, procurement strategies, and compliance issues.
• Describe the various types of documents used in initiating the procurement of facilities management goods and services.

Identifying and Managing Specialists and Suppliers:

• List the range of suppliers, including specialists, utilized for delivering goods, services, or facilities management in the organizational context. Either goods or services are acceptable.
• Explain the methods, processes, and selection criteria employed, indicating the types of contracts that may be entered into.
• Explain how the performance of the supply chain is currently monitored and managed. Reflect on your learning and suggest best practice approaches, tools, and techniques to encourage continuous performance improvement.

Key Learning Areas

The unit 8600-333 Understanding Procurement and Supplier Management in the Workplace, serves as a comprehensive guide for learners to develop a profound understanding of the procurement and supply processes within their organization. The unit’s content revolves around these pivotal subjects, covering the following main areas:

Procurement:

• Procurement Procedures and Services:
  • Guiding learners to understand the intricacies of procurement procedures and services.
  • Exploring different sources of supply and recognizing procurement needs within the organisation that trigger the initiation of procurement processes.
  • Teaching the legal and ethical considerations essential for establishing procurement processes that safeguard suppliers from exploitation.
• Specifications in the Procurement Process:
  • Identifying various specifications in the procurement process, encompassing input, output, and function.
  • Facilitating the management of procurement activities.
• Supply Chains:
  • Introducing learners to supply chains and providing guidance on effective approaches to managing the supply chains adopted by the organization.

Supplier Management:

• Specialists and Suppliers Range:
  • Focusing on the array of specialists and suppliers crucial for organizational success.
  • Introducing different services obtained from specialists through contracts or full-time agreements, such as cleaning, security, IT, and telecoms.
• Selection and Procurement Processes:
  • Guiding learners to understand the selection and procurement processes, incorporating competitive approaches, sustainable procurement, and fixed-price tendering.
  • Teaching techniques to identify, select, and engage suppliers and specialists.
• Supplier and Specialist Management:
  • Providing guidance on procedures to effectively manage suppliers and specialists.
  • Addressing the complexities of performance and monitoring for external individuals contracted for various services.

An Assessment

grasp both theoretical concepts and practical information. The assessment process gauges the accomplishment of these objectives through a written assessment, evaluating the mastery of theoretical content. Additionally, simulated exercises and supervised practice serve as valuable tools to assess the practical application of the learned concepts.

References

• Monczka, R. M., Handfield, R. B., & Closs, D. J. (2019). Purchasing and supply management: Achieving supply chain excellence (12th ed.). McGraw-Hill Education.
• Sweeney, K. J., & Cachon, R. P. (2018). Fundamentals of supply chain management (7th ed.). Pearson.
• Lambert, D. M., & Cooper, M. C. (2021). Chain management: Strategy, planning, and operations (13th ed.). McGraw-Hill Education.
• Slack, N., Johnson, H., & Johnston, R. (2016). Operations management: Processes and principles (8th ed.). Pearson.
• Ellram, L. M., Hendrick, T. E., & Zirn, H. W. (2017). Strategic supply chain management: Creating value through global logistics (5th ed.). Pearson.

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