DOWNLOAD the newest Easy4Engine L4M5 PDF dumps from Cloud Storage for free: https://drive.google.com/open?id=1Y06fYBeTlpJIrxf9rjBBCtwY7vC9KKwx
The Easy4Engine L4M5 exam questions are checked and verified by experienced and qualified Commercial Negotiation exam trainers. So you can trust on the validity and top standard of Easy4Engine L4M5 exam practice test questions. With the Easy4Engine L4M5 exam questions you will get everything that you need to prepare and pass the challenging CIPS L4M5 Exam with good scores. The Easy4Engine L4M5 exam questions will give you an idea about the final L4M5 exam format and you will get experience about L4M5 exam format before the final exam.
| Certification Vendor: | CIPS |
|---|---|
| Exam Name: | Commercial Negotiation |
| Exam Number: | L4M5 |
| Related Certifications: | CIPS Level 4 Diploma in Procurement and Supply |
| Available Languages: | English |
| Real Exam Qty: | 60 |
| Certificate Validity Period: | No Expiration |
| Exam Price: | ยฃ80 |
| Passing Score: | 70% |
| Exam Duration: | 90 minutes |
| Exam Format: | Objective Response, Multiple Choice |
| Sample Questions: | CIPS L4M5 Sample Questions |
| Exam Way: | Online or at a CIPS approved exam center |
| Pre Condition: | Candidates should ideally be working in or have experience of procurement and supply. No formal pre-requisites, but completion of Level 3 or equivalent experience is recommended. |
| Official Syllabus URL: | https://www.cips.org/qualifications/procurement-and-supply-qualifications/ |
Before you really attend the L4M5 exam and choose your materials, we want to remind you of the importance of holding a certificate like this one. Obtaining a L4M5 certificate likes this one can help you master a lot of agreeable outcomes in the future, like higher salary, the opportunities to promotion and being trusted by the superiors and colleagues. Our L4M5 Exam Questions can help you achieve all of your dreams.
CIPS L4M5 Certification Exam is internationally recognized and highly valued by employers. It demonstrates that you have the knowledge and skills to negotiate effectively and achieve the best possible outcomes for your organization. Commercial Negotiation certification is also a great way to enhance your credibility as a procurement professional and increase your career prospects.
NEW QUESTION # 13
A procurement professional is dissatisfied with how a recent negotiation was concluded. What could they do to improve their negotiation approach?
Seek feedback from the supplier on their recent performance
Prepare for all negotiations with a WIN/LOSE (distributive) approach
Involve lots of people in future negotiations
Undertake reflective practice after each negotiation
Answer: C
Explanation:
To improve negotiation outcomes, seeking feedback from the supplier (1) and undertaking reflective practice (4) are recommended actions. Feedback from the supplier can provide insights into areas for improvement from the counterparty's perspective, while reflective practice allows the negotiator to evaluate their own approach, outcomes, and areas for growth. This approach aligns with CIPS's emphasis on continuous improvement in negotiation skills.
NEW QUESTION # 14
In a negotiation for a new contract, the supplier suggests the buyer to shorten payment period from 45 days to
15 days because they are investing in new facilitiesto expand the supply capacity. The buyer replies that she can only sign off the deal if the payment period is 30 days or more since it often takes at least 30 days for her company to collect the payment from customers. A permission from senior managementis required for this suggestion. In order to ensure that supplier understands the matter, she reiterates it throughout the meeting.
Which tactics is she using?
1. Outrageous initial demand
2. Salami slicing
3. Lack of authority
4. Broken record
Answer: A
Explanation:
In the scenario, the buyer states that permission from senior management is required to shorten payment period and she only has authority to sign off a deal in which thepayment period lasts at least 30 days. The buyer is using lack of authority. The buyer also repeats the matter again throughout the negotiation. This is a common tactic known as broken record.
NEW QUESTION # 15
An oil refinery plant imports much of its crude oil from overseas. A procurement manager in the refinery suggests that fixing the crude oil contract price for 36 months would be beneficial for the company. Would this be a right thing to do?
Answer: A
Explanation:
Fixed price contract is the contract in which the price is static throughout the contract period. A fixed-price contract may give certainty to budget and simplify contract management. However, it may lead to other problems since it requires bidders to estimate and bear the financial risks associated with price escalations. If the estimates are too high or events do not materialize, the buyer will pay a steep price that may affect the economy and efficiency of the contract. In the worst case, it may mean that the bid price is then above budget and may lead to a reduction in the requirements or rebidding. If the estimates are too low, it may appear as an abnormally low bid and disrupt contract execution.
On the other hand, price adjustment provisions include formulas designed to address problems, and can protect both the borrower and contractors from price fluctuations. Price adjustment formulas allow contractors to offer more realistic prices at the time of bidding. Despite concerns that they may lead to budget uncertainties, price adjustment formulas will estimate the actual cost implications that will be encountered.
They use indexes that can be used for cost projection.
According to Asia Development Bank (ADB), any contract with a delivery or completion period beyond 18 months should contain an appropriate price adjustment clause.
In the scenario, the crude oil contract is planned to last 36 months. This period is pretty long with a fluctuating commodity. Therefore, the company should use price adjustment agreement.
Reference:
- CIPS study guide page 113-117
- Guidance Note on Procurement: Price Adjustment (adb.org)
LO 2, AC 2.2
NEW QUESTION # 16
Which of the following are tools that help procurement visualise cost breakdowns of products and services purchased from supplier?
1. Spend candlesticks
2. Spend tree
3. Aggregate expenditure model
4. Spend waterfall
Answer: B
Explanation:
:
Understanding where and with whom your supplier spends their money, or understanding the 'cost breakdowns' or 'price build-up' of the goods and services you purchase from the supplier, will help you know where and when they can offer price concessions.
Cost information can be expressed with more impact through graphs that can be created using Excel and PowerPoint or other softwares. There are two commonly used models known as 'spend waterfall' and 'spend tree'. Spend waterfall shows the build-up of costs, while the spend tree shows all the spends that an organisation makes.
There is no graph known as 'spend candlesticks'. Candlestick chart is a style of financial chart used to describe price movements of a security, derivative, or currency.
The aggregate expenditure model is a method of calculating GDP. The aggregate expenditure model focuses on the relationships between production (GDP) and planned spending: GDP = planned spending = consumption + investment + government purchases + net exports.
NEW QUESTION # 17
What is a benefit to the buyer of having a BATNA (best alternative to a negotiated agreement) in a negotiation?
Answer: A
Explanation:
A BATNA provides the buyer with the confidence to walk away if terms are not favorable, ensuring they don' t settle for a suboptimal agreement. Knowing the best alternative enables buyers to negotiate from a position of strength, as per CIPS's guidance on negotiation strategies.
NEW QUESTION # 18
......
Valid Exam L4M5 Book: https://www.easy4engine.com/L4M5-test-engine.html
P.S. Free & New L4M5 dumps are available on Google Drive shared by Easy4Engine: https://drive.google.com/open?id=1Y06fYBeTlpJIrxf9rjBBCtwY7vC9KKwx