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CIPS Level 2: Systems Technology (L2M4)

The CIPS Level 2: Systems Technology (L2M4) unit focuses on how systems technology and databases contribute to procurement and supply. It covers the role of e-sourcing, e-tendering, and P2P (purchase-to-pay) systems, enabling learners to understand how digital tools enhance supplier selection, ordering, and payment processes. This unit also explores the impact of Internet technologies, intranets, and extranets on procurement efficiency.

Additionally, it highlights the significance of quality management in procurement and supply. Learners will gain insights into quality control, assurance, and cost management techniques to ensure procurement effectiveness. This knowledge equips procurement professionals with the skills to optimize supply chain operations, cost control, and supplier performance through digital solutions.

This unit is highly beneficial for aspiring and current procurement professionals, helping them develop expertise in data-driven decision-making and supplier management using modern systems.

Unit Objectives

The main objectives of learning CIPS Level 2: Systems Technology (L2M4) are:

• To provide learners with an understanding of systems technology and databases in procurement and supply.
• To enable learners to use e-sourcing, e-tendering, and P2P systems effectively for supplier selection, ordering, and payment.
• To equip learners with knowledge of quality management principles and their role in procurement.
• To develop an awareness of Internet, intranet, and extranet applications in procurement and supply processes.

Learning Outcomes

The significant learning outcomes of the unit CIPS Level 2 Systems Technology (L2M4) are demonstrated below:

LO1: Understand the use of systems technology and databases and how they contribute to procurement and supply

This learning outcome focuses on the role of systems technology and databases in procurement and supply chain operations. Learners will explore how data input, expenditure tracking, and demand management contribute to procurement efficiency. They will also gain insights into forecasting techniques, measuring savings, and tracking lead times to optimize supply chain performance. Additionally, learners will evaluate how the Internet, intranets, and extranets enhance procurement effectiveness by locating suppliers, managing e-marketplaces, and utilizing social media for supplier performance insights. By mastering this outcome, learners will develop the ability to leverage technology for procurement success.

LO2: Know types of systems for supplier selection, ordering, and payment

This learning outcome emphasizes the use of electronic sourcing systems for supplier selection and profiling. Learners will examine how e-tendering, e-auctions, and e-notices streamline supplier engagement and selection. The outcome also covers procurement systems for purchase ordering, expenditure tracking, and supplier databases. Additionally, learners will explore Purchase-to-Pay (P2P) systems, understanding the end-to-end process from requisition creation to invoice processing and payment. By achieving this outcome, learners will enhance their ability to utilize digital procurement systems effectively, ensuring seamless supplier interactions and financial transactions.

LO3: Know why quality management is important in procurement and supply

This learning outcome focuses on quality management principles within procurement and supply chains. Learners will explore key quality concepts, including quality control, assurance, and total quality management (TQM), and how these contribute to "getting things right the first time." The outcome also covers the cost implications of quality management, such as prevention and appraisal costs, internal and external failure costs, and organisational reputation. Learners will gain insights into quality assessment techniques, including quality circles, control charts, Kaizen, continuous improvement, and lean philosophy. By mastering this outcome, learners will develop the ability to implement quality management practices that enhance supplier performance and procurement efficiency.

Assessment Criteria

LO1 Understand the use of systems technology and databases and how they contribute to procurement and supply

1.1 Explain how to use systems technology and databases to contribute to effective procurement and supply

• Inputting of data to systems to perform key tasks for purchase ordering and other transactions

• Capturing data on expenditures and updating systems

• How to provide data to smooth demand and why demand management is important in procurement and supply

• Data use in the forecasting process
• Achieving functional targets
• How to compare forecasts with actual outcomes to control expenditures

• How to measure achieved savings of goods and services to recognise efficiencies

• How to measure internal and external lead times of supplies of goods and services

1.2 Recognise how the use of the Internet, intranets and extranets leads to effective procurement and supply

• The use of Internet search engines to locate details about suppliers and customers

• The types of information presented by suppliers and customers on their websites

• The e-market place
• The use of social media to obtain feedback on supplier performance

1.3 Explain the role of e-sourcing and e-tendering systems in procurement and supply

• E- invoicing e-requisitioning, e-catalogues and e-ordering

• Pre-qualify suppliers
• Receive and evaluate quotations and tenders
• Defining e-sourcing

LO2 Know types of systems for supplier selection, ordering and payment

2.1 Describe the use of electronic sourcing systems for supplier selection and profiling

• Attracting quotations or tenders through an e-tendering or e-sourcing system

• The publication of e-notices
• The use of e-auctions

2.2 Identify systems used in procurement and supply

• Systems for purchase ordering
• Capturing data on expenditures
• The use of portal sites to locate suppliers or customers

• Examples of supplier database systems

2.3 Identify the use of P2P (purchase to pay) systems for ordering from suppliers and payment to suppliers

• The P2P process from the creation of requisitions, to raising requests for quotations or tenders, receipt of quotations or tenders, delivery documentation, invoicing and payment

• Examples of P2P systems

LO3 Know why quality management is important in procurement and supply

3.1 Identify components of quality management in procurement and supply

• Definitions of quality, quality control, quality assurance and total quality management

• Quality as a philosophy
• Getting things right first time

3.2 Identify the costs of quality

• Prevention and appraisal costs
• The internal and external costs of quality
• Organisational reputation

3.3 Identify techniques associated with quality assurance and quality management

• How to assess the quality of supplies of goods and services to ensure that quality standards are achieved and maintained

• From quality inspection to quality assurance
• Quality circles
• The use of control charts
• Kaizen, continuous improvement, lean philosophy and associated techniques

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