CIPS — the Chartered Institute of Procurement & Supply — is an international professional body dedicated to developing knowledge and skills in procurement and supply. CIPS qualifications provide a structured learning pathway for those starting their careers and professionals seeking to advance their expertise.
SCM by BMS is a CIPS Approved Study Centre. We support learners in developing their knowledge through CIPS qualification programmes and preparing for their examinations.
About the Module
L2 – M3: Stakeholder Relationships introduces the role of internal and external stakeholders, the key market factors affecting procurement and supply, and the importance of effective communication.
In any organisation, a significant part of the procurement and supply function involves developing and maintaining relationships with internal and external stakeholders. This module helps learners identify these stakeholders, understand the impact of market factors, and explore the communication tools and techniques that support successful working relationships.
Module Purpose
On completion of this module, learners will be able to define stakeholders and explain the key market factors that impact the procurement and supply function.
Learners will also be able to explain the role of effective communication in successfully developing and maintaining internal and external relationships.
The module focuses on identifying stakeholders, understanding market factors that affect procurement and supply success, and developing knowledge of the communication tools and techniques that enable effective collaboration.
Who Is This Module For?
Those starting a career in procurement and supply;
Employees involved in procurement and supply operations;
Individuals working with suppliers, customers and different departments within their organisation;
Those wishing to develop their understanding of stakeholder relationships and effective communication.
This module develops essential knowledge of stakeholder relationships and effective communication as part of the CIPS Level 2 Certificate in Procurement and Supply Operations.
Exam Format
Objective Response Examination (OR)
This format allows you to select a response from a list of possible answers. Responses are marked by computer and then moderated by CIPS examiners.
Total Qualification Time (TQT)
Total Qualification Time indicates the overall time required for guided learning, additional self-study and assessment to achieve the qualification.
The following figures apply to the full Level 2 qualification.
Guided Learning Hours (GLH)
The Level 2 qualification includes 120 guided learning hours. These cover lectures, tutorials, practical sessions and supervised study.
Self-Study Requirement (SSR)
For the Level 2 qualification, an additional minimum of 54 hours of self-study is recommended. This includes wider reading of the subject areas and revision.
Total Examination Time for the Qualification: 6 Hours
All modules within the Level 2 qualification are assessed by examination. The combined examination time across all modules is 6 hours.
Module Learning Time
Learning time for L2 – M3: 30 hours.
CIPS Level 2 – M3 | Stakeholder Relationships
Learning Outcomes, Assessment Criteria and Indicative Content
1.0 Know the stakeholders in procurement and supply
1.1 Define external stakeholders in procurement and supply
Defining and profiling stakeholders
Typical stakeholders such as suppliers, customers, consumers, communities, government and other groups
The distinction between customers and consumers
1.2 Identify internal stakeholders that can be involved in purchases from suppliers and supplies delivered to customers
The role of procurement and supply in dealing with other business functions such as marketing, sales, production, operations, human resources, finance, design and development, distribution, facilities, senior management and the board of management
1.3 Describe how internal and external stakeholders influence procurement and supply activity
The internal and external stakeholders that can influence the work and success of procurement and supply
2.0 Know the key market factors that impact on a procurement and supply function
2.1 Identify the key economic sectors that impact on a procurement and supply function
Public, private and not-for-profit or third sector
Primary, secondary and tertiary sectors
2.2 Indicate the impact of demand and supply on markets
Demand and supply curves
How demand and supply factors can change
How demand and supply factors can impact on pricing and availability
2.3 Describe how market factors impact on the procurement and supply activities of an organisation
The level of competition: perfect competition, imperfect competition, oligopoly, duopoly and monopolies
The impact of demand on sales
Market growth and decline
Competitive forces on organisations
2.4 Identify the contribution that marketing makes to develop customer and supplier relationships
Define the principles and definitions of marketing
Techniques associated with marketing
Sources of competitive advantage sought through marketing
Relevance of marketing principles to purchasers
3.0 Understand the techniques associated with successful and effective communication in procurement and supply
3.1 Describe and explain approaches to build rapport with internal and external stakeholders
Techniques to develop, maintain and improve relationships with internal stakeholders to promote effective procurement and supply
3.2 Explain methods of negotiating with suppliers and customers
Negotiation techniques for use with suppliers and customers to agree contract terms and relationships that will achieve the interests of the overall organisation
3.3 Recognise all elements of the communication cycle
The importance of appropriate, prompt and timely communications with stakeholders and suppliers
How to create appropriate written correspondence
How to complete electronic files and documents used in support of the procurement and supply process
3.4 Describe the key characteristics of successful and effective team working
Group cohesiveness and performance
The characteristics of an effective work group
The stages of team development
4.0 Know approaches for conflict resolution with stakeholders in procurement and supply
4.1 Identify the types of information that can be exchanged between purchasers and suppliers
Types of information exchange such as scheduling difficulties, demand forecasts, trends in costs and availability, designs and innovations, and new product development
4.2 Indicate how conflict can arise in the work of procurement and supply
Defining workplace conflict
The sources of conflict in organisations and between personnel
The sources of conflict between organisations and their personnel
4.3 Identify approaches to conflict resolution with stakeholders in procurement and supply
