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CIPS L4M2 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Market management in procurement and supply20-25%- Analyse market structures and competition
  • 1. Perfect competition, monopoly, oligopoly, monopolistic competition
  • 2. Impact of market structure on procurement strategies
- Assess market forces and trends
  • 1. Technological, legal, economic, social factors
  • 2. Global vs local market conditions
  • 3. Supply and demand dynamics
- Evaluate market information sources
  • 1. Industry reports, government data, trade journals
  • 2. Supplier intelligence and market research
Topic 2: Use specifications in procurement and supply20-25%- Advantages and limitations of specification types
  • 1. Risk, cost, flexibility, supplier innovation impact
- Types of specifications
  • 1. Drawings, samples, brands, technical standards
  • 2. Output/outcome-based specifications
  • 3. Conformance vs performance specifications
- Sources for developing specifications
  • 1. Suppliers, industry benchmarks, regulatory requirements
  • 2. Internal stakeholders, technical experts, standards bodies
Topic 3: Devise a business case for requirements sourced externally20-25%- Interpret financial budgets for purchase control
  • 1. Cash flow and cost entries
  • 2. Purpose and structure of budgets
  • 3. Budget performance and variance management
- Influence of business needs on procurement decisions
  • 1. Impact of business needs on purchase types
  • 2. Procurement's role in developing business cases
  • 3. Types of purchase: new, modified rebuy, straight re-buy
- Estimate costs and prices for procurement activities
  • 1. Total cost of ownership / whole life costing
  • 2. Direct and indirect costs
  • 3. Cost estimation and budgeting methods
  • 4. Market data sources for cost/price information
- Criteria for creating business cases
  • 1. Costs, benefits, options, alignment, timescales
  • 2. Benchmarking requirements
Topic 4: Stakeholder management in defining needs15-20%- Communicate and consult with stakeholders
  • 1. Methods for gathering requirements
  • 2. Resolving conflicting requirements
- Identify and classify stakeholders
  • 1. Internal vs external stakeholders
  • 2. Power/interest matrix and engagement strategies
- Align needs with organisational objectives
  • 1. Strategic alignment and value contribution
Topic 5: Legal and regulatory considerations10-15%- Sustainability and ethical requirements
  • 1. Environmental, social, ethical criteria
- Legislation affecting requirements definition
  • 1. Procurement regulations, competition law, standards

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CIPS Defining Business Needs 認定 L4M2 試験問題 (Q74-Q79):

質問 # 74
A buyer in Housing Authority is considering using performance specification in upcoming social housing project. What should buyer be aware when using this type of specification?

正解:D

解説:
In construction, specifications are written documents that describe the materials and workmanship required for a development. They do not include cost, quantity or drawn information but need to be read alongside other contract documentation such as quantities, schedules and drawings.
Specifications vary considerably depending on the stage to which the design has been developed, ranging from performance (open) specifications that require further design by a contractor or sup-plier, to prescriptive (closed) specifications where the design is already complete when the project is tendered.
Prescriptive specifications give the client more certainty about the end product when they make their final investment decision (i.e. when they appoint the contractor), whereas a performance specification gives the contractor and suppliers more scope to innovate and adopt cost effective methods of work, potentially offering better value for money.
Typically, performance specifications are written on projects that are straight-forward, standard building types, whereas prescriptive specifications are written for more complex buildings, or buildings where the client has requirements that might not be familiar to contractors and where certainty regarding the exact nature of the completed development is more important to the client.
Performance specification has some disadvantages:
- Well-defined performance metrics are needed to ensure that the specified performance will achieve the desired outcome
- Require reliable, practical, economical tests of performance
- Evaluations are subjective and require additional time and effort to complete Therefore, if a performance specification is used, the buying organisation will have to ensure that they are able to define and conduct tests on whether supplier's solution can deliver the desired out-come.
Reference:
- CIPS study guide page 118-121
- Performance specification - Designing Buildings Wiki
- Partnership for Public Procurement (cips.org)
LO 3, AC 3.1


質問 # 75
A procurement team is categorising their purchased items into four quadrants of Kraljic's supply chain portfolio matrix. They realise that there are some low-value items which come from very few suppliers in the market. The organisation is critically dependent on these suppliers. The team plans to reduce the dependence by finding alternative sources. Is this a right course of action?

正解:D

解説:
According to Kraljic portfolio matrix, the low-value items with high supply risk are bottleneck items.

The purchasing strategy that is commonly recommended for these products is primarily based on acceptance of the dependence and reduction of the negative effects of the unfavourable position. An alternative strategy suggested by purchasing practitioners is to find other suppliers and move towards the non-critical quadrant.
- Accept dependence, reduce negative consequences: The main focus of this strategy is to assure supply, if necessary even at additional cost. Examples of this strategy are keeping extra stocks of the materials concerned or developing consigned stock agreements with suppliers. By performing a risk analysis firms can identify the most important bottleneck products and consider the implications. A possible action for dealing with unexpected bad dependence positions for certain products is to employ contingency planning.
- Reduce dependence and risk, find other solutions: This strategy is geared towards reducing the dependence on the supplier. The most common way to achieve this is to broaden the specifications of the product or to search for new suppliers.
The procurement team in the scenario has selected reducing dependency by finding alternatives. This is a right strategy for bottleneck item.


質問 # 76
Which of the following are advantages of zero-based financial budgeting?
Use of previous year figures
Emphasis on short-term planning
Budget treated as flexible
Focus on operational issues

正解:A

解説:
Detailed Explanation:
Zero-based budgeting emphasizes starting from scratch and justifying all expenses.
3 (Budget flexibility): Ensures resources are allocated dynamically based on needs.
4 (Focus on operational issues): Encourages alignment with operational priorities rather than historical trends.
Using prior figures (1) is contrary to zero-based budgeting principles. Reference: CIPS Level 4, Financial Planning and Budgeting.


質問 # 77
A state school has a procurement requirement to buy new art materials for the next school semester and needs to forecast purchases against its restricted budget. What would be the key business requirement in this purchasing decision?

正解:A


質問 # 78
Which of the following content should a performance specification feature? Select TWO that apply.

正解:A、D


質問 # 79
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