Global Standard for Procurement and Supply

Current segment

Level: Tactical

Theme: Delivering Outcomes

Segment 7.3 Achieving Competitive Pricing in Procurement and Supply

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, 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 and indices 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 through open-book arrangements and take actions to remedy any queries or discrepancies

The role of negotiation to improve prices

Negotiate with suppliers to reduce prices, whilst retaining or improving other aspects of value such as quality, availability and sustainability

The value of estimating whole-life costs

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

Knowledge: Will know and understand

The use of competition to obtain quotations on prices

Capabilities: Will be able to

Promote the use of competitive pricing with suppliers through monitoring prices and obtaining quotations when appropriate

Knowledge: Will know and understand

The comparison of quoted prices to historical data

Capabilities: Will be able to

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

Knowledge: Will know and understand

The link between costs, prices, margins and mark ups

Capabilities: Will be able to

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

Knowledge: Will know and understand

The use of open-book costing and adjustments

Capabilities: Will be able to

Evaluate data supplied through open-book arrangements and take actions to remedy any queries or discrepancies

Knowledge: Will know and understand

The role of negotiation to improve prices

Capabilities: Will be able to

Negotiate with suppliers to reduce prices, whilst retaining or improving other aspects of value such as quality, availability and sustainability

Knowledge: Will know and understand

The value of estimating whole-life costs

Capabilities: Will be able to

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

This segment was last updated on: 21st May 2021

The Global Standard for Procurement and Supply structure

Released in 2014 the Standard is a competency framework of procurement and supply skills, knowledge and capabilities that can be used by individuals and organisations to identity training and professional development needs at varying levels of competency.

The Global Standard for Procurement and Supply structure
×