Supplier Management

This Intermediate Level Test covers a broad spectrum of procurement and purchasing management topics, designed to evaluate the essential knowledge and skills required for professionals in the field.

The primary focus areas include:

• Strategic Sourcing: Understanding the goals and methods of strategic sourcing, including reducing costs while maintaining quality, and the advantages of various sourcing strategies, like local suppliers and multiple sourcing.
• Procurement Cycle and Processes: Knowledge of the procurement cycle steps, from identifying needs to payment, and the purpose of key documents such as purchase orders and requests for proposal (RFP).
• Supplier Management: Evaluating and managing supplier relationships, including conducting supplier evaluations, performance reviews, and risk assessments. Candidates are assessed on their understanding of the importance of supplier audits, performance benchmarking, and relationship management.
• Contract Management: The responsibilities involved in contract management, such as ensuring compliance with contractual terms, and the importance of contract negotiations.
• Procurement Strategies and Methods: Insight into various procurement methods and strategies, such as just-in-time (JIT) procurement, centralised procurement, e-procurement, and the use of reverse auctions.
• Market Analysis and Supplier Selection: The process of market research, understanding total cost of ownership, and considerations for selecting suppliers, especially for international and sustainable procurement.
• Operational Aspects of Procurement: Familiarity with concepts like bill of materials, lead time, perpetual inventory systems, and the reorder point in inventory management.
• Risk and Performance Management: Understanding the role of risk management in procurement, including conducting supplier capacity assessments and spend analysis.
• Ethical and Sustainable Practices: The importance of ethical sourcing, supplier codes of conduct, and promoting diversity and sustainability in procurement.
• Evaluation and Improvement: Post-contract evaluations and continuous improvement practices in procurement management.

This Intermediate Level Test emphasises strategic thinking, operational efficiency, and effective supplier relationship management, making it ideal for assessing procurement and supply chain professionals' expertise.