--- title: Procurement and Supply Operations [L2M2]© description: On completion of the module, learners will be able to identify types of business organisations. They will define the fundamentals and components of the contracting process, identify sources of information on suppliers and customers and define pricing methods used for the purchasing of goods or services. image: https://blog.fhyzics.net/hubfs/Procurement%20and%20Supply%20Operations.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-operations-l2m2&title=Procurement%20and%20Supply%20Operations%20[L2M2]©&description=On%20completion%20of%20the%20module,%20learners%20will%20be%20able%20to%20identify%20types%20of%20business%20organisations.%20They%20will%20define%20the%20fundamentals%20and%20components%20of%20the%20contracting%20process,%20identify%20sources%20of%20information%20on%20suppliers%20and%20customers%20and%20define%20pricing%20methods%20used%20for%20the%20purchasing%20of%20goods%20or%20services.) - [**](https://twitter.com/intent/tweet?source=https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/procurement-and-supply-operations-l2m2&text=Procurement%20and%20Supply%20Operations%20[L2M2]©%20-%20https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/procurement-and-supply-operations-l2m2) - [**](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/procurement-and-supply-operations-l2m2&title=Procurement%20and%20Supply%20Operations%20[L2M2]©&summary=On%20completion%20of%20the%20module,%20learners%20will%20be%20able%20to%20identify%20types%20of%20business%20organisations.%20They%20will%20define%20the%20fundamentals%20and%20components%20of%20the%20contracting%20process,%20identify%20sources%20of%20information%20on%20suppliers%20and%20customers%20and%20define%20pricing%20methods%20used%20for%20the%20purchasing%20of%20goods%20or%20services.) 23 April 2020 Thursday ## Procurement and Supply Operations [L2M2]© 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 the module, learners will be able to identify types of business organisations. They will define the fundamentals and components of the contracting process, identify sources of information on suppliers and customers and define pricing methods used for the purchasing of goods or services. **Module Aim: **In any organisation, a significant element of the procurement and supply function is based around the contracting process. This module is designed for those involved in the procurement and supply operation who, to ensure success must demonstrate knowledge and comprehension of the associated components and systems that are at their disposal to support the contracting process. They must also know where sources of information on suppliers and customers are and recognise the advantages and disadvantages of pricing methods used for the purchasing of goods or services. [![CIPS Level-4 Certification and Training or Course-0153](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-0152](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 Operations [L2M2] Module of Professional Diploma in Procurement and Supply, CIPS, UK [**![CIPS Level-4 Certification and Training or Course-0155](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-2-online-instruction-introducing-procurement-and-supply) **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**: L2M2 Study Guide **Level-2:** Certifıcate in Procurement and Supply Operations [![CIPS Level-4 Certification and Training or Course-0156](https://blog.fhyzics.net/hs-fs/hubfs/procurement-and-supply-operations.jpg?width=255&name=procurement-and-supply-operations.jpg)](https://smbcart.com/collections/cips-level-2/products/l2m2-procurement-and-supply-operations-core-ebook) [![CIPS Level-4 Certification and Training or Course-0157](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-2/products/l2m2-procurement-and-supply-operations-core-ebook) # Procurement and Supply Operations - LEARNING OUTCOMES **1.0 Know the types of organisations and how they operate** **1.1 Identify the types of business organisations** • Private public and third sector organisations • Production and service organisations **1.2 Describe how organisations operate** • People, objectives and structure in organisations • The formal and informal organisation **1.3 Identify the key operating functions within organisations** • Differentiation and integration in organisations • Typical functions in organisations such as production, operations, marketing and sales, customer support, human resources, personnel, finance, IT, and technical functions • Differentiating procurement and supply **2.0 Know the components of contractual agreements** **2.1 Identify types of contracts** • Spot purchases • Term contracts • Framework arrangements/blanket orders/panel contracts and call offs **2.2 Identify the kind of pricing arrangements applied in commercial contracts** • Fixed pricing, lump sum pricing and schedule of rates • Cost reimbursable and cost plus arrangements • Variable pricing arrangements • Target pricing arrangements • Risk and reward pricing arrangements **2.3 Define the different documents that compose a contract for the purchase or supply of goods or services** • Defining contracts and agreements • The use of tendering and quotations • The documents that comprise a contract - the specification, key performance indicators (KPIs), contract terms, pricing and use of other schedules • Contracts for the supply of goods or services  **3.0 Understand sources of information on suppliers and customers** **3.1 Explain the use of the Internet to locate details about suppliers and customers** • 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 • B2B and B2C E-Commerce **3.2 Explain the use of credit rating agencies ** • The role of credit rating agencies and credit rating scores • Publications on individual organisations and markets • The use of credit rating scores **3.3 Describe 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 **4.0 Understand pricing methods used for the purchasing of goods or services** **4.1 Explain the advantages and disadvantages of a range of pricing methods**  • Fixed pricing, lump sum pricing and schedule of rates • Cost reimbursable and cost plus arrangements • Variable pricing • Target pricing • Risk and rewards pricing --- ***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, 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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-operations-l2m2&title=Procurement%20and%20Supply%20Operations%20[L2M2]©&summary=On%20completion%20of%20the%20module,%20learners%20will%20be%20able%20to%20identify%20types%20of%20business%20organisations.%20They%20will%20define%20the%20fundamentals%20and%20components%20of%20the%20contracting%20process,%20identify%20sources%20of%20information%20on%20suppliers%20and%20customers%20and%20define%20pricing%20methods%20used%20for%20the%20purchasing%20of%20goods%20or%20services.) ### 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 [** Introducing Procurement and Supply [L2M1]© ](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/introducing-procurement-and-supply-l2m1) [![](https://cdn2.hubspot.net/hubfs/5152923/Creative_Theme/image/chevron.png) ](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips) Next Post [Stakeholder Relationships [L2M3]© **](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/stakeholder-relationships-l2m3) ## Leave a Reply [Content Title](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/procurement-and-supply-operations-l2m2#) 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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