CIPS Level 3: Ethical Procurement and Supply (L3M2)
The CIPS Level 3 Ethical Procurement and Supply (L3M2) unit is designed to enhance learners` understanding of ethical procurement practices and their role in ensuring value for money, supplier performance, and compliance with ethical standards. This unit focuses on techniques to achieve added value, sourcing processes, ethical considerations, and methods to improve procurement performance.
By completing this unit, learners will gain critical insights into procurement efficiency, decision-making strategies, supplier relationships, and ethical frameworks, all of which contribute to organizational success and sustainability.
Unit Objectives
The key objectives of studying CIPS Level 3 Ethical Procurement and Supply (L3M2) are:
- To equip learners with the knowledge of value-added procurement techniques that contribute to business efficiency and success.
- To enhance understanding of procurement sourcing processes and decision-making at different stages.
- To develop awareness of ethical considerations and compliance standards in procurement and supply.
- To enable learners to assess supplier performance, budget control, and cycle time efficiency in procurement operations.
Learning Outcomes
The significant learning outcomes of the unit CIPS Level 3 Ethical Procurement and Supply (L3M2) are demonstrated below:
LO1: Know techniques that can achieve added value and its contribution to organisational success
This learning outcome focuses on understanding value-added techniques in procurement and how they contribute to overall organisational success. Learners will explore value for money, the five rights of procurement, and lifetime cost analysis. The role of efficiency, effectiveness, economies of scale, value engineering, and value analysis in procurement will also be examined. Additionally, learners will gain insights into techniques to secure high-quality supplies, manage lead times, and apply value-for-money criteria, ensuring procurement aligns with business goals.
LO2: Know tasks associated with each stage of the sourcing process
Learners will understand the key tasks involved in sourcing and procurement. This includes establishing procurement needs by liaising with stakeholders, defining specifications, and making make-or-buy decisions. The learning outcome covers supplier sourcing techniques, such as market surveying, supplier appraisal, tendering processes, and e-sourcing technologies. Additionally, learners will explore how agreements are formed with external suppliers, ensuring transparency, fairness, and compliance in procurement contracts. By achieving this learning outcome, learners will develop a structured approach to supplier selection, contract formation, and sourcing strategy execution.
LO3: Understand the significance of ethics for procurement and supply
The focus of this learning outcome is on the ethical considerations in procurement. Learners will explore the CIPS Code of Conduct and how it enhances integrity, prevents unethical business relationships, and ensures compliance with laws and regulations. Additionally, learners will examine codes of ethics in procurement, their role in monitoring stakeholders, and how to handle potential ethical breaches. The topic of conflicts of interest in procurement will also be covered, including how to identify, address, and prevent ethical violations. By mastering this outcome, learners will be equipped to maintain ethical procurement practices and ensure responsible decision-making.
LO4: Understand how operational performance of the procurement and supply function can be measured and improved
This learning outcome focuses on evaluating and improving procurement performance. Learners will explore methods to measure customer service, assess stakeholder satisfaction, and develop action plans for improvement. The learning outcome also includes techniques to measure cycle times in sourcing, identify causes of delays, and implement strategies to optimize procurement processes. Additionally, learners will understand how to analyze procurement budgets, evaluate variances, and take corrective actions. By attaining this learning outcome, learners will develop the skills necessary to enhance efficiency, improve service delivery, and maintain financial control in procurement operations.
Assessment Criteria
The significant Assessment Criteria of the unit CIPS Level 3 Ethical Procurement and Supply (L3M2) are demonstrated below:
LO1: Know techniques that can achieve added value and its contribution to organisational success
This learning outcome focuses on how organizations can enhance value through procurement strategies. Learners will explore value for money principles, quality assurance techniques, and strategic sourcing methods.
- 1.1 Explain how to use techniques to obtain supplies to the purchaser’s requirements:
- Understanding sources of added value in procurement.
- Defining value for money and its role in cost efficiency.
- Applying the Five Rights (right quality, quantity, time, price, and place).
- Evaluating the lifetime cost of products and services.
- 1.2 Identify the contribution that value for money has to make to organisational success:
- Understanding efficiency, effectiveness, and economies of scale.
- Exploring value engineering and value analysis in procurement.
- 1.3 Explain how to use techniques that are available to achieve quality supplies:
- Defining quality standards and assurance processes.
- The role of zero defects and supplier quality assessment.
- 1.4 Identify techniques to secure required quantities within required timescales:
- Analyzing lead time factors (internal and external).
- Understanding delivery performance, scheduling, and inventory management.
- 1.5 Identify value for money criteria:
- Evaluating pricing, quality, and delivery timescales.
- Measuring supplier performance through data analysis.
LO2: Know tasks associated with each stage of the sourcing process
This outcome emphasizes the procurement cycle and the essential tasks involved in establishing needs, creating specifications, sourcing supplies, and forming agreements.
- 2.1 Describe how procurement needs are established:
- Liaising with users and stakeholders to understand commercial needs.
- Reviewing procurement requirements and making make-or-buy decisions.
- Developing specifications based on business needs.
- 2.2 Identify criteria that should be applied in creating specifications:
- Understanding the role of specifications in supplier contracts.
- Implementing KPI-based performance monitoring.
- 2.3 Describe approaches to the sourcing of supplies:
- Conducting market surveys and supplier appraisals.
- Evaluating quotations, tenders, and supplier performance.
- 2.4 Describe approaches to the formation of agreements with external organisations:
- Ensuring fairness and transparency in procurement.
- Managing tender queries, e-auctions, and contract formation.
- Handling supplier transitions and mobilization plans.
LO3: Understand the significance of ethics for procurement and supply
This outcome highlights the importance of ethics in procurement and the role of the CIPS Code of Conduct.
- 3.1 Explain the importance of the CIPS Code of Conduct in procurement and supply:
- Ensuring ethical standards, transparency, and legal compliance.
- Promoting integrity and fairness in business relationships.
- 3.2 Describe the use of codes of ethics in procurement and supply:
- Implementing ethical guidelines in procurement activities.
- Monitoring stakeholder behavior to uphold ethical practices.
- 3.3 Explain the conflicts of interest that can exist in the work of procurement and supply and how to deal with them:
- Identifying potential conflicts of interest in procurement.
- Implementing ethical safeguards and reporting mechanisms.
LO4: Understand how operational performance of the procurement and supply function can be measured and improved
This outcome focuses on measuring and enhancing procurement efficiency through performance evaluation and budget control.
- 4.1 Recognise the importance of delivering customer service and how to improve:
- Methods to evaluate customer satisfaction in procurement.
- Developing action plans for performance improvement.
- 4.2 Explain ways to measure cycle times for the sourcing process:
- Identifying causes of delays in procurement.
- Taking actions to reduce sourcing cycle times.
- 4.3 Explain methods to assess the performance of and control budgets:
- Analyzing procurement budgets and variance management.
- Implementing cost-control strategies to improve financial performance.
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