LEVEL 4
Foundation Diploma in
Purchasing and Supply
The units that make up the award are:
GLOSSARY OF TERMS
Assessment
Assessment is the way in which CIPS will measure whether or not a student is
able to demonstrate their knowledge, understanding and ability to apply their
learning in any given situation.
An assessment could be an examination, assignment or project.
Command Words
Command words are generally verbs that are used to indicate the level of
learning undertaken. They tend to be hierarchical in nature.
For example, at the CIPS Certificate qualification at Level 3, a command
word will be demonstrate or explain, whereas a command word at Graduate
Diploma level will be synthesise, or critically evaluate.
These words reflect the level of complexity of your learning and ultimately
your assessment. at that level.
Compulsory Core Units
These units are specifically CIPS units that must be taken as part of the overall
CIPS qualifications.
For the purpose of this glossary, these are the units that sit within the
Graduate Diploma at Level 6.
Compulsory Units
These are units that you must take either through CIPS or an alternative
awarding body that constitute necessary knowledge and understanding to fulfil
learning requirements for CIPS qualifications.
If you have undertaken equivalent learning or have equivalent related
experience to the compulsory units from somewhere else you may either be
exempt from learning, or gain accreditation for prior learning or experience.
Entry Level
This is the point at which you will enter the CIPS qualifications ladder. This
entry will be based upon pre-requisite knowledge, understanding and
experience.
There will be entry points in CIPS qualifications from Level 2 to Level 7.
Exemptions
Students who have successfully completed certain post-school studies may
apply for exemptions from equivalent courses in their programme of study.To
earn an exemption from either levels of qualifications or option units within
qualifications you should contact CIPS.
Please note that gaining an exemption, does not mean that you gain an exist
award at that level, rather that you bypass that level of learning because of
equivalent learning and achievement gained elsewhere.
Exit Award
An exit award is in essence a qualification.
CIPS will have six exit awards in total.They are:
Introductory Certificate in Purchasing and Supply
Certificate in Purchasing and Supply
Foundation Diploma in Purchasing and Supply
Advanced Diploma in Purchasing and Supply
Graduate Diploma in Purchasing and Supply
For each qualification you study, you will receive a Certificate of Achievement
confirming your exit award.
Indicative Content
The knowledge required in order to fulfil the learning objective and achieve the
learning outcomes in other words what you need to know in order to
achieve
Integrative Units
Integrative units are intended to help students see connections between all
aspects of their learning within a particular level of qualification. For the
purpose of CIPS qualifications, each qualification will have an integrative unit.
Learner
Member who is studying a CIPS qualification
Learning Objectives
Determines the level of learning you must undertake in order to achieve the
learning outcomes
Learning Outcomes
A goal for attainment, which indicates what you need to know and be able to
do to complete your studies in a particular subject area.
Each unit has six to seven learning outcomes which outlines what you will
achieve as a result of your learning in that particular unit.
Level
Exit awards will have a level assigned to them. For example: Level 3 will be the
Certificate in Purchasing and Supply.
This level determined the complexity of learning, the depth of learning and
the comparison of learning with other qualifications.
CIPS will ultimately have qualifications at Levels 2 to 7. The levels are as
follows:
Level 2 Introductory Level this is for somebody new to the purchasing
and supply professional and often in a junior capacity
Level 3 Junior technical also potentially new to learning
Level 4 Operational/junior manager/new to the profession
Level 5 Manager/specialist role
Level 6 Senior managers/specialist professional
Level 7 Strategic manager
The levels are determined by Qualifications and Curriculum Authority, who are
the Government regulator for education, and enable a clear understanding
nationally of the level of a persons learning and ability in that field.
National Qualifications Framework
This framework is a Government Framework, where qualifications that are
approved by Government, as being fit for purpose, and meeting the quality
criteria, are listed.
Qualifications listed within this Framework are monitored against a variety of
quality measures to ensure quality of qualification, associated procedures and
delivery.
Optional Units
These are units where you have choice an opportunity to specialise in an area
of interest. There is an opportunity to select two optional units at Advanced
Diploma and two optional units at Graduate Diploma.
Qualifications and Curriculum Authority (QCA)
QCA is the Government regulator for professional bodies such as CIPS, and act
as the caretaker of qualifications included with the National Qualifications
Framework.
Qualifications Ladder
This ladder represents the hierarchical nature of CIPS qualifications. The ladder
has six steps within it. It starts with an Introductory Certificate through to the
Graduate Diploma.
Each step of the ladder is represented by qualification with an exit award.
Strands
CIPS have introduced a new concept called strands.
Strands are commonly occurring themes through the CIPS qualifications,
that do not warrant a unit in their own right, but that are important holistically
to the learning undertaken within CIPS qualifications.
They are areas of importance, innovation and some emerging themes,
such as:
Quality Management
International issues
Business Finance
Information Management
External factors
Transitional Arrangements
These arrangements enable students who are currently part way through their
studies to move to the new qualifications. Transition recognises previous CIPS
exam passes, previous CIPS exemptions. CIPS will ensure that students are not
disadvantaged by the introduction of new qualifications.
Unit
A segment of learning within the CIPS qualifications, which has a value in terms
of hours of learning.
Each unit is individual, has its own title, rationale and content.
A unit will also have an assessment attached to it in order to demonstrate
achievement and conclusion of the learning.
Weightings
Weightings are allocated to each unit, to determine how the learning can be
sensibly split.
Each unit has a content weighting of 100%. Within each unit, each subject
area is given a weighting e.g. 20% or 25%.
This weighting indicates the level of input and learning required by the
deliverer and the learner in order to complete the subject area.
However, the weighting do not necessarily reflect the marks that may be
allocated to a question in that subject area of the unit.
LEVEL 4
(Compulsory Unit)
UNIT CHARACTERISTICS
The unit is designed to provide students with the ability to
apply a variety of theories relating to negotiation in respect
of preparation, planning and participating in the negotiation
process.
Students will undertake activities such as cost and market
analysis, using information to support the planning of
negotiation with suppliers to achieve best value. Students
also apply their knowledge of various legal implications
affecting negotiations.
Negotiating is often a finely balanced activity and involves
managing a range of complex relationships, and students
should be prepared to effectively manage those
relationships, avoiding conflict while maintaining the
balance of power.
By the end of this unit, students should be able to plan,
prepare and undertake effective negotiations, demonstrating
high levels of personal effectiveness and achieving best
value within the supply chain.
LEARNING OUTCOMES
On completion of this unit, students will be able to:
Preparation
Open
Test
Move
Agree
Finalise the deal
Supplier information
supply/demand/timings/costings/budgets/readiness,
capacity, account management structure
Competitor information. i.e. supplier competitors
Market analysis
Political
Economic
Social
Technological
Environmental
Legal
Identify strengths
Identify weaknesses
Identify opportunities
Identify threats
Interpersonal sensitivity
Characteristics of a skilled negotiator
The emotionally intelligent negotiator
How to improve negotiation capabilities
Power of three
Information seeking questions
Questions designed to coerce information
Reflecting on performance
Feedback mechanisms
Looking ahead to improvement and development
LEVEL 4
(Compulsory Unit)
UNIT CHARACTERISTICS
This unit is designed to enable students to apply the
fundamental principles of purchasing and supply in a variety
of different contexts, including a range of private sector
organisations, including multi-nationals and small/mediumsized enterprises (SMEs), plus the public sector; national and
local government; the NHS; and the not-for profit sector
including charities and the voluntary sector. Students will be
able to consider the procurement cycle as it applies to a
diverse range to purchased products and services including
raw materials, commodities, components, utilities and
services, both domestically and in an international context.
This unit will tackle the different challenges faced by a wide
range of organisations and sectors as they strive to achieve
best value, quality, effectiveness and competitiveness within
the broader supply chain.
LEVEL 4
(Compulsory Unit)
UNIT CHARACTERISTICS
This unit is designed to help students to gain an appreciation
of the complexities of both the legalities and commercial
issues of contractual arrangements entered into with external
organisations.The unit provides an underpinning knowledge
of the legalities of the formation of contracts as well as the key
ingredients of any commercial arrangement - a specification,
the contractual terms and key performance indicators.
Students will be able to apply a variety of terms to contracts in
given situations, and will be aware of the significance of a
range of different contractual terms that are typically applied
to a range of procurements affecting both direct and indirect
expenditures. The unit also analyses the processes used for
tendering or for requests for proposals from external suppliers
through to contract award.
LEARNING OUTCOMES
On completion of this unit, students will be able to:
Offer
Acceptance
Consideration
Intention to create legal relations
Capacity
The contractual promise
The distinction between framework and call off
contracts
International law
The Vienna Convention, Uniform Law for
International Sale of Goods (1980)
Contractual obligations
Contract termination
Conditions
Warranties
Innominate terms
Contract duration
Dispute resolution
Default and termination clauses
Variation and change control
Contract renewal
Liquidated damages
Guarantees
Passing of property
Sub-contracting and assignment
Payment
Transfer of undertakings and protection of
employment regulations
Confidentiality
Other terms
Supplier databases
Electronic tender systems
Electronic notice systems
Contract management
Contract review
Improving the contracting process
LEVEL 4
UNIT CHARACTERISTICS
This unit is designed to help students to measure the
effectiveness of the supply chain and its contribution
towards aiding the competitiveness and effectiveness of the
organisation.
LEARNING OUTCOMES
On completion of this unit students should be able to:
2.5 Discuss the importance of close and frequent buyersupplier communication and of its importance within
supply contracts.
Periodic reviews
Informal and formal appraisals
Job profiles
Key objectives
Performance measures
Appraisals
LEVEL 4
CIPS FOUNDATION DIPLOMA
MANAGING PURCHASING AND
SUPPLY RELATIONSHIPS
(Compulsory Unit)
UNIT CHARACTERISTICS
This unit is designed to enable students to focus on
developing and managing effective relationships, old and
new, within the supply chain.
Students will be able to review and develop existing
relationships and identify opportunities for establishing new
relationships that will enhance the performance of the
supply chain, while exploring the benefits and risks of
establishing such relationships.
By the end of this unit, students should be able to develop
new relationships, manage existing relationships and exploit
opportunities in both, that will maximise the effectiveness
of the supply chain.
LEARNING OUTCOMES
On completion of this unit, students will be able to:
Organisational culture
Relationship values and behaviours
Managing buyer and supplier perspectives on values
and behaviours
Risks of change
Cost of change
Mitigation of risk and cost
Communication and stakeholder management
Stakeholder communication
Communication tools and techniques in the context
of supplier management
Transparency: open-book costing
Executive sponsorship
Account management
Continuous improvement programmes
Service level agreements
Key performance indicators
Relationship assessment tools
Feedback mechanisms
Resolving disputes
Using the contract to terminate a relationship
Maintaining a supply relationship post-conflict
Supplier development
Supplier development opportunities
Supplier development versus supplier relationships
Tools and techniques
The stakeholder and supplier development