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CIPS L4M8 Exam Syllabus Topics:

SectionObjectives
Procurement Process and Sourcing- Sourcing strategies
  • 1. Outsourcing and insourcing approaches
    • 2. Make or buy decisions
      - Supplier selection and evaluation
      • 1. Supplier appraisal techniques
        • 2. Pre-qualification and tendering
          Procurement Technology and Innovation- Innovation in supply management
          • 1. Process optimisation
            • 2. Automation and AI applications
              - Digital procurement tools
              • 1. E-procurement systems
                • 2. Data analytics in procurement
                  Contracting and Legal Principles- Contract formation
                  • 1. Terms and conditions
                    • 2. Key elements of contracts
                      - Contract management
                      • 1. Performance measurement
                        • 2. Dispute resolution and remedies
                          Risk, Ethics and Sustainability- Procurement risk management
                          • 1. Supply chain disruptions
                            • 2. Risk identification and mitigation
                              - Ethical and sustainable procurement
                              • 1. Corporate social responsibility
                                • 2. Sustainable sourcing practices
                                  Supplier Relationships and Performance- Supplier relationship management
                                  • 1. Communication and governance
                                    • 2. Collaboration and partnership models
                                      - Performance improvement
                                      • 1. KPIs and measurement systems
                                        • 2. Continuous improvement approaches
                                          Procurement and Supply Context- External business environment
                                          • 1. Market conditions and supply markets
                                            • 2. Economic and regulatory influences
                                              - Role of procurement in organisations
                                              • 1. Stakeholder expectations and value delivery
                                                • 2. Organisational objectives and procurement contribution

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                                                  CIPS Procurement and Supply in Practice Sample Questions (Q158-Q163):

                                                  NEW QUESTION # 158
                                                  What happens in the public sector, regarding providing feedback?

                                                  Answer:

                                                  Explanation:
                                                  A sector is an area of an industry, e.g., private, public or third sector.
                                                  A public sector is a sector of the economy that is owned, finance and run by the government. This sector is financed with tax payer's money. And therefore owe the general public an ethical explanation towards all investment and decision.
                                                  Once the supplier that is awarded the contract has accepted, the buyer can tell the unsuccessful bidders. This usually happens through email or letter. The public sector is more likely to give feedback to unsuccessful bidders and also have to respond to any stakeholders that request information on why a supplier is not successful.
                                                  * Refer to the question column for response


                                                  NEW QUESTION # 159
                                                  Explain why you think quality should be investigated before working with potential supplier?

                                                  Answer:

                                                  Explanation:
                                                  See the answer in explanation.
                                                  Explanation:
                                                  Quality is fitness for purpose. It is important that quality is investigated by procurement professionals before forming relationship with potential supplies.
                                                  If quality is not investigated before selecting supplier the organization might stand the risk of facing the following disadvantages; Reputational Damages Cost of Rework Cost of Downtime Cost of Material Cost of being stocked with the wrong supplier Cost of being stocked in a project that may not come to an end at the forecasted time.
                                                  How buyer can choose a supplier with a good quality culture is first by defining the quality of the product or services to be carried out .Having knowledge of the product or service quality, supplies can rightly select and evaluated supplier with total quality management (TQM) in their system, ISO 9001 accreditation. TQM includes everyone in the organization with knowledge on the required quality; there would be little or no rejection/reworks. Thus is an added value to the organization.


                                                  NEW QUESTION # 160
                                                  What Incoterm applies here?
                                                  The goods are considered 'delivered' at the point of release from the supplier's premises or another name place. The supplier is not responsible for loading or transporting the goods and does not have to arrange export clearance - this must be arranged by the buyer. The risk is on the buyer from this point.
                                                  a) EXW - Ex Works
                                                  b) FCA - Free Career
                                                  c) CPT - Carriage Paid To
                                                  d) CIP - Carriage and Insurance Paid to

                                                  Answer: C


                                                  NEW QUESTION # 161
                                                  Explain why risk should be evaluated prior to the disposal of any assets.

                                                  Answer:

                                                  Explanation:
                                                  See the answer in explanation.
                                                  Explanation:
                                                  Disposal of an asset is the final stage in the decommissioning process of a fixed asset.
                                                  When a fixed asset reaches the end of its useful or cost effective life time within an organization, the decision is made as to whether it should be removed from the premises or disposed off.
                                                  The process of disposing an asset cannot be without its risk, for example there could be pollution in the community, waste or hazardous materials that could affect the underground water or humans around.
                                                  These risks should be identified, evaluated to come up with a response strategy on how to avoid or mitigate them causing damage to human, property, business and the environment.


                                                  NEW QUESTION # 162
                                                  Create a list of assets of a company with which you're familiar and divide them into standard and bespoke categorizing.

                                                  Answer:

                                                  Explanation:
                                                  Name of company: Full power projects
                                                  Business: Project management training and consultancy
                                                  If an organization is sourcing an asset that is readily available or mass produced then the cost associated with the design and manufacturing will be lower percentage of the total cost than if an organization commissions a bespoke piece of equipment to be designed and manufactured.
                                                  The following are a list of assets owned by fullpower projects.
                                                  Standard/off the shelf (Mass produced)
                                                  Projector from a shop-displayed files and document jackets from market
                                                  Desks and furniture
                                                  Bespoke/specialist - white board and marker
                                                  With extra, e.g. made with company color
                                                  Gift/ sovereign (bags and T. shirt) with coup any label, color and design Refer to the question column for response


                                                  NEW QUESTION # 163
                                                  ......

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