Modify Re-Buy & Purchasing Cycle
Good day procurious community, I'm currently studying the Diploma level in CIPS. Need some assistance understanding Modify Re-Buy and which aspects of the purchasing cycle would be including for this category of buying.
Kindly assist me understanding this.
This isn't something I've dealt with under this terminology, but it seems a fairly straightforward definition. A straight re-buy would be returning to the same supplier, for the same product, under the same terms and prices.
A modified re-buy would be changing one or more of those elements. For me, in terms of real-world procurement, a modified re-buy would mostly be done with an updated specification to account for new technology, updated products, or innovations that have changed the market place. This may then result in a new supplier, new terms of contract and/or new prices.
Within the Council, this situation probably wouldn't arise as if there was a need to change the supplier, specification or terms, it would most likely result in a new contract, particularly if there was significant value, risk or criticality attached to the goods or services. For me, it would most likely be used on lower value, off-the-shelf items where procurement has a competitive market to go into, giving them the power to leverage this if they were unhappy with any of these elements.