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CIPS L4M8 Exam Overview:
| Certification Vendor: | CIPS |
| Exam Name: | Procurement and Supply in Practice |
| Exam Number: | L4M8 |
| Exam Format: | Scenario-based written examination, Long-form questions, Case study analysis |
| Real Exam Qty: | 4-5 scenario-based questions |
| Passing Score: | Pass/ Fail (50% typically) |
| Available Languages: | English |
| Related Certifications: | CIPS Level 4 Diploma in Procurement and Supply |
| Exam Duration: | 150 minutes |
| Certificate Validity Period: | No expiry for certification; membership renewal required |
| Exam Price: | Varies by region; contact local CIPS office |
| Sample Questions: | CIPS L4M8 Sample Questions |
| Exam Way: | Written examination (paper-based or on-screen at approved test centers) |
| Pre Condition: | Recommended: Completion of L4M1-L4M7 or equivalent knowledge; CIPS membership required for exam registration |
| Official Syllabus URL: | https://www.cips.org |
CIPS L4M8 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Strategic Sourcing and Category Management | 20-25% | - Category segmentation - Strategic sourcing process - Spend analysis techniques - Supplier segmentation and criticality analysis |
| Topic 2: Practical Application Scenarios | 15-20% | - Case study analysis - Recommendation and justification skills - Applying theory to real-world procurement situations - Problem-solving and decision-making |
| Topic 3: Procurement Process and Procedures | 25-30% | - Supplier selection methods - Procurement cycle stages - Requirements gathering and specification - Contract award criteria - Purchase ordering and goods receipt |
| Topic 4: Supplier Relationship Management | 20-25% | - Supplier performance measurement (KPI, scorecards) - Partnership and collaboration models - Supplier development and improvement - Risk management in supplier relationships - Supplier relationship types |
| Topic 5: Ethical and Sustainable Procurement | 15-20% | - Ethical sourcing considerations - Modern slavery and fair trade - Corporate Social Responsibility (CSR) - Environmental sustainability in procurement - Supply chain transparency |
CIPS Procurement and Supply in Practice Sample Questions:
1. Which contract term contains details of when a product or service should be delivered and ex-plained the potential loss of business?
2. Describe three ways in which a buyer could or test the market in other to assist with determining a need.
3. What is PQQ and what does it include?
4. What are the 3Ps in the triple bottom line.
5. Maximum Score: 25
(a) Outline the financial data that can be used in the process of supplier selection.
(10 marks)
(b) Explain THREE potential concerns for a buying organisation of selecting a supplier that has a current ratio of 0.67:1. (15 marks) K-cyber Shield Limited
11
Ashton Parsons is a newly appointed procurement specialist for a local government department. He has been recruited in response to a new government programme. The country's national government is currently promoting a programme of engagement with small and medium-size organisations (SMEs), to help build a healthy and diverse economy in the country. All local government departments have been tasked to engage with more local SME suppliers. One significant problem for SME suppliers compared with large national contractors is that they do not have the financial resources and track record of their larger competitors. This engagement programme is intended to change the reliance on just one or two large national contractors in each category of expenditure. In one category of expenditure, for a ten-year contract to supply Information Technology (IT) services to the local government department, a full invitation to tender document is to be issued shortly. Ashton has been asked to begin the sourcing process.
Ashton has received a range of data, including financial data, on one potential local supplier, K-cyber Shield Limited. All the data gathered so far has been received from independent, reliable and trusted sources.
One aspect of the financial data received to date on K-cyber Shield Limited shows that it has, at present, current assets of El 00,000 and current liabilities of El 50,000, giving a current ratio of 0.67:1.
Solutions:
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