The different terms that relate to procurement and supply, supply chain management and logistics management

Explain the roles of procurement and supply, supply chain management and logistics to colleagues and across the organisation

The roles of procurement and value of procurement and supply in organisations

Explain the roles and value of procurement and supply to colleagues across the organisation

The impact of procurement activity on costs, efficiency and profitability across the organisation

Demonstrate the contribution of effective procurement in improving profitability, savings and efficiencies for the organisation

The typical proportion of costs accounted for by the procurement of goods and services

Demonstrate and create the typical proportion of costs 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

• Price/cost
• Quality
• Time
• Quantity
• Place

Explain how the 5 rights apply to commercial transactions or agreements

Internal and external customers and their priorities for procurement and supply

Identify the different internal and external customers and recognise the priorities for procurement and supply of different customer groups

The main internal and external stakeholders in procurement and supply and how they influence procurement and supply activities

Identify the stakeholders that can influence the work of procurement and supply

The different objectives of a procurement and supply function

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

Policies and procedures for procurement and supply activities

Promote the organisation's procurement and supply policies and procedures to stakeholders

The tiers of a supply chain

Different types of procurement, such as:

• Capital and revenue purchases procurement
• Products, services and construction works
• Direct and indirect
• Outsourcing and insourcing

Identify and assess the different organisations that are involved in the organisation's supply chain. Advise internal stakeholders on the different types of procurement typically contracted for by the organisation