Procurement and Supply Operations - L2M2

Purpose: On completion of the module, learners will be able to identify types of business organisations. They will define the fundamentals and components of the contracting process, identify sources of information on suppliers and customers and define pricing methods used for the purchasing of goods or services.

Aim: In any organisation, a significant element of the procurement and supply function is based around the contracting process. This module is designed for those involved in the procurement and supply operation who, to ensure success must demonstrate knowledge and comprehension of the associated components and systems that are at their disposal to support the contracting process. They must also know where sources of information on suppliers and customers are and recognise the advantages and disadvantages of pricing methods used for the purchasing of goods or services.

Learning Outcomes

Session 1:
[1.0] Know the types of organisations and how they operate
[1.1] Identify the types of business organisations
[1.2] Describe how organisations operate
[1.3] Identify the key operating functions within organisations

Session 2:
[2.0] Know the components of contractual agreements
[2.1] Identify types of contracts
[2.2] Identify the kind of pricing arrangements applied in commercial contracts
[2.3] Define the different documents that compose a contract for the purchase or supply of goods or services

Session 3:
[3.0] Understand sources of information on suppliers and customers
[3.1] Explain the use of the Internet to locate details about suppliers and customers
[3.2] Explain the use of credit rating agencies
[3.3] Describe systems used in procurement and supply

Session 4:
[4.0] Understand pricing methods used for the purchasing of goods or services
[4.1] Explain the advantages and disadvantages of a range of pricing methods

Session 5:
Module recap