Podcast
Questions and Answers
What is the primary objective of demand management?
What is the primary objective of demand management?
- To analyze the supply industry without assessing needs
- To ensure that resources needed are delivered at the right time, price, and place (correct)
- To lower costs by minimizing resource quality
- To acquire resources regardless of time or price
Which of the following is NOT a step in the demand management process?
Which of the following is NOT a step in the demand management process?
- Linking requirements to the budget
- Determining specifications precisely
- Conducting a needs assessment
- Ignoring previous expenditures (correct)
Why is specification of goods/works or services important in demand management?
Why is specification of goods/works or services important in demand management?
- It ensures that the right resources are procured to meet identified needs (correct)
- It allows flexibility in purchasing any available goods
- It helps in random procurement without guidelines
- It prevents thorough assessment of future needs
Which of the following is a demand consideration for accounting officers/authorities?
Which of the following is a demand consideration for accounting officers/authorities?
What role does demand management play in strategic planning and budgeting?
What role does demand management play in strategic planning and budgeting?
How can institutions optimize methods to satisfy needs?
How can institutions optimize methods to satisfy needs?
What is the first phase of Supply Chain Management (SCM)?
What is the first phase of Supply Chain Management (SCM)?
What should be included in a total needs assessment?
What should be included in a total needs assessment?
What elements should be considered when planning procurement contracts?
What elements should be considered when planning procurement contracts?
What should be included in specifications for goods or services during procurement?
What should be included in specifications for goods or services during procurement?
In a preferential procurement strategy, what is a key consideration?
In a preferential procurement strategy, what is a key consideration?
What is recommended regarding references to brand names in specifications?
What is recommended regarding references to brand names in specifications?
What phrase should be added if a brand name is referenced in a specification?
What phrase should be added if a brand name is referenced in a specification?
Which body is responsible for standards in procurement specifications?
Which body is responsible for standards in procurement specifications?
Why should the quality of goods/services not be over-specified?
Why should the quality of goods/services not be over-specified?
When should individual contract goals be identified in procurement?
When should individual contract goals be identified in procurement?
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Study Notes
Demand Management Objectives
- Aim to ensure resource delivery aligns with strategic institutional needs.
- Focuses on timely, cost-effective acquisition of the right quantity and quality.
- Involves conducting a comprehensive needs assessment integral to strategic planning.
Demand Management Process
- Initiation of demand management occurs through assessing needs for goods and services.
- Precise specifications for products are established.
- Requirements are aligned with budgetary constraints.
- Analysis of the supplier industry is performed to ensure capacity and capability meet demand.
Integrated Planning and Budgeting
- Demand management is essential for annual strategic planning and budgeting within public institutions.
- Forms the foundation for developing effective Supply Chain Management (SCM) plans.
Demand Considerations for Accounting Authorities
- Comprehensive understanding of both current and future needs is crucial.
- Requirements must be closely connected to budget allocations.
- Detailed specifications must be determined to facilitate procurement.
- Past expenditure analysis aids in understanding previous fulfillment of needs.
- Consideration of optimal procurement methods, including inter-institutional collaborations, is necessary.
- Identification of requirement frequency helps in planning.
- Economic order quantity calculations are vital for cost-efficiency.
- Lead and delivery times must be clearly defined.
- Industry and commodity analyses guide informed decision-making.
Preferential Procurement Strategy
- Incorporates goals such as promoting Black Economic Empowerment (BEE) per Preferential Procurement Regulations.
- Individual contracts should reflect identified goals after consultation with relevant industries and communities.
Importance of Goods/Works or Services Specification
- Specifications in bidding documents should encourage competition while ensuring quality performance requirements are met.
- Acceptance of recognized standards from bodies like Standards South Africa (SABS) and the International Standards Organisation is recommended.
- References to specific brands or catalogue numbers should be avoided unless necessary, with "or equivalent" added for clarity.
- Specifications should allow for alternatives with similar performance to broaden competition while maintaining quality thresholds.
- Over-specification of quality requirements risks limiting participation from potential suppliers.
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