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L4M8 Case Study

Monique received a requisition for a new component needed for a new laptop model. She undertook market analysis and sent a tender to pre-approved suppliers. The organization considers environmental impact, so bids were evaluated on TQRDC and environmental criteria, with the latter accounting for up to 50% of the score. The winning supplier stated they were an IEMA member. Monique later visited the supplier to encourage sustainable practices throughout their supply chain.

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Mohammad Imran
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398 views

L4M8 Case Study

Monique received a requisition for a new component needed for a new laptop model. She undertook market analysis and sent a tender to pre-approved suppliers. The organization considers environmental impact, so bids were evaluated on TQRDC and environmental criteria, with the latter accounting for up to 50% of the score. The winning supplier stated they were an IEMA member. Monique later visited the supplier to encourage sustainable practices throughout their supply chain.

Uploaded by

Mohammad Imran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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L4M8 Procurement and Supply in Practice

Case Study
Monique works at a large IT manufacturer. One day, a requisition arrived in Monique’s inbox for
a new component that was needed for a new laptop model they had developed. It had been
authorised by a budget holder before it was sent to Monique.

Monique undertook a market analysis, paying particular attention to the factors in the external
environment that could affect her organisation. She then prepared tender documentation that
was sent out to pre-approved suppliers. At this stage, she identified that the need carried a high
supply risk but low impact on profit.

The organisation is very conscious of the long-term effect that their activities have on the
environment, so they developed a balanced scorecard assessing bids that covered the TQRDC
(Technical, Quality, Responsiveness, Delivery and Cost) criteria. An E for Environmental was also
added. The environmental criteria can account for up to 50% of a supplier’s score. Monique also
evaluated the suppliers’ financial performance by calculating the current ratio, quick ratio, and
gross profit ratio. The most suitable supplier stated that they were a member of the IEMA.

Once the supplier had been contracted, Monique arranged for representatives from her
organisation to go the supplier’s premises and work with them to embed environmental
processes in order to encourage suppliers throughout their entire supply chain to act in a
responsible manner on their behalf. This resulted in changes in practices and improvements in
sustainability, and also contributed to cost savings.

Use the information provided in the case study to answer these questions.

1. What type of need was the requisition for?


a) Tangible direct needs
b) Tangible indirect needs
c) Intangible direct needs

2. Why was it important for the requisition to have been authorised before it was sent to
Monique?
a) To ensure the correct items were ordered
b) To ensure the need was justified
c) To ensure the best supplier had been found

Leading global excellence in procurement and supply


3. When undertaking her market analysis, which tool would have helped Monique to assess
factors relating to the external environment?
a) STEEPLE analysis
b) SWOT analysis
c) Ansoff analysis

4. Which of the following best describes why Monique did not undertake whole life costing
for this need?
a) She didn’t have time
b) The people required to participate in a cross-functional team were not available
due to holidays
c) The cost of the need was not sufficient to warrant a WLC approach

5. In what ways can the buying organisation encourage suppliers in the supply chain to
adopt sustainable practices and standards?
a) Detailing in the specification the percentage of recycled materials that should be
used in production
b) Applying continuous improvement within their organisation
c) Evaluating needs and only procuring what is required

6. What action does Monique need to take in response to the supplier’s assertion that they
are a member of the IEMA?
a) She can make a note of the membership in that supplier’s file with a reminder to
check it is still valid for the following year
b) She should check if the IEMA logo appears on the supplier’s website to be sure
that they are a member
c) She should contact the IEMA to verify that the supplier has a membership

7. Which two pieces of information did Monique need to obtain in order to calculate the
gross profit ratio?
a) Liabilities and costs
b) Assets and costs
c) Revenue and costs

8. Which is the most appropriate style of management to use for this item, based on the
supply risk and impact on profit it carries?
a) Transactional
b) Tactical
c) Arm’s length

9. Which of the following is the primary driver behind the organisation developing
collaborative relationships with its suppliers?
a) Increased sustainability

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b) Improved quality
c) Cost reduction

10. What is the name of the directive that the organisation will need to refer to when
considering the disposal of its electrical items?
a) DEI Directive
b) WEE Directive
c) Landfill Directive

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Answers
1. a) Tangible direct needs
2. b) To ensure the need was justified
3. a) STEEPLE analysis
4. c) The cost of the need was not sufficient to warrant a WLC approach
5. a) Detailing in the specification the percentage of recycled materials that should be used
in production
6. c) She should contact the IEMA to verify that the supplier has a membership
7. c) Revenue and costs
8. b) Tactical
9. a) Increased sustainability
10. b) WEE Directive

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