SAUDI BASIC INDUSTRIES CORPORATION- General Terms and Condit

SAUDI BASIC INDUSTRIES CORPORATION- General Terms
and Conditions for the
Purchase of Goods and Services
1/4
Version 1.3 January 2019
Classification: Internal Use
1 GENERAL PROVISIONS
These general terms and conditions for the Purchase of Goods
and/or Services (“GTC”)
shall apply to any Purchase Contract except as otherwise
expressly agreed in such
Purchase Contract. In case of any conflict between the main
body of a Purchase Contract
and the attachments thereto, the provisions of the main body of
a Purchase Contract shall
apply unless otherwise expressly provided. Any general or
special conditions of Supplier are
hereby explicitly and entirely rejected and shall not apply to
any Purchase Contract even if
referred to or printed on any bid, web site, price quotation,
order confirmation, invoice or any
other document or communication of Supplier.
2 DEFINITIONS

The following terms shall have the following meaning:
2.1 ”Affiliate” means, in relation to a Party, any individual or
entity that at any time
controls, is controlled by, or is under common control, with
such Party, with “control”
meaning directly or indirectly owning a majority equity interest
in, or otherwise having
the power to direct the business affairs of, the controlled entity,
provided that
SABIC’s Affiliates shall be limited to SABIC and entities now
or hereafter controlled
by it.
2.2 “Delivery Point” means the place agreed in the Purchase
Contract where Goods
are to be delivered or where Services are to be performed.
2.3 “Force Majeure” means any circumstance beyond the
reasonable control of the
affected Party, which materially affects the performance of any
of its obligations
under the relevant Purchase Contract, and could not reasonably
have been foreseen
or provided against, with exception of any changes in economic
conditions, costs
and delivery of raw materials and strikes and other labor
disputes of Supplier’s
personnel which do not qualify as force majeure.

2.4 “Goods” means the goods (if any) as specified in the
relevant Purchase Contract,
including any related designs, materials, equipment and
documentation.
2.5 “EHSS Laws” means any and all laws, rules, and regulations
and the terms of any
permit, authorization, license and, to the extent they would be
observed by a prudent
operator, any codes of conduct or any practices related to
environment, health,
safety and security, including on the (a) protection of air,
water, soil, flora, fauna and
man, or (b) generation, transportation, storage, treatment,
disposal or presence of
any natural or artificial substance, including but not limited to
hazardous, polluting,
toxic or dangerous substances, waste, radiation, electricity and
heat; or (c) human
health and safety in or around the workplace.
2.6 “Incoterms” means the International Commercial Terms
2010 as issued by the
International Chamber of Commerce.
2.7 “Intellectual Property Rights” means any intellectual and
industrial property rights
including, but not limited to, patents of any type, design rights,
utility models or other
similar invention rights, copyrights, database rights, mask work

rights, moral rights,
trade secrets, know-how or confidentiality rights, trademarks,
trade names and
service marks and any other intangible property rights
(including applications and
registrations for any of the foregoing) in any jurisdiction, and
whether or not
registered or perfected, whenever and however arising.
2.8 “Order Confirmation” means the document or other written
communication issued
by Supplier to Purchaser accepting a Purchase Order.
2.9 “Party” shall mean each of Purchaser and Supplier and
“Parties” shall mean
Purchaser and Supplier.
2.10 "Personal Data" means any information relating to an
identified or identifiable
natural person.
2.11 “Processing Personal Data” means any operation or set of
operations performed
upon Personal Data, whether or not by automated means, such
as collection,
recording, organization, structuring, storage, adaptation or
alteration, retrieval,
consultation, use, disclosure by transmission, dissemination or
otherwise making
available, alignment or combination, restriction, erasure or
destruction. “Process

Personal Data” shall be construed accordingly.
2.12 “Purchase Contract” means any agreement for the purchase
of Goods and/or
Services resulting from a Purchase Order and the corresponding
Order
Confirmation.
2.13 “Purchase Order” means the document, including any
attachments thereto, issued
by Purchaser to order Goods and/or Services from Supplier.
2.14 “Purchaser” means the legal entity specified in the relevant
Purchase Contract as
purchasing Party.
2.15 “Purchaser Personal Data” includes any Personal Data
obtained by Supplier from
Purchaser or Purchaser’s Affiliates, and/or any Personal Data
being Processed by
Supplier on behalf of Purchaser or Purchaser’s Affiliates.
2.16 “Security Breach” includes any event involving an actual,
potential or threatened
compromise of the security, confidentiality or integrity of
Purchaser Personal Data,
including, but not limited to, any unauthorized access or use, or
any broader
circumstances as defined in any applicable laws, rules, and
regulations.

2.17 “Services” means the services (if any) as specified in the
relevant Purchase
Contract.
2.18 “Specifications” means the (technical) specifications, of
the Goods and/or Services
as set out in the relevant Purchase Contract or otherwise
expressly agreed in writing
by Purchaser and Supplier.
2.19 "SABIC" means Saudi Basic Industries Corporation.
2.20 “Supplier” means the legal entity specified in the relevant
Purchase Contract as
supplying Party.
3 ORDERS
3.1 Purchase Orders shall become binding on Purchaser only
upon the written
acceptance of the Purchase Order by Supplier by the issuance of
an Order
Confirmation. Purchaser shall be entitled to make changes to a
Purchase Order prior
to the receipt of an Order Confirmation. Changes by Purchaser
to a Purchase Order
for which an Order Confirmation has already been received,
shall not be binding

unless accepted by Supplier by the issuance of a new Order
Confirmation or upon
delivery of the Goods or provision of the Services in accordance
with such changes,
whichever is earlier. In the event that an Order Confirmation
deviates from a
Purchase Order, such deviation shall be binding on Purchaser
only if explicitly
approved in writing by Purchaser.
4 QUALITY
4.1 Supplier shall implement and maintain appropriate quality
control systems and
documented procedures which meet good industry practice and
ISO 9001 and
which ensures that the Goods and Services comply with (a) all
statutory and other
legal requirements; (b) the warranties stated in Article 11; (c)
good industry
practices; and (d) standards and any other requirements
specified in the Purchase
Contract.
4.2 If at any time Supplier becomes aware of any event that
causes, or is likely to
cause, that the Goods and/or Services do not comply with the
quality requirements
set out in the provisions of this Article 4 and the warranties
stated in Article 11,
Supplier shall promptly notify Purchaser in writing after
becoming aware of such
event. Such notification is without prejudice to any rights and

remedies Purchaser
may have against Supplier resulting from such non-compliance.
4.3 Supplier shall timely notify and obtain approval from
Purchaser in writing in advance
of implementing any change that can reasonably be expected to
adversely effect the
Goods delivered and/or Services provided to Purchaser,
including, but not limited to,
any change in: (a) the quality control systems or procedures set
out in this Article 4;
or (b) the manufacturing location, manufacturing process, raw
materials or
proportions of raw materials used in Goods delivered to
Purchaser under any
Purchase Contract.
5 INSPECTION
5.1 Unless otherwise agreed in the Purchase Contract, Supplier
shall, at its own cost,
inspect and test the Goods before delivery to Purchaser in
accordance with its
standard inspection and testing procedures and good industry
practice and
standards. Purchaser shall have the right, but not the obligation,
to inspect or cause
the inspection of the Goods and/or Services at Supplier’s
premises at any time prior
to delivery of such Goods, including during their
manufacturing, processing or
storage, or prior to completion of such Services. Where the
Goods and/or Services

are determined to be compliant with the Purchase Contract, the
Purchaser shall
bear the cost of such inspection and where the Goods and/or
Services are
determined not to be compliant with the Purchase Contract, the
Supplier shall bear
the cost of such inspection. Purchaser is under no obligation to
conduct any
inspection or test of the Goods and/or Services upon, or after,
Purchaser’s receipt of
the Goods and/or completion of the Services.
5.2 Purchaser shall have the right to inspect and test at any time
at Supplier’s premises
or any other location, all goods and/or services and all
materials, equipment,
facilities and quality control systems and procedures utilized by
Supplier in
producing Goods or providing Services.
5.3 Inspection or testing pursuant to the provisions of this
Article 5 shall not constitute
acceptance of any Goods or Services by Purchaser and shall not
relieve Supplier of
any of its obligations under any Purchase Contract.
6 PACKAGING AND DOCUMENTATION
6.1 Supplier shall ensure that the Goods are packaged, labelled,
stored and handled:
(a) as safely and carefully as possible; (b) in a manner that
prevents them from

being damaged during loading, transportation and off-loading;
(c) in compliance with
all applicable laws, rules and regulations, including those
related to goods
containing any hazardous and chemical substances; and (d) in
accordance with any
packaging instructions and specifications provided by
Purchaser. Upon Purchaser’s
request, Supplier shall remove or take back any containers,
packaging material, and
waste at its own expense and risk.
6.2 Supplier shall, where applicable, provide Purchaser with all
complete, accurate, and
necessary documentation relating to the Goods, including, but
not limited to:
documents, data and instructions regarding the safe handling,
storage, usage and
disposal of the Goods, material safety data sheets, and all
certificates customary for
such type of goods and relevant mode of delivery, such as
certificates of origin,
certificates of analysis and certificates of conformity.
7 DELIVERY
7.1 Unless otherwise agreed in the Purchase Contract, Supplier
shall deliver the Goods
at the Delivery Point in accordance with DDP (Delivery Duty
Paid), as defined in the
Incoterms.

7.2 The Supplier shall carry out the Services at the agreed
location(s) and agreed
delivery date(s) according to the Specifications, the warranties
stated in Article 11
and good industry practice. The Services shall be deemed
performed only after
Purchaser has confirmed to Supplier in writing that the Services
provided have been
accepted.
7.3 Time is of the essence for performance of the Purchase
Contract by the Supplier
and the agreed delivery dates for the delivery of Goods and/or
the performance of
Services indicated in the Purchase Contract shall be firm and
binding. If, at any time,
the agreed delivery dates for delivery of Goods or performance
of Services will not
be met, Supplier shall, without delay, give notice to Purchaser
in writing stating both
the reasons for the delay and the estimated delay in delivery
time.
7.4 If Supplier fails to deliver the Goods and/or perform the
Services in accordance with
the agreed delivery date(s) Supplier shall pay or allow to
Purchaser liquidated
damages in an amount equal to two per cent (2%) of the
Purchase Contract price for
each week (or part thereof) that the delivery of Goods and/or
performance of the
Services is delayed beyond the corresponding
delivery/performance dates. The
Parties agree that the delay liquidated damages represent an

agreed genuine pre-
estimate of the losses likely to be suffered by Purchaser as the
result of such delay
and are not a penalty. Supplier’s maximum liability is respect
of delay liquidated
damages shall not exceed ten per cent (10%) of the Purchase
Contract price.
7.5 Without prejudice to Purchaser’s rights and remedies under
Article 7.4, if Supplier
fails to deliver the Goods and/or perform the Services in
accordance with the agreed
delivery date(s), and such failure has not been remedied within
seven (7) calendar
days of the Supplier receiving notice from the Purchaser, the
Purchaser may reject
the Goods and/or Services and immediately terminate the
Purchase Contract by
giving written notice to the Supplier. In such an event, Supplier
shall indemnify the
Purchaser for any and all costs, expenses, damages and other
losses suffered by
Purchaser due to Supplier’s failure as outlined in this Article
7.5.
7.6 Purchaser’s acceptance of the Goods and/or performance of
the Services, including
acceptance of delayed delivery or performance, shall not
constitute a waiver of, or
otherwise limit, any of Purchaser’s rights or remedies, including
but not limited to,
those rights or remedies resulting from late delivery or
performance.

7.7 Any early or partial delivery of the Goods and/or
performance of the Services
requires prior written consent from Purchaser. If Supplier fails
to obtain such
consent, Purchaser shall not be obliged to take or accept any
such early or partial
delivery or performance. With respect to such Goods, Purchaser
may in its sole
discretion return the shipment of Goods or arrange for storage
of the Goods both at
the sole expense and risk of Supplier.
7.8 In the event that Purchaser gives notice to Supplier that it is
not able to accept the
Goods/ Services on the agreed delivery date indicated in the
Purchase Contract, and
such notice is given prior to the dispatch of the Goods/ Services
by Supplier, upon
Purchaser’s request, Supplier shall, at its own cost, postpone the
delivery date for a
reasonable period of time, such to be determined by Purchaser.
In the event such
notice is given after dispatch of the Goods by Supplier, upon
Purchaser’s request,
Supplier shall arrange for the storage of the Goods at the risk
and expense of
Purchaser.
8 ENVIRONMENT, HEALTH, SAFETY AND SECURITY
8.1 Supplier shall at all times (including without limitation

during delivery or collection,
handling, storage and transport of Goods or the performance of
Services) comply
and shall require that its contractors and/or any other party or
parties acting on its
behalf comply with all applicable EHSS Laws, the
recommendations in any material
safety data sheets, all safety and other procedures in for ce at the
relevant Delivery
Point and in a manner consistent with the standards of a
reasonable and prudent
operator engaged in the same or substantially similar type of
undertaking under the
same or similar circumstances and conditions. Supplier shall be
liable to Purchaser
in respect of its non-compliance with this Article 8 and shall
indemnify and hold
Purchaser harmless against any and all loss or liability (of any
nature whatsoever)
incurred by it as a result of such non-compliance.
8.2 Without limiting Supplier’s obligations to comply with
EHSS Laws, Purchaser shall
have the right to conduct (or have conducted by mutually agreed
experts) at periodic
intervals an environmental, health, safety and security audit on
the operations and
procedures of Supplier, including, but not limited to, Supplier’s
loading and/or
discharge operations. In the event that an audit reveals a breach
by Supplier of any
EHSS Laws or Purchaser policies and/or procedures, such
appraisal shall be at the
expense of Supplier, otherwise such appraisal shall be at the
expense of Purchaser.

8.3 In the event that Supplier becomes aware of any
circumstance that: (a) constitutes a
breach of any EHSS Laws, or (b) would constitute a breach of
EHSS Laws if
Supplier were to continue supplying Goods and/or Services to
Purchaser or
Purchaser were to continue to take Goods and/or Services from
Supplier; or (c) a
reasonable and prudent operator engaged in the same or
substantially similar type
of undertaking under the same or similar circumstances and
conditions would
consider to be an unacceptable risk to employees and/or the
environment, it shall
immediately inform Purchaser and the Parties shall as soon as
practicable discuss
such circumstances, and, as long as any such circumstance
continues, Purchaser
shall be entitled to refuse to accept any Goods and/or Services
affected by such
breach, or potential breach, or unacceptable risk, without any
liability to Supplier.
9 PRICE, INVOICES AND PAYMENTS
9.1 The price of the Goods and/or Services and the currency of
payment shall be as
specified in the relevant Purchase Contract. Such price shall be
fixed for the term of
the Purchase Contract, unless otherwise agreed in the Purchase

Contract. No
additional charges, fees, or expenses shall be charged by
Supplier unless
specifically agreed upon by Purchaser in writing.
9.2 Unless otherwise stated in the Purchase Contract, the price
payable for the Goods
and/or Services is: (a) exclusive of value added tax or any other
sales tax; and (b)
inclusive of all charges for packaging, packing, shipping,
carriage, insurance and
delivery of the Goods, all required travel and living expenses
related to the provision
of the Services, and any and all duties, licenses, permi ts and
taxes (other than value
added tax or any other sales tax) as may be payable for the
Goods and/or Services.
9.3 Unless otherwise agreed in the relevant Purchase Contract,
payment shall be made
within sixty (60) calendar days after the date on which the
correct and undisputed
invoice is received by Purchaser. Supplier shall issue an invoice
only after the
delivery of the Goods and/or the performance of the Services.
Invoices must be
issued in accordance with all applicable laws and regulations,
and Purchaser’s
instructions, if any.
9.4 Payment of an invoice shall not be deemed acceptance by
Purchaser of the Goods

and/or Services covered by such invoice or of the invoiced
amount, and shall be
without prejudice to any rights and remedies Purchaser may
have against Supplier.
9.5 Purchaser may withhold payment of any disputed amounts
included in any invoice.
Incorrect or incomplete invoices will not be processed by
Purchaser and will be
returned to Supplier without any liability of Purchaser. If the
Purchase Contract
states that value added tax or any other sales tax is payable with
respect to any
Goods and/or Services, Purchaser is only required to pay such
tax upon receipt of a
valid original value added tax or other sales tax invoice meeting
the applicable tax
legislation and invoice requirements stated in the Purchase
Contract. Supplier shall
indemnify and hold Purchaser harmless for any recharged value
added tax or any
other sales tax, fines, penalties or other costs (including legal
advisory and court
costs) imposed on, or incurred by, Purchaser resulting from
Supplier not complying
with applicable tax legislation or the invoice requirements
stated herein and in the
Purchase Contract.
9.6 Purchaser shall be entitled to set off any amount due by
Supplier to Purchaser or
due by Supplier to any Affiliates of Purchaser against any

amount due by Purchaser
under the Purchase Contract, or to recover such sums as a debt.
10 TRANSFER OF RISK AND TITLE
10.1 All risks associated with the Goods shall pass from
Supplier to Purchaser in
accordance with the Incoterm stated in Article 7.1 or as
otherwise agreed in writing
by the Parties.
10.2 Title to the Goods shall pass from Supplier to Purchaser
upon delivery at the
Delivery Point or upon payment of the price for such Goods,
whichever is earlier. If
title to the Goods has passed to Purchaser prior to delivery at
the Delivery Point,
Supplier shall clearly mark such Goods as Purchaser's property
and store them
separately from all other goods.
11 WARRANTIES
11.1 Supplier warrants that it shall have good title to the Goods,
and that the Goods shall
be free of any liens and encumbrances.
11.2 Supplier warrants that, the Goods shall: (a) conform to the
Specifications; (b) be new

and not used; (c) be of good quality materials and workmanship;
(d) be free from any
and all defects in design, processing, fabrication, construction
and measurement; (e)
be fit for the intended purpose; and (f) conform to all applicable
laws, rules and
regulations relating to the design, manufacture, sale, packaging,
labelling, safety
standards, storage, transporting, delivery and use of the Goods.
The warranties set
out in Articles 11.1 and 11.2 shall be valid for a period of,
unless agreed otherwise in
the Purchase Contract, eighteen (18) calendar months from the
date of acceptance
of the Goods or the date of first operational use of the Goods by
Purchaser,
whichever is latest. Such warranty period shall be extended by
the period of time
during which the Goods did not conform to the warranties set
out in Article 11.1 and
11.2. Any replacement Goods will be subject to above
warranties and warranty
period.
11.3 Supplier warrants that the Services shall be fit for the
intended purpose and
performed: (a) in full accordance with the Specifications; (b) in
a good and
workmanlike manner using all due skill and care, diligence and
foresight expected
and demanded from professional, skilled and experienced
service providers
engaged in similar services; and (c) by sufficiently qualified
personnel. The warranty

set out in this Article 11.3 shall be valid for a period of
eighteen (18) calendar months
from the date of acceptance of the Services pursuant to Article
7.2. Such warranty
period shall be extended by the period of time during which the
Services did not
conform to the warranty set out in this Article 11.3.
11.4 Without prejudice to any other rights and remedies
Purchaser may have under the
Purchase Contract or applicable laws, in the event the Goods
fail to conform to the
warranties set out in Articles 11.1 and 11.2, Purchaser shall be
entitled, at its sole
option and at Supplier’s sole expense, to choose one (1) or more
of the following
remedies: (a) refuse to take delivery of the non-conforming
Goods, or if such Goods
have already been delivered, reject such Goods and return them
to Supplier,
terminate the Purchase Contract and, if already paid, obtain a
complete refund of
the purchase price of the non-conforming Goods; (b) require
Supplier to replace or
repair the non-conforming Goods; (c) refuse to accept any new
deliveries of the
Goods; and (d) claim compensation for all costs, damages and
losses incurred by
Purchaser as a result of breach of the warranties set out in
Articles 11.1 and 11.2.
11.5 In the event Supplier fails to remedy its breach of the
warranties set out in Articles

11.1 and 11.2, or is unable to replace or repair the non-
conforming Goods within any
period reasonably requested by Purchaser, Purchaser shall be
entitled at its sole
option and without prejudice to any other right and remedies to:
(1) replace or repair
the non-conforming Goods itself at Supplier’s expense; or (2)
have the non-
conforming Goods replaced or repaired by a third party supplier
at Supplier’s
expense; and/or (3) claim reduction or refund (as the case may
be) of the purchase
price in the amount of the reduced value of the non-conforming
Goods.
11.6 Without prejudice to any other rights and remedies
Purchaser may have under the
Purchase Contract or applicable laws, in the event the Services
fail to conform to the
warranty set out in Article 11.3, Purchaser shall be entitled, at
its sole option and at
Supplier’s expense, to choose one or more of the following
remedies: (a) refuse to
accept the non-conforming Services, or if such non-conforming
Services have
already been accepted by Purchaser, reject the non-conforming
Services, terminate
the Purchase Contract and, if already paid, obtain a compl ete
refund of the purchase
price of the non-conforming Services; (b) require Supplier to re-
perform the non-
conforming Services; (c) refuse to accept any further Services;
and (d) claim
compensation for all damages and losses incurred by Purchaser

as a result of
breach of the warranty set out in Article 11.3. In the event
Purchaser requires
Supplier to re-perform the non-conforming Services, the
corrected Services shall
again be subject to the warranty coverage set forth in Article
11.3, taking effect as of
the date all corrections have been made.
11.7 In the event Supplier fails to remedy its breach of the
warranty set out in Article 11.3,
or is unable to re-perform the non-conforming Services within
any period reasonably
requested by Purchaser, Purchaser shall be entitled at its sole
option and without
prejudice to any other right and remedies to: (a) obtain the
Services from a third
party and require Supplier to reimburse Purchaser for all
reasonable costs and
expenses thereby incurred; or (b) require the Supplier to reduce
pro-rata the
compensation reasonably allocated to the non-conforming
Services.
12 INDEMNIFICATION
12.1 Supplier shall indemnify, defend and hold harmless
Purchaser, Purchaser’s Affiliates
and their respective directors, employees, agents and their
successors and
assignees from and against any and all damages, liabilities,
claims (including but not
limited to claims based on product liability laws), suits, actions,

demands, costs and
expenses (including legal costs) made against, or suffered by,
the Purchaser,
Purchaser’s Affiliates or their respective directors, employees
or agents and their
successors and assignees arising out of or in connection with:
(a) the performance
of the Purchase Contract and the delivery of Goods and/or
performance of Services;
(b) the use or sale of the Goods, or the use or deployment of the
Services by
Purchaser; (c) any breach of Supplier’s warranties,
representations, covenants or
other obligations or duties contained in the Purchase Contract or
any breach or
violation of any other obligation or duty under applicable law;
or (d) any negligent
acts or omissions, or willful misconduct relating to the Purchase
Contract by
Supplier, its employees, officers, directors, contractors,
subcontractors or agents.
13 INSURANCE
13.1 Supplier shall, at its own cost, procure and maintain as
from the date of the
Purchase Contract and throughout the duration of the Purchase
Contract the
following insurances together with such other insurances as may
be required by
applicable laws in connection with the performance of the
Purchase Contract (each
an "Insurance Policy" and together, the "Insurance Policies"):

(a) "Professional Indemnity Insurance", providing coverage in
respect of the
performance of the Purchase Contract by the Supplier. Such
Insurance
Policy shall be in an amount of no less than US$ 1,000,000 (one
million) for
any one occurrence or series of occurrences arising in any one
year out of
any one event and shall be maintained in the full amount for a
period of ten
(10) years following completion or earlier termination of the
Purchase
Contract;
(b) unless not required in accordance with the Incoterms (if
any), "All Risk Marine
Insurance" which shall include coverage for inland
transportation covering
loss of, or damage to, the Goods (if any) for a value of no less
than one
hundred and ten per cent (110%) of the value of the
consignment. Such
insurance shall cover the Goods (if any) from the time they
leave Supplier’s
warehouse until the time they are delivered to the Delivery
Point;
(c) "Comprehensive General Liability (CGL) Insurance"
covering death and
personal injury sustained by any person and loss of or damage
to any

property arising out of or in connection with the performance of
the Purchase
Contract. Such Insurance Policy shall be maintained in an
amount of no less
than US$ 2,000,000 (two million) for any one occurrence, shall
provide for
contractual liability and shall not exclude professional
negligence, any
property of the Purchaser, SABIC or any of the SABIC
Affiliates, or any third
party property which is under the care, custody or control of the
Supplier;
(d) "Automobile Liability Insurance" covering bodily injury,
sickness or death of
any person, or for loss of or damage to property by any vehicle
whether
owned, hired or used by the Supplier. Such Insurance Policy
shall be in an
amount of no less than the higher of (A) the statutory limit for
Automobile
Liability Insurance in the Kingdom of Saudi Arabia as at the
date of the
Purchase Contract (if applicable), and (B) SAR 10,000,000 per
occurrence;
and
(e) if the Purchase Contract requires the Supplier to enter any
of the sites of the
BSA/505 v4
Gail Industries Case Study

BSA/505 v4
Page 2 of 14
Gail Industries Case Study
This case study is used to complete your assignments
throughout the course. Some sections of the case study will be
necessary in multiple assignments. See the assignment
instructions for specific assignment requirements.Introduction
to Gail Industries
Gail Industries is a partner to many Fortune 1000 companies
and governments around the world. Gail Industries’ role is to
manage essential aspects of their clients’ operations while
interacting with and supporting the people their clients serve.
They manage millions of digital transactions every day for
various back office processing contracts.
One of Gail Industries’ clients is the city of Smallville.
Smallville, despite its name, is a large metropolis seated in the
heart of the nation. The city has 2.5 million residents, and the
greater Smallville metropolitan area has a population of about 4
million people. Smallville’s IT department follows the NIST
800-53 standards, and the city requires that all IT service
organizations, whether run by city staff or vendors such as Gail
Industries, follow these standards.
For this case study, you are to assume the following dates:
· Audit Period: 1/1/2018 – 12/31/2018
· Audit Field Work Dates: 1/3/2019 – 1/24/2019Overview of the
Operations of Smallville Collections Processing Entity (SCOPE)
Summary of Services Provided
Collections Processing
The Smallville Collections Processing Entity (SCOPE) provides
collections processing services to the city of Smallvi lle. SCOPE
receives tax payments, licensing fees, parking tickets, and court
costs for this major municipality. The city of Smallville sends
out invoices and other collections notices, and SCOPE
processes payments received through the mail, through an

online payment website, and through an interactive voice
response (IVR) system. Payments are in the form of checks,
debit cards, and credit cards. After processing invoices, SCOPE
deposits the monies into the bank account for the city.
SCOPE is responsible for ensuring the security of the mail that
comes into the possession of all employees, subcontractors, and
agents at its processing facility, located within Smallville.
Controls and procedures for money and mail handling are
established by SCOPE to ensure payments are accounted for,
from the earliest point received through processing and deposit.
These controls and procedures provide:
1. Assurances for proper segregation of duties
2. The design and use of satisfactory documentation to ensure
proper recording of transactions
3. The safeguarding of access to and use of all assets and
records
4. Independent checks on performance
Payment Receipt
The purpose of collections processing is to receive and process
various types of payments, post the payment data to the Central
Collections System (CCS), and deposit the accompanying funds
in the Smallville bank account. This process includes the
following types of payment receipts:
· Regular mail – paper checks only
· Website – credit and debit card payments, electronic checks
· IVR – credit and debit card payments
Mail Delivery
A bonded courier picks up the payments from the United States
Postal Service (USPS) facility in Smallville. SCOPE uses a
subcontractor for courier services. This courier is dedicated,
picking up and delivering mail only for SCOPE. This courier is
also required to sign for registered, certified, and express
delivery envelopes.
Opening and Sorting Mail
The daily success of payment processing depends on receiving
mail quickly from the postal service, opening that mail, and

properly sorting the contents for processing. Batches contain
similar payment types: tax payments are processed together,
court collections together, and so forth.
Deposits
Deposits are made daily into the Smallville bank account.
Electronic payments (debit cards, credit cards, and paperless
checks) are deposited through an interface between CCSys and
the bank. Checks are converted to electronic debits and
deposited electronically. However, those that cannot be
converted to electronic form are deposited in physical form.
Functional Areas of Operations
Gail Industries uses the following specific functional roles of
operations:
· Contract manager – responsible for the overall management of
contract deliverables of the payment processing operation,
including the monitoring of financial expenditures to ensure
compliance with contract budgets.
· Operations manager – responsible for planning, managing, and
controlling the day-to-day activities of the team that provides
operational support for the business unit, including the
establishment of operational objectives and work plans and
delegation of assignments to subordinate managers.
· Information technology manager – responsible for developing
and maintaining the strategy of the future direction of IT
infrastructure, including developing plan for the implementation
of new IT projects and managing relationships with IT-related
vendors and subcontractors.
· Accounting – responsible for performing a variety of routine
clerical and accounting functions within the accounting
department, including daily balancing of receipts. In addition,
the accountant resolves exception transactions, including
charged back checks (bounced checks), forgery affidavits, and
recoupment.
· Call center – the city of Smallville does not have a centralized

call center for handling questions relating to payments and
invoices. It is considering adding one to the scope of services
offered by Gail Industries.
Information Systems
Services
Gail Industries services are designed around the following tools
and technologies:
· Data Capture and Imaging – real-time instrument imaging and
data capture—provides imaging, accountability and reporting of
checks and remitted payments.
· Invoice Management and Reporting – data correction and
maintenance utilizing automated payment auditing and
historical analysis. A browser-based application is available for
internal SCOPE and Smallville staff to perform administrative
functions. A separate internet-accessible payment portal allows
for citizens, business owners, and others to view invoices and
make payments.
Processing Platforms
Gail Industries currently utilizes cloud-based servers on the
Amazon Web Services (AWS) platform for internet-accessible
application. Data capture, imaging, and the payme nt processing
application run on local servers in a secured computer room.
Local servers run both Linux and Windows Server operating
systems. Data is stored on Microsoft SQL Server to provide
storage of payment, image, and balancing data.
The servers supporting the CCS are housed within the SCOPE
server room (also known as the data center) and are managed by
Gail Industries’ IT staff. The IT staff provides the following
services:
· Firewall management – monitoring and management of the
firewall systems and networks on a 24/7/365 basis.
· Network monitoring – proactive network and server
monitoring services to help maximize system performance and
uptime.
· Data backup – data backup services for the production,

payment, imaging, and balancing data.
· Incident management – IT incident monitoring,
documentation, and resolution management.Control Objectives
and Related Controls
Physical Security (Datacenter)
Control Objective 1: The controls provide reasonable assurance
that physical access to computer resources within Gail
Industries’ data center is restricted to authorized and
appropriate personnel.
To protect physical assets, management has documented and
implemented physical access procedures to grant, control,
monitor, and revoke access to the on-site SCOPE datacenter.
The datacenter requires two-factor authentication: a biometric
credential via retinal eye scanner and a badge access card.
Individuals requesting badge access document the request on a
standardized employee management form that must be approved
by departmental management. Administrative access to the
badge access system is restricted to authorized IT personnel.
When an employee is terminated, IT personnel revoke the badge
access privileges as a component of the termination process. In
addition, the IT manager performs a review of badge access
privileges on a monthly basis to help ensure that terminated
employees do not retain badge access.
All visitors must sign a logbook upon entering the datacenter,
with a picture ID presented to their escort. Access is restricted
to authorized IT personnel and equipment technicians.
CCTV surveillance cameras are utilized throughout the facility
and the datacenter to record activity; these images are retained
for a minimum of 45 days.
Physical Security (Facilities)
Control Objective 2: Controls provide reasonable assurance that
physical access to assets within Gail Industries’ facilities is
restricted to authorized and appropriate personnel.
To protect physical assets, management has documented and

implemented physical access procedures to grant, control,
monitor, and revoke access to the on-site SCOPE facility.
A door badge access system is employed to control access to
areas within the facility (including the datacenter) through the
use of predefined security zones.
Individuals requesting badge access to the facility document the
request on a standardized employee management form,
accessible through Gail Industries’ employee on-boarding
system (known as GEO). All requests must be approved by
departmental management. Administrative access to the badge
access system is restricted to authorized IT personnel.
Upon termination (voluntary or involuntary), SCOPE IT
personnel revoke the badge access privileges as a task in the
termination process. In addition, the IT manager performs a
monthly review of badge access privileges to ensure that
terminated employees do not retain badge access.
Both entrances into the facility are locked and are monitored by
administrative personnel. The receptionist must unlock the door
for visitor access. Visitors are required to ring a video door bell
and announce themselves to the receptionist. Visitors sign a
logbook when entering the facility, and they are required to
wear a visitor’s badge at all times. Visitors must be escorted by
an authorized employee when accessing sensitive facility areas
such as the mail room and server room.
CCTV surveillance cameras are utilized throughout the facility
and server room to record activity. Video images are retained
for a minimum of 45 days.
Environmental Safeguards
environmental safeguards protect physical assets and the data
that resides on those assets.
Management has implemented environmental controls to protect
physical assets within the datacenter and office facility,
including fire detection and suppression controls. The office
facility is protected by audible and visual alarms, fire and

smoke detectors, a sprinkler system, and hand-held fire
extinguishers. A halon-free fire suppression system and smoke
detectors protect the datacenter. An uninterruptible power
supply (UPS) is in place to provide temporary electricity in the
event of a power outage and mitigate the risk of power surges
impacting infrastructure to the data center.
Management retains the following inspection reports completed
by the third party vendors as evidence of their completion:
· Annual inspection of the fire detection and sprinkler fire
suppression system
· Annual inspection of hand-held fire extinguishers located
throughout the facility
· Annual inspection of the fire suppression system
· Semi-annual inspection of the UPS systems
Change Management
changes to network infrastructure and system software are
documented, tested, approved, and properly implemented to
protect data from unauthorized changes and to support user
entities’ internal control over financial reporting.
Documented change management policies and procedures are in
place to address change management activities. Further, there
are provisions for emergency changes to the infrastructure and
operating systems. Change requests are documented via a
change request (CR) form. CRs include details of the change,
including the change requestor, the date of the request, the
change description, and change specifications. Management,
through the Change Advisory Board (CAB), holds a weekly
meeting to review and prioritize change requests. During this
meeting, management authorizes change requests by signing off
on the CR form.
Detailed testing is performed prior to implementation of the
change in test environments that are logically separated from
the production environment. The CAB approves the changes
prior to implementation. The ability to implement infrastructure

and operating system updates to the production systems is
restricted to user accounts of authorized IT personnel.
Logical Security
administrative access to network infrastruc ture and operating
system resources is restricted to authorized and appropriate
users to support user entities’ internal control over financial
reporting.
Information security policies have been documented and are
updated annually to assist personnel in the modification of
access privileges to information systems and guide them in
safeguarding system infrastructure, information assets, and data.
Infrastructure and operating system users are authenticated via
user account and password prior to being granted access.
Password requirements are configured to enforce minimum
password length, password expiration intervals, password
complexity, password history requirements, and invalid
password account lockout threshold, as documented in the IT
Procedures and Policies document.
The CCS application authenticates users through the use of
individual user accounts and password before granting access to
the applications. CCS utilizes predefined security groups for
role-based access privileges. The application enforces password
requirements of password minimum length, password expiration
intervals, password complexity, password history, and invalid
password account lockout threshold.
Payment Processing
payments received are processed accurately and timely, and
processing exceptions are resolved.
Documented payment processing policies and procedures are in
place to guide personnel in the following activities:
· Mailroom processing
· Identification and posting of payments

· Research and processing of unidentified payments
· Financial reporting
· Bank reconciliations
Financial instruments are required to remain within the
mailroom during payment processing. When mail is delivered
by the courier, both the courier and the mail room supervisor
initial the mail receipt log to verify the envelope count
received.
Physical access privileges of data entry personnel are
segregated from balancing and mailroom personnel. Logical
access to processing systems are segregated between data entry,
balancing, and mailroom personnel.
Data Transmission
transmitted payment data is complete, accurate, and timely.
SCOPE exchanges payment and invoice information
electronically with Smallville via scheduled inbound and
outbound data transmissions each day. Smallville provides a list
of newly created invoices that were issued on the previous
business day. SCOPE receives this information in the CCS
application and uses this for processing payments. Each day, all
payments processed by SCOPE are sent back to the city of
Smallville, which imports this data into its systems.
Deposits
deposits are processed completely, accurately, and in a timely
manner.
Documented procedures are in place that addresses the transfer
and security of financial instruments, including delivery of the
mail from the Post Office (P.O) boxes to the SCOPE mailroom
and the delivery of deposits from the SCOPE mailroom to the
bank processing center.
A courier pickup and delivery schedule, outlining the date/times
of scheduled mail deliveries by the third party courier, is

maintained and posted in the mailroom. SCOPE utilizes a third-
party courier service for delivery of financial instruments to the
city of Smallville’s bank.Partially Collected Audit Evidence
GEO/SCOPE Active Employees Report
Generated 1/3/2019 8:26 AM
Employee ID
Full Name
Department
Status
Door Badge
10001438
Andrea Bradley
Administrator
Active
1902
10001337
Cesar Lynch
Administrator
Active
1904
10001232
Darin Young
Administrator
Active
2048
10000006
Gina Carmack
Administrator
Active
1900
10000001
Gail Lucas
Administrator
Active
1874

10001232
Ken Smith
Administrator
Active
1999
10001298
Michelle Adams
Administrator
Active
2005
10001396
Susan Larame
Administrator
Active
2010
10001301
Steve Lenzi
Administrator
Active
1871
10001243
Tessa Hammer
Administrator
Active
1801
10001188
Victoria Brown
Administrator
Active
2007
10001156
Yvonne Vasquez
Administrator
Active
1869

12 Employees Listed
GEO/SCOPE Terminated Employees Report
Employee ID
Full Name
Department
Status
Term Date
10001038
Alan McDonald
IT
Termed
6/8/2018

1 Employee Listed
GEO/SCOPE IT Active Employees Report
Employee ID
Full Name
Department
Status
Hire Date
10001232
Ken Smith

IT
Active
1/3/2017
10001396
Susan Larame
IT
Active
7/5/2018
2 Employees Listed
Datacenter Visitor's Log
Date
Name
Title

Organization
ID presented
Escorted By
3/12/2018
Gail Lucas
President
Gail Industries
Alan, IT Specialist
7/2/2018
Kerry Lark
IT Director
City of Smallville
Driver's Lic.
Ken, IT Manager
7/31/2018
B. Smith
Technician
UPS Fixit
Driver's Lic.
Susan, IT Specialist
9/8/2018
B. Smith
Technician
UPS Fixit
Driver's Lic.
11/13/2018
John Wilson
Technician
Fire Suppression Inc.
Business Card
Windows Domain Group Policy for Passwords
CCS Active Users Report

User ID
Full Name
System Rights
Status
Email
ABradley
Andrea Bradley
Administrator
Active
[email protected]
AMcdonald
Alan McDonald
Administrator
Active
[email protected]
CLynch
Cesar Lynch
Administrator
Active
[email protected]
DYoung
Darin Young
Administrator
Active
[email protected]
GCarmack
Gina Carmack
Administrator
Active
[email protected]
GLucas
Gail Lucas
Administrator
Active
[email protected]

KSmith
Ken Smith
Administrator
Active
[email protected]
MAdams
Michelle Adams
Administrator
Active
[email protected]
SLarame
Susan Larame
Administrator
Active
[email protected]
SLenzi
Steve Lenzi
Administrator
Active
[email protected]
THAMMER
Tessa Hammer
Administrator
Active
[email protected]
VBrown
Victoria Brown
Administrator
Active
[email protected]
YVasquez
Yvonne Vasquez
Administrator
Active
[email protected]

Excerpt from IT Policies and Procedures Manual
Version 1.0, 12/31/2016
Revision History
Date
Author
Notes
12/31/2016
Ken Smith
Version 1.0, accepted by client
Overview
This policy is intended to establish guidelines for effectively
creating, maintaining, and protecting passwords at SCOPE.
Scope
This policy shall apply to all employees, contractors, and
affiliates of SCOPE, and shall govern acceptable password use
on all systems that connect to SCOPE network or access or store
SCOPE, city of Smallville, or Gail Industries data.
Policy
Password Creation
1. All user and admin passwords must be at least [8] characters
in length. Longer passwords and passphrases are strongly
encouraged.
2. Where possible, password dictionaries should be utilized to
prevent the use of common and easily cracked passwords.
3. Passwords must be completely unique, and not used for any

other system, application, or personal account.
4. Default installation passwords must be changed immediately
after installation is complete.
Password Aging
1. User passwords must be changed every 60 days. Previously
used passwords may not be reused.
2. System-level passwords must be changed on a monthly basis.
Password Protection
1. Passwords must not be shared with anyone (including
coworkers and supervisors), and must not be revealed or sent
electronically.
2. Passwords shall not be written down or physically stored
anywhere in the office.
3. When configuring password “hints,” do not hint at the format
of your password (e.g., “zip + middle name”)
4. User IDs and passwords must not be stored in an unencrypted
format.
5. User IDs and passwords must not be scripted to enable
automatic login.
6. “Remember Password” feature on websites and applications
should not be used.
7. All mobile devices that connect to the company network must
be secured with a password and/or biometric authentication and
must be configured to lock after 3 minutes of inactivity.
Enforcement
It is the responsibility of the end user to ensure enforcement
with the policies above.
If you believe your password may have been compromised,
please immediately report the incident to the IT Department and
change the password.
Courier Deposit Log
Date
Deposit Items
Time
Courier

SCOPE
1/2/2018
328
3:41 PM
V. Barnes
Mia Liu
1/3/2018
748
3:45 PM
V. Barnes
Mia Liu
1/4/2018
1050
4:30 PM
V. Barnes
Mia Liu
1/5/2018
258
3:31 PM
V. Barnes
Mia Liu
1/8/2018
1238
3:15 PM
V. Barnes
Mia Liu
1/9/2018
208
4:02 PM
V. Barnes
Mia Liu
1/10/2018
1031
3:45 PM
V. Barnes
Mia Liu

1/11/2018
1343
3:56 PM
V. Barnes
Mia Liu
1/12/2018
211
3:01 PM
V. Barnes
Mia Liu
1/15/2018
230
3:02 PM
V. Barnes
Mia Liu
1/16/2018
576
3:02 PM
V. Barnes
Mia Liu
1/17/2018
332
4:02 PM
V. Barnes
Mia Liu
1/18/2018
1204
Mia Liu
1/19/2018
904
Mia Liu
1/22/2018

231
Mia Liu
1/23/2018
441
Mia Liu
1/24/2018
400
Mia Liu
1/25/2018
1/26/2018
1/29/2018
1/30/2018
1/31/2018

2/1/2018
549
4:02 PM
V. Barnes
Mia Liu
2/2/2018
2/5/2018
2/6/2018
2/7/2018
2/8/2018
2/9/2018

2/12/2018
2/13/2018
2/14/2018
(No entries after 2/14/2018)Fire Extinguisher Inspection Tag
Oldest Camera Image, from September 30, 2018 @3:30 AM
Newest Camera Image, from January 3, 2019
Proposed Call Center Operations Department
Recently, the city of Smallville has asked Gail Industries to
expand the scope of the SCOPE contract by starting up a call
center operation within the facility. This call center would
handle hundreds of telephone calls placed by those who receive
invoices from the city on a daily basis. Callers would be able to
talk to a customer service representative (CSR) to check their
account balance (ensuring payments had posted), dispute
invoices received (which will be investigated by city of
Smallville personnel), and accept credit card and debit card
payments over the telephone.
Copyright© 2018 by University of Phoenix. All rights reserved.

Copyright© 2018 by University of Phoenix. All rights reserved.
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Cohort 6
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AS4
MODULE TITLE
Integrative Assessment 4
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WORD COUNT
3292
Please do not change or remove the wording in this front sheet
as this is required for all submissions under the Corporate
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correct front sheet will be returned to the candidate for
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1. Please ensure that you complete and attach this form to the
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2. Before submission, please ensure that your name does not
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3. By submitting your work, you are confirming that your work
is your own and that you have read and understand CIPS rules
regarding plagiarism and the consequences that will arise
should you submit plagiarized work.

Table of Contents
Contents
Executive Summary 3
Introduction 5
1) The roles of procurement and supply in managing this area of
expenditure underlining the inputs that may be made by its
stakeholders 5
2) Techniques that can be applied to the area of expenditure to
improve added value 7
Market Knowledge 7
Comprehensive Analysis 8
Strategic Sourcing 9
(3) Inclusions that should be made in contracts formed in the
future 9
Incentives and Pricing Model 9
Data Security 10
Service Level Agreements 10
(4) Measures that can be taken to select effective suppliers 11
Calling upon suppliers in early product development process 11
Establish priority for long term relationships with the suppliers
12
5) Any aspects of the purchase/supply that may require
negotiation 12
Conclusion 13
Recommendations 14
References 15

Executive Summary
TheSaudi Arabian Basic Industries Corporation (SABIC) trades
petro-chemicals. It is a multinational company in the chemicals
industry which has aligned its procurement and supply
management strategy with its overall organization strategy. The
company has aligned its procurement and supply management
strategy with its overall organization strategy. Its’ roles involve
market analysis where procurement and supply departments
obtain prior information and therefore weigh the options this
department has and of course settles for the less costly while
still adhering to overall quality. Through the procurement
governance role, regulations are set before and thus manage the
expenditure related to legal claims.
With an aim to improve added value, the SABIC employs
certain techniques relating to the expenditure in stationery and
office supplies. . The company adopts a comprehensive analysis
whereby both the supplier and the buyer’s interests are
considered therefore improving the added value. The company
boosts its market knowledge by employing both the SWOT and
the PESTEL analysis. For future contracts between the SABIC
and other companies, there needs to be additional inclusions.
These include : incentives and pricing models for suppliers and
the buyers, data security provisions, service level agreements
and alternative dispute resolution mechanisms. This will
improve the relationships between the company and its
stakeholders and consequently the company’s performance.
Additionally, selection of effective suppliers will involve
measures such as calling upon suppliers in the early
development process and seeking to establish long-term
relationships with the suppliers. Aspects of the purchase or
supply that may require negotiation include the length of the
contractual relationship and the terms and conditions involved.
The recommendations to the stakeholders of the SABIC are
embracing clarity and diversification in the choice of suppliers.
Introduction
Many procurements units achieve poor performance because of

failing to recognize their functional ability or the impact of
procurement aggregates which play a huge role in the increasing
the value of an enterprise. The impact of effective purchasing
doubles the role played by financial benefits, which can only be
delivered after spending well on the management. This implies
that the suppliers recruited to procure services for the
organizations greatly determine the extension and growth of the
purchasing power of an organization. If suppliers brought to the
table are sub-standard, the organization will have a minimal
extension, on the contrary, and when stellar performers are
employed they will deliver stellar benefits which will promote
the success of an organization.
The SABIC Company is still not at this level of achievement. It
is with reference to the SABIC Company that this paper
addresses a sourcing plan to be used for future requirements.
The discussion will cover the roles of procurement and supply
in managing expenditure in stationery and techniques that can
be improved to this expenditure so as to improve added value.
In addition to this, inclusions that should be made in contracts
formed in the future, measures that can be taken to select
effective suppliers and a discussion of any aspects of the
purchase or supply that may require negotiation will be made.1)
The roles of procurement and supply in managing this area of
expenditure underlining the inputs that may be made by its
stakeholders
The Saudi Basic Industrial Corporation deals with
petrochemicals and one of the areas of this expenditure is
stationery and office supplies. Procurement and supply
activities have in the course of their operations managed
stationery’ expenditure. The management of expenditure related
to stationery has not been a sole effort of procurement and
supply but also for other stakeholders in this company. Through
procurement governance, the SABIC has set the rules and
guidelines along which procurement of stationery and other
products will be done. The SABIC Global Procurement Service
has detailed and thorough policies and procedures. Setting of

these policies is done by the legal department of this company.
The main job of this department is to create these policies and
to communicate with all stakeholders such as buyers.
Collaboration between the procurement and the legal
departments in setting and implementing corporate governance
policies help to keep the expenditure at bay. The suppliers of
stationery are normally made aware of these policies beforehand
and this helps them to stick to the policies when supplying their
products. Legal claims that may arise in cases of breach are
therefore for the supplier and not the SABIC.
Procurement and supply in the SABIC manages the expenditure
in stationery through incorporating the ideas of various
stakeholders in this company relating to this expenditure. For
instance, a cost might be a priority for a stakeholder and
another might have a different priority depending on
circumstances like urgency and key materials. SABIC
Procurement through their global procurement system, work
hand in hand to hand with the business to support so as to
achieve their vision and consequently managing the related
expenditure. Suppliers for stationaries to SABIC have discounts
and product warranties. An example of this supplier is the
Jubail Stationery. Utilizing discounts that come with bulk
buying helps in the managing the expenditure related to office
supplies.
With an aim of managing expenditure related to stationaries and
other office supplies, the procurement and supply unit of the
SABIC usually analyzes the market trends before inviting
suppliers for tenders. With this information, suppliers who bid
for these tenders are evaluated basing on the set criteria. This
saves the company’s resources and ultimately manages the
related expenditure. Together with stakeholders from other
department for instance accounts, procurement and supply units
usually budgets and further monitor their spending through this
tool. SABIC has a dynamic Supplier Relationship Management
unit, and their job is to qualify suppliers in term of their
products and services, the quality, the size of their business and

their ability to comprehend the requests from SABIC with its
standards and polices before registering them as SABIC vendor
with a unique SABIC vendor code.2) Techniques that can be
applied to the area of expenditure to improve added value
With an aim of improving added value , stakeholders in the
SABIC can embrace a number of techniques. For this
discussion, expenditure related to stationery and office supplies
will be considered.
Market Knowledge
This refers to understanding what are you buying in term of
cost, material description and what is the use of the material.
Proper analysis of the stationery and office supplies market by
SABIC is crucial in ensuring proper quality products are bought
for the company. This is also key in comparing prices and
consequently settling for the most affordable alternative given
the suppliers in the market. According to the Porter’s five
forces model, better analysis and further communication of the
needs of the company will facilitate the choice of the supplier.
Once chosen, the stationery and office supplier in this instance
will know what to deliver to this company. In a nutshell having
an understanding of the market by both the supplier and the
company helps in addressing the specific niche and thus adding
value.
Threat of new Entry
Supplier Power
Buyer Power

Competitive Rivalry
Threat of substitution
Figure 1 Porter's Five Forces
Market analysis enables procurement to understand how
the supply market works, the direction in which the market is
going, the competitiveness and the key suppliers within the
market. The results of this analysis can help the buyer to
improve and shape the strategy and tendering process and align
their behavior in order achieve better value for money, reduced
prices or an improved service.
Comprehensive Analysis
Comprehensive analysis of the supplier’s strengths ,weaknesses,
opportunities and threats is really crucial in improving the
added value to the stationery and office supplies related
expenditure. Through proper identification of the suppliers’
strengths and weaknesses, the procurement team may match
with their considerations and make a decision. The company’s
external environment and how it is susceptible to risks is also
key in decision making with an aim of adding value. If for
instance SABIC realizes that Jubail is facing environmental
challenges in its main processing plant and therefore may not be
able to deliver the supplies, SABIC may seek alternatives
momentarily as this is sought. Through this business continuity
is ensured and improved value comes forth as a consequence.
The PESTEL analysis can be used for this.
Strategic Sourcing

To improve added value with reference to expenditure on
stationery and office supplies in the SABIC, strategic sourcing
can be implemented. In the early years of the operation of this
company, buyers used their experience to seek suppliers.
However, in the recent past, a new tool has been implemented in
SABIC’s procurement where buyers have visibility to suppliers
performance. Buyers can view the supplier performance in term
of delivery time and quality of products and history of delivery
rejection, shortage or overage. This saves the time and cost
involved in seeking quality suppliers and ultimately improves
the business value.(3) Inclusions that should be made in
contracts formed in the future
SABIC is improving daily in its procurement processes and
contracts. The company has however not achieved its desired
heights in this practice. With an aim of bettering its
performance in sourcing plans, there needs to be certain
inclusions.
Incentives and Pricing Model
A good procurement contract involves negotiation and
consideration of terms from both parties. The most important
thing apart from the direct cost is that the organization and the
supplier are incentivized properly to ensure that the relationship
works out. This calls for coming up with a compensation regime
which will ensure that the supplier has incentives to meet the
objectives of the agreement as well as sufficient penalties in the
event that well-defined metrics are not reached at. The current
SABIC’s contract with Jubail does not involve this provision. It
will be quite a good thing to have it in the contracts formed in
future. This will help the company in having an edge in the
‘battle of forms’ should it happen.
Data Security
Security inclusions are very important in any sourcing
contract. Compliance with the best practices in the industry
such as the ISO 27002 and ISO 27001, and PCI Data Security as

well as the information control objectives, auditing and
penetration testing, breach reporting, and cyber security
provisions insurance are all critical in the case of any breach
(Blanchard, 2010). This saves the company’s reputation and
value in these instances. It is imperative for SABIC’s contract
with Jubail in future to have this.
Service Level Agreements
The organization should spend time on the contract front so as
to make sure that Service Level Agreements are defined
productively and will significantly benefit the relationship with
the suppliers that is founded on mutual benefit and trust. These
will for example ensure timely delivery and thus a gain for both
the company and the supplier. The service level agreements in
the contract between SABIC and Jubail does not involve service
level agreements. In future, including this will make the
contract better.
Alternative Dispute Resolution Mechanisms
The manner in which disputes are contractually resolved can
have a great impact on the complexity as well as the costs
related to addressing issues that are likely to arise. For example,
they can be forum and venue restrictions that limit disputes to
certain types of courts or states, or they may require informal
dispute resolution or binding arbitration. Planning for issues
that are inevitable at the front can assist in ensuring that in the
event problems come up, the organization and the supplier can
address the issue constructively without the issue getting out of
control. The organization should take into consideration dispute
resolutions options now that this can be more accessible to the
organization owners and encourage a more efficient and faster
resolution of issues before they escalate (Barsky, 2001).The
contract for stationery and office supplies in SABIC has the
court as the only alternative in case of a breach. Future
contracts should expand this to involve alternative dispute
resolution mechanisms so as to better the contract.(4) Measures
that can be taken to select effective suppliers

Selection of effective suppliers marks a successful step in
sourcing for a plan in procurement. For the SABIC, the
following measures can be taken in order to select effective
suppliers:
Calling upon suppliers in early product development process
In the past, a typical product processing would go through a
number of activities that mainly include; it may start to be
processed by marketing function, then conceptual design,
engineering design, and analysis, followed by testing then
finally it goes through detailed design, manufacturing
engineering, process planning, tooling, production planning,
purchasing, machining, assembly, testing, packaging,
installation, and marketing for it to be certified as a final
product (Anderson and Dekker, 2009).This cycle worked for
many companies including the SABIC.For this suppliers would
be called in the delivery phase and this placed them at a
disadvantage as they could not exactly know what to deliver. As
a result, many procurement contracts failed due to non-
performance and caused the companies great losses. The
alternative to this would be that SABIC chooses the suppliers
earlier in the product development cycle so as to give them the
chance to assess the business model and know what to deliver.
With this, Jubail for instance will meet the stationery and office
supplies needs for this company effectively and thus improve
performance.
Establish priority for long term relationships with the suppliers
In several occasions, the suppliers in the SABIC were only
brought on board to compete with the pricing of the end
product. This would lead to an increase in the number of
suppliers in the company even if different suppliers were
deployed to supply different products With this came difficulty
in the establishing efficient long-term quality relationships that
could suit the satisfaction of the client and crumbled the
procurement contracts. If the SABIC establishes priority for a

long term relationship with its suppliers for example those for
stationery and office supplies, the procurement contracts can be
sustained over a long period thus making business effective and
more productive.5) Any aspects of the purchase/supply that may
require negotiation
According to the negotiation theory, it is the buyer’s
responsibility to maintain high quality while still negotiating
for better terms and conditions of the contract. With reference
to the stationery and office supplies contract in the
SABIC,negotiation between the SABIC who in this case is the
buyer and Jubail, the seller should be on the length of the
relationship. The short-term benefits are not the most important
thing in any contract but a relationship that will last for long
even after the sourcing process has been completed. Through
negotiation, the organization comes up with alliance parties
networks, which are very important. In hard economic times for
instance, Jubail can still supply stationery to Jubail if they
would have financial difficulties. This will ensure business
continuity which is a great advantage.
Negotiation in the SABIC can also be on the terms and
conditions of the contract that the company has with the
suppliers. The parties involved in the contract need to discuss
every aspect of their contract carefully and ensure that the
objectives of both sides are well as acknowledged and met. In
any negotiation process, the organization should always settle
for a win-win solution that will benefit both parties. The
procurement/supply process should also involve negotiating on
the objectives of the organization met. Negotiation on the
general terms of the contract should also be done. This should
involve the services and goods being supplied, the amount of
goods that will be supplied and standards of the supplied goods
and services.Conclusion
In conclusion, procurement and supply play an important
role in managing stationery and office supplies expenditure in
the SABIC Company. This however involves the input of other
stakeholders in some instances. These roles involve market

analysis where procurement and supply departments obtain prior
information and therefore weigh the options this department has
and of course settles for the less costly while still adhering to
overall quality. Through the procurement governance role,
regulations are set before and thus manage the expenditure
related to legal claims. With an aim to improve added value, the
SABIC employs certain techniques relating to the expenditure in
stationery and office supplies. The company boosts its market
knowledge by employing the strengths,weaknesses,opportunities
and threats(SWOT) analysis and the PESTEL analysis. The
company also adopts a comprehensive analysis whereby both
the supplier and the buyer’s interests are considered therefore
improving the general approach.
For future contracts between the SABIC and other
companies, there needs to be additional inclusions. These are
the incentives and pricing models for suppliers and the buyers,
data security provisions, service level agreements and
alternative dispute resolution mechanisms. This will improve
the relationships between the company and its stakeholders and
consequently the company’s performance. Selection of effective
suppliers will involve measures such as calling upon suppliers
in the early development process and seeking to establish long-
term relationships with the suppliers. Aspects of the purchase or
supply that may require negotiation include the length of the
contractual relationship and the terms and conditions
involved.Recommendations
The SABIC Company should embrace clarity in the provisions
made in its contracts so that both parties are made aware of
their expectations before-hand. This will help in managing the
expenditure in contracts and further add value to the company.
The SABIC should also diversify its choice of suppliers so as to
minimize the risks involved in depending on one supplier. This
will eventually better its negotiation.
References
Barsky, N. P. (2001). Unleashing the value in the supply
chain. Strategic Finance : 32-37.

Blanchard, D. (2010). Supply Chain Management Best
Practices, 2nd edition. New York: Wiley
Handfield, R.B., and D.R. Krause. (1999). Think globally,
source locally. Supply Chain Management Review. 35(1): 36–46
Huang, H., X. Shen and H. Xu., (2016). Procurement contracts
in the presence of endogenous disruption risk. Decision
Sciences 47(3): 437-472
Institute of Management Accountants. (1999). Tools and
Techniques for Implementing Integrated Supply Chain
Management. Institute of Management Accountants.
Kopczak, L. R. and M. E. Johnson. (2003). The supply-chain
management effect. MIT Sloan Management Review: 27-34
Integrative Assessment V2, March 2015 © CIPS 2014, Page 1 of
1
Practitioner Corporate Award
Integrative Assessment 4
Question 1: 100% of the total marks
You are required to select an area of expenditure on a product,
service or works. This task requires you to
develop a document that creates a sourcing plan for future
requirements. In the sourcing plan, you should
explain:
(1) The roles of procurement and supply in managing this area
of expenditure underlining the inputs that
may be made by its stakeholders

(2) Techniques that can be applied to the area of expenditure to
improve added value
(3) Inclusions that should be made in contracts formed in the
future
(4) Measures that can be taken to select effective suppliers
(5) Any aspects of the purchase/supply that may require
negotiation
Guidance
Your answer should consist of approximately 5,000 words and
should be supported by a title, your candidate
number, contents page, executive summary, references and a
bibliography. Any source materials such as web
sites, reports, articles, market data, journals or texts should be
referred to in your work.
As this is an integrative assessment, the learning pulls on the
syllabus coverage and capabilities of all the
modules on the Practitioner Programme:
• Driving value through procurement and supply
• Managing expenditures
• Developing contracts
• Sourcing essentials
• Negotiation in procurement and supply

Corporate Award Programme
Candidate Assignment Guidance
Version 7.0 July 2016
Leading global excellence in procurement and supply
CAP_Candidate_Assignment Guidance_V7 July2016 2/16
© copyright CIPS
Contents
1. Overview
...............................................................................................
......................................................3
2. Submission requirements – important
...............................................................................................
........3
3. Planning and conducting your research
...............................................................................................

......4
4. Structuring your assignment submission
...............................................................................................
....4
5. Assignment front sheet
...............................................................................................
...............................5
6. Contents Page
...............................................................................................
..............................................5
7. Executive Summary
...............................................................................................
.....................................5
8. Assignment – main body
...............................................................................................
.............................6
9. Conclusions and recommendations
...............................................................................................
............7
10. Referencing
...............................................................................................
..............................................7
11. Reference list
...............................................................................................
...........................................8
12. Bibliography
...............................................................................................

.............................................9
13. Appendices
...............................................................................................
..............................................9
14. Word Count
...............................................................................................
.......................................... 10
15. Policies
...............................................................................................
.................................................. 11
a. Plagiarism
...............................................................................................
................................................. 11
b. Reasonable adjustment and special consideration
................................................................................. 11
c. Extensions beyond submission deadlines
...............................................................................................
12
d. Assessment reviews and appeals
...............................................................................................
............. 12
16. Grading
...............................................................................................
................................................. 12
17. Marking and results
...............................................................................................
.............................. 12

18. And finally
...............................................................................................
............................................. 13
Appendix 1: Assignment Assessment Criteria
...............................................................................................
.. 14
Appendix 2: Command Words
...............................................................................................
.......................... 15
© copyright CIPS
1. Overview
The assignment brief is set by CIPS and all assignments are
validated to ensure a standard approach. The
purpose of each assignment is to enable you to demonstrate your
ability to research, analyse and problem
solve in different situations. You will be expected to approach
your assignment work from a procurement and

supply context, addressing the brief directly and undertaking the
tasks required. The assignment will relate
directly to the specified module content and is marked using the
assessment criteria provided as an appendix
to this guide.
Read carefully the assignment title and guidance for candidates.
The assignment will identify which modules it
is designed to assess. Use the relevant content from the stated
modules as the basis of your assignment. It
will help you structure your planning and research. Ensure you
plan your assignment to meet all of its
requirements.
2. Submission requirements – important
2.1 Include the assignment front sheet
2.2 The maximum number of documents you can submit for an
assessment is one
2.3 All of your work must be contained in one document
2.4 You must not submit appendices as separate documents
2.5 You must word process your assignment using MS word, or
equivalent, and convert it in to a pdf file
format

a. The file name should only consist of your full 9-digit
membership number and the assignment
number, e.g. “005429889 AS1.pdf”. Please note that this should
reflect the assignment
number, not the module number.
b. You may wish to make use of Adobe Acrobat’s Reduce File
Size… function
2.6 Every page should be numbered and contain your candidate
number at the top of the document in
the header.
The average number of pages for a 3,000 word assignment is 27
(including appendices). The maximum
number of pages allowed for a 3,000 word assignment is 50
pages in total. You should not exceed this
allowance. In the case of the integrative assignment, the
average number of pages for a 5,000 word
assignment is 45. The maximum number of pages allowed for a
5,000 word integrative assignment is 100
pages in total.
You must hand in your assignment no later than the submission
deadline stated in your timetable. There are
penalties if your submission is handed in late without prior
agreement from CIPS through the Reasonable

Adjustment, Special Consideration or Extension Policies (see
section 15, page 8 and 9). Submissions that do
not meet the submission requirements (for example Word .doc
rather than .pdf, multiple files, candidates
name present) will not be accepted and if the revised version is
not sent within the submission timeframe the
corrected version may be subject to penalty.
© copyright CIPS
3. Planning and conducting your research
It is important that you address the requirements of the
assignment brief. Some students fail to do this and
overlook one or more requirements of the assignment brief. The
assignment title will include command
words. These are words such as “analyse”, “describe” etc. and
define what you are expected to do. A list of
common command words and their definitions is included as an
appendix to this document to help you plan
the depth of detail and type of information to research and

present within your assignment.
You should take care when reproducing company information
not already in the public domain within your
assignment. It is your responsibility to ensure you comply with
your own company expectations if the
information is considered confidential or sensitive.
CIPS is looking for evidence that a student understands a
concept and can apply it appropriately within a given
contexts defined by the assignment brief. In order to address the
assignment tasks, it is not necessary to
identify any real suppliers or products. Therefore, it is
acceptable to refer to a supplier as ‘Supplier A’ for
example, rather than identify real suppliers. Products can be
referred to as product ‘X’ or ‘Y’ for example,
rather than identify any sensitive procurements. It is best
practice to explain, within your introduction, the
naming conventions you will adopt e.g. “for the purposes of
confidentiality, suppliers or products will be
referred to as…”.
Research forms part of the assessment criteria, hence it is an
essential element of your assignment
preparation. Do not fail to realise the importance of collecting
information to support and underpin your

assignment work. It is vital that you demonstrate your ability to
establish information needs, obtain relevant
information and use it sensibly, in order to arrive at appropriate
conclusions, recommendations and/or
decisions. You should establish the nature of the information
required, follow up possible sources and ensure
you allow time to obtain the information. You may be
dependent on other colleagues or suppliers to obtain
relevant information – do not underestimate the time it may take
you to gather it. In order to conduct your
research effectively, you will need to conduct wider reading
associated with the topics covered in the module
content.
Useful sources of information include those freely available to
CIPS members such as our Knowledge site and
the Supply Management site. Additionally, websites such as
those of the National Audit Office and the
Financial Times are a great source of case studies and examples
of successes and failures which can support
your assignment preparation.
Your reference list and bibliography will provide an indication
of the level of research, information collection
and application within your assignment.

4. Structuring your assignment submission
Presentation: Your assignment submission should be word
processed with minimum font size 12pt and 1.5 or
double line spacing. You should adopt an appropriate layout and
structure for your assignment submission.
The structure and presentation of your assignment is considered
as part of the marking process so it is
important that you take the time to carefully plan your
assignment and use a logical layout and structure. This
guidance document outlines a suggested structure for your
assignment.
© copyright CIPS
For many of you this assignment will be dealing with issues that
are of importance to your employer and they
will, in all likelihood, be interested in seeing a copy of your
assignment. Spending some extra time making it as
professional as possible will pay dividends here.

Approach: The assignment title may include a number of
requirements. Read it carefully and identify what
these are. Plan your assignment and research to ensure that you
address all the requirements. As a guide,
you should aim to place approximately equal emphasis on each
requirement within the layout of your
assignment submission. This means you will usually produce
approximately the same volume of content for
each requirement within your assignment submission. Plan your
research and the structure of your
assignment submission accordingly. However, during your
planning or research, you may identify that it is not
appropriate to place equal emphasis on each requirement within
the assignment title.
For example, factors beyond your control, such as the nature of
your organisation or the external business
environment in which it operates, may mean that it is not
appropriate to place equal emphasis on each
requirement of the assignment title. In such circumstances,
acknowledge this within your assignment
submission to demonstrate to the assessor that you have
considered all the requirements of the assignment
title. Explain to the assessor why you have adopted a particular
approach to demonstrate your ability to

make judgements. Think carefully about the structure, style and
content of your assignment; the key is to
ensure you justify any deviation from the assignment
requirements in order to explain to the assessor why
you have adopted an unusual approach. Failure to do so could
mean you fail to gain marks in the knowledge
and approach section of the assessment criteria.
Remember also that the marking team will not be familiar with
your company, company-specific terminology
or acronyms. Take care to ensure you explain necessary
background information, or the meaning of company-
specific terminology, in order to provide the marking team with
an understanding of the nature of your
organisation and the business environment in which it operates.
5. Assignment front sheet
Please complete and attach the assignment front sheet to your
submission. Your name should not appear
anywhere within your assignment.
6. Contents page
The contents page helps the reader to navigate around the
document and highlights important sections and
sub-sections; this also helps you to ensure your work is
structured and flows in a logical order.

7. Executive summary
The aim of an executive summary is to prepare the reader, in
advance of reading a lengthy document, for
what to expect. It should briefly summarise the content and
conclusions/recommendations. This is good
academic and business practice and is recommended for all
assessments (assignments and project work). We
recommend you keep this to one page if possible.
© copyright CIPS
8. Assignment – main body
CIPS recommends a short introduction to the assignment to set
the scene. You may wish to take the
opportunity to introduce your company or the business
environment relevant to your assignment, define any
relevant terms, explain the scope of your assignment, the
approach you have taken, any exclusions and
assumptions.

Assignments should have a good balance of relevant
underpinning theory, tools or models and practical
application (use of examples from your organisation, or one
with which you are familiar). You must select
appropriate models to demonstrate knowledge and application.
It is suggested you consult and reflect upon
the programme content for the relevant module(s) in the first
instance and conduct an audit of the theories,
tools and models etc., in order to identify those which may be
appropriate for your assignment.
For any theories, tools or models that you include, your
assignment should contain a brief description and
justification of its selection in relation to your analysis.
You should ensure you include discussion on how it was used
and what information was generated from it –
interpret the findings of your analysis. Avoid citing models,
tools etc., without applying them within your
analysis as this will gain no marks. You may wish to use tables
or diagrams to demonstrate your application of
relevant tools or models.
When including information about the theories, tools and
models etc. within your assignment, narrative
should be integrated in to the content of your assignment.

Assignment submissions which simply skip from
one model or tool, for example, to the next, without linking
them in some way or consolidating them in
conclusions, will be unlikely to demonstrate the extent of your
comprehension of the module content and
your ability to apply it to practical business situations.
Providing a sound argument for selection and application of a
particular theory, model, tool or technique –
highlighting why it is appropriate, its strengths and
weaknesses/limitations (as well as your findings) – is likely
to be awarded higher marks.
The positioning of models/tools and techniques will depend on a
number of factors, but ideally you should
aim for a good balance of discussion and visual impact. It is a
matter of personal judgement and preference,
but, essentially they should be relevant and visually enhance the
work, enabling the reader to grasp the flow
of your discussion. You should also consider:
task
assignment
ct matter

may be better placed in the Appendices
The application and insight section of the assessment criteria is
the most heavily weighted. It is important to
demonstrate your ability to apply relevant tools, theories,
models etc., according to the modules content and
the assignment title. The outcomes of your application will
generate evidence which you must present within
your assignment submission.
© copyright CIPS
9. Conclusions and recommendations
Again, the application and insight section of the assessment
criteria is the most heavily weighted. You must,
therefore, ensure you demonstrate your ability to interpret your
evidence and findings by providing
recommendations, proposals for change and/or conclusions, as
appropriate, which are consistent with the

evidence you have generated. This will exhibit the validity of
your insight. Thorough application of tools of
analysis will help to provide strong findings which will form
the foundation of your conclusions and
recommendations.
Your conclusions and recommendations must be consistent with
your analysis and findings and should act as
a summary. It is important that any conclusions or
recommendations are justified as part of your overall
assignment submission. When you have completed your
assignment, take time to re-read it a day or so later
and check that your conclusions really are consistent with the
evidence generated from your analysis.
10. Referencing
In order to avoid plagiarism, whenever you use someone’s
words directly, or make reference to the ideas or
work of others, you must reference this appropriately using a
recognised referencing system, such as the
Harvard system of referencing or as outlined in the CIPS
Reference Guidance document. The following points
will help you cite sources of information appropriately within
the body of your assignment.

document, the author (or editor, compiler or
translator) individual or organisation and year of publication are
inserted in brackets:
o e.g. Agriculture still employs half a million people in rural
Britain (Shucksmith, 2000).
year of publication is given:
o e.g. … concept is discussed by Jones (1998)…
by an author
published in the same year, these are
distinguished by adding lower case letters (a, b, c) after the
year:
o e.g. (Watson, 1999a)
o e.g. (Lines and Walker, 1997)
here are more than two authors, cite the first author,
followed by ‘et al.’:
o e.g. (Morgan et al., 1998)
another party word-for-word; the exact
words must be copied from the source document. When citing
quotations, include the page number of
where the quotation can be found in the source document.
Please note quotations used within your
assignment content are included within the total word count.
o Short quotations may be run into the text, using single
quotation marks.
o e.g. While they recommend that teams ‘...be encouraged to

improve collaboration within an
organisation autonomously’ (Driedonks, et al., 2010, p. 115),
they ...
Longer quotations should be separated from the rest of the text
by means of a new and indented paragraph
and optional size reduction. These do not need quotation marks,
however the author, date and page
reference must be included in brackets at the end of the
indented paragraph of quoted text. You are advised
to use long quotations sparingly as they are included as part of
the word count. Ask yourself whether they
© copyright CIPS
really add value to your assignment, or whether there is a better
way of representing the information you
wish to present to the reader of your assignment.
Referencing electronic resources can be confusing, it is difficult
to know which information to include or
where to find it. As a rule, provide as much information as
possible concerning authorship, location and
availability. Electronic citations require much of the same
information as print sources (author, year of
publication, title, publisher). However, some extra details are

required:
identify when a source was viewed or
downloaded)
source (for example, a
database or web address)
Unlike printed material, internet sources can easily be changed,
or disappear altogether, so full and accurate
citation information is essential.
Example – referencing web documents
British Lawnmower Museum (no date) Lawnmowers of the Rich
and Famous [online] Southport, British
Lawnmower Museum. Available:
http://www.lawnmowerworld.co.uk/Rich.htm [Accessed10
March 2004]
Example – referencing electronic journals
Hart, K. (1998) The place of the 1898 Cambridge
Anthropological Expedition to the Torres Straits (CAETS) in
the history of British social anthropology. Science as a culture.
[Online] 11 (1). Available: http://human-
nature.com/science-as-culture/hart.html [Accessed 9 November
2003]
Example – referencing journal articles from a web-based full-
text database
Mahoney, R. (2000) Leadership and learning organisations, The
Learning Organization. [Online] 7 (5), 241-244.
Available: http://www.emerald-library.com/brev/11907ec1.htm
[Accessed 23 October 2000]

The source materials you use should be included in a reference
list at the end of your assignment. See the
following sections relating to your reference list and
bibliography.
11. Reference list
A reference list is essential to ensure the works of others is
acknowledged and to avoid the risk of plagiarism
issues. You must use a recognised referencing system, such as
the Harvard system or as outlined in the CIPS
Reference Guidance document, as assessors will need to
identify sources you have accessed during your
research and used within your assignment. See the section
relating to referencing for information on how to
cite sources of information within the body of your assignment.
References are arranged alphabetically by author’s name (or
title, if no author) which has been used in the
body of the text and should be presented in the following way:
- include where possible, the following
information in the order listed here:
o Author(s)/Editor(s) - Surname first, followed by first name(s)
or initials (be consistent). Include
all names if there are two or three authors; if more than three,
use the first name and then et

al. For editors, compilers or translators (instead of author), give
the abbreviation ed/eds,
comp/comps or trans following the name(s): e.g. Peckham, T.
and Smith, G. (eds.)
o Year of publication – e.g. (1996)
http://www.lawnmowerworld.co.uk/Rich.htm
http://human-nature.com/science-as-culture/hart.html
http://human-nature.com/science-as-culture/hart.html
© copyright CIPS
o Title - capitalise the first letter of the first word and any
proper nouns; use bold, italics or
underline (be consistent); Include any sub-title, separating it
from the title by a colon
o Edition - only include if not the first edition
o Series - include if relevant.
Modern versions of MS Word have some helpful tools to assist
with referencing and citations. These allow
you to build a list of sources which you can access to cite in the
body of your assignment using the “insert

citation” tool under the references section of the toolbar. It
allows you to insert a list of “works cited” which
will automatically include all sources which you have cited
within your assignment.
12. Bibliography
When researching subject areas, you may read widely, but not
all will be relevant to the assignment you are
working on. However, this work should not go unrecognised and
more importantly, a bibliography records
earlier reading that may be useful later when researching for
future assessments or projects. If you have
documented your reading, this can be located again with ease.
13. Appendices
Core material – which is defined as text that the assessor would
need to read in order to understand and
appreciate your work fully – should NOT be placed in
appendices. An appendix is not a “catch-all”, or a
substitute for effective writing and editing of your assignment
to meet the word count. You do not have to
use appendices – indeed; it is considered best practice that
assignments only include appendices in
exceptional circumstances. For example, information that is not
essential to your assignment, but validates

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