L4M1 May exam had 4 questions. According to the Principal Marker Report, the respective topics are:
- Procurement and Supply chain management
- The processes within Procurement and Supply
- Inventory control systems
- Third sector organization
Question 1: Procurement and Supply chain management
This topic covers the definitions, objectives, and benefits of procurement and supply chain management. Procurement is the strategic function that oversees the purchasing and management of inputs for an organization. It involves activities such as identifying needs, selecting suppliers, negotiating contracts, ordering goods and services, and evaluating performance. Supply chain management is the strategic activity that coordinates the upstream and downstream flows of materials, information, and money among suppliers, distributors, and customers. It involves activities such as planning, sourcing, making, delivering, and returning products. The main difference is that procurement focuses on sourcing and managing the suppliers, while supply chain management ensures that the sourced products meet the customer needs. An example of procurement is when a company buys raw materials from a supplier to produce its products. An example of supply chain management is when a company delivers its products to a retailer who sells them to the end customers.
Question 2: Processes within Procurement and Supply
The second question focuses on processes. However, I have very little information about this and cannot make any guess about potential question here.
Question 3: Inventory control systems
Question 3 is about different inventory control systems that help manage inventory levels and costs. The study guide mentions some of these systems, such as:
- MRP: A system that calculates and plans the procurement, production, and delivery of materials based on the demand forecast and the bill of materials.
- MRP II: An extension of MRP that also considers other resources in manufacturing activities, such as labor, equipment, and scheduling.
- Just-in-time: A method of inventory management that minimizes inventory holding by ordering and receiving goods only when they are needed.
- Kanban: A reordering system that uses visual signals and communication systems to trigger replenishment orders from suppliers or internal production units.
- ERP: A system that integrates various functions of an organization, such as manufacturing, sales, marketing, finance, human resources, and supply chain management. It provides data sharing and coordination among different departments and processes. In procurement, ERP can offer modules for e-sourcing, e-ordering, contract management, and more.
Question 4: Third sector organization
Question 4 is about the characteristics and challenges of third sector organizations in procurement. Third sector organizations are not-for-profit organizations that operate for social or environmental purposes rather than for profit. They include charities, social enterprises, and cooperatives. According to the web search results, some of the common features and objectives of third sector organizations are:
- Raising awareness of a matter. Third sector organizations often have a mission or cause that they are working to promote, and they need to be principled and ethical in their procurement approach to avoid being seen as hypocritical.
- Attracting donation. Third sector organizations rely on donations and grants to finance their operations, and they need to prove that they are efficient in delivering the public good. Procurement must deliver value for money and demonstrate social impact.
- Services to member: Some third sector organizations are membership associations that offer services to their members, such as cooperatives. They need to ensure that procurement is effective and delivers the best services to their members.
Are you looking for practice questions for the CIPS exam? You can find some useful resources by clicking HERE. The questions come with detailed explanations and additional information that will help you gain a deeper understanding of the module. Moreover, the questions are designed based on the CIPS exam format, which will boost your confidence in the exam.