What is the procurement and supply lifecycle?
A cyclical process that covers all stages from identifying a need through to contract award, management, review, and exit
Why is the procurement lifecycle considered cyclical?
Because performance review and lessons learned feed into future procurement activities.
List the main stages of the procurement lifecycle.
Needs identification
Specification development
Sourcing strategy
Supplier selection
Contract award
Contract management
Review and exit
Stage 1: Needs Identification
Why is stakeholder engagement important at this stage?
To ensure requirements are accurate, aligned with business objectives, and realistic.
What is demand management?
Controlling and forecasting organisational requirements to avoid unnecessary costs.
Stage 2: Specification What are the three types of specifications?
Functional, technical, and performance specifications.
What is a performance specification?
A specification describing the outcome required rather than how it should be achieved.
Stage 3: Sourcing & Supplier Selection
What is the purpose of market analysis?
To understand supplier capability, competition, risks, and pricing structures.
What is the difference between open and restricted tendering?
Open allows all suppliers to bid; restricted involves pre-selected suppliers.
Name four supplier evaluation criteria.
Price, quality, financial stability, capacity/capability.
Carter’s 10 C’s?
What is ethical sourcing?
Ensuring suppliers operate responsibly regarding labour standards, environment, and governance.
Stage 4: Contract Award
What are the four key elements of a legally binding contract?
Offer, acceptance, consideration, intention to create legal relations.
What is an SLA?
A Service Level Agreement outlining performance standards and KPIs.
🤝 Stage 5: Contract & Supplier Management
What is Supplier Relationship Management (SRM)?
A structured approach to managing supplier interactions to improve performance and value.
Why are KPIs important in contract management?
They measure supplier performance and ensure contractual compliance.
What is continuous improvement in procurement?
Ongoing efforts to enhance performance, reduce costs, and improve supplier relationships.
Stage 6: Review & Exit
Why is contract review important before renewal?
To assess performance, value for money, and risks before extending agreements.
What are risks of poor exit management?
Supply disruption, legal disputes, knowledge loss, and reputational damage.
How does procurement add strategic value?
By reducing costs, managing risks, ensuring compliance, and supporting organisational objectives.
What are common risks across the lifecycle?
Supplier failure, poor specification, contract disputes, unethical practices.
5 Rights
Needs identification stage -
Ensures correct requirement
Porter’s Five Forces
Market analysis stage -
Understand market structure
Kraljic Matrix
Sourcing strategy stage -
Segment spend & decide strategy
10 C’s
Supplier selection stage -
Evaluate supplier capability
