--- title: Procurement and Supply Environments [L3M1]© description: On completion of this module, learners will be able to identify the range of environments in which procurement and supply is expected to operate and the external factors that can impact on overall success. image: https://blog.fhyzics.net/hubfs/Procurement%20and%20Supply%20Environments%20%5BL3M1%5D%C2%A9.jpg --- ![Fhyzics-logo](https://blog.fhyzics.net/hs-fs/hubfs/Fhyzics-logo.png?width=100&name=Fhyzics-logo.png "Fhyzics-logo") ![Fhyzics-logo](https://blog.fhyzics.net/hs-fs/hubfs/Fhyzics-logo.png?width=100&name=Fhyzics-logo.png "Fhyzics-logo") [![Request Quote](https://no-cache.hubspot.com/cta/default/3112120/9f3d168c-6bf2-4090-8529-bd721423c14e.png)](https://cta-redirect.hubspot.com/cta/redirect/3112120/9f3d168c-6bf2-4090-8529-bd721423c14e) [![Click me](https://no-cache.hubspot.com/cta/default/3112120/717ff434-4d3d-4712-819e-dccb5a46efda.png)](https://cta-redirect.hubspot.com/cta/redirect/3112120/717ff434-4d3d-4712-819e-dccb5a46efda) ![hero-img1](https://cdn2.hubspot.net/hub/5152923/hubfs/Creative_Theme/image/hero-img1.jpg?width=1810&name=hero-img1.jpg "hero-img1") - [**](https://www.facebook.com/sharer/sharer.php?u=https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/procurement-and-supply-environments-l3m1&title=Procurement%20and%20Supply%20Environments%20[L3M1]©&description=On%20completion%20of%20this%20module,%20learners%20will%20be%20able%20to%20identify%20the%20range%20of%20environments%20in%20which%20procurement%20and%20supply%20is%20expected%20to%20operate%20and%20the%20external%20factors%20that%20can%20impact%20on%20overall%20success.) - [**](https://twitter.com/intent/tweet?source=https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/procurement-and-supply-environments-l3m1&text=Procurement%20and%20Supply%20Environments%20[L3M1]©%20-%20https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/procurement-and-supply-environments-l3m1) - [**](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/procurement-and-supply-environments-l3m1&title=Procurement%20and%20Supply%20Environments%20[L3M1]©&summary=On%20completion%20of%20this%20module,%20learners%20will%20be%20able%20to%20identify%20the%20range%20of%20environments%20in%20which%20procurement%20and%20supply%20is%20expected%20to%20operate%20and%20the%20external%20factors%20that%20can%20impact%20on%20overall%20success.) 24 April 2020 Friday ## Procurement and Supply Environments [L3M1]© By [Venkadesh Narayanan](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/author/venkadesh-narayanan) In: [CIPS](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/tag/cips) **0** Comments **Module Purpose: ** On completion of this module, learners will be able to identify the range of environments in which procurement and supply is expected to operate and the external factors that can impact on overall success. **Module Aim: **Procurement and supply is to operate in a varied range of environments. As well as the public and private sectors, those responsible for the procurement and supply function may find themselves working with those in not-for-profit organisations. This module is designed for those who are involved in the procurement and supply function, who must recognise the wider environment in which they work and the impacts that different types of organisations can have on successfully meeting with overall organisational needs. They must know the importance of the external environment and also identify the procedures that regulate procurement and supply. [![CIPS Level-4 Certification and Training or Course-0141](https://blog.fhyzics.net/hs-fs/hubfs/CIOP%20Banner.jpg?width=5000&name=CIOP%20Banner.jpg)](https://pages.fhyzics.net/ciop) Certified Inventory Optimization Professional CIOP is a global supply chain management and inventory management certification program exclusively developed for corporations to optimize the inventory in their supply chain. CIOP teaches the global best practices in 30 modules over 90 hours of live, faculty-led, online training. It is founded on Inventory Management Body of Knowledge (IMBoK) version 3.0. CIOP is a comprehensive program includes training, reference material, Learning Management and Assessment System (LMAS), examination and certificate. The LMAS contains classroom presentations, classroom notes, video lessons, audio lessons, quizzes, reference materials, terminologies and articles recommended by faculty. The CIOP Examination is 3 hours, online, proctored examination with 180 multiple-choice questions. The participant needs to secure 70% of the maximum score (360 marks) to pass in the examination. You can learn more about the CIOP certification in the below links: CIOP Website: [https://pages.fhyzics.net/ciop](https://pages.fhyzics.net/ciop)  Faculty Profile: [https://pages.fhyzics.net/principal-consultant](https://pages.fhyzics.net/principal-consultant) > [Click here](https://share.hsforms.com/1WiInHtVRRc-bC6fbsMaFHg1upbs) to request quote for the CIOP certification program. **![CIPS Level-4 Certification and Training or Course-0142](https://blog.fhyzics.net/hs-fs/hubfs/CIOP%20Border.jpg?width=5000&name=CIOP%20Border.jpg)** *Fhyzics Business Consultants is an Approved Study Centre of Chartered Institute of Procurement and Supply (CIPS), UK and offering all the modules under Level-2, Level-3, Level-4, Level-5, and Level-6. During this current COVID-19 pandemic, the classes are offered in distance and self-study modes. For more questions related to our CIPS programs, please speak to our Manager-Certifications at +91-900-304-9000 or email at certifications@fhyzics.net.* > Online, Instructor-Led Training Program on Procurement and Supply Environments [L3M1] Module of Professional Diploma in Procurement and Supply, CIPS, UK [**![CIPS Level-4 Certification and Training or Course-0143](https://blog.fhyzics.net/hs-fs/hubfs/CIPS%20Online%20Courses.jpg?width=150&name=CIPS%20Online%20Courses.jpg)**](https://smbcart.com/collections/supply-chain-certification/products/cips-level-3-online-instruction-one-module) **Mode of Delivery:** Online **Mode of Teaching**: Using the Presentation Deck from CIPS, UK **Duration**: 3 Hours **Faculty**: Venkadesh Narayanan, CIPS Recognized Instructor **Reference Material**: L3M1 Study Guide **Level-3:** Advanced Certifıcate in Procurement and Supply Operations ![CIPS Level-4 Certification and Training or Course-0144](https://blog.fhyzics.net/hs-fs/hubfs/procurement-and-supply-environments.jpg?width=255&name=procurement-and-supply-environments.jpg) [![CIPS Level-4 Certification and Training or Course-0145](https://blog.fhyzics.net/hs-fs/hubfs/ebook-CIPS%20%20Online%20Books.jpg?width=169&name=ebook-CIPS%20%20Online%20Books.jpg)](https://smbcart.com/collections/cips-level-3/products/l3m1-procurement-and-supply-environments-core-study-guide-ebook)   # Procurement and Supply Environments  - LEARNING OUTCOMES **1.0 Know the different sectors of procurement and supply** **1.1 Define the different types and functions of the private secto**r • Definitions and different types of private sector organisations – sole traders, partnerships, registered companies, incorporated and unincorporated companies, SME, multinational corporations • The size and scope of the private sector in different economies • Functions of private sector organisations such as profit, growth, market share, share price, other financial measures, corporate and social responsibility **1.2 Describe the role and scope of procurement and supply in the private sector** • Sole trade, partnerships, registered companies, incorporated and unincorporated companies • Small and medium sized organisations (SMEs) • Multinational organisations • The roles of procurement and supply in the private sector **1.3 Describe the role and scope of procurement and supply in the public sector** • Defining the public sector • Central and local government • The functions of public sector organisations • The roles of procurement and supply in the public sector • Commissioning and procurement • Achieving budget savings and other sources of added value • Providing access to services • Regulating organisations and individuals **1.4 Describe the role and scope of procurement and supply in the not-for-profit and third sector** • Defining the not-for-profit and third sector • Public accountability for the not-for-profit and third sector • Define the role of procurement and supply in the not-for-profit and third sector **2.0 Understand types of pricing arrangements in commercial agreements** **2.1 Explain how pricing arrangements are used in commercial agreements to ensure effective price and cost management** • Pricing schedules • Fixed pricing arrangements • Cost plus and cost reimbursable pricing arrangements • Indexation and price adjustment formulae • Incentivised gain share pricing • Payment terms • The use of open book costing and adjustments **3.0 Know the external environment and its impact on procurement and supply** **3.1 Identify the impact of the external environment on procurement and supply** • The use of environmental scanning • The use of PEST (political, economic, social and technological) criteria or STEEPLED (social, technological, economic, environmental, political, legislation, ethical and demographic) criteria that impacts on organisations’ external environment • The five forces model • Competitive market forces • Demand and supply • Market factors • Product life cycles **3.2 Describe how the implications of economic criteria impact on procurement and supply** • Macro-economic criteria such as interest rates, inflation, exchange rates, level of economic activity (GDP/ GNP) that impacts on organisations • Micro-economic criteria such as demand and supply that impacts on organisations **3.3 Describe how the implications of political and legislative criteria that impact on procurement and supply** • Political criteria such as stability and instability that impacts on organisations, different economic sectors and on countries • Legislation that impacts on organisations such as on standards, health and safety, environmental standards and employment law **3.4 Describe how the implications of environmental and ethical criteria impact on procurement and supply** • Environmental criteria such as natural risks, waste emissions, pollution and energy efficiency that impact on organisations • Ethical and social criteria such as ethical codes, employment rights, community benefits, working conditions and standards that impact on organisations **3.5 Describe how the implications of social criteria impact on procurement and supply** • Changing societal preferences, tastes and fashions, demographics, labour and fair-trade standards and how these can impact on organisations • Corporate social responsibility **4.0 Understand procedures that regulate procurement and supply** **4.1 Describe the types of documentation used in procurement and supply** • Requisitions • Orders • Delivery notes • Invoices • Other documents typically used in procurement and supply **4.2 Explain how documented policies and procedures are used within procurement and supply** • The responsibilities for procurement • Regulations relating to competition • Levels of delegated authority • Responsibilities for the stages of the sourcing process • Responsibilities for ensuring invoice clearance and payment • Responsibilities for ensuring that requisitions, orders and invoices are clear and correct and clarify requirements for stakeholders • Corporate governance --- ***Keywords: **eprocurements, e procurement, procurement, purchase, purchase order, purchase order format, e procurement tenders, purchase meaning in hindi, e procurement tata steel, purchase meaning, ntpc eprocurement, defence eprocurement, e procurement tatasteel, central e procurement, po system, govtprocurement, iocl e procurement, cg e procurement, bpcl eprocurement, purchase requisition, procure to pay, ntpc e procurement, online tendering, procurement process, hire purchase meaning, purchasing management, procurement is, strategic sourcing, procurement management, eprocurement ntpc, eprocurement central, procure, purchase order sample, procure to pay process, mes e procurement, po format, e procurement system, procurement logistics, cpp eprocurement, sourcing ariba, impulse buying, procure to pay cycle, reverse tendering, 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[**](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/procurement-and-supply-environments-l3m1&title=Procurement%20and%20Supply%20Environments%20[L3M1]©&summary=On%20completion%20of%20this%20module,%20learners%20will%20be%20able%20to%20identify%20the%20range%20of%20environments%20in%20which%20procurement%20and%20supply%20is%20expected%20to%20operate%20and%20the%20external%20factors%20that%20can%20impact%20on%20overall%20success.) ### Written by [Venkadesh Narayanan](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/author/venkadesh-narayanan) Venkadesh is a Mechanical Engineer and an MBA with 30 years of experience in the domains of supply chain management, business analysis, new product development, business plan and standard operating procedures. He is currently working as Principal Consultant at Fhyzics Business Consultants. He is also serving as President, PDMA-India (an Indian affiliate of PDMA, USA) and Recognised Instructor of APICS, USA and CIPS, UK. He is a former member of Indian Civil Services (IRAS). Fhyzics offers consulting, certification, and executive development programs in the domains of supply chain management, business analysis and new product development. - [**](https://www.linkedin.com/in/venkadesh/) PREVIOUS POST [** Inventory, Logistics and Expediting [L2M5]© ](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/inventory-logistics-and-expediting-l2m5) [![](https://cdn2.hubspot.net/hubfs/5152923/Creative_Theme/image/chevron.png) ](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips) Next Post [Ethical Procurement and Supply [L3M2]© **](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/ethical-procurement-and-supply-l3m2) ## Leave a Reply [Content Title](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/procurement-and-supply-environments-l3m1#) Description [![Cerversity](https://blog.fhyzics.net/hubfs/Cerversity.png "Cerversity")](https://pages.fhyzics.net/certversity) [![CIOP](https://blog.fhyzics.net/hubfs/CIOP.png "CIOP")](https://pages.fhyzics.net/ciop) [![IMBoK - 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