L6M8: Innovation in Procurement and Supply ebook Pdf notes CIPS

L6M8: Innovation in Procurement and Supply

Learning outcomes


1.0  Understand techniques for supplier development

1.1  Assess cross functional working to achieve improvements in the supply chain

  • Cross functional involvement in the development of specifications and requirements
  • Simultaneous (concurrent) engineering
  • Product and process design

1.2  Evaluate techniques to promote the development of innovation in procurement and supply

  • Collaboration with suppliers and customers to promote improvements in innovation
  • Early supplier involvement
  • The role of innovation councils
  • Supplier forums and associations
  • The use of technology transfer
  • The use of data analytics to assist planning, forecasting, control and decision making
  • The use of integration tools in systems technology

1.3  Contrast the developments in technology that can be applied to promote improvements in supply chains

  • Forms of e-procurement
  • E-catalogues
  • E-sourcing
  • E-auctions
  • P2P (purchase to pay) systems
  • Data integrity and integration between organisations in a supply chain
  • XML (extensible markup language) and the use of application programming interfaces (APIs) and other integration tools
  • Developments in technology such as:
  • Cloud computing
  • Open source software
  • Mobile telecommunications
  • Remote working
  • Convergence of technology platforms

1.4  Evaluate the use of relationship assessment forsupplier development

  • The use of joint performance appraisal systems
  • The use of relationship assessment methodologies
  • The use of balanced scorecards

2.0  Understand methods to achieve procurement and supply improvement and innovation

2.1  Evaluate influencing styles that can be used in the effective leadership of a supply chain

  • Evaluate where technology can be used to improve procurement and supply
  • Areas such as:
  • Expenditure control
  • Data analytics and capture
  • Systems integration with suppliers and supply chains
  • Organisational systems integration to improve senior management and stakeholder knowledge and information flow
  • Artificial Intelligence (AI) and predictive analysis

2.2 Evaluate tools and techniques which are available to improve procurement and supply

  • Tools such as:
  • Total quality approaches
  • Statistical analysis
  • Just-in-Time (JIT)
  • Lean thinking and lean supply
  • Business Process Re-engineering (BPR)
  • ERP
  • Databases
  • The use of business continuity planning to mitigate supply chain interruption

2.3 Assess methods to incentivise improvement and innovation

  • Bidding
  • Selection
  • Contract award
  • Contract management
  • Setting examples and maintaining standards

3.0  Understand the environmental factors which affect supply chain improvement and innovation

3.1  Assess approaches to environmentally sensitive design

  • Lifecycle analysis
  • Design for disassembly
  • Use environmentally friendly materials
  • ISO 14001 – Environmental Standards
  • ISO 20400 – Sustainable Procurement Standard

3.2 Assess the impact of green procurement on improvement and innovation

  • Impact on strategic policy and planning
  • Sustainable procurement
  • Low carbon
  • Low waste

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