CIPS Level 4 - Defining Business Need [L4M2]

After completing this module, you will be able to create a business case for externally sourcing requirements. You will understand the role of market management and competitive forces in specifying goods and services in procurement and supply.Developing a business case and analysing markets are key to an organisation's success in working with external suppliers. Similarly, the precise definition of specifications for through-life contracts is crucial to overall business achievement. This module is designed for those expected to analyse, interpret, and evaluate information on the different types of markets utilised by procurement and supply. It explores a range of elements that underpin the development of business cases and specifications, and considers the options to be considered when procurement and supply personnel are involved in defining requirements.Did you know: In procurement, up to 80% of a project’s total cost is determined before any supplier is even contacted — during the stage where business needs are defined. This means that clearly specifying what the organisation truly needs (and why) has a greater impact on value, sustainability, and efficiency than any later negotiation.For example, the UK’s National Audit Office found that poor specification — such as overestimating quality requirements or failing to consider the total cost of ownership — is one of the biggest drivers of wasted public procurement spending.We have a lot of ground to cover, so let's get started.