Are you preparing for the CIPS L4M8 exam? If so, you might want to read this post, where I will analyze the main topics that were asked in the exam and give you some tips on how to answer them.
Q1: This question tests your understanding of the Defining need stage in the procurement cycle. You need to explain why it is important to have clearly defined requirements for a given scenario. You can use the benefits of Defining need from the L4M1 study guide, page 90-93, such as enabling effective supplier selection, reducing waste and cost, meeting end-user needs, etc. You should also give examples of how to define requirements, such as using conformance or performance specification, stakeholder analysis, market research, etc.
Q2: This question asks you to suggest five express terms for a contract based on a scenario. Express terms are the terms that are explicitly agreed by the parties in a contract. You should choose the terms that can help the buyer manage the risks in the scenario, such as delivery time, quality, payment, warranty, etc. You should also explain how to write these terms clearly and precisely, and how they can affect the performance of the contract. For a buyer who cares about late delivery, then liquidated damages clause could be chosen. For a buyer whose major concern is quality, testing and acceptance clause should be included.
Q3: This question assesses your knowledge of Total cost of acquisition. This is a concept that refers to all the costs associated with acquiring goods or services from a supplier. You should only focus on the acquisition costs in this question, and not include other costs such as operation, maintenance, disposal, etc. These are part of Whole life asset management, which is a different concept.
Q4: This question evaluates your application of the CIPS code of conduct in a scenario. The CIPS code of conduct is a set of ethical principles and standards that guide procurement and supply professionals. It has five headings: Enhancing and protecting the standing of the profession; Maintaining integrity in all business relationships; Eradication of unethical business practices throughout supply chain; Enhance the proficiency and stature of the profession; Ensure full compliance with laws and regulations. You should explain how each heading relates to the scenario, how it can add value to the organization, and how it can be embedded in the procurement processes and policies.
For example, Eradication of unethical business practices throughout supply chain is a heading within the Code of conduct. This means that procurement and supply professionals should not tolerate any form of corruption, fraud, bribery, or human rights violations in their supply chain. They should also ensure that their suppliers comply with the relevant laws and regulations, as well as the CIPS ethical code. One way to integrate this heading into the procurement process is to conduct regular audits of suppliers to prevent and detect any unethical behavior. This can help the organization avoid legal risks, reputational damage, and financial losses. It can also improve the trust and transparency between the buyer and the supplier and foster a culture of ethical responsibility.
I hope this post helps you prepare for your exam. If you have any questions or comments, please feel free to share them below. Good luck!
Do you want to ace your CIPS exams? Try our practice tests with over 200 questions per module. You’ll get instant feedback with answers and explanations for every question. Plus, you can save money with our coupon code CIPSAUG. Just enter it at checkout and enjoy a lower price on OUR PRACTICE TEST