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CIPS L4M8 Exam Syllabus Topics:

SectionWeightObjectives
Sourcing Process & Supplier Management25%- Stages of strategic sourcing
  • 1. Creation of contract terms and specifications
    • 2. Supplier evaluation, selection and award
      • 3. Stakeholder engagement and communication
        • 4. Supplier performance monitoring and development
          Whole Life Asset & Cost Management25%- Total cost of ownership concept
          • 1. Legal, environmental and waste management obligations
            • 2. Hidden costs and supply chain risks
              • 3. Cross-functional collaboration and data use
                • 4. Purchase, operation, maintenance and disposal costs
                  Application of Procurement Cycle25%- Key stages of procurement cycle in practice
                  • 1. Market analysis and supplier research
                    • 2. Defining business needs and requirements
                      • 3. Contract formation and management
                        • 4. Tendering and selection processes
                          Ethics, Responsibility & Compliance25%- Ethical and responsible sourcing application
                          • 1. Anti-bribery, corruption and human rights protection
                            • 2. CIPS Code of Conduct and professional standards
                              • 3. Sustainability and ESG integration
                                • 4. Regulatory compliance and ethical governance

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                                  CIPS Procurement and Supply in Practice Sample Questions (Q195-Q200):

                                  NEW QUESTION # 195
                                  The supplier is responsible for delivering the goods to a named port or destination (such as an air-port or warehouse), as well as unloading them from the terminal from this point, risk passes to the buyer.

                                  Answer: A


                                  NEW QUESTION # 196
                                  Describe one qualitative and one quantitative measures of social impact for an organization with which you are familiar.

                                  Answer:

                                  Explanation:
                                  Information gathered in relation to social impact for an organization is both qualitative and quantitative.
                                  Fullpower consult is a project/procurement training company that has gotten a measure of its social impact.
                                  The qualitative measure of the organization is its stakeholders perception. Stakeholders knows that fullpower will do all it can to always give the best value for money.
                                  Fullpower has the policies to give 10% of its profit share back to the community, by sponsoring free trainings for both professionals and vocational.
                                  Addition
                                  Qualitative and quantitative measures of social impact
                                  Qualitative
                                  Stakeholder perception
                                  Reputation
                                  Good Ethical practice
                                  Benefit to the economy
                                  Quantitative
                                  20% Reduction in emission
                                  Amount of funding donated
                                  Amount of train courses delivered
                                  Percentage of Resources Replaced
                                  *
                                  Refer to the question column for response


                                  NEW QUESTION # 197
                                  Which contract term contains details of when a product or service should be delivered and ex-plained the potential loss of business?

                                  Answer:

                                  Explanation:
                                  Contract terms are the right and duties agreed between parties with which are then documented in contract. Terms can be either implied or expression.
                                  Implied terms are always present in a contract and are set by national laws; like the sales of goods act, whereas express terms are negotiated and created, for example; time is of the essence. When the procurement professional is setting key performance indicators, where which the supplier's performance will be monitored and managed, the KPI is expected to be SMART. The SMART is an acronym that is used to set KPI and specification. It means:
                                  Specific
                                  Measurable
                                  Achievable
                                  Relevant
                                  Time bound


                                  NEW QUESTION # 198
                                  What is the method of monitoring suppliers?

                                  Answer:

                                  Explanation:
                                  See the answer in explanation.
                                  Explanation:
                                  When a contract has been awarded, either is to meet tangible needs or intangible needs, contractors or suppliers should be managed to ensure that they are meeting up with fulfilling their contractual agreement. To establish this, there are methods of managing contracts and suppliers.
                                  Service level agreement (SLA) clauses: is placed in contract to ensures that supplier meets the expected and agreed level of service Key performance indicator (KPI): are used to manage contracts that fulfill tangible needs, the KPIs are set performance thresholds that are used to monitor supplier's performance.
                                  Management by objectives (MBO): is the process of defining objective that are strategic to the organization relating them to the vision and mission and communicating them to the supplier through the contract and ensuring that this objective is met during contract performance.
                                  Reviews: Regular supplier reviews are good practices, for it gives the buyer opportunity to give feedback on performance.
                                  Continuous Improvement: Contracts and suppliers can be monitored through how they are chang-ing for better incrementally as they are fulfilling the schedule. There must be a set down system to timely improve on the process, people and continuously reduce waste.
                                  Training: It is essential that training, are provided to come up on areas supplier is lacking.
                                  * Refer to the question column for response


                                  NEW QUESTION # 199
                                  Why is it important to keep ethical codes of practice up to date?

                                  Answer:

                                  Explanation:
                                  A code of ethics is a set of morals and principle set out by an organization to state what it deems to be acceptable conduct and behavior An ethical code of practice is a continually changing and developing document with society changing and different suppliers coming to market, the document has to remain current Suppliers should continually monitor their codes of ethics to ensure that;
                                  1. They are looking after the interest of the supply chain
                                  2. That potential customers can be reassured that they are conforming to the required regulation, e.g. ISO
                                  14001.
                                  Ethical code of conduct should be constantly monitored and updated in accordance with the changes organization faces. This include 1) Define (2) prevent (3) detect (4) reprove (5) evaluate.
                                  * Refer to the question column for response


                                  NEW QUESTION # 200
                                  ......

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