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CIPS L4M8 Exam Syllabus Topics:

SectionObjectives
Topic 1: Procurement Process and Sourcing- Supplier selection and evaluation
  • 1. Supplier appraisal techniques
    • 2. Pre-qualification and tendering
      - Sourcing strategies
      • 1. Make or buy decisions
        • 2. Outsourcing and insourcing approaches
          Topic 2: Risk, Ethics and Sustainability- Ethical and sustainable procurement
          • 1. Sustainable sourcing practices
            • 2. Corporate social responsibility
              - Procurement risk management
              • 1. Supply chain disruptions
                • 2. Risk identification and mitigation
                  Topic 3: 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
                          Topic 4: Procurement and Supply Context- Role of procurement in organisations
                          • 1. Organisational objectives and procurement contribution
                            • 2. Stakeholder expectations and value delivery
                              - External business environment
                              • 1. Economic and regulatory influences
                                • 2. Market conditions and supply markets
                                  Topic 5: Procurement Technology and Innovation- Innovation in supply management
                                  • 1. Process optimisation
                                    • 2. Automation and AI applications
                                      - Digital procurement tools
                                      • 1. Data analytics in procurement
                                        • 2. E-procurement systems
                                          Topic 6: Contracting and Legal Principles- Contract management
                                          • 1. Performance measurement
                                            • 2. Dispute resolution and remedies
                                              - Contract formation
                                              • 1. Terms and conditions
                                                • 2. Key elements of contracts

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                                                  CIPS Procurement and Supply in Practice Sample Questions (Q89-Q94):

                                                  NEW QUESTION # 89
                                                  What are the four quadrants within the Kraljic portfolio matrix?

                                                  Answer:

                                                  Explanation:
                                                  See the answer in explanation.
                                                  Explanation:
                                                  At the early stages In procurement and supply cycle, buyers begin segmenting current supplies in the categories, depending on their level of integration into the organization. To help get this done, the buyer may use the Kraljic portfolio matrix. The kraljic portfolio matrix segment suppliers into four categories, which are;
                                                  1) Routine 2) Bottleneck 3) Leverage 4)strategic supplier
                                                  * Refer to the question column for response


                                                  NEW QUESTION # 90
                                                  Think of a supply chain with which you are familiar and distinguish between the primary, second-ary and tertiary sector organization within it.

                                                  Answer:

                                                  Explanation:
                                                  See the answer in explanation.
                                                  Explanation:
                                                  Supply chain involves a network of individuals, organizations, technology activities and resources to make sure goods or services flow along the chain. If one point fails, every part further along the chain fails.
                                                  Fullpower projects (a flour manufacturer) supply chain begins with producers (raw materials, wheat farmers), suppliers, manufactures, distributors, retailers and end users (customer).
                                                  Fullpower projects supply chain falls within the primary sector (producers of wheat), the secondary sector include the manufacturing (those that converts the wheat the suppliers brings into flour) and tertiary sector (the distributor those that takes the wheat to the end users).


                                                  NEW QUESTION # 91
                                                  What is depreciation and deterioration?

                                                  Answer:

                                                  Explanation:
                                                  See the answer in explanation.
                                                  Explanation:
                                                  When an organization want to purchase an asset, it considers the depreciation and deterioration in the whole life of the asset and how it will be manage.
                                                  Depreciation is the reduction in value of a tangible and a fixed asset over time. The purpose of calculating the depreciation of the asset is to give the organization a fair and current view of what the asset is worth at a particular time. Depreciation is a way of converting the cost of an asset into an expense over a period of time.
                                                  Depreciation is a permanent feature listed against an asset throughout its life time and it based on wear and tear, reduction in performance and reduction in value.
                                                  Deterioration is the process of something becoming lower in quality or performance. The longer the asset can last without deteriorating the better value the asset represents.


                                                  NEW QUESTION # 92
                                                  Explain the difference between bonded and forced labor.

                                                  Answer:

                                                  Explanation:
                                                  See the answer in explanation.
                                                  Explanation:
                                                  Bonded labour and forced labour are among the five types of modern slavery which is against ethical and responsible sourcing.
                                                  Bonded labour also known as debt bondage, this is an individual's promise to provide services through exploitation as repayment, or part of them, of a debt or other obligation whereas forced labour is work that people are forced to do with the heat of punishment if it is not carried out.
                                                  (Correct)


                                                  NEW QUESTION # 93
                                                  Why do some specifications need to adapt?

                                                  Answer:

                                                  Explanation:
                                                  See the answer in explanation.
                                                  Explanation:
                                                  Specification is a detailed description of what is required or needed. Due to certain reasons, needs sometimes increase in importance or lose their essence, therefore speci-fications need to adapt and develop to reflect the changing requirements of the con-sumer and also to comply with regulations and legislatures as this are amended.
                                                  Standard, regulations and legislation are continually evolving and new updated versions of existing guideline, as well as completely new initiatives one being released.


                                                  NEW QUESTION # 94
                                                  ......

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