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- Smiths Detection has a robust procurement and supply guided by various clauses, including control, quality, records, and timely management of the sourcing process.
- For different categories of spend, Smiths Detection applies single, dual, multiple, or sole sourcing process.
- Drawing from the pros and cons of the different sourcing methods, it is apparent that there is no unique and universal approach for Smiths Detection sourcing.
- Rather, the approaches are unique to the categories of spend.
- Drawing from the Carter’s 10 Cs appraisal model, it is essential for Smiths Detection to examine the various aspects of the potential suppliers for informed decision-making process.
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(Solution) CIPS New APCE Advanced Category Management
- In summary, this assignment has focused on evaluating the source of power and risk of an organisation contractual terms. This has been conducted through the focus of SSMC organisation which is currently being engaged in procurement of first aid materials.
- Through a series of analysis, the power and risk distribution has been evidenced as varying in different phenomenon to SSMC and their engaged suppliers. The rationale of this is that for the success of a contract, the legal provisions are critical among the involved parties with clearly set requirements to be adhered to or abstained.
- By using different tools including supplier preferencing matrix, Porter’s 5 forces and Turn-key model have been adopted for this research.
- It has been established that in most instances, SSMC has the power with majority of the risks being held by the supplier. An evaluation of the different components of the contract has been conducted with the clauses of interest including costs, quality level, time for delivery and ethics which influence the power and risk of the suppliers.
- From the analysis of stakeholders by use of the Mendelow stakeholder’s matrix and SWOT analysis, the various issues and risks represent the noted issues in procurement of the fast aid and safety measures in today COVID-19 pandemic.
- As evidenced in the Kraljic analysis, various contract terms are of strategic relevance to SSMC which affirm on its approach of holistically leveraging on contractual risk and power.
- Where the SSMC lacks a holistic balance on the risks and power, a warrant or insurance is granted for guaranteeing their safety.