Produce and procure products and services from external suppliers

Overview & Purpose

What This Standard Covers

This standard focuses on the processes of producing and procuring products and services from external suppliers. It empowers managers to engage in decision-making concerning production versus procurement, emphasizing capacity evaluation, cost-benefit analysis, and compliance with ethical and sustainability standards.

Performance Criteria

• Engage colleagues and stakeholders in decision-making
• Establish organization’s product/service requirements
• Assess internal capability for production
• Identify and evaluate potential suppliers
• Conduct cost-benefit analyses for production vs procurement
• Review ethical and sustainability considerations
• Make informed decisions on production or procurement
• Document and communicate decision rationale
• Create specifications tailored to organizational needs
• Select optimal suppliers based on quality, cost, and reliability
• Negotiate value-driven agreements with suppliers
• Monitor supplier performance against set standards
• Address supplier issues per contractual terms
• Regularly review decisions considering organizational changes
• Adhere to relevant legal and organizational policies

Knowledge & Understanding Requirements

• Importance of colleague consultation
• Development of detailed specifications
• Supplier sourcing and comparison techniques
• Contractual agreement principles
• Performance monitoring methodologies
• Cost-benefit analysis and risk evaluation techniques
• Industry-specific procurement requirements
• Regulatory and policy compliance in procurement
• Ethical and sustainability considerations

Relevent Roles

• Managers and Senior Officials, Arboriculture and Forestry.