Bob works in the procurement department of a construction firm. He has been asked to procure an item for a short-term project which is considered low risk. What type of sourcing will he be completing?
Answer(s): A
tactical is the correct answer; items that are short-term or low value are considered tactical.Strategic sourcing is long term and high value.Outsourcing is moving a key business function to an external company. Insourcing is bringing a previously outsourced part of the company back in-house.
Sourcing aims to achieve the best value for money by taking into account several factors. Freddy is sourcing a new component for his company which manufactures tractors. Should Freddy take into consideration ethics and sustainability?
"yes- ethics and sustainability form part of 'value for money' " is the correct answer. There are several factors that represent value for money and these are listed on p.3. These include; price, delivery, quality, ethics, sustainability and availability.
Which of the following are reasons to outsource part of a business to an external supplier? Select TWO.
Answer(s): C,D
Reasons to outsource include; 'overheads can be kept as effective as possible' and 'the reduction in the need to continually invest in new machinery'.When you outsource, you transfer the costs of overheads to the supplier and it is their responsibility to buy new machinery as and when is required. For example if you outsource cleaning, the cleaning company is responsible for replacing the hoovers and floor cleaner The other two options would be reasons to keep something 'in-house'.
Which of the following is an advantage to the TUPE regulations?
Continuity of supply for the buying organisation is an advantage of TUPE regulations. TUPE is the Transfer of Undertakings (Protection of Employment). It's when the workforce / em- ployees of one company go to work for another one, usually after their company is bought out. They're transferred to the new company along with the furniture and buildings. TUPE is UK specific. You don't need to know too much details about it for this exam - just what it is and the benefits. The main benefit is people don't lose their jobs when their company gets bought out. Basic guide to TUPE (pinsentmasons.com)
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