Systems Technology (L2M4)


Module purpose
On completion of this module, learners will be able to define the uses of, and identify the advantages offered by systems technology in improving procurement and supply activity whilst maintaining overall quality.

Module aim(s)
The impact of Internet based technologies and the use of data base information systems is key to the ability of the organisation to manage its expenditures on goods and services. This module is designed for those involved in the procurement and supply operation who, to ensure success, must identify advantages of current technology but must also know the importance of quality management as efficiencies are sought through continuous improvement to organisational performance.

Core moduleObjective respose exam1 hour exam30 hours learning time3 credits

Next steps
Joining a CIPS qualification programme means you will join the largest Institute in the world for those working in procurement and supply. You can join as a member online today. Once you've become a CIPS member you can book your examinations online.

    Learning outcomes

    1.0  Understand the use of systems technology and databases and how they contribute to procurement and supply 

    1.1  Explain how to use systems technology and databases to contribute to effective procurement and supply 

    • Inputting of data to systems to perform key tasks for purchase ordering and other transactions
    • Capturing data on expenditures and updating systems
    • How to provide data to smooth demand and why demand management is important in procurement and supply
    • Data use in the forecasting process
    • Achieving functional targets
    • How to compare forecasts with actual outcomes to control expenditures
    • How to measure achieved savings of goods and services to recognise efficiencies
    • How to measure internal and external lead times of supplies of goods and services

    1.2  Recognise how the use of the Internet, intranets and extranets leads to effective procurement and supply 

    • The use of Internet search engines to locate details about suppliers and customers
    • The types of information presented by suppliers and customers on their websites
    • The e-market place
    • The use of social media to obtain feedback on supplier performance

    1.3  Explain the role of e-sourcing and e-tendering systems in procurement and supply 

    • E- invoicing e-requisitioning, e-catalogues and e-ordering
    • Pre-qualify suppliers
    • Receive and evaluate quotations and tenders
    • Defining e-sourcing

    2.0  Know types of systems for supplier selection, ordering and payment 

    2.1  Describe the use of electronic sourcing systems for supplier selection and profiling 

    • Attracting quotations or tenders through an e-tendering or e-sourcing system
    • The publication of e-notices
    • The use of e-auctions

    2.2  Identify systems used in procurement and supply 

    • Systems for purchase ordering
    • Capturing data on expenditures
    • The use of portal sites to locate suppliers or customers
    • Examples of supplier database systems

    2.3  Identify the use of P2P (purchase to pay) systems for ordering from suppliers and payment to suppliers 

    • • The P2P process from the creation of requisitions, to raising requests for quotations or tenders, receipt of quotations or tenders, delivery documentation, invoicing and payment
    • Examples of P2P systems

    3.0  Know why quality management is important in procurement and supply 

    3.1  Identify components of quality management in procurement and supply 

    • Definitions of quality, quality control, quality assurance and total quality management
    • Quality as a philosophy
    • Getting things right first time

    3.2  Identify the costs of quality 

    • Prevention and appraisal costs
    • The internal and external costs of quality
    • Organisational reputation

    3.3  Identify techniques associated with quality assurance and quality management 

    • How to assess the quality of supplies of goods and services to ensure that quality standards are achieved and maintained
    • From quality inspection to quality assurance
    • Quality circles
    • The use of control charts
    • Kaizen, continuous improvement, lean philosophy and associated techniques

    View other modules

    Select a module below for more information:

    Introducing Procurement and Supply [L2M1]Procurement and Supply Operations [L2M2]StakeholderRelationships [L2M3]Inventory, Logistics and Expediting [L2M5]

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