Jude and Ben L4M1 LO1 Powerpoint 2.pptx

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• Mathematics
• Further Education (Key Stage 5)

L4M1 LEARNING OUTCOME 1

1.1 Understand key procurement and supply relationship types and their strategic use:

• Transactional – Short-term, low commitment, price-focused.
• Collaborative – Medium/long-term, shared goals, mutual benefits.
• Strategic – High trust/interdependency, integrated processes.
• Outsourcing – Supplier delivers core/non-core business functions.
• Consortia – Joint procurement to leverage volume and pricing.

Factors influencing relationship type:
✔ Value & risk of goods/services
✔ Supply market conditions
✔ Strategic importance to the buyer
✔ Supplier capabilities & capacity

1.2 - Analyse the different sources of added value in procurement and supply

What we know

• The five rights of procurement

• Defining total life cycle costs or whole-life asset management

What we NEED to know

• Achieving five rights of procurement from external suppliers

• Other sources of added value: innovation, sustainability and market development

• Defining value for money

1.3 Types of Procurement and Supply Relationships

Understand how procurement impacts and addresses sustainability and ethics:

🌍 Environmental:
• Reduce carbon footprint, waste & emissions
• Encourage sustainable sourcing & life cycle thinking

👥 Social:
• Support fair labour practices & diversity
• Promote community benefits & local sourcing

⚖️ Ethical:
• Ensure transparency, integrity & anti-corruption
• Prevent modern slavery & unethical conduct

✔ Procurement must align with CSR, legal compliance & stakeholder expectations
✔ Sustainable procurement balances cost, value & long-term impact

1.4 - Differentiate the stakeholders of procurement or supply chain functions

What we know

• Definition of stakeholders

• Examples of stakeholders of a procurement and supply chain function

• Mapping stakeholders for a procurement and supply chain function

What to expect on the exam

• (Explain the importance of each of the ‘five rights of procurement’, outlining the added value each might achieve for the procuring organisation. (20 marks)

• Explain ONE additional source, other than the ‘five rights’, of potential added value in procurement and supply. (5 marks)

• Explain FOUR advantages for an organisation of adopting a centralised procurement structure. (16 marks)