CIPS Exam L4M2 Topic 8 Question 31 Discussion

Actual exam question for CIPS's L4M2 exam

Question #: 31
Topic #: 8

A procurement organisation is keen to encourage innovation available within the supply market in the execution of an upcoming significant contract opportunity. A team member suggests that the specification should define the performance indicators so that supplier's solution can be checked against them. Which of the following will enable the organisation to achieve this goal?

AUsing an outcome focused specification

BEstablishing transparent selection criteria

CUsing an output focused specification

DApplying a precise performance framework

Show Suggested Answer

Suggested Answer: C

The buying organisation is keen to encourage innovation so they should use the outcome or output based specification. In an outcome-based specification, umbrella statements like 'good quality', 'ambient temperature', 'convenient way' are often used. This may confuse the suppliers, and it's hard to check the solution that supplier offers. On the other hand, ouput-based specifications often include measurable requirements. For example, a specification for air conditioning system states that the system should maintain the room temperature at 19-24 degrees Celsius. Therefore, output specification is more appropriate in this case.

LO 3, AC 3.1

by Claribel at Apr 09, 2024, 09:31 PM

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Dorinda

5 months ago

I see your point, but I think B) Establishing transparent selection criteria is crucial in promoting innovation within the supply market.

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Carmelina

5 months ago

I personally think that D) Applying a precise performance framework will ensure that suppliers meet the required standards.

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Douglass

5 months ago

I disagree. I believe C) Using an output focused specification would be more effective in this case.

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Jolene

5 months ago

I think the best option is A) Using an outcome focused specification.

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Hillary

5 months ago

I see your point, but I still think transparency in selection criteria is crucial for innovation.

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Franchesca

6 months ago

But wouldn't applying a precise performance framework ensure better results?

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Alesia

6 months ago

Actually, using an output focused specification might be more effective in this case.

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Hillary

6 months ago

I disagree, I believe establishing transparent selection criteria is more important.

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Franchesca

6 months ago

I think using an outcome focused specification would be the best option.

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Larae

7 months ago

Haha, yeah, transparent selection criteria? That's like saying 'breathe oxygen to live' - it's just common sense, not a strategy to encourage innovation!

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Cyndy

7 months ago

I'm not too sure about option B, 'establishing transparent selection criteria'. Isn't that just table stakes? Shouldn't that be a given?

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Melinda

5 months ago

That's a good point, having a precise performance framework could also be important for evaluation.

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Simona

5 months ago

But what about option D, applying a precise performance framework? Wouldn't that ensure quality in execution?

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Marguerita

6 months ago

I agree, specifying the desired outcome would allow suppliers to come up with creative solutions.

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Melinda

6 months ago

I think option A, using an outcome focused specification, would be the best way to encourage innovation.

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Dawne

7 months ago

Yes, exactly! By defining the performance indicators, the organization can evaluate the proposed solutions against their needs, rather than being stuck with a narrow, pre-defined way of doing things.

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Leonie

7 months ago

Hah, 'outcome-focused specification' - that's a fancy way of saying 'tell us what you want to achieve, not how to do it'. I like that approach, gives the suppliers room to innovate.

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Marjory

7 months ago

I agree, the question is really about enabling innovation. From the options provided, I think using an outcome-focused specification (A) is the way to go. This allows suppliers to propose creative solutions without being overly prescriptive.

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Shawna

7 months ago

This question is definitely testing our understanding of procurement processes and strategies. I think the key here is to focus on how the organization can encourage innovation from the supply market.

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