Procurement and Supply Management

QUESTION 3

Purchasing includes all procurement activities including leasing and hiring and may where appropriate include other activities accompanying the life cycle of goods (or service contracts) and the end-of-life disposal of goods which have been procured (whether or not they remain in our ownership). Adherence to the Purchasing Policy is both an individual and a corporate responsibility. Wilful breach of this policy, or unauthorised departure from the Procedures derived from this Policy, may constitute a disciplinary offence.

3.1 What is a purchasing policy? (5 marks)

3.2 Critically discuss the major principles or issues that should be addressed by purchasing policies, use examples were appropriate. (15 marks)