L4M2 Focus Areas

L4M2 Focus Areas

These are some common learning areas that CIPS often asks in the exam. However we can not assure that they will not ask other areas of knowledge.

  • Types of purchase: Straight re-buy, modified re-buy, new purchase. When are they used?
  • Cost and benefit analysis: Payback period
  • Primary and secondary sources of information
  • Identify direct and indirect costs
  • Total cost of ownership
  • Types of benchmarking
  • Positive and negative cash flow
  • Budget variance
  • Economic sectors: manufacturing, construction, agriculture, financial
  • Porter’s Five Forces: buyer’s and supplier’s bargaining power
  • The use of conformance and performance specification
  • Common ISO Standards
  • Risks of over- and under-specification
  • Roles of standardisation, value analysis, value engineering
  • Differences between value analysis and value engineering
  • Stakeholders’ roles in specification development.

Prepare for your exam with our practice tests. They are on BIG SALE with just a half of normal price 😊

L4M1: Scope and Influence of Procurement and Supply

L4M2: Defining Business Needs

L4M3: Commercial Contracting

L4M4: Ethical and Responsible Sourcing

L4M5: Commercial Negotiation

L4M6: Supplier Relationship

L4M7: Whole Life Assets Management

L4M8: Procurement and Supply in Practice

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